Visualize Milwaukee

Its all about the streetscaping

2007-06-11T09:31:00.000-05:00

I have a theory I've been pondering about for the past couple months. Is the value and vitality of Milwaukee's commercial business areas tied to the number of pot holes in the street?
Nice roads = good business = higher taxes
Or is it the other way around:
Poor businesses = lower taxes = poor roads

As I drive around Milwaukee, there is a big mix. A few areas I've noticed:
S. 27th street: Lots of business, crappy roads = Everything seems low-end. I'm not staying here any longer than it takes to get into Walmart, grab my mega size shopping and get out.
Brown Deer Road: Scattered Businesses (some of which are nice, some not so much), poor landscape maintenance = I don't want to leave my car alone sometimes, much less walk around from one shop to the next
N 27th Street (SoHi): Old, beat up road, little/no landscaping = Business is low-end and struggling.
Villard Ave: Roads are OK, landscaping is fairly well maintained but needs a bit of TLC = Consistent business to support the neighborhood.

Then I noticed Silver Spring Road heading West from I-43:
- Pre Glendale: Nice streets, great landscaping = This is taking great advantage of Bayshore Mall, and feels like a nice area. New business are popping up as you get closer to Glendale.
- Glendale: Beautiful streetscaping and brand new streets = New businesses, new development, new public buildings
- 27th Street to Sherman Boulevard: Suddenly Glendale ends and the grass is dead, hasn't been cut, streetpoles are old = Closed up buildings... Eesh, get me out of here!
- Sherman to about 50th: New streets, and the landscape is pretty well maintained = Ahh, back in a nice area! No real business here though due the military base and great park.
- 60th Street: Landscaping is ignored again = Why is this - just as the businesses start again, the streetscape looks like ignored concrete. Once again, the businesses look low end.

So, my theory is: follow the city's street plans to build your business. As I write this, a corner I've mentioned before (76th & Good Hope) is under heavy construction. That intersection has some great benefits, but isn't a place you'll get many people to stop and shop. It just looks battered and run down. Even after the new Andy's and Starbucks (those buildings look great, but somehow you don't notice because the area around it doesn't). We'll see how the new Streetscape looks and if my theory holds water in a few months. There is still some open space for business, so now may be a good time to prepare your plans!

Maybe this is where the City should put its seed money while trying to improve some of the targeted districts. I remember seeing plans for the new streetscape in the SoHi district (N 27th Street), but they never happened. I wonder how much more improvement we would have seen there over the past 2 years with a brand new street?

Is Busy Good - continued on 76th Street

2007-02-22T08:20:00.000-06:00

My post about Milwaukee's south side 27th Street made me think of my earlier post on the north side's 76th and Good Hope. Does 76th street need more business, or just a makeover to attract a few good businesses. As a followup on Good Hope, much of the unused space has been filled by the new private charter school, Destiny High School. I don't know anything about it, but if it is a good school, it may be a nice addition to the area. If its not a good school, ... Well, lets just say I'd hold off on investing until I walked through the school and was comfortable with their educational and security plans. I also don't know how a high school and an 'adult' video store can share the same property? There are still some buildings available, we'll see what happens!

Is Busy Good - 27th & Howard Milwaukee

2007-02-21T11:15:00.000-06:00

Not my usual cup of tea today - today I am criticizing a booming commercial district!

Last week I was shopping in the area at South 27th Street between Oaklahoma and Howard Avenue in Milwaukee. There is so much traffic going everywhich way it is crazy just trying to drive through, much less stop at one of the 6 million stores along this stretch. I swear every single store you could imagine is packed in here! But the area looks horrible, is overrun and feels outdated. If I were revitalizing a neighborhood this is the last thing I would want! Who would want to live there? All that shopping and traffic doesn't seem to have helped the residential neighborhood at all. Perhaps it has indirectly, in that several neighborhoods probably do their shopping here (I'd speculate a decent draw from Lincoln Avenue, Bayview, Cudahy, and others).

Imagine if something like this happened in the City at, say, 27th street and Wisconsin Avenue. Sure there would be more shopping for Marquette students and the Concordia neighborhood. But, I don't think mega-shopping is what is needed. What the city needs is their localized shopping needs to be met, along with some well targeted commercial draws to pull people from outside the neighborhood. Something like Roots, Ben Cycle, Marine Land Pets, or Soche (which, btw, keeps very busy despite the horrible service I received there! Maybe I'll become a critic next?). You don't want 50,000 people every day, but you do need a reason for people to come to you!

What do you suppose the city is doing with the massive tax revenue being received here? Maybe it could be used to give the area a better look and feel and traffic flow to help support the residential neighborhood surrounding it.

