BizTimes Media: The Moderne ready to go | Business Journal of Milwaukee: Behind the deal - Downturn forced developer to turn to unusual money sources
After three years of working on the $55.2 million Moderne, condo developer Rick Barrett has finally secured a financial deal involving the City of Milwaukee that will enable him to break ground on the latest luxury condominium highrise to be constructed on the southwest corner of Juneau Avenue and Old World Third Street in the Park East corridor.
The proposed 30-story Moderne will feature 203 apartments, 14 condominium units, and first floor retail. Of the 14 condominium units, half will be priced between $250,000 and $500,000. The other half will be priced between $900,000 and $2.5 million. As of this writing, Barrett has reported that four condominium units are reserved; three of which are priced between $900,000 and $2.5 million.
On November 4, Milwaukee’s Common Council voted in favor to provide Barrett with a $9.3 million loan for The Moderne. After receiving approval of the city’s loan, Barrett is expecting to break ground on The Moderne in December.
Barrett indicated that the loan from the city was necessary because the financial services industry has tightened their lending policies substantially during the recession. Since the recession began, real estate developers were finding it very difficult to obtain financial backing from investors.
Common Council is optimistic that this will be the first of many successful projects for the Park East corridor.
Common Council expressed reservations about providing a loan of this magnitude for a condominium development. Critics felt that approving such a loan would put the city’s taxpayers at risk. Many argued that the public sector should not provide financial support that the private sector wasn’t willing to assume. Also, supporting a new condominium development would only create more competition for downtown condominium housing that will continue to keep housing prices in check.
Those who supported the city’s loan indicated that the benefits outweigh the costs of this proposal. The strict lending policies of the financial services industry were preventing real estate developments from breaking ground which also prevented the creation of construction jobs. Common Council members who supported the measure argued that The Moderne would create construction jobs and increase the city’s tax base. I tend to think that this argument is very short-sighted and have expressed my opinion below under the section “My Thoughts”.
In addition to receiving a $9.3 million loan from the City of Milwaukee, Barrett has also secured financial backing from the AFL-CIO Investment Trust, which is serviced by Capmark Financial Group and guaranteed by the U.S. Department of Housing and Urban Development. Other financial supporters include Barrett and his partners.
Barrett expects to sell all of the condominium units within four years - which covers the term of the city’s $9.3 million loan.
My ThoughtsAs a REALTOR®, I am happy to see that Downtown Milwaukee is continuing to grow and develop. As a REALTOR®, I am also concerned that the supply of downtown condominium units continues to remain high.
In recent weeks, I have read articles about the foreclosed actions against Park Lafayette and Wisconsin Tower. As I read these articles, I wonder if the market is telling real estate developers to back off. I also wonder if the market is telling our city officials to back off as well.
Those Common Council members who supported this loan argued that The Moderne would add to the tax base of the city. I disagree. The tax base is determined by the assessed values of real estate located in the city. Assessed values are determined, for the most part, by fair market values. As we continue to add more and more competition to our current housing stock, prices will continue to decline. As fair market values decline, so does the assessed values and city’s tax base. Simply adding a new development, such as The Moderne, may not necessarily add to the city’s tax base.
At the end of the day, we’re talking about the addition of 14 condominium units to the total number of condominium units already established in downtown Milwaukee. Will 14 new condominium units significantly influence the current market conditions in downtown?
I guess we will have to wait and see how The Moderne impacts the local economy.
If you were elected as Alderman, how would you have responded to the $9.3 million loan request?
The writers of BizTime Media and Pete Millard, writer for The Business Journal of Milwaukee, provides more details regarding the city’s loan to Barrett and The Moderne.
Click here to read BizTime’s version of this story>>> Click here for Pete Millard’s position>>>-----
Labels: Economy, Real Estate
Available Downtown Milwaukee Condos!
Accepted Offer! Western Leather Lofts #321- $82,000
Step back in time in this century-old warehouse located one block away from Historic Brady Street’s boutiques and fine restaurants.
Surrounded by residential homes, this five-story Cream-City Brick warehouse features concrete-heated floors (dues include heat), post construction, and soaring windows and ceilings.
Kitchen features solid-surface countertops, Grohe kitchen faucet, custom birch cabinets, and under-cabinet lighting.
After a long day, relax and unwind in the jetted tub as your towel warms up on the heated towel rack.
Other amenities include: Central air, central vacuum, recreation room, and common laundry (never step outside to wash your clothes, etc.).
Western Leather Lofts is a pet-friendly condominium association.
Seller is offering a HSA Home Warranty at closing - Free!
Click here to read more about this warehouse-style studio>>>
View Larger Map
Accepted Offer! Lofts on Broadway #407 - $215,000
Live in the heart of the Historic Third Ward!
Cream-City brick, exposed wood-beamed ceilings, maple hardwood floors, and oversized windows complete the package.
Entertain guests in the open-concept floor plan and balcony.
Kitchen boasts stainless-steel appliances.
Both bathrooms feature ceramic tile and vanities with vessel sinks.
Other amenities include full-size side-by-side washer and dryer, spacious storage locker, and central air.
Wake up to the morning sun with views of the Historic Third Ward.
Lake Michigan, Milwaukee River, Milwaukee Public Market, restaurants, nightlife, theaters, art galleries, and boutiques are all located just outside of your front door.
