I-Modal – Milwaukee Hotel and Transit Station

Industry

Financial Services / Commercial Real Estate 

Company Type

Hotel / Transit Station

Location

U.S.

Size

$60 Million

Investment Type

Debt/Equity
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Contact: Tina Vital, Managing Director

Email: tvital@castleplacement.com

Cell (917) 432-8474 

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OVERVIEW

I-Modal is seeking +/- $60 million (excluding committed capital of $125,000) to build an upscale commercial hotel complex including renovation of existing transit station in downtown Milwaukee, Wisconsin. Over $40 million of C-Pace debt financing soft-circled.

  • Newbuild luxury hotel and parking ($54 million = $94 million less $40 million C-Pace debt) – 175 keys; 200 underground parking stalls; restaurant/bar; performance venue; and skybridge to Intermodal Station (Amtrak; Greyhound Bus; Milwaukee Streetcar; and Milwaukee River Waterway)
  • Poised for construction – expected to begin 12 months after funding; tax increment financing (TIF) over $15 million provided by City of Milwaukee
  • Acquire existing Intermodal Station ($6 million) – current cash flowing transit and office building with 100 surface parking stalls
  • Premier downtown location – easy access to transit; only a few blocks from arts, sports, casinos and entertainment, hospitals, colleges and universities
  • Management team experienced in developing commercial real estate projects in Wisconsin, including the City of Milwaukee 
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I-MODAL HOTEL AND PARKING – DOWNTOWN MILWAUKEE

  • Newbuild luxury hotel and parking – 431 North 5th Street
  • 460,595 gross square feet on 1.05 gross acres in downtown Milwaukee, Wisconsin
  • Phase I and II – Environmental Assessment (in-process)
  • Zoning – Commercial / Central Business from City of Milwaukee Planning Commission (opportunity zone area)
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INTERMODAL STATION – DOWNTOWN MILWAUKEE

  • Existing transit / office building – 433 West St Paul Avenue (built 2007; 3 story building; 100 surface parking stalls; 55,674 square feet) on 5.69 acres in downtown Milwaukee, Wisconsin
  • Current cash flowing rental income – tenants include Amtrak, Greyhound Bus, All Board Café, Travel Mat, WIS DOT, Sky Lark Auto Vending, and Clear Channel Advertising; plus LOI for new tenant underway
  • Executed contract ($5.8 million) – Colliers Wisconsin BOV (Broker Opinion of Value; May 2023) – $5 – 7 million (6%-4% cap rate) given unique location, occupancy, attached surface parking lot, and overall potential of the property
  • Environmental Assessment (update in-process)
  • Zoning – C9G (Commercial) and Mixed Activity from City of Milwaukee (Opportunity Zone)
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OPPORTUNITY – MILAUKEE

Largest city in Wisconsin and fifth largest city in the Midwestern U.S. with a population over 577,000 and GDP over $102 billion.

  • Culturally and ethnically diverse – home to the Bucks (NBA), Brewers (MLB) and Summerfest (world’s largest music festival)
  • Major employers – Fortune 500 companies such as Harley Davidson, Marcus Corp, Miller-Coors, Northwestern Mutual, Rockwell Automation, and WEC Energy Group
  • Arts and entertainment – American Family Field; Bradley Symphony Center; Discovery World; Fiserv Forum; Michell Park Horticultural Conservatory; Milwaukee Art Museum; Milwaukee Repertory Theater; Potawatomi Casino; University of Wisconsin-Milwaukee Panther Arena; Wisconsin Center and others
  • Colleges and universities – Marquette University; Medical College of Wisconsin, MSOE, University of Wisconsin-Milwaukee and others
  • Easy access to transit – train (Amtrak), bus (Greyhound Bus), streetcar (The HOP), airport, and interstate highways (I-94 and I-43)
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OPPORTUNITY – SIGNIFICANT NEED

  • Underdeveloped downtown Milwaukee amid rising demand supports the need for new upscale hotel suites, restaurants, luxury venues, and parking – and interest from major international hotel flags
  • Prime location – highly visible and accessible from interstate system, walking distance to local shopping, restaurants, arts and entertainment
  • Occupancy rates for downtown Milwaukee hotels are rebounding to pre-COVID levels which surpass national averages reflecting increased services, healthcare, education, commercial development
  • Downtown hotels typically fill to capacity during the summer driven by tourism, entertainment and recreation
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SOLUTION/STRATEGY

I-Modal is planning the development of an upscale hotel real estate complex in downtown Milwaukee, Wisconsin.