2007-02-11T08:36:00.000-06:00

A reader posted a simple question for me to tackle: “The state of Milwaukee”. He was excited by the diversity and change, assets of downtown and Lake Michigan, affordable living in the city, and differing ethnic backgrounds. But, now he can’t tell if Milwaukee is improving or decaying. See his whole text in the comments here: http://visualizemilwaukee.blogspot.com/2006/09/starting-out-condos-on-beach.html.

Let me start by saying, I’m not a politician, not a city planner, and speak only of my opinion. On the topic of Milwaukee, I remain fully excited. Sure, I am frustrated just as often, but there are great things going on here. All the condos going up downtown, in Third Ward and RiverWest look great and bring a new vibrance to those areas. But do they help anyone other than the developer? In 20 years are those going to be empty buildings again, rented to criminals and drug dealers? Do condos improve the diversity and segregation in Milwaukee? Moving a bunch of well-to-do professionals into a single block doesn’t really improve segregation at all. On the other hand, we are bringing/keeping professionals in the city. The people of Milwaukee are going to be a lot more invested living in Third Ward than if they lived in Sussex or worse Chicago!! More $$ = higher taxes = more change (See my earlier post on Bamboo to see if those tax $$ really help the city as a whole).

And he asked about crime. I’m also not the police commissioner, but… Milwaukee’s crime drives me crazy. First, not to sound like an apologetic, but in my experience, it is really not any worse than other “big” cities. That said, our crime fighting has a long way to go. We have built a large wall of mistrust between our urban citizens and our police force. Much of the crime today is indirectly supported by our “no snitching” attitude. People know they aren’t going to get in trouble as long the crimes aren’t too “high visibility”. Unfortunately, that attitude is only made worse by an oftentimes non-responsive police force.

So, are we lost in misery here in Milwaukee? Nope. I’m betting on the positives continuing to drive Milwaukee to be a great place for all of us to live, work, and play.

Here are some great things that are happening in Milwaukee:
1) Arts/Museums: Our community continues to invest in these. Check out the new Pier Wisconsin Discovery World!

2) Main Street Milwaukee: Have you supported one or more of these? If you care about Milwaukee, go spend some time and money in these! This is a great program with city and national, government, non-profit, and private support. Stop by one of these areas next weekend, and next month, and the next month and check out the businesses and residential potential:
a. SoHi District: 27th Street around Wisconsin – State Street. Check out the new condos on Wells Street
b. Silver City District: National Avenue east of Miller Park. Stop by the Asian International Market or Senor Speedy’s
c. Mosaic on Burleigh: From Sherman Blvd to 60th St. Check out the new Community Enterprise Center
d. Lincoln Village from 6th St to 20th St. Tune your bike up at Ben’s Cycle, then head to Lincoln Pottery or Tres Hermanos

3) Neighborhoods already on the upswing continue to show me the potential of this great city.
a. Third Ward
b. River West
c. Martin Luther King Drive
d. Brewers Hill
e. And countless others! Some are driven by investors, some are driven by the city, and some are driven by the people who have been living in these great locations for 50 years.

4) Look at the continued commercial redevelopment along North Avenue. The people of Milwaukee have shown they will spend their money in the neighborhood, as long as the right services are there and crime is managed. Take a look at the Villard Avenue business district. The community speaks out, presses for change, and continues to support their local businesses. And everybody knows if and when a crime occurs – they look out for eachother.

5) You want to find a Milwaukeean who is proud of this fine city, check out James T. and read his blog: http://www.jamestharris.com/

6) FuelMilwaukee.org : The MMAC continues to work with Milwaukee’s businesses and professionals to make Milwaukee a place that draws talent and business. Think about how the Packers worked within their team to attract “outsiders” like Reggie White. They said Green Bay is the place to be, and we are going to win. To me, that is what Fuel Milwaukee is about. This is an all-inclusive group welcoming people working in Milwaukee to have fun together, drive change, and attract people to come/stay here. I was at an event the other night, and met people who moved here from Texas, LA, Phoenix, and Florida. Why? For work – and because they liked what they saw – all those things listed in the first paragraph of this post.

To finish this up. Yes, Milwaukee is THE place to be. Stick around, get involved, and help this great city improve. I hope mjonthemove changes his tag name to “mjmilwaukee” !

Milwaukee's Third Ward Plaza Delayed - Bamboo in the City

2007-01-24T14:21:00.000-06:00

Bamboo in the City?

One area I haven't discussed yet is Milwaukee's Third Ward. That is mostly because everyone knows about it! There are bars, art, stores, the Milwaukee Public Market, and a trillion spectacular new condos. But in reality, there is still open space and foot traffic isn't exactly hopping (parking is always full so customers are there!). There has been a proposal floating around the city council for the past year or two to develop a new Bamboo Plaza in the area. I do think this plan would really help the area have a "stick around for awhile" feel to it. Not to mention walking around in living Bamboo is a real treat which I've only had in Bejing China. It was apparently nearly approved before being delayed this month due to some cost and conflicting contruction issues (http://www.jsonline.com/story/index.aspx?id=552046).

