Share
Explore
Site Selection: Midtown Center Wal-Mart
Chandra Ellis & Tarik Moody (ACRE 2025)
Acquistion Price
$4,500,000
Zoning
RB2 - Regional Business Commercial Business
Site Size
15 acre site with 160,000 SF building (former Wal-Mart)
Address
5825 West Hope Avenue
There are no rows in this table
Project Proposal Description
The redevelopment of the former Walmart site at 5825 West Hope Avenue draws inspiration from successful models like in Atlanta, where 29 tiny homes on 3 acres sold out within 50 days of presale launch and securing $2 million in crowdfunding. This development aims to create a similarly diverse community that attracted residents ranging from young professionals to retirees with varied income levels.
The property's history reflects the changing retail landscape, as the Walmart closed in 2016 and its value declined from $15.9 million in 2009 to $4.7 million. After AFS Milwaukee LLC acquired the site for $3.28 million in 2022, their initial self-storage conversion proposal was rejected by the City Plan Commission, creating an opportunity for transformative residential redevelopment.
The development program encompasses 100 for-sale tiny homes and a four-story mixed-use building with 100 apartment units and ground-floor retail. Community amenities include a clubhouse, technology center, walking trail, basketball court, playground, community garden, central park, and outdoor gathering spaces.
South Park Cottages in Atlanta
This comprehensive approach addresses Milwaukee's 40,000-unit affordable housing shortage while creating a sustainable neighborhood environment. The site's RB2 zoning designation and location within Midtown Center, combined with this $68-90 million project as a practical solution for repurposing vacant retail space while meeting critical housing needs.
The redevelopment aligns with Milwaukee's Growing MKE initiative by supporting higher-density transit-oriented development while increasing housing choices through diverse styles and advancing affordable housing goals.
Similar successful transformations include St. Anthony, Minnesota, where a vacant Walmart was replaced with 492 rental apartments across four buildings. Developer Kelly Doran secured a $49 million loan for this 13-acre project, demonstrating the viability of big-box retail conversions to residential use.
Project Cost Estimates
Tiny Home Community (10 acres)
Mixed-Use Component (5 acres)
Development Costs
Total Hard Costs: $77,750,000
Soft Costs (Est. 15% of Hard Costs)
Total Soft Costs: $11,662,500
Total Development Cost: ~$90,000,000
*The national average cost to build a mid-rise (four to seven stories) or high-rise (eight or more stories) apartment complex typically ranges from $220 to $700 per square foot. ()
Capital Stack
Bank Loan (65%)
Required Equity (35%)
*Instead of contributing $3.15M in cash, the developer would provide:
Project should possibly be phased
Additional Funding Sources
Public-Private Partnership
Tax Incentives
The development's economic benefits extend beyond housing, creating new retail opportunities and jobs while expanding the municipal tax base. The mixed-use nature of the project provides natural risk mitigation through multiple revenue streams from home sales, apartment rentals, and retail leases. The ability to phase development manages absorption risk while maintaining alignment with Milwaukee's population growth goals. By combining for-sale tiny homes with rental apartments and retail space, this development maximizes the site's potential while addressing critical housing needs in Milwaukee's evolving market landscape.
To optimize the project's financial performance and achieve the target cap rate of 5.5-6.3%, the development strategy incorporates public-private partnerships and a phased construction approach. The PPP structure leverages multiple funding sources, including $4-5 million in , $1-1.5 million in Commercial Revitalization Grants, WHEDA tax credits for workforce housing, and various infrastructure support programs through the city. These public funding components, combined with private investment benefits including reduced capital requirements and enhanced returns through tax incentives, create a robust financial foundation.
The development will proceed in two strategic phases, beginning with 40-50 tiny homes to test market absorption and generate early revenue while minimizing initial infrastructure costs. This first phase allows for pricing adjustments based on market response while maintaining lower initial capital requirements. Once the tiny home community demonstrates success, Phase 2 will commence with the mixed-use building construction, benefiting from reduced financing costs through the proven concept and enhanced ability to secure tenants and optimize unit mix based on market demand.
Needs Analysis
Community Housing Partners
Political Engagement
Development Expertise
Strategic Partners
Architecture & Design
Financial Partners
Livability Index via AARP
The 5825 West Hope Avenue location achieves a livability score of 52, placing it in the top half of U.S. communities. The site benefits from strong transportation access with 13.3 buses and trains per hour, and 93.7% of stations and vehicles are accessible. The neighborhood demonstrates robust civic engagement, with a 63.7% voter turnout and 100% of residents having access to high-speed, competitively-priced internet service.
The area's demographics reveal a diverse community of residents, with 75% Black/African American, 15% Hispanic/Latino, and 19% White populations. The median household income stands at $51,528, though 22% of residents live below the poverty line. The neighborhood shows promising health metrics with a life expectancy of 76 years, while 20% of the population lives with a disability. Environmental quality is notable, with only 5.7 unhealthy air quality days per year, significantly improved from 11.7 days in previous years.
Transportation accessibility is notable, though 19% of households lack vehicle access. The area's housing metrics show a mix of multi-family units at 27.7%, with monthly housing costs averaging $1,141, representing 13.6% of income spent on housing - lower than the U.S. neighborhood median of 15.5%.
5825 West Hope Avenue, Milwaukee, Wisconsin 53216 – AARP Livability Index.pdf
648.4 kB
Site Images
Examples of Tiny Home Community (South Park Cottages in Atlanta)
Articles about tiny homes
j
Feedback from Juli Kaufman, Fix Development
Juli Kaufmann's feedback on the 5825 W Hope Avenue project proposal provides valuable insights into several critical aspects of the development. The current ownership situation presents an opportunity, with AFS Milwaukee experiencing significant carrying costs after two years of unsuccessful development attempts and City Plan Commission rejection of their commercial proposal. This dynamic positions the City as a key stakeholder in finding a viable solution, suggesting the importance of reviewing the CPC meeting minutes for specific concerns and requirements.
The proposal's market context could be strengthened by emphasizing the existing grocery store as a vital neighborhood asset that would be enhanced by this development. While the proposed construction costs at $250/SF are ambitious, the project's scale of 100 units might achieve necessary economies of scale, though current urban construction costs typically exceed suburban rates and continue rising rapidly. The development timeline and cost estimates should be adjusted to reflect 2024-2025 market conditions rather than 2021 data.
The capital stack should be expanded to include charitable contributions and community equity sources, reflecting the project's strong social impact potential. Builder's Vision, as a Walmart heir, should be repositioned as a potential philanthropic partner rather than development expertise. The foundation support section should be broadened to "Philanthropic Support," focusing on private philanthropists and national funders rather than local foundations like GMF and Bader. The architectural partnership with Lyssa Olker should highlight her relevant experience with Sherman Phoenix, 4D transitional housing, and META house, demonstrating HGA's expertise in community-focused mixed-use development. Additionally, the proposal should address the operating pro forma post-construction, including ownership structure for the commercial component and the need for ongoing operational subsidies beyond initial development capital.
Average size home is 3 bed w/ basement
Raising $30,000 per home from Philanthorpies
TID funding for infastructure
National PRI
$450 million fund WHEDA to convert big box to housing
Talk to the city? to create a new sub division
City, County, state
Want to print your doc?
This is not the way.
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.