  • Newbuild hotel and underground valet parking – planned pedestrian skybridge to Intermodal Station
  • Renovation of existing Intermodal Station building – access to Amtrak, Greyhound Bus, Wisconsin Coach, and The HOP Streetcar
  • Premier downtown location – close to transit and interstate highways, employers, hospital, university, and various sports and entertainment venues
  • Experienced project team
    • Sponsor and Developer – TOD Real Estate
    • Project Architecture, Environmental, Project Manager – The KPA Group (San Francisco)
    • Construction Manager – in-process
    • Real Estate Broker – Colliers International
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I-MODAL HOTEL – ARCHITECTURAL PLAN

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INTERMODAL STATION – RENOVATED DESIGN

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I-MODAL HOTEL COMPLEX – SITE MAP

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MANAGEMENT

Brian Kliesmet – Chief Executive Officer, President, and Co-Founder

Over 34 years of experience in real estate development and master planning throughout the U.S. In 2017, founded and led Transit Innovations, LLC and Transit Oriented Development LLC; led real estate project coordination with the Milwaukee and the City of West Allis, WisDOT, Southeastern Wisconsin Regional Planning Commission, and community mayors and planning commissions to implement development projects. Previously served as CEO and President, Crown Acquisitions; and President, Landscape Architects. Executed strategic economic development plans and PPP (Public Private Partnerships) as a consultant and advisor to cities and developers. As a private developer, built residential, mixed-use, and hotel developments throughout Wisconsin. Led negotiations with WHEDA, MMSD, DNR, WisDot, Milwaukee County, and local consensus building for real estate development  while negotiating favorable Tax Increment Financing Districts and access to New Market Tax Credits with Wisconsin communities. Board Member – Milwaukee Light Rail Implementation Committee; Milwaukee Municipal Sewage District Advisory Board; Westtown Business District Transit & Planning Committee Chairman; Vision 2000 Master Plan Committee Chairman; and Urban Ecology Center Executive Chairman. B.S. Planning & Landscape Architecture, University of Wisconsin-Madison.

Lisa Kellerman – Chief Financial Officer

Over 30 years of experience in commercial accounting. Since 2019, Chief Financial Officer, Transit Innovations, LLC and Transit Oriented Development, LLC.  Accounting consultant for law and accounting offices. Past independent franchise owner. Previously served as Commercial Director, P&H Mining Equipment (Joy Global); and Group Business Controller and Credit Manager, P&H Mine Pro Services. MBA, University of Wisconsin (Whitewater). BBA Accounting, University of Wisconsin (Whitewater).

Jaqulynn J. Honi – Vice President, Development

Over 35 years of experience in corporate sales and marketing. Since 2021, Vice President of Development, Transit Innovations, LLC and Transit Oriented Development LLC. Outreach Coordinator, JAQ Enterprises, LLC. Previously served as Operating Partner, Advanced TMD & Dental Sleep Center; Owner and Motivational Coach, True Body, LLC.; and  Lead Account Executive, Muzzy Broadcasting (central Wisconsin). Graduate, Dale Carnegie Professional Skills Training Program. Graduate, Coaches Training Institute Co-Active Leadership Training Program.

Mark David Gray – Vice President, Planning and Design

Over 50 years of experience in graphic arts, design, and urban planning. Long time resident of Milwaukee,  understands pulse of community, history and incorporates neighborhood context and sense of place into modern housing and state-of-the art environmental designs.  Previously developed Architectural Rendering and Concept Design for Arcopia. Founded Mark David Gray and Associates Company (freelance advertising and design). Previously served in the City of West Allis Planning Department. BFA, Layton School of Art/MIAD. BFA, University of Wisconsin-Madison. 

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FOOTNOTES:

Overview
Opportunity – Milwaukee
Solution/Strategy

Intermodal Station – Renovated Design
(1) Star- City Infill Site Data – 432 N 5th St – 230620
(2) Laurenstein Associates – Appraisal Report – 431 North 5th Street – 180507
(3) Colliers Wisconsin – Broker Opinion of Value – 433 West St Paul Avenue – May 2023
(4) Transit Innovations LLC – MIS LLC – Colliers – Letter of Intent to Purchase – 433 W Saint Paul Ave – FULLY EXECUTED – 230613


Opportunity – Milwaukee
(5) Fortune Business Insights – Modular Construction Market Size Share Covid-19 impact Analysis Forecast 2021-2028 – April 2021
(6) Visit Milwaukee – Convention Center Expansion – 230111
(7) https://en.wikipedia.org/wiki/Milwaukee


Opportunity – Significant Need
(9) TOD Real Estate management estimates – 230712
(10) CoStar- City Infill Site Data – 432 N 5th St – 230620
(11) CBS 58 – Milwaukee Hotel Airbnb prices skyrocket for Harley Davidson Homecoming Festival – 230710
(12) SpectrumNews – New Deer District hotel aims to draw in tourists to Milwaukee – 220727
(13) PolitiFact – Milwaukees hotels and restaurants would benefit from RNC visitors despite community concerns -220712
(14) biztimes – Real estate spotlight Fall and winter forecaste for downtown Milwaukee hotels a mix of dark clouds rays of hope – 210927
(15) patch.com – WI Hotel Tax Revenue Could Grow As Occupancy Rates Lag – 230223


Solution/Strategy
(16) Transit Innovations LLC – Colliers International – Exclusive Agent Agreement – FULLY EXECUTED – 230411
(17) Transit Oriented Development LLC – The KPA Group – Letter of Engagement of Services – signed KPA – 230710


I-Modal Hotel – Architectural Plan
(18) Intermodal – Hotel and Station Complex Brochure – 230628

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Ken Margolis | Managing Partner Castle Placement, LLC
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