Who should pay for a project like this? DCD was originally set to foot the bill utilizing tax revenue from all the new Condo development. Who benefits more from this? The condo developers are already committed, so it doesn't seem like the city really needs this to attract development. Though a little extra investment by the city may help ensure those tax dollars keep rolling in. I wonder if that nearly $1M price tag wouldn't be better spent on another part of the city. Say, adding the bamboo near RiverWest which is still struggling with crime and could use another infusion of excitement. Or maybe along one of the concrete rivers flowing through the city today (for example, Lincoln Creek around Villard and Teutonia). I'll bet the Villard Avenue BID would appreciate it.

Miller Park Area Revitalization

2007-01-08T16:46:00.000-06:00

The area around the Milwaukee Brewer's Miller Park in West Milwaukee was pretty desolate for a long time. Canal Street was just a bunch of old dilapidated factories, train yards, and smoke stacks. That has been changing over the past few years though. Canal Street was given a boost by Potawatomi Casino. New development has been going on to improve the area on Canal and increase the draw to the area. This has been slow going. Canal Street came up to the top of everyone's minds last month with the disastrous explosion at Falk.

Another revitalization was started south of the Stadium to coincide with the opening of Miller Park. West Milwaukee has put a huge focus on improving Miller Park Way. What a great opportunity, and the village has taken advantage big time. If you haven't been over here, drive south from I-94 and check it out! In addition to the shops and buildings that have popped up over the past 5-7 years, there are new developments underway constantly. A good example is the old Hotpoint facility which is now a Pick'n Save. There is a new Menards underway as well. This area isn't just new shops either, the area includes long-term customers with new residential development as well. West Milwaukee continues to build on its vicinity to Miller Park. More opportunities are available here. Just look around for empty land, vacant factories, and under-utilized buildings.

And just for fun, check out the West Milwaukee web site to see video of the demolition of the Hot Point smoke stack: http://www.westmilwaukee.org/index_files/My%20Videos/100_0952.MOV

New Jobs - Continued Improvement in Milwaukee

2006-11-29T16:46:00.000-06:00

I just read this at jsonline.com:

Area added 8,500 jobs in past year... Milwaukee's net job gain in the last year ranked behind only three other metropolitan areas in nearby states.

(source: http://www.jsonline.com/watch/?watch=1&date=11/29/2006&id=15040)

It is great to see steady improvement in the Milwaukee job market. That doesn't mean everyone who wants a job has one yet, but it is a good sign. I still see people struggling to find jobs. In one apartment building, I had 3 different people lose their jobs last month. But I also saw several find new jobs throughout the year. Many of them at new businesses opening up near their home.

Center Street & Appleton Avenue

2006-11-27T16:32:00.000-06:00

The area around Center Street where Appleton Avenue crosses diagonally (around 58th Street) is the topic for today. Center Street's commercial and residential quality of life varies greatly along Center Street as you head west out of downtown Milwaukee. It goes from desolate and open to strong business corridor, to bars on the windows and boarded up buildings, back to strong businesses, then into the unsure from about 50th to 60th streets. Just west of there Center Street turns more residential as it heads into Wauwatosa. This corner is almost an unwalled border between Milwaukee and Wauwatosa.

Check out some demographic info at: http://www.mkedcd.org/business/pdfs/busmmAppleton.pdf. The intersection keeps busy all day, with 30,000 vehicles daily, as Appleton Ave. cuts through just a few miles after Highway 41 ended on Lisbon Avenue. There is BP(?) gas station here on the South East corner that is always swamped with traffic.

Used car dealers abound both at the intersection and along Center Street. There are lots of fully leased commercial storefronts along Appleton Ave to the north. On the North East corner is a nicely appointed attorney's office. Right next door to that is a building with 2 storefronts that have been vacant for at least the past year. Every few months some new signs are put up for a smoke shop or a clothing store, but I have yet to see any business being transacted! This particular building seems to have no problem keeps its upstairs apartments rented up.

Why is it so hard to attract commercial tenants here? There is constant foot traffic, tons of car traffic, and successful commercial spaces just a few blocks in any direction. Is it the location, the advertising, poor businesses, or the owner of the building? I don't have an answer for that. But I can see how it is difficult to find the right commercial tenant. The gas station across the street becomes almost a hangout on weekend nights. The attorney next door doesn't draw much foot traffic. The local residents have other commercial options available along Appleton Ave. So, maybe this building is just stuck, never to be fully utilized! Or maybe, it just needs the right owner with the right businesses to draw a small crowd from the local used car dealers.

