BizTimes Milwaukee | November 13, 2023

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Contents » NOV JUL 19 13- -AUG DEC15, 10,2021 2023

5 Leading Edge 5 NOW

BY THE NUMBERS 6 QUOTE UNQUOTE – Drybar founder Alli Webb 7 FRESH DIGS – Ellenbecker Investment Group 8 THE FRANCHISEE – Central Bark 9 BIZTRACKER ON MY NIGHTSTAND BIZ POLL 10 MEET THE WISCONSIN 275 – Jim Barry III 11 INNOVATIONS – Hatco Corp.

12 Biz News

12 SHOP TALK: Introducing cobots

COVER STORY

16

What’s the deal?

Metro Milwaukee resilient amidst office and industrial market divergence

Special Report 16 Real Estate & Development

In addition to the cover story, coverage includes a preview of the Commercial Real Estate & Development Conference and our annual survey of local commercial real estate brokers.

34 Banking & Finance

Trends in interest rates and advice for businesses on what to do if they remain higher for much longer.

38 Veterans in the Workplace

Local veteran, businessman says companies need to get smarter about recruiting former service members.

and increased automation 13 Aug Prep plans $25 million in renovations to former Cardinal Stritch

14 Real Estate 44 Notable Women in Hospitality 48 Strategies 48 PLANNING – Mike Malatesta 49 ENTREPRENEURSHIP – Cary

Silverstein

50 Tip Sheet

52 Biz Connections 52 NONPROFIT 54 GLANCE AT YESTERYEAR

COMMENTARY

55 5 MINUTES WITH… Dan Katt,

Mandel Group

BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 29, Number 12, November 13 - December 10, 2023. BizTimes Milwaukee is published bi-weekly, except monthly in January, February, March, April, July, August, November and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $108. Single copy price is $6. Back issues are $9 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2023 by BizTimes Media LLC. All rights reserved.

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a 4 / BizTimes Milwaukee NOVEMBER 13, 2023

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Leading Edge

BIZTIMES DAILY – The day’s most significant news → biztimes.com/email

Sea-Doo Switch

Quebec-based recreationBRP to expand al product manufacturer BRP Inc. plans to $14 million Sturtevant operations in expandinginvest its operations in

By Andrew Weiland, staff writer

BY THE NUMBERS WEC Energy Group is adding

$

3.3

BILLION to its new five-year capital investment plan, including an additional $1.4 billion in renewable energy generation.

Sturtevant and could receive up to $800,000 in tax increment district funding from the village.

In January of 2022, BRP launched production of the Sea-Doo Switch, a customizable pontoon boat, at its Sturtevant manufacturing facility. To support production and distribution needs, the company now plans to invest more than $14 million in improvements to its existing manufacturing facility there and in the development of an off-site shipping yard that will hold the finished product prior to distribution, according to the Racine County Economic Development Corp.

BRP also plans to update its marine training center in Sturtevant for BRP dealers and product technicians. About 400 visitors are expected to come to the training center each year, according to RCEDC. “In 2020 and 2021, we invested in and retooled our manufacturing facility in Sturtevant to enable the production of a new product, the Sea-Doo Switch. Our goal is to maximize the use of our current facility and expand our footprint in the area to support our future growth,” said Stéphane Bergeron,

vice president of operations, Marine Group at BRP. The Sturtevant Village Board has approved a multi-year agreement to provide up to $800,000 in tax increment district funds to BRP to support the expansion project.

“I am thrilled to see BRP’s commitment to growth and innovation in the village of Sturtevant.

The planned investment of over $14 million demonstrates BRP’s confidence in our community and its dedication to expanding its manufacturing facility and enhancing training resources for its dealer networks. The production of the Sea-Doo Switch pontoon is a testament to the skilled workforce and the collaborative environment that Sturtevant offers. We look forward to a continued partnership with BRP as they contribute to the economic development and prosperity of our village,” said Sturtevant Village President Mike Rosenbaum.

In late 2021, less than two years after ending production of Evinrude outboard engines in Sturtevant and laying off hundreds, BRP said it planned to hire 175 people at its Sturtevant facility. At the time, the company said it had 315 employees at its Sturtevant campus.

BRP says it now has 720 employees in Sturtevant.  biztimes.com / 5

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MAREDITHE MEYER

Leading Edge

@BIZTIMESMEDIA – Real-time news

“ QUOTE UNQUOTE” ALLI WEBB

CO -FOUNDER OF DRYBAR

Alli Webb, co-founder of the national hair salon chain Drybar – known for its signature blowout service – shared her journey as an entrepreneur, business leader, mother and writer during TEMPO Milwaukee’s 18th Annual Leadership Event at the Baird Center in downtown Milwaukee. In a keynote conversation with TMJ4 anchor Shannon Sims, Webb discussed her new book, “The Messy Truth: How I Sold My Business for Millions but Almost Lost Myself,” which details her spiral into depression, and eventual recovery, following the enormous early success of the Drybar brand. 

