Jagler: Irgens is bullish on Milwaukee ... and its streetcar

Commercial real estate developer Mark Irgens is bullish on Milwaukee, and he continues to put his wallet where his heart and his feet are.

Over the past 35 years, Irgens Partners LLC has completed hundreds of successful projects throughout the U.S. valued at more than $3 billion.

Many of his Milwaukee projects have been transformative: the glittering 833 E. Michigan building, the ASQ Center, the 875 Wisconsin building and the Milwaukee County Research Park.

His southeastern Wisconsin portfolio of development also includes: the Actuant Corp. headquarters in Menomonee Falls, United Heartland in New Berlin, the East Mequon Corporate Center III in Mequon and The Corridor in Brookfield.

In his latest Milwaukee venture, Irgens is developing the BMO Harris Bank tower at 790 N. Water St. The $132.6 million tower will have 25 stories, and Irgens will then redevelop BMO’s current Milwaukee headquarters building at 770 N. Water St.

Not coincidentally, the new BMO tower is located along the tracks of the new Milwaukee streetcar on Broadway.

“I’m conservative, but I personally love the streetcar. I think the role of government is to provide the infrastructure,” Irgens said. “I think it’s a great thing. I think you’ll see (property) values rising along the streetcar lines. I view it as a positive for downtown.”

Irgens has a strong track record for assessing the projected values of his investments. However, he admits he is not King Midas.

Like many commercial real estate investors, his firm was burned in an ambitious building project when the Great Recession crushed the Arizona property market in 2008.

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“Not every project works according to plan. We were not alone,” Irgens said.

However, Irgens used the Arizona collapse as a learning moment. With that project in his rearview mirror, he devised a risk management strategy to help minimize any future losses.

“Each development project may include acquisition, design, construction, debt, equity financing, leasing and operations. These elements and sub-elements need to be effectively managed for risk,” Irgens said.

I asked Irgens to share the key components of his risk management strategy. He did, and these tenets can be applied to any speculative corporate venture:

Understand what your clients and stakeholders really want. “Clients are investors in our projects, occupiers of our projects and brokers representing occupiers. A client wants their project to be a good reflection of his/her business skills, taste and judgment. A client wants to look good,” Irgens said. Select the right project team for each individual project. “In our business, that includes lenders, architects, engineers, attorneys, traffic consultants, leasing agents, public relations and others,” Irgens said. Plan for problem scenarios. “Anticipate next steps and understand what can go wrong and why things can go wrong,” Irgens said. Be prepared and stick to a schedule. “Continue adjusting the plan and schedule to meet obligations,” Irgens said. Checks and balances will help you stay on budget. “Adhere to system of controls to stay on top of budget and financial business plan during design, construction and operations,” Irgens said. Match your assets and liabilities. “For example, if you have long-term fixed leases, match them with long-term fixed financing,” Irgens said. Pay attention to the details. “The details can make or break a project. While never forgetting the big picture, never lose sight of elements that have a critical role in its success,” Irgens said. Have backup plans. “Anticipate the possibility of problems with an adequate contingency. Implementation of every project has challenges. One just does not know exactly what they are, and will be, when a project starts,” Irgens said. Dive in. “Sometimes you just have to take a big gulp and move forward with a project based upon gut experience, intuition and confidence. Do what it takes to be successful … within ethical parameters.

Steve Jagler is the business editor of the Milwaukee Journal Sentinel. C-Level stands for high-ranking executives, typically those with “chief” in their titles. Send C-Level column ideas to him at steve.jagler@journalsentinel.com.

Mark Irgens

Title: Chief executive officer and manager

Company: Irgens Partners LLC

Location: Headquarters in Milwaukee, with offices in Phoenix and Chicago

Expertise: Developer, investor and operator of commercial office, mixed-used, health care and manufacturing properties.

Previous experience: Held positions with a development company, construction company, a bank and a commercial appraisal company.

Hometown: Wauwatosa

Education: Bachelor’s degree in business administration with emphasis on finance, urban land economics and real estate at the University of Wisconsin-Madison.

Family: Wife Susan; and adult children, Tom and Kristen

Best advice ever received: “Work smart and keep your eye on the ball.”

Favorite movies: “My Blue Heaven” and “Saving Private Ryan”

Favorite musical artist or band: The Beatles

Favorite Wisconsin restaurant: Rare, Milwaukee