Plagued for years by high office vacancy rates, one of the 14 story tall towers of 310W known colloquially as the “blue building,” which is in the heart of Westown, could be transformed into 220 new multi-family apartments.
The project would be supported by a proposed developer-financed tax incremental district or TID; that would provide up to $6.4 million over an 18-year term, continuing the trend of further investments revitalizing the area like the Fiserv Forum.
The Redevelopment Authority of the City of Milwaukee will review the proposed TID for the 310W property on Aug. 20. A public hearing will also be held at the meeting with project plans made available online prior to the date.
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The proposed project would include a mix of studio, one, two and three-bedroom apartments, including 50 workforce housing units for households earning between 70% and 90% of the area’s median income. The $73.6 million project from 310W Wisconsin Rollup LLC, in partnership with New York City-based Time Equities Inc., who owns the building, would convert vacant office space within the east tower at 310W.
“We saw an opportunity to restore an important Milwaukee landmark that had experienced significant vacancy, but as our repositioning efforts gained momentum, the pandemic fundamentally changed demand for office space,” said Brad Gordon, director of acquisitions for Time Equities. “Despite investing more than $30 million into the property, we remained committed to finding a long-term solution and, over the past four years, worked to advance a plan to convert the East Tower into residential apartments.”
Originally called the Henry S. Reuss Federal Plaza when it opened in 1983, the name changed to 310W in reference to its street address, after it was purchased by Time Equities and underwent a major renovation in 2017-18. It is the largest building in Westown with 578,000 square feet divided between two towers and connected by an atrium.
“We are focused on creating more opportunities for residents to find quality, affordable homes,” Mayor Cavalier Johnson said in a statement. “This investment benefits Milwaukee’s long-term economic health by expanding our tax base and ensuring our existing buildings contribute to the city’s future.”
The TID would help close the financing gap associated with complex office-to-residential conversions while supporting the transformation of an existing building into new housing, according to the Department of City Development.
“This proposal represents an important investment in the continued growth of downtown,” Alderman Robert Bauman said. “This conversion will bring more residents downtown, support local businesses and further activate the neighborhood; I am pleased to support this project and the city’s efforts to expand housing opportunities.”
The Department of City Development is proposing a TID under the city’s housing development guidelines, which prioritizes projects that create affordable workforce housing options and developments that repurpose underutilized central business district office buildings into residential properties.
“We’re excited to see continued investment in affordable places to live for Milwaukee residents,” DCD Commissioner Lafayette Crump said in a statement. “The Department of City Development is proud of the work we’ve done to partner with the development community to expand and refine the use of tax incremental financing to help close financing gaps associated with complex redevelopment projects and increase the amount of housing available in Milwaukee across diverse price points.”
Westown’s rebirth over the past several years has included the redevelopment of the space long occupied by Boston Store, which closed its Downtown location in August 2018. The building is now known as HUB640, which houses Fiserv’s corporate headquarters and a ground-level Kohl’s department store. Alongside the former Warner Grand Theatre that houses the Milwaukee Symphony Orchestra and the former Assurant building with 350,000 square feet, which is home to Milwaukee Tool’s office and tech complex.
There’s also The Avenue, the $53 million redevelopment project at the former Shops of Grand Avenue, that features the 3rd Street Market Hall and the corporate headquarters of Graef USA.
However, not all developments have been successful, such as in 2022 when a 8,000-seat soccer stadium was proposed, to transform a long-neglected Westown property into a new sports and entertainment area dubbed the Iron District. Those ambitious plans have long since entirely stalled and the property remains vacant.
