720 N. Old World Third, Milwaukee, WI 53203
Real Estate. Loan. Subsequent foreclosure to fee ownership.
Originally built in 1913 as a hotel, this 12 story historic building underwent a $23mm gut-renovation to highly-amenitized apartments in 2007. The property is located in the Milwaukee Riverwalk district of downtown.
Value Added By Interwest
Interwest acquired this nonperforming loan in receivership with an absentee borrower over a compressed time period during the holiday season. Further obstacles included a complicated redemption period/foreclosure process and a defunct historic tax credit structure that Interwest restructured to avoid a recapture penalty on behalf of the tax credit investor. The note was acquired in January of 2011 and it was converted to real estate later on that same month. A renovation of the common areas was completed in 2019 showcasing the unique, historic features of the community. One of the two ground-floor retail spaces, which was vacant over a long period of time, was successfully leased to a coffee shop, adding character and life to the area and community itself. Despite substantial new development east of the river, the property has maintained its appeal and NOI growth has been over 70% since acquisition.