The growth of Third Space Brewing is extending from the Menomonee Valley to Menomonee Falls. Brewery founders Andy Gehl and Kevin Wright on Monday morning announced plans for a 5,000-square-foot space at the corner of Good Hope Road and Appleton Avenue. It’s part of a 173-unit apartment development that is expected to open by June 2024.
“Our current taproom has become well known as the place to be for big events like Wisconsin IPA Fest and Ice Bear Fest, and we have cultivated a great group of regulars who have made our taproom their own ‘third space,’” said Gehl in a press release. “However, we have always been more of a ‘destination brewery’ at our main location. Opening a second location in the heart of where so many people live and work offers a great opportunity for a much larger group of people to connect with the Third Space Brewing brand while continuing to be the go-to spot at the Milwaukee taproom for private parties, creative events or a fresh Happy Place directly from the source.”
The development plans include three separate apartment buildings and two buildings designated for retail.
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“We’ve been looking at the opportunity for a second location for four years or so,” Gehl told Milwaukee Magazine. “What that became has certainly morphed from what was a much larger brewery expansion to what it is now – more small brewery and taproom focused. We shifted to that strategy in mid-2022. We really took our time to find the right project and timing.”
The plan is to create a 112-seat taproom and a large outdoor area. The Innovation Brewhouse will also house a 10-barrel system to allow Wright, the Third Space brewmaster, to create experimental brews. Third Space’s original location (1505 W. St. Paul Ave.) currently has a 5-barrel pilot system (alongside its larger capacity brewing area). The new space won’t greatly expand brewing capacity, which currently stands at 13,000 barrels per year at the St. Paul Avenue brewery, but does provide Third Space with another retail location.
“We still have capacity for growth where we are now. We invested a lot in our current location pre-pandemic,” said Gehl. “Given that the market has certainly slowed for craft beer, that growth trajectory has leveled off. While we’re still growing, it’s much smaller amounts of growth. The need for a 60,000-barrel-a-year facility doesn’t make sense. But a secondary retail location isn’t reliant on wholesale growth to be successful. It’s kind of a diversification move for us.”
Added Wright: “We deliberately chose specialized equipment that expands our processing capabilities, allowing us to delve into more innovative beer styles than our current equipment and facility allow.”
Third Space opened in September 2016. In 2018, it was named one of the fastest-growing breweries in the country by the Brewers Association.
The move taps into an area of the metro area that is a bit of a brewery desert. Menomonee Falls does not have a brewery, and the closest breweries to the Third Space site are Biloba Brewing in Brookfield and Old Germantown in Germantown, each more than 6 miles away.
“It’s possible that we’ll send some small draft batches to the neighboring community,” explained Gehl. “We want to be the local brewery in Menomonee Falls. It’s a place for us to develop new styles and if they hits we can grow them.”