Where to Live in Milwaukee: Transition Neighborhoods

2006-11-13T22:28:00.000-06:00

I got a request from a reader who is moving to Milwaukee. Here is her request (edited):

My husband just accepted a job and I am baffled about where to live in Milwaukee. I would love to be in a transitioning neighborhood for both our financial benefit and the neighborhood's but as we have two young kids we can't take chances on safety. I thought you just might have some insight. We are looking for a single family home on a quiet street. Let me know if you've got any direction.
=================
What a great question! My response turned out pretty long, so I hope you like reading!

Where is the job? How long does he want to drive?

How much safety and how quiet do you want your street to be? Transition neighborhoods by definition are a mix of people who lost a neighborhood they love, the crime and drug ridden people they lost it to, jobless, people who are banded together to drive improvements, and families who take a bit of risk to become part of the city rather than flee to suburbia. Only you can decide what the risk/reward tradeoff is for you family.

Where are you from? Have you lived in an urban city before?

Also, just to warn you, I am not a real estate agent. The suburbs may be the right place for you, but if not, there are some great areas to consider...

Bayview: this has seen a very trendy improvement over the past few years. You aren't going to get in early, but there are still good deals. Especially if you are handy enough to update a house with 1920's kitchen appliances! Crime is pretty low here. It is a mix of young couples and elderly, along with many who still have a hard time putting food on the table. Bayview even has their own summer party. Check out the Bash and click over to the link for the bayview neighborhood association here: http://www.bayviewbash.org

Brewers Hill: this area continues to see steady improvement. There are still some crack heads around, but there are also a lot of great renovation projects going on. Roots restaurant and the condos nearby are great highlights of this neighborhood. They are also improving parks and access. The view of Milwaukee from up here is quite special. Prices are already reflecting the improvement though, so don't expect a bargain price. Check out the neighborhood plan here: http://www.mkedcd.org/planning/cpc/brewershillharambee/index.html

Harley Davidson: a number of years ago Harley faced a difficult situation. The 'ghetto' had grown into HD headquarters neighborhood. Should they move (and abandon their city) or stay (and risk the lives of their employees)? Tough call. Well, HD decided to stay and got involved in improving the neighborhood. Things continue to improve here. There are some amazing homes which have been renovated. There are some really nice blocks, and the improvements are expanding. This neighborhood is still right in the middle of some rough areas, but the community involvement has helped to improve in pockets. This is a great place to find your risk/reward tradeoff. Stick to the already improved blocks or venture out a bit further to the edge of the mix. Hopefully, the 27th street SoHi district will eventually merge with the expanding scope of improvements here. Check out: http://www.mkedcd.org/planning/plans/nearwest/update.html

These are just a couple of the great neighborhoods working as a community towards revitalization. It is movements like these that show the strength of Milwaukee. There are many more. Drive around. Look for signs of improvement. Fresh paint. Businesses opening nearby. More flowers than weeds.

And for crime, don't forget to check out Milwaukee's online statistics map. This is a great resource to take the guess work out of the process. You select the crimes to view and find the right place for you. Check it out here: http://isdweb1.ci.mil.wi.us/compass/disclaimermap.html

76th & Good Hope - Update

2006-11-01T17:58:00.000-06:00

I spent a little more time at 76th and Good Hope Road because I was bothered that I didn't know a few of the business names and was worried I didn't do a good enough review. The extra time still confirms my last post, that there are some great developments, but the intersection needs some work!

The South side of Good Hope frontage looks great, with Andy's and Home Depot's outlot building. The best of those outlots is the brand new Starbucks. 76th street still needs to be cleaned up though. That one old Chinese restaurant really looks bad.

The gas station I couldn't remember on the northwest corner -- the name of it is "Good Hope Mart". I guess that's why I couldn't remember the name. It looks horrible too! Anyone want to own a gas station? Just look across the street at Andy's to see what is possible. Andy's always has at least 10 cars at the station itself, plus people in and out at the small units in the strip.

I also said the NE corner was the least utilized. That is only kind of true. It actually has a large strip mall deep set from the corner. It just doesn't look very nice. It fits right in with the "Good Hope Mart". The US Bank right on corner is plain, but would look nice if the rest of the corner was more attractive.

In summary, a new gas station, an updated stripmall, and few renovated buildings would make this an attractive commercial pull.