There are several parking options available to rent within a block of this loft.
For more information on where to park, check out
http://www.historicthirdward.org/parkinginformation.php.
Lofts On Broadway is a pet-friendly condominium association.
Click here to read more about this Third Ward loft>>>
View Larger Map
New Price! Park Terrace Row Houses - $225,000
Welcome home to Vetter Denk’s Park Terrace!
This three-story townhome offers a private entrance, private attached garage, and two French balconies.
The elevated first floor features an open-concept floor plan with Great Room and Kitchen.
The Great Room boasts Brazilian Cherry hardwood floors and concrete walls.
The chef will appreciate the stainless-steel appliances, under-mounted stainless-steel sink, gas range, and spacious breakfast bar.
Second floor features two bedrooms and two-full bathrooms.
Tile floors, tile tub surround, and Kohler fixtures complete the bathrooms.
Spread out in the master bathroom that features a double vanity.
Enjoy the views of the Beerline neighborhood from the French balcony of the top-floor den.
Park Terrace is a pet-friendly condominium association.
Click here to read more about this townhome-style condo>>>
View Larger Map
Cityside Plaza - New Warehouse Loft Conversion in the Historic Third Ward - Condos Start at $244,900
Cityside Plaza is a brand new condominium association offering luxury living in the heart of the Historic Third Ward.
Several unique floor plans are available offering a combination of one bedroom with one bathroom, two bedrooms with two-full bathrooms, and two bedrooms plus den with two-full bathrooms and one-half bathroom.
Kitchen boasts granite countertops, GE stainless-steel appliances, Grohe faucets, Oliveri stainless-steel sink, and your choice of satin nickel or stainless-steel hardware.
Bathrooms feature Kohler sink, soaking tub, and toilet, natural stone flooring, and ceramic tile shower surround.
You will find oak hardwood floors not only in the main living areas of our condo units, but you will also find hardwood floors in the bedrooms.
All units feature in-unit laundry hook-ups and at least one indoor parking space.
Most units feature a balcony.
Cityside Plaza is a pet-friendly condominium association.
Click here to read more about this brand new warehouse association in the Historic Third Ward>>>
View Larger Map
Riverbridge #304 - $250,000
Located on the banks of the Milwaukee River you will enjoy the peace and quiet that comes with the Riverbridge lifestyle.
Stroll along the Riverwalk or shop at nearby Historic Brady Street. Surround yourself in sunlight and enjoy the river views from the sunroom, great room, both bedrooms, and balcony.
Entertain guests in the great room that features maple hardwood floors.
The chef will appreciate the stainless steel appliances, gas range, under-mounted stainless steel sink and convenient pull-out cabinet drawers.
Grill on the balcony that features a gas line (never replace another propane tank).
Need space to get ready in the morning?
Spread out in the master bathroom that features a double vanity.
Relax and unwind in the whirlpool tub.
Riverbridge is a pet-friendly condominium association.
Click here to read more about this riverfront condo>>>
View Larger Map
Wisconsin Tower #702 - #269,900
Welcome home to Wisconsin Tower!
At nearly 2,000 square feet, you’ll appreciate the open-concept floor plan and spacious rooms.
Notice the fine details of this condo: Custom-built cabinets, millwork, wood panels, built-in bookcases, and custom shelves.
French doors offer privacy.
Maple hardwood floors are found in nearly every room.
The gourmet chef will appreciate the granite countertops, under-mounted stainless-steel sink, stainless-steel appliances, abundant counter space and spacious breakfast bar.
The best part…the views!
This unit occupies half of the floor - so, you’ll enjoy skyline views to the east, north, and west as well as the garden rooftop terrace.
Wisconsin Tower offers many amenities and services for its owners including private party room, fitness room, rooftop garden terrace, courtyard, barbeque area, dog walk, and guest suites.
Wisconsin Tower is a pet-friendly condominium association.
This property includes a preferred financing package with a below market interest rate and lower monthly payments.
Click here to read more about this spacious condominium unit located in a beautifully preserved art deco building>>>
View Larger Map
Accepted Offer! Van Buren City Lofts #501 - $319,900
This loft was designed with an Arts & Crafts home in mind.
The moment you walk in, a sense of warmth and comfort will set in.
From the custom all-brick fireplace to the oak hardwood floors and millwork - you will soon appreciate the quality of the craftsmanship that this unique loft offers.
Entertain guests in the Great Room and spacious 24-foot balcony.
The incredible wall of windows provides amazing panoramic views of the East Side. The open-concept kitchen features granite countertops and gas range. French Doors and clerestory windows allow light to pass through to the bedrooms without compromising privacy.
Relax and unwind in your Jacuzzi.
Seller is offering a home warranty at closing.
Click here to read more about this unique Arts & Crafts style condominium unit>>>
View Larger Map
For more information about Western Leather Lofts, Lofts on Broadway, Park Terrace Row Houses, Cityside Plaza, Riverbridge, Wisconsin Tower, Van Buren City Lofts, and other downtown-area condominiums, please contact me at (414) 412-7980 or e-mail at dray@shorewest.com.
-----
Labels: Featured, Real Estate
I’m sure by now many of you have read that President Barack Obama has signed a law that extends and expands the first-time homebuyer tax credit.