“Anything we’re really passionate about usually starts from personal necessity. … I grew up in south Florida; I had naturally curly hair, it was always frizzy and I didn’t understand why, and it started this lifelong passion for figuring out my hair. It sounds simple, but it was this common thread, this thing I was mystified by.”

“It stings hearing someone telling you they don’t like what you’ve done or said, or they don’t like your business. Our natural human response to that is, ‘I don’t want to hear that, it doesn’t feel good,’ and it doesn’t, but there’s so much gold in that. For someone to be honest with you is, first of all, a gift. I tend to believe the best in people and if someone is telling you something about your business – regardless of their intent – well, take that information and run with it.”

“We get caught up in what we don’t have, this scarcity mindset. Imagine if every single one of us were being kind and good and generous and appreciating the things we do have in our lives. Even if we haven’t made all the money we want to make or achieved all the success, if we can find the gratitude and the joy in what you do have verses what you don’t, it just doesn’t get any better than that.”

“I think when my life fell apart in the midst of greatness and excitement, I felt called to shed light on that because it’s so real. I’m so blessed and grateful for the success of Drybar, and I think I also wanted to be like, ‘Hey, by the way, it was really hard. It wasn’t easy as it looks from the outside,’ and give people a peak behind the curtain of what this whole thing was really like. I hope (the book) inspires people and makes people feel less alone.”

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“Your presence and awareness, it’s something to think about, especially if you’re at the helm. Whether you’re leading a company or just somebody’s boss, how you interact and how you come off really matters.”

11/6/23 7:07 PM

VALERIE HILL

“My advice to other entrepreneurs is you don’t have to invent the iPhone. We didn’t invent blowouts, but we created a much better environment, a much better price point, a much better experience around blowouts.”

VALERIE HILL

t

FRESH DIGS

ELLENBECKER INVESTMENT GROUP OWNER: Ellenbecker Investment Group CONTRACTOR: McGuire Contractors Inc. YEAR COMPLETED: 2023

IN MAY, Ellenbecker Investment Group relocated its Pewaukee headquarters to N21 W23350 Ridgeview Parkway, within the RidgeView Corporate Park.

Founder Karen Ellenbecker and her daughter, president Julie Ellenbecker-Lipsky purchased the 20,000-square-foot former multi-tenant office building in 2021 and spent the following two years transforming it into a space intended to feel like home to the company’s growing team of 40plus employees.

Set on 42 acres of secluded wooded land, Ellenbecker’s new office features a second-floor “education center” for client information sessions and internal functions, and a place where local nonprofits can host their own events; an out-

door deck and heated screened-in porch overlooking a meditation garden; an on-air studio where the company produces its two radio shows, “Money Sense” and “Milwaukee’s Philanthropic Community;” and a relaxation room where employees can lounge on comfortable couches and take a break from their day. Hand-painted artwork adorns the walls and plenty of natural light streams through the building thanks to newly installed interior transom windows.

Ellenbecker’s workplace flexibility policy allows employees one remote workday per week, but with all the home-like amenities built into the new space, the hope is to give employees the same level of comfort the other four days they’re in the office.  biztimes.com / 7

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Leading Edge

@BIZTIMESMEDIA – Real-time news

the

FRAN C H I S E E Allen and Christy Stanczak

ALLEN AND CHRISTY STANCZAK CENTRAL BARK

“We were just pursuing any business, not necessarily the pet industry. … At that point, it was actually fairly quick. We had contacted the franchise and connected with the owner and made a deal within two weeks,” said Allen Stanczak.

THE FRANCHISE: West Allis-based Central Bark is among the largest doggy daycare networks in the nation, with nearly 40 locations in 14 states, including 12 in southeastern Wisconsin. Jackie Jordan and Chris Gaba founded the company in 1997 and launched the Central Bark franchise system in 2003.

FALL 2014: While attending the Brady Street Pet Parade, the Stanczaks struck up a conversation with the owner of Central Bark’s downtown Milwaukee location, which was sponsoring the event. He mentioned the owner of Central Bark’s New Berlin location was looking for a buyer.

Central Bark offers a suite of “whole dog” care services including enrichment doggy day care, boarding, grooming and training.

JANUARY 2015: The Stanczaks closed on a deal to become the new owners of Central Bark New Berlin, then located at 2105 S. 170th St. DECEMBER 2021: The Stanczaks purchased Central Bark Franklin. They had purchased Central Bark Madison in 2018 from its previous owner of 10 years and went on to double its business and add several employees.

Central Bark New Berlin is located at 16700 W. Victor Road.

JULY 2023: Central Bark New Berlin moved to a new location, allowing the business to nearly double capacity with 12,000 square feet of indoor space and 6,000 square feet of outdoor play area, including a dog pool with a fire hydrant pump and splash pad. It also added boarding to its service offerings.

THE FRANCHISE FEE: $49,000

“From there we just continued to grow the place and put improvements into it, and it took off.”

“We had maxed capacity at our (former) New Berlin location. … We fell into almost a perfect building that didn’t need a lot of construction, compared to what we normally have to do.”

