Wausau Daily Herald, March 23, 2010
A real estate developer agreed Monday to pay $2.52 million to buy and remodel Wausau’s Kannenberg Plaza apartment complex.
The Wausau Community Development Authority Board approved the sale of Kannenberg Plaza to Gorman & Co. Inc. of Oregon, a suburb of Madison, Board Chairman David Piehler said.
“They can make capital improvements to the property that we don’t have the ability to make,” he said. “It is win-win. The impact on the tenants is nil. It remains low-income housing.”
The deal is contingent upon Gorman & Co. getting approval from the Wisconsin Housing and Economic Development Authority for some state and federal tax credits that would be used as part of the financing, he said.
The plan calls for $4.4 million in tax credits to be sold to a big bank, corporation or insurance company, which would in turn provide $3.3 million to modernize the property and pay development costs, said Edward Matkom, senior development manager for Gorman & Co.
If the deal goes through, plans call for adding a community area with a fitness center and computer room, insulating the outside walls and updating all the apartments with new cabinets, fixtures and appliances, he said.
Built in 1978, Kannenberg Plaza has 106 one-bedroom apartments rented for $418 per month. Tenants pay subsidized rent based on their income; nine apartments were vacant Monday.
Piehler said Monday he expected the sale to be completed by early fall because no decision on the tax-credit financing was expected until summer.
The Community Development Authority will use the $2.52 million for other low-income housing projects, Piehler said.
Gorman & Co., founded in 1984, specializes in downtown revitalizations, the preservation of affordable housing, workforce housing and the “adaptive reuse” of significant historic buildings, according to its Web site. It now owns rental properties housing more than 6,000 tenants, the Web site said.
Piehler said rents in Kannenberg Plaza would not be affected by the sale.