Deco Building

The Project

The Deco Building will be the conversion of an abandoned warehouse into a mixed-use development and will have approximately 44,000 square feet of office and retail space and 40 residential apartment units. 20% of the residential units will be affordable to low-income persons. The building is part of the former Transpak warehouse facility located in Milwaukee’s fifth ward and is the second of five phases in the property owners plan to develop the facility into an ’Urban Village’ development with office, retail, and residential space.

Project Financing

UDF provided 2 loans to the project totaling $7.3 million. UDF provided subordinate financing to the project at very advantageous terms including interest only for the 7-year terms, below-market interest rates, lower-than standard origination fees and higher than standard loan to value. Without the NMTC, the project had been unable to fill a funding gap to begin construction. UDF’s financing filled the gap at terms that were unavailable from other lenders.

Community Impact

The project is located in a severely distressed census tract with a 36% poverty rate and median income only 35.9% of the area median income. The area has an unemployment rate of 12.1%, over 2 times the national average. It is located in a Milwaukee Renewal Community and an Enterprise Zone.

The Deco Building, as well as the entire South Water Works project, is located on a state-designated Brownfield site. The site has numerous subsurface issues and the Deco Building contains asbestos and lead paint. The project sponsors have obtained an approved remediation plan from the Wisconsin Department of Natural Resources which is being implemented.

Approximately 210 full-time jobs and 75 full-time construction jobs will be created as part of the renovation of the Deco building. The permanent jobs which are created will pay well in excess of $30,000 per year. The project sponsor has agreed to provide at least 35% of the new jobs to low-income persons or residents of low-income communities. The project has set aside 20% of the residential units as rent-restricted and affordable to individuals whose income is 80% or less of the area median income.

Upon completion, the building is expected to receive a LEED Silver certification ensuring sustainability and efficiency for years to come.