Developers turn to Milwaukee again for financial support for 100 East project

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The developers of a large office conversion project in downtown Milwaukee are turning to the city again for financial support.

In July 2025, the city of Milwaukee approved Tax Incremental District No. 127 for the footprint of 100 East, a historic office building being renovated into 373 apartments. Seventy-five apartments will be set aside for workforce housing for people making 100% of the area median income.

100 East will use $14.4 million in developer-financed tax increment financing. The TIF will last 16 years at a 6.2% interest rate.

The project will also be supported with different financing sources, including a U.S. Department of Housing and Urban Development loan, historic tax credits and developer equity.

The Redevelopment Authority of the City of Milwaukee will hold a public hearing at 1:30 p.m. Feb. 19 to amend TID No. 127 and consider granting an additional $2.2 million cash grant to the developer.

The grant is for “hard and soft costs to improve workforce housing in the downtown area and an additional $40,000 for the administration of the TID,” according to a public notice.

Additional funding is needed to help keep up with construction costs, developer Johnny Vassallo said. Vassallo and Klein Development are working together on the apartment conversion.

Because the project uses a HUD loan, it will need to pay its workers prevailing wages under the Davis-Bacon Act, Vassallo said. Overall project costs have risen around 14% in the last two years. With added support from the city, the project is expected to start in April 2026, he added.

“The project is experiencing additional development costs. The additional increment will help fill the new development gap,” said Madison Goldbeck, spokesperson for the city of Milwaukee Department of City Development.

Madison-based Stevens Construction Corp. and Milwaukee-based Oxeland Group are serving as the general contractor and construction manager respectively.

100 East was one of the first projects supported under the DCD’s workforce housing guidelines.

Under the guidelines, developers must demonstrate that the project would not be economically viable without the city’s assistance.

The city offers financial assistance to support the creation of new workforce housing units that are affordable for those making 60%-100% of the area median income.

The 100 East conversion is expected to be completed in late 2027 or early 2028. The building was built in 1989.