By Sean Ryan, Reporter- Milwaukee Business Journal, March 15, 2014
Work will start this month on Gorman & Co.’s market-rate apartment project in The Brewery in Milwaukee after the developer secured financing and bought the project site.
The four-story building will open to tenants in July 2015, with rents starting at $1,350 for a one-bedroom and $1,750 for a two-bedroom unit. The three live/work units will start at $1,450 a month.
The Frederick Lofts will be built at North Ninth Street and West Juneau Avenue in the former Pabst Brewing Co. campus just outside of downtown Milwaukee.
BMO Harris Bank has closed on $10.3 million in financing for the project, said Gary Gorman, chief executive officer of Gorman & Co., Oregon, Wis. Gorman also has $6 million through a Chinese investor. Chinese investors, through the federal EB-5 immigration program, have financed several projects in The Brewery in exchange for green cards.
This investor, however, simply is putting money into the project without using the federal program, Gorman said. The investor, who Gorman met through his connections in Shanghai, selected the project after touring The Brewery and the Brewhouse Inn & Suites hotel that Gorman developed.
“He made the decision on the spot,” Gorman said. “Just made a $6 million decision on the spot and shook our hands and said, ‘That’s it.’ We had to talk him into hiring a lawyer for it. He said, ‘But I just shook hands with Gorman.’”
Gorman last week also closed the $1.4 million land purchase for the site with The Brewery’s owners. which is run by executives at Zilber Property Group.
Gorman’s project is among a slew that developers are getting out of the ground this spring in that area.
“Part of it is interest rates are very favorable right now,” Gorman said. “That really makes the numbers work, and the demand is good.”