Shovels in the ground for 48-unit Marshview Apartments in Sheboygan Falls

Listen to this article

A new apartment complex is underway for Sheboygan Falls.

Mequon-based Brew City Capital Group in August broke ground on the Marshview Apartments, a 48-unit, ground-up apartment development southwest of the Wisconsin Highways 23 and 32 intersection.

Plans include four 12-unit apartment buildings and around 114 surface parking spaces. When completed, Marshview Apartments will have exclusively two-bedroom and two-bathroom units ranging from 1,230–1,300 square feet. Amenities include laundry, private entry, attached single-car garages and a private patio or balcony.

The developer submitted plans to the Sheboygan Falls Plan Commission in April, an agenda showed. The city reviewed and approved plans over late spring and summer.

The timeline for construction will be 12 months, a spokesperson for the project lender said.

Waukesha-based Duffek Construction will serve as general contractor. The project team includes architecture firm KCB Buildings, civil engineer Kapur and Associates and legal counsel Michael Best & Friedrich.

The Sheboygan County Economic Development Corp. supported the project with $1.2 million in tax increment financing, which will be distributed to Brew City for 10 years. The total project cost hasn’t been shared.

The Marcus & Millichap Capital Corporation arranged $8.7 million in construction financing for the apartments, lender officials said.

“The repeat borrower selected a highly competitive mini-perm construction financing package, chosen from several qualified options,” said Michael Hughes, managing director of the MMCC Milwaukee office, in a statement. “The loan structure is tailored to align with the borrower’s projected construction and stabilization timelines, while offering interest rate protection throughout the term.”

MMCC provided a five-year loan with a 6.2% fixed interest rate with 30 months of interest-only payments and a 30-year amortization period, officials said. The loan-to-cost is 77%.

Sheboygan County is experiencing low vacancies and limited new supply, Brew City officials said. The area is home to employers such as Kohler, Acuity Insurance, Johnsonville and Aurora Health Care, which provide a stable employment base and opportunities for expansion, officials added.