Milwaukee Office-to-Multifamily Project Lands $114M Loan

The note represents the biggest multifamily HUD financing ever closed in the state.

Klein Development and MOS R.E. have obtained $114 million in financing for the transformation of the 100 East Wisconsin, a historic office building in Milwaukee, into a 373-unit luxury community.

Dwight Capital originated the HUD 221(d)(4) substantial rehabilitation loan on behalf of the developers. Additionally, The City of Milwaukee provided a tax increment financing package of up to $16.6 million through a newly established tax increment district.

The credit will be used for both construction and permanent financing for the project.

The loan is the largest multifamily HUD loan ever closed in Wisconsin and the largest such credit approved by HUD’s Midwest Region Office. Moreover, it is the biggest HUD 221(d)(4) construction loan in Dwight Capital’s history...

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Leo's notes: The 100 East Wisconsin conversion signals how deeply capital markets and public finance are now intertwined in large-scale downtown adaptive reuse. With more than $114 million in total financing, the deal reflects how office-to-residential projects increasingly depend on complex, stacked capital structures to pencil in. While branded as a luxury transformation led by Klein Development and MOS R.E., the inclusion of roughly 20% affordable units shows the continuing policy expectation that even high-end redevelopments must carry measurable public benefit...