The 100 East office tower in Milwaukee could be partially converted to apartments, condominiums, or a hotel as part of resolving the foreclosure case facing current owner Hertz Investment Group.
An affiliate of California-based Hertz purchased the property, 100 E. Wisconsin Ave., and a skywalk-connected parking structure for US$78 million in 2016. But the building’s occupancy rate has consistently dropped, nearing half-empty last year. Friedman Real Estate Management took over management of the 35-story, 435,557-square-foot (40,464-square-meter) building in 2021 after being appointed as the receiver at the request of the lender Wilmington Trust.
Offers to buy the 33-year-old building were due earlier in June. The next owner could be looking at creating something other than aging class A office space. “It’s the nicest building in town in terms of just pure bones,” said Josh Krsnak to reporter Sean Ryan. Krsnak, who told Ryan he considered a bid, having redeveloped the former Grand Avenue Mall into office space and apartments.
While the building’s office space may be quickly aging in terms of the floor plate design, smaller window size, and interior design, 100 East has a key feature that would help facilitate a partial conversion: divided elevator banks. Other buildings, including the former First Financial Centre located across the street, have needed to be fully converted because of their layouts.
The top six floors of 100 East are empty after Michael Best & Friedrich relocated to BMO Tower, a move inspired in part by improved floor plans, more natural light, and improved aesthetics offered in the newly-completed building. The Michael Best floors and a few more immediately below them are serviced by their own bank of elevators, which could be repurposed into a secured residential elevator bank.
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