Under Utilized Intersection

2006-10-29T17:32:00.000-06:00

76th Street and Good Hope Road, Milwaukee
Under Utilized Intersection - In need of planning and commercial development

Milwaukee's 76th street goes though many areas and neighborhoods on its way north out of the city. The focus of this discussion is on the area around Good Hope Road. This area features some growth, some vacancies, and some access issues. With almost 70,000 vehicles daily, this is a very busy intersection. Good Hope is a crossroad between Highway 45 and Interstate 43. Both roads have 3 lanes of traffic plus 2 left turn lanes in each direction. Checkout the Milwaukee DCD for demographic information here: http://www.mkedcd.org/business/pdfs/busmm76GoodHope.pdf

On the SW corner is a new Andy's Citgo. This is a great looking strip including a busy Subway, Domino's Pizza, and a bank. The SW corner is pretty much complete with a golf course and residential multi-families beyond there.

Across the street on the SE corner is an old standby, Popeye's chicken. There is also a Cousins over here and a deep-setback Home Depot. The Home depot isn't the busiest one around -- it could use some more commercial draws to help bring customers to the neighborhood. This corner also hosts a dilapidated Chinese restaurant (which is for sale right at around $500k).

The NW corner is a mishmash of what seem like odd fitting buildings and businesses. It starts well on the corner with another gas station right on the corner. There is a deep-setback grocery store behind this corner. But visibility and access are very poor. Along 76th at the street is a large locally owned pet store.

The NE corner is the least utilized. There is a movie theater about 1/4 mile north, but you pass several unkept properties along the way. There is a decent restaurant in there, but it doesn't look like much from the street. There is an abandoned amusement park there too. A bit to the east is an office building for sale. This building looks nice, and could use a good tenant.

There is a new unit being built in front of the Home Depot along Good Hope. That is a good sign, but this area needs to focus on cleaning up the look of the existing buildings to see continued improvement. Improve visibility and access to the big lot buildings, teardown/improve the dilapidated buildings, and open things up for new businesses. This would go a long way to making this busy intersection a commercial boom for the area.

The traffic is a mix of locals, people coming in to work at the remaining manufacturing, and suburbanites headed in and out of the city for work. This mix provides a great opportunity for many different businesses. Improving this corner would also help improve the entire Good Hope stretch. With the steady stream of soccer moms coming into Uhlien Soccer and the movie theater, there is plenty of potential for commercial draw.

Investing in Property and a City

2006-10-24T19:39:00.000-05:00

What is Visualize Milwaukee all about - how to invest in property or improving a city? Can you tell? I admit this blog doesn't fit in very well as a Real Estate Investment site. The problem here is that I've mixed my zeal for investing with a zeal for actually improving our city. I didn't start that way. I really only wanted to make money. As I got started though, the only properties that I could find at a price low enough to make a profit were far from the nice areas of town. Areas where you don't just lock the car doors, but keep an eye on the car at all times. I established a relationship with a local commercial developer who I could use as a mentor, to bounce ideas off of, and to get local contacts through. Before I met with him I had looked at a particular building, walked around the neighborhood, talked to some people who were remodeling an abandoned building, written down numbers and addresses for others. What drew me to this neighborhood was not the crack dealers on the corners or the empty beer bottles strewn about, but the brand new library, police station, and huge park all within 2 blocks. Which one should I plan for? Crack dealers or the great potential, or was there really any potential at all? Turns out my mentor had lots of experience in revitalizing downtrodden neighborhoods. As he told me about what he has done, and how he does it, I started to realize that my money, talents, and desire could actually help! I was glad I had just canvassed that neighborhood. It made that first conversation with my mentor so much more exciting to me. And, he was considering a relatively major development almost right across the street!

That is how it began. I can't change the world by myself, but I can change a single block. My investment can attract others! I can get involved in a city-sponsored revitalization effort and invest there. I found a building that was being used as storage, and lots of vacant space around. It was a great deal, but could I really find a business to setup shop in there? I put a "will build to your needs" sign outside. I had local entrepreneurs calling constantly! There are people with great ideas everywhere. All they needed was a little help and a little motivation. I was able to work with them on their plans, provide the funding to it, and I got super lease rates because of it. Win, win, win -- for me, the lessee, and the neighborhood!

This also has me integrated much closer to the city than I have ever been. I knew where the "bad areas" were, I could walk through most of them without panicking, but I seldom did. Having multi-unit apartment buildings brings reality to you in a hurry. Again, I'm not going to save the world with a couple apartment buildings. But, I've found that I can always find good tenants. I haven't met too many people who said "I'm looking for a crack house where everything is broke, my landlord never comes around, and he won't mind if I deal drugs out of the back windows." I do background checks, I keep the places up well, I paint over graffiti right away, and I command a higher rent than the rest of the neighborhood. Want to know how I figured that out? I was talking to a local landlord and asked about his rents. He told me the market rent, except for one building: "I have no idea how she gets such high rents". From that, I realized it could be done. I have met great people everywhere I've been. I also get to see up close how hard it is to find a job, how many kids are running around without a dad to speak of, and why the inner city doesn't trust our police force. Like I said, I'm not changing the world, but I can make living a little more comfortable 8 families and 2 businesses at a time.

