Construction begins on Milwaukee’s 373-unit 100 East apartment conversion

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By TOM DAYKIN

USA TODAY Network via Reuters Connect

One of the Milwaukee area’s largest apartment developments, this one converting a downtown office tower, will begin construction after Memorial Day.

The vacant 100 East building is being redeveloped into 373 apartments, including 75 “workforce housing” units.

Those have monthly rents affordable to people earning no higher than 100% of the Milwaukee area’s median income – starting at around $1,600 for a studio unit.

The construction begins after the developers closed on their financing package, said John Vassallo. He’s partnering with Klein Development Inc. on the project.

The apartments are to be completed by the end of 2027, Vassallo told the Milwaukee Journal Sentinel.

The main financing is through a U.S. Department of Housing and Urban Development program which insures private loans for apartment developments, Vassallo said.

The $114 million loan is being provided through Dwight Capital LLC, he said, and is the largest such HUD-guaranteed loan for a Wisconsin project.

Those HUD loan guarantees, for which developers pay fees, have been used in connection with other Milwaukee-area apartment developments, including downtown’s Couture high-rise.

The $186.7 million 100 East project’s financing includes federal and state historic tax credits, which Vassallo said are being sold to JPMorgan Chase & Co. and U.S. Bank.

The 35-story office tower, which opened at 100 E. Wisconsin Ave. in 1989, was declared historic by state officials because it exemplifies the Postmodern architectural style.

Meanwhile, the Common Council and Mayor Cavalier Johnson in March approved a $16.6 million tax incremental financing district for the 100 East conversion.

The annual payments from the development’s new property tax revenue would be provided up to 20 years. The tax revenue then flows to the city, Milwaukee Public Schools and other local governments.