The Wisconsin Housing and Economic Development Authority (WHEDA) recently announced that it will be utilizing a federal resource to finance the proposed North End - Phase 2, located in Milwaukee's Park East Corridor along the Milwaukee River. The project's developer, Mandel Group, Inc., will receive $24.1 million in financing from WHEDA to construct two, five-story apartment buildings totaling 155 units of rental housing.
The North End - Phase 2 development will mark WHEDA's first use of funds under the Midwest Disaster Area Bond program, which is issued through the Heartland Disaster Tax Relief Act of 2008 to aid in recovery after severe storms and flooding. The program requires the property to set aside 20% of its units for low and moderate income residents. Specifically, 31 apartment units in North End - Phase 2 will be set aside for households at or below 60% of Milwaukee's County Median Income.
"The North End housing site represents a significant housing investment for the City of Milwaukee, and WHEDA is looking forward to partnering with the City and Mandel Group on the next steps of this deal to continue our efforts to provide diverse housing options along Milwaukee's riverfront," said WHEDA Executive Director Antonio Riley. "The proposed development not only builds upon the progress of the first phase and our involvement in creating a vibrant neighborhood in the Park East Corridor, it also greatly impacts the City's economy through the creation of much needed construction-related jobs."
The North End, a multi-phased $175 million housing and commercial development, began construction in 2008 with ONE at the North End, a five-story apartment building featuring 83 apartments and 12,000 square feet of first floor neighborhood retail space. Phase 2 will consist of two five-story apartments - a 100-unit building on the west portion of the site with frontage on the soon-to-be-completed Riverwalk Way, and a 55-unit building on the northern portion of the site. These buildings will consist of 35 studio, 71 one-bedroom, 34 two bed-room and 15 three-bedroom apartment units.
Approximately 2,300 square feet of first-floor commercial space will also be located in Phase 2. Units in Phase 2 will contain similar amenities to those found at ONE at the North End including all appliances, washer and dryer, walk-in closets, a patio or balcony and exterior storage. Common area amenities will include an exercise room, community green space and patio, media room, game and craft room, library and underground parking.
"I couldn't be happier with WHEDA's commitment," said Barry Mandel, President of Mandel Group, Inc. "This is great news for our company, but more importantly for the City of Milwaukee, the ongoing redevelopment of the Park East corridor and the workers who will fill the vitally needed construction jobs. I am especially grateful for the leadership of Governor Doyle and Antonio Riley."
ONE at the North End, which was fully leased and occupied shortly after its completion in April 2009, is located southeast of Beerline B Apartments, a 140-unit affordable housing development that will consist of two buildings with a central plaza overlooking the Milwaukee River. WHEDA awarded Beerline B Apartments, which is currently being developed by General Capital Group, $23 million in Low Income Housing Tax Credits in 2010.
WHEDA supported the first affordable housing development in the Park East Corridor in 2005 by awarding $7.5 million in tax credits for the construction of Park East Enterprise Lofts. Over the past seven years, WHEDA also allocated tax credits and provided financing towards Convent Hill Apartments, Hubbard Street Lofts and Blue Ribbon Lofts in the Park East Corridor and adjacent neighborhood.
During the Doyle Administration, WHEDA has allocated nearly $689 million in tax credits and financing to create over 12,000 rental units in the City of Milwaukee. Nearly $50 million has been allocated to six developments in the Park East Corridor and surrounding area to create over 500 affordable housing units.
Mandel Group, Inc. (MGI) offers a unique portfolio of luxury condominium and luxury apartment homes in the greater Milwaukee area. MGI was formed by Barry Mandel in 1991 - since that time, the firm has developed more than $500 million of commercial and residential real estate Wisconsin. The company manages over 3,500 apartments and condominiums, and employs over 150 people.
WHEDA is an independent state authority that works to provide financing for housing and small business development in Wisconsin. For more information on WHEDA programs, browse this web site or call 1-800-334-6873.