Tandem Developers plans to convert a five-story manufacturing building in Brewers Hill into a $6 million condominium development.

Tandem Developers LLC has agreed to buy the 67,000-square-foot building at 234 E. Reservoir Ave. from Weyco Group Inc., Tandem partner Paul Marks said Wednesday. Tandem's preliminary plans call for converting the building into roughly 60 loft-style condos.

Tandem may eventually build new residential units on vacant land adjacent to the Weyco building, with the total development encompassing about 100 units, Marks said. He said the conversion of the Weyco building would cost an estimated $6 million, with the additional construction costing another $4 million.

That would be a huge investment for Brewers Hill, where most of the residential development has taken the form of single-family homes and duplexes being purchased and renovated by their owner-occupants.

"It could be a tremendous infusion in the neighborhood," Marks said.
Tandem's plans also would prevent a large building from becoming vacant.

Weyco, a shoe manufacturer, moved its corporate offices in February from the Reservoir Ave. building to the company's new facility at 333 W. Estabrook Blvd., Glendale. The company plans to move its distribution center to the Glendale building by September, said John Wittkowske, Weyco's chief financial officer.

After the distribution center moves, Weyco will close on the sale of the property to Tandem, Wittkowske and Marks said. Wittkowske described the sale, which is being brokered by Roger Siegel, of Polacheck Co., as "99% complete."

Tandem's plans for the Weyco building haven't been completed, so Marks was reluctant to provide details on the project. He said Tandem would consider developing the units as apartments if the market doesn't support condos in the building.

However, Marks said he believes "reasonably priced" loft-style condos will find buyers in Brewers Hill.

Tandem's loft-style projects in Chicago's South Loop neighborhood - where the company has developed one- and two-bedroom units ranging from 700 square feet to 1,500 square feet - have sold quickly, he said.

A one-bedroom unit at Tandem Lofts, one of the company's South Loop developments, is listed at $159,900. In addition to the 58-unit Tandem Lofts, the company also has developed the 53-unit Bicycle Station Lofts in the South Loop.

Marks and his partner, Paul Dincin, believe Brewers Hill is an attractive neighborhood for loft-style condos because it is close to downtown and is an improving area. The Weyco building sits atop Brewers Hill and offers views of the downtown skyline.

The Weyco development would be among Tandem's first projects outside of Chicago, Marks said. He said Tandem is looking for other buildings to develop in Milwaukee and said the loft-style condo market in both Milwaukee and Chicago is driven in part by young people who want to live near downtown and are tired of renting.

Tandem hopes to begin pre-selling the units within 90 days, with completion of the units in 2000.