Tom Daykin

Milwaukee Journal Sentinel

The downtown Milwaukee area is getting its first major condominium development in over a decade — an indication that the condo market has finally bounced back after the 2007 housing collapse.

Wangard Partners Inc. plans to build a six-story, 61-unit building on a site overlooking the Milwaukee River at North Water and East Brady streets.

That building could be expanded to seven stories, bringing the unit count to 70 condos, according to the firm's plans.

Construction is to begin in June.

Two future buildings, if developed, would bring another 183 units to the site, said Stewart Wangard, the firm's chair and chief executive officer.

Wangard's project would be a high-profile milestone.

"Nobody's done a condo development of any substance or any size (in the downtown area) for at least 12 years," he said, in an exclusive interview with the Journal Sentinel.

'A great design'

Tentatively known as Brady and Water, the development would feature poured concrete buildings.

That provides a much better level of soundproofing than either wood or steel frame construction, Wangard said.

Also, the glassy design, by the Rinka architectural firm, would be an effort to fit a contemporary building into an area that includes several new apartment developments and older single-family homes.

"We wanted a design that would fit very well in this neighborhood," Wangard said.

The project would need Common Council approval. It will likely undergo that process, including a Plan Commission review, in late January and early February, he said.

"I like it. I think it's a great design," said Rocky Marcoux, city development commissioner.

Ald. Nik Kovac, whose district includes the site, said there will be questions about the design and other development aspects.

But Kovac said he's excited about the prospect of development, which would include public access on a city-owned right-of-way from Brady Street to the Milwaukee River.

Boat slips and kayak storage

Brady and Water's amenities would include underground parking, co-working space and a fitness center. The third building would include storage space for kayaks, stand-up paddle boards and small boats.

The development also would have a public RiverWalk, with a connection to private boat slips.

A Wangard Partners affiliate has owned the 2.7-acre site, at 1701 N. Water St., since 2012.

It was purchased from a bank that had acquired the property from an investors group led by developers Boris Gokhman and Walter Shuk.

That group gave the property to the bank to help settle a pending foreclosure suit. Gokhman and Shuk, of New Land Enterprises LLP, had planned to build condos on the site before the housing bubble burst in 2007.

That collapse in housing prices, and the 2008 global recession and financial industry meltdown, killed demand for condos throughout downtown and the east side.

In more recent years, however, several high-end apartment buildings have been developed in the downtown area.

That rental housing has met demand from downsizing empty nesters and younger people who want to live, work and play in downtown and its adjacent neighborhoods.

Those projects include one operated by New Land Enterprises, The Rhythm, that is just a block south of Brady and Water, at 1620 N. Water St.

Plenty of demand

A couple of smaller downtown-area condo proposals have surfaced over the past year or so.

They include developer Peter Renner's plans to build 13 three-story townhouse-style units at 620 E. Summerfest Place, in the Historic Third Ward.

Wangard's proposal is much bigger, totaling up to 253 condos if all three buildings are fully developed.

He said there's strong demand for downtown condos in part because of the lack of development of such housing over the past several years.

That point was echoed by Mike Ruzicka, president of the Greater Milwaukee Association of Realtors.

"There are a lot of people looking for units," Ruzicka said. "But there aren't a lot of units available."

The condo market "could easily absorb a 10 percent to 20 percent increase in units to accommodate the demand we’re seeing," he said.

Meanwhile, the downtown area is increasingly vibrant, with such projects as the Fiserv Forum, the redevelopment of the former Grand Avenue mall into The Avenue, and new hotels, restaurants and other projects.

Finally, empty nesters and members of the millennial generation "are looking for a place of their own," Wangard said.

He expects to draw buyers from downtown apartments, suburban single-family homes and older downtown condos.

The Brady and Water units would range from around 850 square feet to 2,100 square feet, Wangard said. That would accommodate one bedroom to two bedrooms with a den.

The average price would be around $400 per square foot. That translates to a smaller unit selling for around $340,000.

Wangard is finalizing terms of a construction loan — he declined to disclose the amount — for the first building with up to 70 condos. It would open by summer of 2020.

The building would include two-level townhouse units on the first two floors. Those condos would especially appeal to families with children, Wangard said.

The second and third buildings would have, respectively, 140 units in 12 stories, and 43 units in seven stories, according to preliminary plans.

Their construction schedules would depend on continuing strong demand for condos, Wangard said.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.