Our investment dollars can make a difference. I make money, local residents have a better place to live or conduct business, and together we can improve neighborhoods. Doing that creates jobs. Creating jobs and small business opportunities is what drives our community. Milwaukee was hit hard when manufacturing began to move out. We are still trying to find our way, and I want to be a positive part of that!

Finding Profitable Investment Property

2006-10-18T09:32:00.000-05:00

I was in court the other day filing an eviction and I met a guy doing the same thing. He was complaining that his girlfriend gets mad at him for losing money in his properties. That got me thinking about how different people look at profit. To me it seems simple, but maybe that's because I think like me. Maybe I really don't get it?

So lets look at this guy, Tim. He has a bunch of duplexes and three families in Milwaukee. Since he is having a hard time managing these properties, he is considering selling out and buying one big property that will let him pull a steady income. Tim tells me that if he sold well, he would have $200k. His plan is to take that and buy a single 4 family. He is considering two different buildings. The first is in a decent area, looks nice, and is well maintained. It is selling for $300k. The second is similar, but it has a 4 car garage! The garage is great he tells me (this is Wisconsin and a garage sure beats scraping ice and snow off your car when it is 10 degrees below zero and still dark out!). This one is selling for $350k. What do you think? Sounds like a good move, right? Upgrade to a single building, only have one lawn to mow, and only 1 building to visit, not to mention it is in a nicer area of town.

I'm not so sure though. That is the same price I paid for an eight unit building. I asked Tim how much extra rent they are getting for the garage spaces. "None," says Tim. Next I asked him how much rent was - $625. Tim was still excited about the garage! I asked why, and he looked at me like I was some idiot who never scraped ice before. I asked again, a bit more obvoius: "rent is 625 at the one with no garage right? And rent is still 625 with a garage?" Tim is still looking at me funny. "So, I see why the tenants benefit, but what do you get from the garage, how much extra money do you make for the extra $50k?" Tim's look changed, he stumbled a bit and said, "I guess that is how you should look at it, like a business." YES!!

That seems obvious to me, but it took 15 minutes to get my point across to Tim. What about harder questions? I also asked Tim why he didn't put that $200k into a $1 Million property. Instead of $2500/mo he could be getting $8k/mo or more. But is it that easy? I didn't push Tim on that one. From his perspective, the leveraged money is money paid to the bank rather than himself. I think of every property as a cap rate. For me, a 10% cap rate in a bad neighborhood is always better than a 6% cap in an upscale neighborhood.

I know there is more to it than that, but that is my focus. Tim was right about one thing - maintenance is easier in the nice neighborhood. Less damage, fewer evictions, and less time spent removing graffiti. To me, that should commmand a higher rent too though. How much is that worth? Tim is getting $2500/mo versus my $4800/mo for the exact same purchase price.

Until the market rents increase in Tim's area, he will be subsidizing them while I profit. When looking at real estate as an investment, the money needs to add up. It isn't about pretty fences or garages unless the rent is higher, or vacancies are lower. Do you know that? Does your real estate agent?

Main Street Milwaukee: SoHi 27th Street

2006-10-13T07:58:00.000-05:00

Last summer, the City of Milwaukee selected the winners of the Main Street Milwaukee program. There were four business districts selected: Burleigh, National Ave, Lincoln Ave, and 27th Street.

So, 27th street? What is the draw there? Why would anyone in their right mind invest in or want to move to 27th and Wells? That’s where the new “SoHi” neighborhood comes in. Their motto is So Much So Close. Much like the SoHo neighborhood in Manhattan or Chicago – SoHi stands for “South of Highland”. At least the name is a break from the 3rd/5th/latest craze Ward District!

So what does 27th street have? How about these for starters: A freeway exit, Marquette University and Harley Davidson headquarters. Its 5 minutes from Downtown - the stoplights are perfectly timed all the way down Wells street, 5 minutes from Miller Park, 5 minutes from Wauwatosa. Its right up the block from the newly renovated Ambassador Hotel and its Envoy lounge. Of course, there are some down sides too, but the district has stepped up security in an all-out effort to revitalize the area. Many of the multi-unit residential buildings have already been improved in that area over the past 10 years leaving a live-able environment. Couple that with some new excitement, some cash, and some fresh condos at a reasonable price, and maybe, just maybe, you have a vibrant new district called SoHi.

They’ve got an open house coming up on Saturday October 21st from 1-3pm. Stop by and check out the excitement: www.sohidistrict.org . It took awhile, but there is a lot going on right now. There are new businesses, new rental units, and new condos. Both already improved, and more importantly under construction. These condos aren’t the downtown-$300k+ variety, they are around $100k with space to enjoy!

