By: Sean Ryan of the Milwaukee Business Journal – Dec. 1, 2016
Milwaukee developer LCM Funds LLC acquired another building in the Walkers Point neighborhood on South First Street, and is interested in rehabbing it and possibly picking up more properties for an eventual redevelopment of that block.
LCM Funds bought the three-story former warehouse building at 228 S. First Street at the end of November for $1.1 million, according to state records.
David Winograd, head of LCM Funds, said he plans to renovate the South First Street building for offices and retail space. However, plans could change if his group is able to acquire more land on that block for a bigger project.
“We’ve had talk of things we’d like to do, but we don’t know whether that would be financially feasible,” he said.
The investor has a year before current tenants’ leases run out on the building, said Scott Revolinski, broker with RFP Commercial who worked on the sale, and has worked with LCM Funds on past investments.
The building renovation could add a green roof and patio. Most of the interior space would become offices, but a first floor area could become a cafe, according to the plans.
LCM Funds has been very active in the neighborhood. It owns a full block of buildings at the South Water Works property on East Pittsburgh Avenue, east of its latest acquisition. On that site, it rehabbed historic buildings into new offices for companies including PKWare Inc. and Plunkett Raysich Architects LLP.
Winograd said its office space in South Water Works is full. Communications firm Traction Factory recently renovated a building there for its offices, and Winograd said they could move in this month.
LCM Funds also has plans for a 12-story apartment building along the river on South Water Street, and owns the Fifth Ward Lofts west of its latest acquisition.
LCM Funds also recently built a parking lot south of East Oregon Avenue, across the street from the building it acquired, Revolinski said. That could provide parking if the building is converted into offices, he said.
“Everything is on the table right now,” he said. “It made sense to have a little more control in that neck of the woods.”
Greenfield developer Michael Dilworth owns the eastern segment of the Walker’s Point block, and hired a local brokerage to market it. The northwest corner of the block has been under the same ownership for about 25 years.
Hendricks Commercial Properties LLC of Beloit earlier this year had considered a development on the block, but walked away from the possibility.
LCM Funds’ latest acquisition houses Continuum Architects + Planners and Live Artist Studio.
Maggie Kuhn Jacobus, marketing director of Continuum Architects, said the firm’s lease in the building lasts through April 2017.
“We’re in flux right now looking at all of the options for what our next move, literally, is,” she said. “The firm has been aware of the sale for quite some time so we’ve definitely been in conversations.”
Live Artist Studio has been in the building for seven years, and has one more year left on its lease, said founder Clive Promhows. He said he anticipates the art studio must move out after that year to make way for the building’s redevelopment.
The loft-style building stands two and three stories tall, and was built in the 1890s, according to city records. It has 43,400 square feet of space.
A company registered to Joan Julien sold the building, according to state records. Julien earlier this year sold the Julien Shade Shop Inc. building at 336 N. Milwaukee St. in the 3rd Ward to developer HKS Holdings LLC.
Original article can be located here.