Changing the Park East
The Rise of the Moderne
After a lengthy approval process, the Moderne, a mixed-use residential development in the Park East Corridor, finally broke ground in January 2011. When finished in November 2012, this impressive structure will rise 30 stories above Milwaukee's skyline and will be the tallest building west of the Milwaukee river.
But that's not the only remarkable aspect of this project: It's the first of its kind to be totally born and bred in Milwaukee. It was conceived of by a Milwaukee developer, designed by a Milwaukee architect, made structurally sound by a Milwaukee engineer, and is coming to life through the hard work of Building Advantage members.
"The formula for the Moderne is solid," said Milwaukee Mayor Tom Barrett. "There are a lot of talented people, including local businesses and Building Advantage members, who have been involved since the beginning, and I'm pleased local people are the driving forces behind it.
"Our priority was to ensure this development would be a shining example of what's possible in the Park East," added Mayor Tom Barrett. "But more importantly, it was to get city residents back to work, and they are exceeding those requirements."
Decisions the city made in getting this project approved is a testament to their efforts of increasing employment. Not only has the project added hundreds of construction jobs, but it will also add retail, restaurant and residential workers once the project is complete. Projects like the Moderne are why Milwaukee is keeping up with other cities like Chicago and Minneapolis as far as job growth is concerned.
Financing through a Recession
All in all, the project will cost $55.2 million with the majority of the financing coming from the $41.4 million through the AFL-CIO Housing Investment Trust and HUD, plus an additional $9.3 million loan from the city of Milwaukee. Contrary to many reports claiming the loan from the city was a grant through a Tax Incremental Financing (TIF) district, which doesn't have to be repaid, the city provided a loan that must be repaid from the proceeds of the condo sales and surplus cash flow from the apartment rents.
It's a solid investment for the city, given once the Moderne is completed it will generate over $1 million in annual property taxes. That amount is in stark contrast from what the developer's property taxes were the past five years when he was paying between $20,000-25,000 annually on the dirt alone.
"As a developer, my goal is to enhance and broaden the skyline with a great building, and the Moderne does just that," said Rick Barrett, Owner of Barrett Visionary, the developer behind the Moderne [No relation to Mayor Tom Barrett]. "Going into the planning phases, I never imagined it to be so challenging. Not that I thought it wouldn't be difficult, but the [financial] approvals took a lot longer than anticipated."
It took months for the AFL-CIO and HUD loans to be approved, but once they were secured, Barrett was pleased with how the relationships he'd built with the city of Milwaukee, Findorff and Building Advantage helped get the shovels in the ground soon afterwards.
"I give Rick a lot of credit in securing financing," commented Eric Wynn, General Manager of J.H. Findorff's Southeast Wisconsin office, and the general contractor on the project. "At a time when the full impact of the recession was still unknown, he really had to get creative with financing, since the banks already stopped lending.
"Also, the recession put the spotlight on the Moderne since the unions felt it was vital to sustaining their workforce, and the city felt it was instrumental in their ability to aid and influence construction in the Milwaukee market, as well as creating jobs for residents of the city," he added.
Positive Impact on the City
Aside from the positive financial impact the Moderne has and will have on the city of Milwaukee, Barrett wanted it to be a catalyst for future developments in the Park East. "Although I've been building in this city for the past 14 years," he commented. "This is the first time I've built 'up', and I am extremely proud of the work that went into getting it in the ground."
Although Barrett had never before worked with union contractors or trades people, he's been humbled by their work ethic. "When we were two months in, I could tell these guys were some of the best and hardest workers I'd ever seen," he said. "It's been a pleasure working with the contractors and trades people because we all share the same pride in making the Moderne a reality."
In a time when few cranes are in the sky, it was a huge risk to move forward with a project of this size. But it's paying off, as it's currently ahead of schedule and on budget.
Although this wasn't Barrett's first experience working with a Milwaukee architect, it's the first time the city has seen this partnership on a project this size. Matt Rinka, AIA NCARB, Principal of Rinka Chung Architecture, Inc., partnered with Barrett to create a sleek and modern, eye-catching structure that will without a doubt become a Milwaukee landmark thousands of people will be proud of.
When Rinka details the thought behind every line and angle of the building, it's obvious he's as passionate about his job as the rest of the team. He credits the Moderne to Barrett's vision for the future of Milwaukee, and he's proud to be a part of it.
"When you work with a developer who not only has the passion for his own vision, but who believes in the work everyone on the site is doing, it's hard not to get excited about it," he said.
Final Stages
Although the Moderne is not yet finished, Barrett expects to start leasing apartments beginning in the spring, and he hopes that all 203 units will soon be off the market. There is no doubt in his mind he's building at the right time, and has the right mix of apartments and condos for the area. He did his homework when it came to the Milwaukee market, which is paying off in the project's continual success.
Like the Mayor said, Barrett's formula is solid, and he's positive it will be a huge success with the help of Rinka, Findorff, the city of Milwaukee and Building Advantage members.
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