Landlord Shmandlord - Dogs & Eviction

2006-10-12T20:50:00.000-05:00

Today's post is a bit off topic, but good fun stuff. I did a guest blog over on http://landlordshmandlord.blogspot.com/ . Its the story of a dog, a broken dog leg, and an eviction. Head over and check out the action!

Lisbon Ave, Milwaukee

2006-10-09T15:26:00.000-05:00

My last post was about North Avenue leading up to the intersection of Lisbon and North. As you may recall, the City of Milwaukee is pushing for new development around Washington Park. The Washington Park Plan which was adopted on June 30th, 2006 notes three primary commercial corridors: North Avenue, Lisbon Avenue, and Vliet Street. See the plan here: http://www.mkedcd.org/planning/plans/WashingtonPark/pdfs/WPPlan.pdf
North Avenue was discussed in the previous post. If you read through the plan, eventually it says Lisbon is too close to North Avenue to support businesses and recommends development of residential housing. The plan puts its support for new commercial development along Vliet. The plan is a great source of raw information - it includes demographic studies, maps of abandoned buildings, and even samples of development.

I don't agree with their assessment of Lisbon though. Especially around Washington Park. The traffic patterns are high, connecting to North Ave, Highway 41, and acts as a downtown artery. As it reaches Washington Park, the city built a brand new public Library on Sherman Boulevard. From Sherman west to North Ave is where I believe new development could be focused. There is a small triangle between Lisbon and Washington park which if improved would provide a continual flow from North Avenue right into this great park.

We should look to benefit from the North Avenue development and keep right on going back down Lisbon. This has already started. Right at the intersection of North, Lisbon, and 49th Street, there is a 7-unit commercial building being restored with apartments upstairs. There are several buildings, and open lots, which could be utilized for this. Improving this one small triangle would improve Washington Park. Today, it is surrounded by declining neighborhoods. To the West, it bordered by Highway 41. This would improve the Northern boundary of the park.

Lisbon and North: Washington Park

2006-10-06T17:06:00.000-05:00

After stopping at the courthouse today, I decided to leave downtown via North Avenue. I always see something new on that trip. What caught my attention today was that the newly developed commercial fronts around 33rd street are all full!! Which made me think, "I wonder how the ones up the road closer to Lisbon and North are doing?"

Lisbon and North is an interesting area, just a block away from Washington Park. The North Avenue revitalization has been going on for a few years now. A couple months ago, the City of Milwaukee put out a new plan to focus on Lisbon well East of there. At the time, I wondered why not start from North Avenue and work back East from there, and I still wonder that today. I'm going to focus on Lisbon on my next entry. Today, I'll stick to North Avenue from 30th street through 50th street...

I kept driving, noting each of the nice new business signs as I went by. The developers must have put in a good push to bring in some good businesses. It really looks nice. As long as those businesses stay, they should lead to continued progress! I didn't check, but my guess is they are on 5-10 year leases. As I head up the road towards 40th street, I see that the new commercial fronts there are still empty! What the ???? These were finished up around the end of 2005, and have been mostly empty since then. Ogden is managing the building, but they sure aren't utilizing it. They've had the same Leasing sign up all year. The only change in the past 10 months that I can see is a smashed window (which has been there for several months too). I talked to someone at Ogden about this spot last year and it sounded like they were close, but having a hard time getting the lease rates they wanted. Now it just looks like a new abandoned building.

I have this to say: If you are going to develop an important area for improvement in the City of Milwaukee, you darn well better put the effort into getting it filled up! The difference between those few blocks is amazing. Full units sure look impressive and are great for the neighborhood. Empty units are just another blight.

Back to my drive, a Walgreens is on the North side of the road and has been a staple here for years. Then at 48th street is the new Wendy's and athletic store which were just built in the last couple years. That brings us to the corner of Lisbon and North. This corner still has a bunch of under-utilized buildings, but just across the street is the new Police building and HUD just beyond that. Those buildings look great, and the grounds were done really well. They really make for a welcoming atmosphere.

Next up ... lets head back east on Lisbon.

Airport: Layton and Howell

2006-09-30T15:23:00.000-05:00

I saw another commercial building for sale along Howell Ave. A few months back I considered a small strip mall on the corner of Layton and Howell. I was told that intersection sees more traffic than any other in Milwaukee (or Wisconsin, I don’t remember for sure). I didn’t act on it because it was back set from the street and visibility was obstructed by another business. But this one that just I just saw is right on Howell, plain as day to see as you drive past. Per the city of Milwaukee, this building has just over 3000 sq. feet of space. It was purchased in 2005 for $225k. It is zoned LB2, and has a pantry operating in it now, which I think is for sale with the building. Do I want to own a Panty? Not particularly. But, if the business is making money, it may be a profitable way into a piece of real estate on one of the busiest streets in town. Of course, there is always more than one way to skin a cat! Maybe I could find someone else who’s looking to own a pantry – that could even turn a quick profit on the sale! Or, put in an offer for the property only, asking the owners to keep a lease for a few years. It would take more homework to determine the real value, but given the location, it’s worth looking at.

