A huge former industrial building just north of downtown Milwaukee would be transformed into condominiums, offices and shops under plans being pursued by a group of California investors.
The former A.F. Gallun & Sons Co. tannery building, in the 1700 and 1800 blocks of N. Water St., is under a sale agreement between the Gallun family and the prospective buyers, said broker Daniel Walsh, of Siegel-Gallagher Oncor International.
The buyers group, led by Doug Garfield, recently started its due diligence process on the building, said Walsh, who represents the Gallun family. That process includes a thorough inspection of the building.
Garfield’s group has not yet closed on its purchase of the building, which Walsh cautioned could still fall through.
Still, the fact that the deal has gotten this far is significant, said Walsh, who has been marketing the building, which is situated along the Milwaukee River, for around two years. The tannery, which opened in 1885, closed seven years ago.
“If (Garfield) is able to do it, it would be the single-best downtown residential development,” Walsh said.
Garfield couldn’t be reached for comment. He is president of Environmental Management Group, an environmental consulting and engineering firm based in Anaheim, Calif.
Walsh confirmed reports from real estate industry sources that Garfield and his partners plan to develop condos within the 390,000-square-foot building, as well as some offices and street-level retail space.
“Of all the people that made offers,” Walsh said, “they had the best ideas to add the most value.”
A portion of the building, which sits on 6 acres, will likely have to be razed, Walsh said. Part of the due diligence is to determine how much of the building should be preserved, he said.
If the development goes forward, it would be the second residential conversion at the Gallun complex.
In 1996, the former tannery offices, at 1818-1830 N. Water St., were converted into the 26-unit Gallun Tannery Row apartments by developers Richard Leep and John Raettig.
That building, which is now managed by Siegel-Gallagher, is adding four more apartments.
There are several other residential projects slated along both sides of the Milwaukee River near the former Gallun tannery.
They include Mandel Group Inc.’s plans for Trostel Square — with 99 luxury apartments and 27 townhouse-style condominiums — on 5 acres along the river’s west bank, just north of the Schlitz Park business park, at 1776-1818 N. Commerce St.
The vacant land once housed the Albert Trostel & Sons Co. tannery.
Other projects include River Homes, with 59 condos, proposed by a joint venture of Legacy Real Estate Partners and Vetter Denk Architects for 2.5 acres along North Commerce Street north of the Holton Street bridge.
Also, the New Land Enterprises is building Highbridge, with 53 condos along a hillside overlooking North Water Street and East Kane Place.
