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"323 apartments" Discussed on WTMJ 620
"Juan we have 57 degrees were scenes at 66 the kind of watched at 64. We have 65 degrees at WTMJ at 8 23, and it's time to check in with Marcus. Now Mark is on vacation. Of course, he's editor in chief of the Milwaukee Business Journal. But filling in today is reporter Sean Ryan. Well, a lot of people have been waiting for it, and it's finally here. It's the Ryder Cup. What is this going to mean? Overall for? Let's say the hotels around Milwaukee and close by? Yeah, for hotels around Milwaukee. This is a big impact. You talked about people who have been waiting for the sports events. All this is a big business event for those hotels. This will be A week in a weekend where those hotels in Milwaukee and sort of around the region have lower no vacancies, even with amped up room rental rate. So it's kind of a feast will be a temporary after more than a year long famine thanks to the ongoing Covid 19 pandemic. We've been looking at the most recent data for hotels in Milwaukee and the most recent ones we ever for the week ending September 4th and occupancy levels where around 58% then I mean, that's better than the highs of around the upper 30% at this time last year, But those figures should really be closer to 80% in a normal time. Imagine your business that's operating that more than 30%. Drop in revenue and after Several months of things being even worse than that. So here comes a weekend where you're able to ramp up your prices, charged more and still count on selling out your inventory. So, yeah, it's a big deal. I'll be it only for a few days, but certainly a big deal for the hotel industry. Well, let's move downtown a little bit. I understand that there's two apartment developments that are kind of pending and one is what 32 story building. That's right. A big 32 story property that would be right at Water Street and ST Paul Avenue along the river, sort of at the gateway of the third war. There, so kitty corner from the Milwaukee public market, So you have 323 apartments in there, but also they would have a lot of restaurant and retail space. Big Project $140 million. And what are the basics of these projects? Yeah, there's others pending in the downtown and they're all kind of going for final approvals from the Common Council next week. There's a second one that Big from Milwaukee, but not big compared to a 32 story buildings that would have 15 stories with 220 apartments on a site that's between the river and the performing arts center's parking structure there in your water street, and these are all new developers coming into the market, proposing buildings that would have well health and we priced will say apartments and, you know, expecting to bring them on in the coming years, and, of course, expecting to rent them out. What are some of those rents going for? Yeah. For the Heinz building and third war that 32 story building. They're going for about $3 a square foot. So that's probably the higher end of the Milwaukee apartment market, even though rents are continuing to climb here. So that is up to about 2500 month for saying 835 Square Foot, one bedroom If you go into a three bedroom quartering units, you're approaching $5000 a month for that. Now our developers worried that there are just too many luxury apartments being built downtown. Yeah, that question has been asked pretty much of any hearing I've seen so far that new third Ward building and the developer Hinds there from Houston. They're familiar with the Milwaukee market because they built Northwestern Mutual's luxury apartment tower downtown. And for a long time since 2018 When it opened, it was the only real sort of luxury high rise housing you can find in the downtown market, at least for apartment. And now we have three more in the pipeline. There's the one that they're proposing a third war. There's the couture and a sense that are both under construction. So yeah, there's questions about whether the market can absorb that. And I've heard folks in the industry be, you know, skeptical on that point, But then you look at these investors for homes behind family behind the real estate firm is putting their own money into this. They're using their own real estate investment trust to finance it, and you're seeing other outfits. States parties putting money into the couture and into a scent as well. So there are folks that aren't really invested in Milwaukee that are coming from walking and investing for the first time in these towers, and it's because they like the data they're seeing. Apparently, I mean the housing market data out there showing there's none met the NAND for luxury apartment units and so far doesn't look like things have tipped the scale where supply without wage demands. What does the demographics of the people who are renting or going to rent these apartments? A lot of it is baby boomers and in that reference Cents a big segment of it, folks who, you know, have their house out in the suburbs and, you know, maybe don't want to have all that maintenance or all that property and they're saying, Okay, Well, I'm going to sell that. I'm going to move to, you know, a nice luxury place downtown be closer to some of the amenities there. Also, young professionals is another segment. I mean, a lot of these are sort of one bedroom, smaller units, which helps with the pricing on them For sure. You know the demand from young professionals. A lot of that is going to hinge on just the ongoing ability of downtown to attract more companies and jobs to and you know, so far, there's been pretty good figures on that front this year. Do you expect to see that same trend of luxury apartments continue even in the suburban areas in the suburban areas, we saw at least one luxury tower proposed. And while a Tosa which has very hot apartment market right now that one wasn't accepted by the city, they said it was too big and we haven't seen Lot of high rise, but we have seen A lot of sort of mid rise to two story town homes being proposed still in the suburbs as well. I mean, there's a lot happening in Oak Creek. We just got wind of another one going on in Franklin. So yeah, that market is still active as well. I mean, folks are seeing that demand and some of it is they're seeing the prices of single family homes and the availability of those continue to be in short supply. So they're expensive in their house so hard to come by. If you want to actually buy a home versus rent. They're saying that sort of amping up demand at least the current timeline. For people to event instead. Well, Sean Ryan from the Milwaukee business Journal. Thanks for helping us for Mark cast this week. It's always great to talk with you. My pleasure. Thank you. It's a 29 on wtmj. Welcome back.