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The latest area economic data.

on my nightstand...

JUSTIN WEBB CEO FifthColor Marketing Agency

4.4 million A total of

“The Power of Moments”

passengers traveled through Milwaukee Mitchell International Airport during the first nine months of the year, up 8.6% from a year ago.

27.3% Women currently hold

of board seats at Wisconsin’s top 50 public companies, up from 26.3% in 2022.

5.7%

The average private sector hourly wage in Wisconsin climbed

year-over-year in September, reaching $32.06.

By Chip Heath and Dan Heath

JUSTIN WEBB, the chief executive officer of Sheboygan Falls-based FifthColor Marketing Agency, is an avid reader of books that can help inspire and guide his company. He’s continuously seeking insights and fresh perspectives to drive innovation for his clients. He is currently reading “The Power of Moments” by Chip Heath and Dan Heath.

“It spotlights case studies of companies that purposefully create powerful moments for clients that ultimately serve as a point of differentiation. My favorite case study is the

incredible story of the ‘Magic Castle.’

This family-friendly resort is the number-one rated resort in Los Angeles, California, by ingeniously crafting a customer experience personified by a simple yet extraordinary presentation of a 30-cent popsicle.

“This fascinating case study illustrates that purposefully designed moments can elevate a brand and create unforgettable memories even without a significant investment. It is not merely about the popsicle, it’s about the art of delighting customers through exceptional and powerful moments.” - Justin Webb 

BIZ POLL A recent survey of BizTimes.com readers.

Do you support the new Republican plan to fund future improvements to American Family Field with about $411 million from the state, $135 million from the city and county of Milwaukee and $100 million from the Brewers?

5,800

Wisconsin added

YES:

49.3%

NO:

50.7%

private sector jobs in September, but the state’s unemployment rate ticked up to 3.1%.

2.5 million

The Milwaukee Brewers had total home game attendance of

in 2023, ranking 15th in Major League Baseball.

Share your opinion! Visit biztimes.com/bizpoll to cast your vote in the next Biz Poll. biztimes.com / 9

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Do yo

Leading Edge

JIM BARRY III President and CEO The Barry Company MILWAUKEE

This Q&A is an extended profile from Wisconsin 275, a special publication from BizTimes Media highlighting the most influential business leaders in the state. Visit:

biztimes.com/wisconsin275 for more.

Jim Barry III, the third-generation family leader of commercial real estate brokerage and consulting firm The Barry Company, has been involved in some of the biggest and most complex transactions in the region. He’s brokered deals for southeastern Wisconsin’s largest corporations, including Harley-Davidson, MillerCoors, Roundy’s, U.S. Bank and Foley & Lardner. Recently, Barry helped assemble the land – including three adjacent properties with three different owners – for Milwaukee Public Museum’s future home in downtown Milwaukee. A lawyer by training, Barry co-founded the Milwaukee Lawyers Chapter of the Federalist Society, is former finance chairman of the Republican Party of Wisconsin and current chairman of the Wisconsin Institute for Law & Liberty.

Education: Bachelor’s, Georgetown School of Foreign Service; JD, University of Chicago Law School; General Course Certificate, London School of Economics What was your first job, and what did you learn from it?

“Busboy at Jack Pandl’s Whitefish Bay Inn. I learned the value of hard work, the importance of prioritizing tasks and the basics of diplomacy by interacting with customers and the Pandl’s staff.”

What piece of advice has had the most significant impact on your career?

“Try to discern God's will in all things and try your best to conform your will to God's.”

“Your word is your bond.”

What are some of your favorite destinations or places to visit?

“Paris; Rome; London; Jerusalem; Grindelwald, Switzerland; the Adirondack region of New York.”

What is one book you think everyone should read?

“The Complete Works of William Shakespeare.”

What would people be surprised to learn about you?

“I ran with the bulls in Pamplona, Spain during the Festival of St. Fermin in July of 2012, and I survived.”

What was your first car? How long did you drive it for?

“A used Volkswagen Beetle orange convertible. I drove it for about a year, until it completely fell apart.”

What’s the toughest business challenge you’ve had to overcome?

“Probably steering our company through the Great Recession, when the commercial real estate brokerage business nearly stopped for many months due to the lack of demand.

We had to search hard for buyers and tenants and we had to be creative, but we made it through.”

What advice would you give to a young professional?

“Your word is your bond.”

What is one thing you would change about Wisconsin to make it even better?

“I would reform the Wisconsin tax code so that the income tax would be significantly reduced or eliminated. This could be done with a corresponding change in the sales tax.

States that have done this have seen strong in-migration and economic growth. It would make Wisconsin far more competitive and a more attractive place to live.”

Is there a nonprofit cause that has special meaning to you?

“I have the honor of being a director of the Lynde & Harry Bradley Foundation, which plays a very important role in the philanthropic community. The foundation is committed to restoring, strengthening and protecting principles and institutions of American exceptionalism, both locally and nationally. The foundation has done a great deal to advance this mission and supports many worthy organizations in the Milwaukee nonprofit universe.” 

