Von Maur-anchored project may not begin construction until 2013
Journal Sentinel business reporter Tom Daykin talks about commercial real estate and development.
When I last wrote about The Corners, a proposed Town of Brookfield retail and office development anchored by a Von Maur department store, the expectation was that construction would begin in spring 2012, with the project opening in the fall of 2013.
But that timetable could be delayed by a year, Marcus Corp. Chief Executive Officer Greg Marcus said Thursday.
Marcus is developing The Corners, a $100 million project planned for 19 acres between W. Blue Mound Road and I-94, east of N. Barker Road. That site is now occupied by a small strip retail center and former theater owned by Marcus, and a former Menards store.
Davenport, Iowa-based Von Maur's planned 140,000-square-foot store will make up roughly one-third of The Corners, which will have about 460,000 square feet of retail and office space.
The response from other potential tenants remains strong, Greg Marcus said during today's conference call with analysts to discuss the company's quarterly financial results.
Marcus said around 70% of The Corners space "is in play," with about half of that space in negotiations for letters of intent to lease space.
But Marcus also repeated earlier statements that the company will not proceed with developing The Corners "until its future success is assured," i.e., with enough additional space commitments beyond Von Maur.
Because Von Maur will only open new stores in the fall, that could mean delaying the project's construction start until spring 2013, with the project completed in fall 2014, Marcus said.
"If we can't begin construction this spring, so be it," he said.
Marcus also said the company continues to negotiate a public financing proposal with town officials. He said he's confident that will result in a mutually beneficial proposal.
In March, Gov. Scott Walker signed legislation that allows the town to create a tax incremental financing district to help pay for site work and public improvements tied to The Corners. Towns are otherwise not allowed to use such districts with retail projects.
If approved by the Town Board, the town will pay for the road work and other expenses. The property taxes from The Corners would pay off that debt over several years. Once the debt is repaid, the property taxes flow to the town, its school district and other local governments.
I reported in November that a detailed financing proposal is likely months away from being presented to the Town Board. That could result in the town spending $20 million to $30 million on the project.
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Commercial Real Estate News
Common Council rejects apartment high-rise behind Goll House
A proposed $55 million 27-story apartment tower for Milwaukee's east side has been rejected by the Common Council.
The council on Tuesday voted 10-5 to support the project, falling two votes short of the supermajority needed for approval. The zoning change needed 12 votes because a protest petition was signed by enough adjacent property owners, said Ald. Ashanti Hamilton, council president.
The opponents were Ald. Robert Bauman, whose district includes the site, along with aldermen Cavalier Johnson, Mark Borkowski, Jose Perez and Tony Zielinski.
Check the Milwaukee Assessor’s Office website, which includes tools to look up property assessments.
Find property assessments for other communities throughout the state at AssessorData.org.
The Milwaukee Department of City Development website includes information on the city Plan Commission and Redevelopment Authority.
The Commercial Association of Realtors Wisconsin offers information on commercial realtors and real estate.
The Milwaukee chapter of the Institute of Real Estate Management serves the needs of real estate management professionals
The Wisconsin chapter of the NAIOP Commercial Real Estate Development Association aims to serve developers and owners of commercial real estate.
The Land and Space blog was recognized by the Society of American Business Editors and Writers in the blog category for dailies with circulation between 200,000 to 500,000.
The judges said, "Daykin’s aggressive reporting and accessible, explanatory writing make him a must-read for his tight-knit and highly engaged audience."
