This may pertain mostly to those of you who are familiar with the Milwaukee markets. I have know about this redevelopment plan for two years now, but not sure if it is really going to take off. The City plans to redevelop State Street to the north; Wells to the south; 31st to the east; and 33rd to the west. See the attached link
It seems to me that the 27th street corridor is planned for redevelopment but I can't find any deadlines and have not seen anything being done recently. There were surveys out for the last two, three years about the expectations and what people want to see as far as schools, shops, safety, street lights etc. Currently at this time this area is not desirable and this is only an opinion of mine, but if this plan picks up speed and the city of Milwaukee decides to revitalize it wouldn't it be something you wish you had invested in?
What are your thoughts?
It is one of the most densely populated areas of the city. It’s interesting that they are trying to revitalize it when they just shut down the firehouse responsible for that area (30th and Clybourn). I also thought it was an undesirable area, but after speaking with a prominent investor who owns there, he said that the property has been one of his best cash flowing, least troubled assets in his portfolio.
I think it would take a lot to revitalize that area but can see why the HD, MUHS, etc are investing in it.
Interesting white paper with loads of data. Seems like there is a strong lobby and substancial economic power behinde this. On page 16 it speaks about the the impact of crime rates, the perceiption and liveability. And the connection to high density / low income housing - aka 1 BR units. They raise the question if city incentives could promote owners to combine units to more family friendly larger apartment. I follow the logic - larger units, families with kids, lower crime rates. But it's a difficult puzzle to solve: cash flow per square foot is just higher for smaller units. A large portion of the report focuses on economic opportunities for businesses, retail, shopping and entertainment. That is all private and SB capital and it will follow (not lead) as soon as housing set's the trend. Not the other way around. But once the trend gains momentum and there are new restaurants opening up the positive dynamic in the housing market will increase. My gut feeling is that there is enough momentum to stop a further downward trend of the area. If and when it will start moving the other direction is the big question i dont dare to answer. I would say it's a high risk / high reward play. If it pan's out it is a home run, but if it doesn't and you can't bank on it, you have to be okay with status quo as an investor.
Thank you Marcus and Mike for your insight. It will be interesting to see what comes out of that plan.
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