If you could take a one-year sabbatical, what would you do?

“Write a novel, teach history or serve in the government.”

e a w I p s t s s

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P s a t t O r s H k c d

p e

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2-STORY CREATIVE

INN

VAT I

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Milwaukee company teams up with culinary tech firm to develop robotic pizza making system ABOVE: Ovention’s Shuttle oven.

By Ashley Smart, staff writer

TWO COMPANIES serving the food industry have come together to develop a compact, fully autonomous, robotic pizza-making system designed for convenience stores, quick service restaurants, ghost kitchens and other commercial settings.

Milwaukee-based food service equipment maker Hatco Corp. and its Ovention ovens brand are working with Arlington Heights, Illinois-based Nala Robotics to perfect the robotic pizza-making system, which was on display for the first time at a national food service convention held at the start of this year.

The system combines Nala Robotics’ fully automated Pizzaiola pizza maker with Ovention’s Shuttle oven and Hatco’s Flav-R 2-Go Pizza Locker System, all contained within a 10-foot-by-10-foot space.

Here’s how the process works: Pizzaiola’s AI-based robotic arm selects and presses the dough, adds the sauce, cheese and toppings, and places the pizza in the Ovention oven to be cooked.

Once ready, the robotic arm removes the pizza from the oven, slices it, boxes it and loads it into Hatco’s pizza locker system to keep warm. The system can be configured to include variations of dough, sauces and toppings.

“From the middle part of the process – cooking – to the customer-facing and interactive part, we

LEFT: Pizzaiola’s robotic arm positions pizza dough to be pressed.

have those components covered.

Nala just needed to process the pizza in between,” said Casey Reilley, director of Ovention Ovens. “… We’ve worked with other automation companies in the past, especially since COVID, that kind of work has escalated a lot.”

Ovention is focused on countertop, ventless and auto-load/ unload technology solutions for the food industry. Several of its customers are gas station convenience store operators who are increasingly seeking automated food programs for their profitability, Reilley said.

“Food costs are low, and you can charge a decent price for products,” he said. “Gas is getting them there but it’s the food and beverages that are making them money.”

Hatco’s locker system – geared toward pick-ups, third-party delivery and to-go orders – have several custom features. The systems include QR code readers and touchscreen controls that simplify the ordering process for customers and operators. Each locker also has a timer to hold pizzas for up to 45 minutes, with a preset temperature that can be adjusted. Customers can choose from a built-in,

countertop or floor mount model, based on available space.

Nala’s Pizzaiola is a fully automated, multi-cuisine, seven-axis robot designed for restaurateurs who want to expand their menu.

The system can respond to spoken menu orders or operational commands. From start to finish, a cooked pizza is available for pickup within five to six minutes. All that’s left for the user to handle is cleaning the machine and refilling ingredients, along with regular maintenance.

“This compact solution allows operators to easily increase revenue 24 hours a day, seven days a week with minimal or no additional labor costs,” said Ajay Sunkara, chief executive officer of Nala Robotics.

The idea to develop the automated pizza-making system to fit within a 10-foot-by-10-foot space was spurred by the fact that most convenience store operators don’t have a large physical footprint.

And even if a convenience store does have a large amount of square footage to work with, there is no guarantee the owner will be able to find an employee to operate the system.

“All these big chains are strug-

gling for labor and consistency with that labor,” said Reilley. “A robot isn’t going to call in sick, so there’s definitely some interest.”

A final consumer product is still several months away from going to market as both Nala and Ovention seek further customer feedback to refine the design of their pizza-making system.

“Hatco has been providing innovative solutions to foodservice operators since 1950,” said Mark Pumphret, vice president of North American sales at Hatco. “Our partnership with Nala Robotics and Ovention takes food service innovation to the next level.” 

Hatco Corp. | Nala Robotics

Milwaukee | Arlington Heights, Illinois

INNOVATION: Autonomous, robotic pizza-making system FOUNDERS: Gordon and LaReine Hatch | Ajay Sunkara FOUNDED: 1950 | 2017 hatcocorp.com nalarobotic s.com biztimes.com / 11

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BizNews

SHOP TALK

How are local manufacturers introducing cobots and increased automation?

WHILE THE USE of robots within manufacturing facilities is nothing new, there is one kind of industrial robot that is seeing an explosion of interest from business owners in the industry.

Cobots – short for collaborative robots – operate alongside humans within a shared space.

Cobots have become so popular that shipments worldwide are expected to grow from 4,500 in 2022 to 42,000 in 2030, according to data from Statista.

Increased interest in the use of cobots is driven by many of the same business headwinds manufacturers continue to face. For Bill Berrien, chief executive officer of New Berlin-based contract manufacturer Pindel Global Precision, the decision to purchase a FANUC CR-15ia cobot three months ago was driven by ongoing labor shortages.

“It was the difficulty of finding people to join the team, frankly,” said Berrien. “We wanted to grow, but we couldn’t find people at lower skill levels to tend the machines, which the cobot will be doing. We would prefer to upskill the team members we already have across other areas in the business.”

