Beer and the city of Milwaukee have been intertwined for over 150 years, with brewers such as Miller, Pabst and Schlitz establishing a strong presence there.
Even the name of the city’s baseball team, the Milwaukee Brewers, is an ode to the beer industry.
With the acquisition of The Malt House, Midloch Investment Partners has secured a piece of Milwaukee’s rich brewing history for $19.2 million. The firm bought the property in a joint venture with Hempel Real Estate.
“We are first and foremost value investors. But when we can combine our value approach with owning parts of local history, be it in Milwaukee or elsewhere, we jump at the chance,” Midloch Investment Partners Managing Director Tim Donovan told Multifamily Dive.
The brick building was originally constructed in 1882 as the malt house for the Pabst Brewing Co. Between 2016 and 2021, it underwent extensive redevelopment as a luxury 118-unit multifamily property.
“Malt House’s Cream City brick façade combined with the restored interior were not only draws to us as investors but are a big reason why residents love the property,” Donovan said.
Milwaukee's Cream City nickname comes from the creamy-yellow bricks found on buildings throughout the city that were made in the 1800s from local clay, according to local radio station WUWM.
The Malt House features floor plans ranging from 754 square feet to 1,510 square feet with stainless steel appliances, granite countertops and in-unit laundry. Its amenities include a large fitness center, package room, movie screening room, coworking lounge, game room and rooftop deck.
Midloch, a Chicago-based real estate investor, operator and fund manager, plans to make common area and unit upgrades to the property while also addressing deferred maintenance.
“We plan modest upgrades to help improve the tenant experience, including updating entry access for the units and common area spaces, upgrades to the rooftop patio, improvements to the fitness center and game room and enhancing the pet-friendly amenity spaces,” Donovan said.
The property is situated in the historic downtown Pabst District, offering walkable access to coffee shops, restaurants and breweries, as well as the expansive Deer District, home to the NBA’s Milwaukee Bucks. Midloch owns the Brewery District Parking Garage adjacent to The Malt House.
The team of Brad Smith, Jack Maloney and Anna Lovell in Cushman & Wakefield’s Chicago office facilitated the transaction. Landmark Credit Union provided the mortgage loan, and Milwaukee-based Harmoniq Residential will manage the property, according to a release shared with Multifamily Dive.
Midloch bought The Malt House through its Midloch Value Fund III. The firm, which invests in industrial, multifamily, retail and office properties, typically targets developments valued between $5 million and $50 million. It has invested over $830 million in assets since its inception.
“We are active investors in Milwaukee and, more broadly, in Midwest multifamily markets,” Donovan said. “We invest across the U.S. and across property types, but consider the Midwest ‘Mid-Best.’”
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