Northridge Mall Area

2006-09-29T22:37:00.000-05:00

A few days ago I wrote about the prices on apartment buildings on Milwaukee's far NorthWest side. So, how did that all happen anyway - remember Northridge Mall? Well, the building is still there, it just doesn't have many shops in it anymore. Suprisingly, Brown Deer road between 76th and 91st street has had a big increase in commercial usage over the past couple years. Not much has gone on in Northridge, rather the new usage is right on the road. There are completely unused deep-set buildings along that stretch, but new buildings are going up in front of them! Walmart, Target, a brand new Enterprise car rental - all coming in recently. Most in new buildings though! Good for developers, bad for those unused buildings. But overall, good for the area as new businesses keep coming. Here is shot at the new out-building for Footlocker. So, what is going to happen to the deep-set large-box buildings? Sorry, I don't have an answer for that one!

Villard Avenue Business District

2006-09-26T21:31:00.000-05:00

One area that continues to interest me is Villard Avenue. The Villard Avenue Business Improvement District continues to strive to retain its vibrance. This area seems to be in a continual state of “almost improving”. Every couple years a revitalization effort is started, yet no significant changes have been seen. That is both good and bad. On the “bad” side – they haven’t drawn any big businesses or massive investment. On the “good” side, businesses are staying and customers are still coming! The main street was improved significantly by the city a couple years back, which gives the area a very nice touch.

I have a photo here from last winter, showing some of the small businesses. The area between 34th street to 37th street is constantly busy. The businesses draw a steady stream of traffic. Finding parking on the street is usually tough, but the BID maintains a customer parking lot right in the middle of things. There is also a city lot just off the main drag on 35th street.

As you could imagine from the traffic, available retail space can be filled quickly. With a little effort, I had several businesses clamoring for available space. With strong lease rates! Offering to work with the potential tenants on layouts/renovation was a big plus, as many of them were expanding or just getting started. The residential units are easy to fill too. This neighborhood has a lot of pride in keeping things up and many residents are proud to have spent their lives here!

For a little history on this area and some of the efforts for revitalization check out these links:
1998: http://www2.jsonline.com/news/sunday/real/0104villard.stm “Villard Ave. making a comeback”
2003: http://www.jsonline.com/story/index.aspx?id=120379 “Revival on Villard”

Bubble Burst - or Not? Far NorthWest Side Residential Multi-Units

2006-09-23T16:47:00.000-05:00

It seems to be the in thing now to tell everyone how "I predicted the bubble burst in Real Estate." I'm not sure I'm ready to do that. Sure, its near impossible to get someone to buy a home around here, but so far it seems to be stopping there.

Rental properties are still going strong. From the listings I've been seeing, prices have still been appreciating this year. I was just looking at an 8 family on Milwaukee's NorthWest side at 97th and Brown Deer Road. Rents were around $540/month and the property was listed at $400k. Last year around this time, prices were about $370k-$385k.

As for the neighborhood, that is a couple blocks west of the North Meadows condo complex. Unfortunately, North Meadows is still pretty rough (check out this old article for a bit of history: http://www.findarticles.com/p/articles/mi_qn4196/is_20000218/ai_n10581894). It seemed like a long summer, with a rash of graffiti in the area during August. The worst of the problems seem to stay in the North Meadows, but problems do sometimes fall into the surrounding area. Rents are still strong though, and that seems to be helping keep prices going strong.

Starting Out - Condos on the Beach

2006-09-22T23:16:00.000-05:00

Here we go. As the title says, my goal is to help Visualize Milwaukee. In particular, I want to keep a pulse on some of the commercial and residential real estate in the area.

Where should I start? How about this:
St. Francis. Who knew it was even here? Milwaukee is still in Condo-mania. But, how about a 2000+ square foot townhouse on Lake Michigan only 6 minutes from downtown. That is what I found in St. Francis when I stopped by the Park Shore development at Howell Avenue and Lake Drive. A great mix of entry level condo's to high-end townhouses. I found that 2000' townhouse for about $300,000: http://realtor.com/Prop/1066147716 .com/Prop/1066147716 .

Its not downtown, but I felt like I entered a vacation resort! Close (right off 794), beach, views, clubhouse, and right on the south shore bike path.

Welcome to Visualize Milwaukee! Let me know what you think, or if there are any areas you want me to cover.