He explained there are two unique benefits to using cobots: individuals can work around and with the technology without being separated by a barrier, like a fence, and the cobots can be reprogrammed and moved around a shop floor quickly. Both of those advantages fit well into Pindel’s

By Ashley Smart, staff writer

MGS Manufacturing’s Germantown facility.

vision for incorporating cobots into its workforce.

“With traditional industrial robots, it’s more complex to program them,” said Berrien. “Because of all the fencing, it’s not really possible to move them around and reposition them as quickly.”

He wants employees to be able to move cobots around the shop floor quickly and implement them within different production lines that aren’t permanently running. This means the cobots will be working on different parts throughout the year. When considering where else to implement cobots, Berrien said any work that requires repeated processes and basic movement skills makes the most sense.

When Madison-based consulting organization WMEP Manufacturing Solutions is considering whether a manufacturer is a good fit for increased automation, they look at where employees are spending their time on the shop floor and how many different processes each employee is working on, said Colin Wilson, senior consultant of automation services at WMEP. “Automation isn’t just cutting a check and dropping something on your floor,” said Wilson. “You need to have a plan for it. You need to prepare your people for it.

At the end of the day, the internal culture to support the automation can make a project successful.”

A decade ago, he had a difficult time envisioning where cobots would even fit into the

manufacturing process. Everything WMEP was focused on then involved high-speed, high-precision technologies. Now, collaborative robots, while slower than traditional robots, have carved out a place helping to automate low- and mid-volume production lines – for example, a machine shop that has runs of 20 to 50 parts.

“If you’ve got a machine shop that has a piece of equipment that does something different for every single part made, they may not be the right candidate for robotic tending,” said Wilson. “Where cobots will be a good fit is really capacity and demand driven.”

At Germantown-based MGS Manufacturing, which specializes in complex, high-precision plastic components, hundreds of different kinds of robots are constantly in use every day. Continued investment in robots and automation is sure to be the right move for the company, especially in its production of components for the health care industry, which rely on great amounts of labor and stringent quality requirements, said Shawn Krenke, chief technology officer and senior vice president of automation at MGS Manufacturing.

“Achieving zero defects means inspecting processes, and that can really only be done by automating.

A lot of those inspections can’t be done manually,” said Krenke.

He believes while most manufacturers will justify the use of automation through the eventual return on investment, the increased quality that comes with investing

TIPS FOR MANUFACTURERS: •

Make sure your employees are educated on the purpose of the new equipment and why it’s an improvement.

•

When considering where to introduce cobots or automation, search for repeated processes with basic movement skills.

•

Cobots can be a fit within facilities looking to reprogram and move them around the shop floor quickly.

•

Cobots can help boost product quality.

in technology is not something that should be overlooked.

Another key area of concern to consider when bringing in technology like cobots is, of course, how employees will respond to the change.

Manufacturers can sometimes be met with passive resistance from employees when introducing a new technology, according to Wilson. This is often because employees weren’t properly educated on how to use the new equipment effectively and they prefer to use the processes they’re already accustomed to. It’s also important to make sure employees know that no new technology is being put in place to replace them. n

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TRANSWESTERN

NEWS FEATURE

Abby Andrietsch An aerial view of the former Cardinal Stritch University campus in Glendale and Fox Point.

Aug Prep planning $25 million in renovations to former Cardinal Stritch campus

By Cara Spoto, staff writer JUST A FEW MONTHS after The Ramirez Family Foundation announced it had purchased the former Cardinal Stritch University campus with plans to convert it into a north side campus for St. Augustine Preparatory Academy, Abby Andrietsch, Aug Prep’s president and chief executive officer, provided updates on the project for a room full of Christian education boosters.

Speaking at the River Club of Mequon as part of Concordia University Wisconsin’s annual Concordia Christian Leadership Series, Andrietsch gave attendees a sense of the ambitious plans The Ramirez Family Foundation has for the 43.5-acre former Cardinal Stritch campus in Glendale and Fox Point.

Although Gus Ramirez, co-chairman of the foundation, had initially estimated renovations and improvements to the campus’ grounds and 12 buildings would cost between $8 million and $10 million, Andrietsch said the best estimate is now closer to $25 million.

PLANS IN THE WORKS School leaders are working with Pewaukee-based VJS Construction Services and Milwau-

kee-based Eppstein Uhen Architects on what spaces to prioritize for renovation but aren’t quite sure what those spaces will look like just yet, she said.

“That visioning is still continuing for the next several weeks,” Andrietsch added. “We’ve had a few surprises. I mentioned to a couple of people this morning that it amazes me the difference in code compliance for higher ed versus K-12. We’ve got between $8 million and $10 million in just fire code sprinkling that has to be done to get the facility ready.”

Efforts to open a new north side campus comes as Aug Prep has expanded the footprint of its south side campus, opening a newly constructed, 123,000-square-foot elementary school for K4-5th grade students this fall. The family opened the Christian education-based voucher school in 2017 at 2607 S. 5th St. in Milwaukee.

