A redeveloped historic factory building in Milwaukee's Walker's Point neighborhood that's aiming to bring startup founders, capital providers, corporations and education and training partners together under one roof is preparing to open.
The Eagleknit Innovation Hub will offer lower-cost office space for tenants to occupy starting Jan. 1, said Burton Metz of Wangard Partners Inc., the project's developer.
Located at 507 S. Second St., the hub occupies the former Eagle Knitting Mills building, which began operating in 1928 and closed in 1991.
The goal of the development is to spur technology innovation and job creation by providing space for upskilling, training, collaboration, programming and events, Metz said. The project's mission is to reduce the city's racial wealth gap.
"In order for the entire Milwaukee community to succeed, we need additional job creation within the neighborhoods," Metz said.
The building had 84,000 square feet of office space available and around 50% has already been leased, Metz said.
Tenants will include the technology talent training nonprofit i.c. stars and the skilled trades education organization Building2Learn Consortium. Milwaukee Public Schools also is a partner.
Other tenants and strategic partners have not yet been announced.
CenturyLink is an existing tenant, operating a 25,000-square-foot data center in the building, Metz said. The technology infrastructure it provides is one reason Wangard initially chose the site, he added.
Local entrepreneur Matt Cordio is considering leasing space in the building for his companies, digital medication storage cabinet maker CAREDirect LLC and technology talent firm Skills Pipeline Group LLC, he said.
Amenities for tenants will include underground parking, a fitness center, cafe, co-working areas, event space and a rooftop patio with views of Milwaukee's Hoan Bridge. Wangard has not identified an operator for the cafe, Metz said.
Eagleknit Innovation Hub in Walker's Point expected to open in January: Slideshow
Wangard bought the building in 2017 for $3.51 million from Roadster LLC of West Allis, according to state records.
Plans for the project were first publicly revealed in 2019. Progress was delayed at times due to the need to get historic approvals from the National Park Service, and also because of supply chain backups on construction materials and a shortage of labor, Metz said.
Lease rates range from $14.50 to $18.50 per square foot, according to Colliers, which is handling the leasing process. By comparison, the average asking lease rate for the Milwaukee area recently dropped to $20.12 per square foot, according to data from the Commercial Association of Realtors Wisconsin and REDIComps.
The $30 million development was financed through a mix of Opportunity Zone program funds, tax credits, $1 million from Milwaukee’s Property Assessed Clean Energy (PACE) program and traditional debt and equity, Metz said. U.S. Bank and Bremer Bank were financing partners.
The project received $7.5 million in New Markets Tax Credits through the First-Ring Industrial Redevelopment Enterprise (FIRE), a regional community development group. That equaled about $1.6 million in equity, FIRE vice president Patrick Schloss said.
J.H. Findorff & Son Inc. is the contractor, and Gensler and HGA were the architects.