The Ramirez Family Foundation acquired the former Cardinal Stritch campus in a $24 million deal in late July. Citing declining enrollment and significant financial problems, Cardinal Stritch decided to end its operations at the end of the 2022-‘23 school year.

Although plans aren’t yet

determined for what a K-12 school at the campus might look like, Gus Ramirez has said that the foundation plans to raze some older dormitories on the campus – about 150,000 square feet of space – to make way for future athletic fields.

Andrietsch noted that there will likely be space on the campus for nonprofits to rent. She said the school is being very thoughtful about what organizations may best fit those spaces as the school discusses ways to support future students and their families.

STAFF AND STUDENT RECRUITMENT As it creates a vision for what a north side Aug Prep campus might look like, school leaders already have ambitious plans for how many students could be educated there.

The school has a goal of starting in the fall of 2025 with 315 students in grades K4-6 and 9, with plans to expand in subsequent years to include more middle and high school grades.

“In over 10 years, we will grow to ultimately serve about 1,500 students (at the north side campus),” Andrietsch said. “Once combined with our south campus, we imagine serving almost 3,800 students by 2031-‘32 with 300 to

400 high school graduates. Can you imagine the impact on our city and community of those graduates on our world?”

One of the goals of the new campus, nestled in the affluent north shore, is to boost the number of tuition-paying students at the school. Currently, more than 90% of Aug Prep’s student body receives vouchers from the state.

Asked about efforts to recruit those private-pay students – and teachers, which are in short supply – Andrietsch said that while it is still very early on in the recruitment process, school leaders are already having conversations with community leaders and partners.

“We added 77 new staff this fall as we grew (the south side campus),” she said, noting that the school started the academic year 98% staffed.

“So, we will continue to press forward, always thinking about partners. We’ve already hired five former Cardinal Stritch employees, so we are hopeful that there may be more places for former Cardinal Stritch employees, especially as we open the new school,” Andrietsch said. “I’d love to see people that were teaching chemistry and calculus there be able to teach chemistry and calculus for our high school kids.”

As for finding students for the north side campus, which leaders are hoping will be a more diverse school than the south side campus, Andrietsch said Aug Prep already has about 200 students, who live north of North Avenue, who may opt to transfer to the north side campus when that becomes an option. School leaders have also been hosting a lot of meetings with community leaders, to help build grassroots relationships that can help outreach efforts.

The goal, she said, is not to build transactional partnerships, but to think about how Aug Prep can develop sustaining, trusted relationships with partners.

“That includes the north shore as well as the north side,” Andrietsch said. n biztimes.com / 13

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Real Estate

REAL ESTATE WEEKLY – The week’s most significant real estate news → biztimes.com/subscribe

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WHO OWNS THE BLOCK? EAST CAPITOL DRIVE, FROM FREDERICK TO PROSPECT AVENUES, SHOREWOOD

1 2101 E. Capitol Drive Owner: Yuan Hwa Han Trust Tenant: Capitol Cleaners

5 2201-2213 E. Capitol Drive / 3948 N. Maryland Ave. Owner: Capitol & Maryland LLC Tenants: The City Market Café & Bakehouse, Crux Chiropractic, Pizza N Curry, Blooming Lotus Bakery, Milwaukee Yoga Center

2 2107 E. Capitol Drive Owner: Hackbarth Commercial LLC Tenant: The Atrium

6 2219-2223 E. Capitol Drive Owner: BK Capitol LLC Tenants: Luxe, Silver Lining Soap, Happy Little Stars

3 2121 E. Capitol Drive Owner: The Annason LLC (Katz Properties) Tenant: The Annason apartments

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14 / BizTimes Milwaukee NOVEMBER 13, 2023

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JON ELLIOTT / MKE DRONES

CUSHMAN & WAKEFIELD | BOERKE

More than a decade after the Burger King at 106th and Greenfield in West Allis flame-grilled its last Whopper, the building still sits vacant.

The long-term vacancy recently prompted Mayor Dan Devine to throw Burger King’s slogan “You Rule!” right back at them. Last month, he took to X (formerly Twitter) saying, “Hey Burger King! Since ‘I rule’ could you please help me and do something with this ‘Whopper’ of a blighted property … ?”

The company, which owns the building, later posted in response: “This definitely does not rule. Please message us so we can figure out what is happening.” One week later, the city of West Allis filed a lawsuit against Burger King, for neglecting the property, court records say.

Burger King did not respond to a request for comment on the building or lawsuit.

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TRANSPAK BUILDING IN FRANKLIN An affiliate of Waukegan, Illinois-based Yaskawa America Inc., a manufacturer of AC inverter drives and motion control and robotics automation systems, has purchased the former Transpak Corp. building in Franklin for $20.3 million.

The 207,814-square-foot building is located on a 17.5-acre site at 2 W. World Packaging Circle in the Franklin Business Park.

The property has an assessed value of $11.1 million, according to county records.

Transpak, a packaging, warehousing, distribution and logistics company, moved its operations out of the building about two years ago and is now located in a larger space in Milwaukee.

Yaskawa America has several facilities in the U.S., including a manufacturing plant in Oak Creek.

“The Franklin facility is needed space for increased production capacity for our value-added business,” said Mike Knapek, chairman and chief executive officer of Yaskawa America.

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STORY COVER

WHAT’S THE DEAL?

Metro Milwaukee resilient amidst office and industrial market divergence

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16 / BizTimes Milwaukee NOVEMBER 13, 2023

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STORY COVER

18 / BizTimes Milwaukee NOVEMBER 13, 2023

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DYNAMIC TOOL

T

here’s an interesting redevelopment project underway in Menomonee Falls.

Dynamic Tool Corp., a plastic injection molder based in the village, is converting a former office building into a manufacturing facility.

The 110,000-square-foot building was used by Kohl’s Corp. until 2021, when the company vacated the space as it reassessed its office footprint amid the shift to remote and hybrid work. A year later, Dynamic Tool purchased the building and began major renovations.

“The building was just a wall-to-wall expanse of partition walls and cubicles, literally hundreds,” said John Berg, head of business development for Dynamic Tool. “But we removed all those, removed the drop ceiling, we are literally sawing through the existing cement floor and taking it out in large slabs and then will be pouring a significantly more weight-bearing floor in so that we can move in our injection molding machines. We’re basically going soup to nuts.”

As witnessed in places like the Historic Third Ward, Walker’s Point and Schlitz Park, Milwaukee is full of often-historic industrial buildings that were converted into office space. In all, about 5.5 million square feet of industrial space in Milwaukee has been converted into office space, according to one commercial real estate broker’s estimate.

Up until recently, however, it’s been rare to see a project like Dynamic Tool’s, in which an office building is converted into an industrial building.

“You never would have seen this type of conversion in the past,” said Jim Barry, president of Milwaukee-based commercial real estate firm The Barry Company. “You would have seen industrial shift to office because office was seen as a higher and better use. What you’re seeing now is nothing’s happening with these office buildings and consequently, industrial is the higher and better use.”

The project is emblematic of the nation’s postCOVID commercial real estate landscape, Barry added, in which market shifts have resulted in a strong industrial market, with historically low vacancy rates, and cultural shifts around office work have resulted in a glut of office space.

“In the (commercial real estate) hierarchy, office was once on top and industrial was on the bottom, and now you’re seeing industrial higher on the food chain than office, which is something I never thought I would see, but that’s the case,” Barry said.

Nationally speaking, the metro Milwaukee area, which includes Milwaukee, Ozaukee, Washington and Waukesha counties, is not alone in seeing more heat in the industrial real estate sector, but the Milwaukee area does stand out with the lowest industrial space vacancy rate among U.S. cities, leading companies like Dynamic Tool to take innovative approaches to navigate a tight market.

Milwaukee also stands out with its office

The interior of Dynamic Tool Corp.’s new Menomonee Falls facility before renovations (above) and during renovations.

market, in which, although vacancy is up, several trends have kept it relatively healthy and active, at least compared to many other major U.S. metro areas.

Pandemic fuels industrial growth

Dynamic Tool, which was founded in the Milwaukee area about 40 years ago, had been experiencing steady growth for several years, Berg said, but the onset of the COVID-19 pandemic drove its growth to new levels.

In 2020, Dynamic Tool began making components for hand sanitizer bottles and dispensers,

face masks, face shields and respirators.

“There were hundreds and hundreds of products that were impacted, and the volume quadrupled or even multiplied by 10 suddenly,” Berg said.

“Because of the reputation we had, we were one of the beneficiaries of that.”

Pandemic-era growth, which has resulted in more than a 25% increase in employees for Dynamic Tool, led to the company’s need for more space.

“After COVID and some of the commercial real estate turmoil that happened as a result, the old Kohl’s building was (available at) an attractive enough price where Dynamic ownership enviContinued on page 20

11/6/23 7:21 PM

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DYNAMIC TOOL

STORY COVER

The shop floor at Dynamic Tool Corp.’s current facility at W133N5180 Campbell Drive in Menomonee Falls.

sioned that, since there are so many great things about this facility, that it beats converting a strict manufacturing facility that’s probably more expensive to begin with,” Berg said.

“But we’re certainly not the only company that can say COVID accelerated our growth,” he added.

A shift in consumer demand, evidenced mostly by the rise of e-commerce, has led to an increase in warehousing and distribution needs across the nation. In southeastern Wisconsin, this trend is evidenced by a wave of development along the I-94 North-South corridor in Racine and Kenosha counties, but logistics demands have impacted the industrial real estate market closer to Milwaukee as well.

“It’s not as dramatic here as we’ve seen in Kenosha with Uline and Amazon, but Amazon and others have a presence here in metropolitan Milwaukee and there are lots of distributors who have last-mile requirements,” Barry said.

However, in metro Milwaukee, a significant amount of industrial growth has also been driven by manufacturers expanding.

“For a while, the third-party logistics groups really dominated the activity. Recently we’ve seen them pull back, and we’ve started to see the majority of our transactions related to manufacturing uses,” said Joe Carollo, vice president at JLL. Nationally, construction spending related to manufacturing reached $108 billion in 2022, according to U.S. Census Bureau data. That’s the highest annual total on record – more than what was spent to build schools, health care centers or office 20 / BizTimes Milwaukee NOVEMBER 13, 2023

16-29 NOV 13 Cover Story.indd 20

buildings.

The uptick in manufacturing-related construction spending is a result of companies seizing on government incentives to expand their operations, such as in the electric vehicle or renewable energy space, and other companies that once relied exclusively on lower-cost countries to manufacture goods have found reasons to come home.

“The expansions that we’re seeing now, maybe 10 years ago would have gone and expanded into Mexico or another country, but with where the economy is now, more of that growth is happening locally,” said Gard Pecor, senior market analyst with CoStar Group, a commercial real estate analytics company.

“We do very good growing our own businesses,” said Jeff Hoffman, an industrial real estate broker and principal at Cushman & Wakefield | Boerke.

Due to the significant electrical servicing need that manufacturers require, Hoffman said, southeastern Wisconsin has a competitive advantage in the manufacturing renaissance thanks to the capacity it has available on its electrical grid from We Energies.

Space shortages and rent increases

Like much of the nation, the Milwaukee area is now seeing historically low vacancy rates in the industrial market, with CoStar Group reporting vacancy as low as 2.4% in metro Milwaukee, which is tied for the lowest industrial space vacancy rate in the nation with Greensboro, North Carolina; Grand Rapids, Michigan; and Miami, Florida.

“We’re in a really good spot, with some very strong growth with local manufacturers,” Pecor said.

Data also shows that southeastern Wisconsin has seen positive absorption, meaning an increase in total space occupied in the market, in the industrial sector every quarter since at least 2019, indicating that the industrial real estate market in the area continues to grow. Southeastern Wisconsin, including Racine and Kenosha counties, has absorbed a total of 24.8 million square feet of industrial space since the third quarter of 2019.

The result has been increasing competition for tenants seeking a limited amount of available industrial space in the area.

“Traditionally, we’d be working with a tenant and would have five or six different options within a geographic area for them,” Barry said. “Now, we have maybe one. We’ve had a number of prospective tenants or buyers who are just waiting because they have not found what they wanted.”

This is especially true in areas like Waukesha County. Brokers say that some municipalities, including Sussex, Pewaukee and the city of Waukesha have seen lots of new industrial development in recent years. However, that development is

Jim Barry

The Barry Company

“In the (commercial real estate) hierarchy, office was once on top and industrial was on the bottom, and now you’re seeing industrial higher on the food chain than office, which is something I never thought I would see.”

Continued on page 22

11/6/23 7:22 PM

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STORY COVER Industrial and manufacturing vacancy The overall industrial vacancy rate in Milwaukee, Ozaukee, Washington and Waukesha Counties has fallen since the third quarter of 2019. The vacancy rate for manufacturing-specific space has remained lower than the overall vacancy.

Source: Commercial Association of Realtors Wisconsin

starting to slow down as the amount of immediately developable land in those places gets swallowed up.

The shrinking supply of available land is pushing more industrial real estate development outward to areas like Germantown, Oak Creek and Caledonia. It’s also driving rent rates and sale prices of industrial space up dramatically. Some area industrial space rental rates are now as high as $9 per square foot, which is almost double the rates a few years ago, according to brokers.

“Our prices and lease rates were always very

stagnant, and we’ve seen a dramatic jump in both of those in the last couple of years,” Barry said. “Although we lag behind the rest of the nation, once we catch up, we don’t go back down.”

But brokers and real estate experts are bracing for maybe even more of a shortage of industrial space in the near term. Decades-high interest rates and increasingly high construction costs have made all types of development more expensive and complicated.

While the Federal Reserve’s theory is that higher interest rates will cool inflation and slow the

Jenna Maguire Colliers | Wisconsin

“The market isn’t growing, and the data isn’t showing a dramatic increase in absorption of space, but there’s certainly a lot of users seeking office space, even if they’re jumping from building to building.”

22 / BizTimes Milwaukee NOVEMBER 13, 2023

16-29 NOV 13 Cover Story.indd 22

economy overall, some locally are wondering if the area’s demand for industrial space will slow down as much as its real estate development.

“I think (the slowing) has occurred in the real estate area, but it hasn’t really occurred as much in manufacturing,” said Barry. “I do see moderation on the horizon. During my career, this is the strongest industrial market I’ve ever seen.”

Office market softens

Meanwhile, things have been trending in the opposite direction in Milwaukee’s office market.

The vacancy rate in metro Milwaukee has reached a near four-year high of 16.8%, or 9.4 million square feet, according to third-quarter data from the Commercial Association of Realtors Wisconsin.

Still, that’s lower than the national vacancy rate of 17.8% and that of most other large cities in the nation, according to data from national commercial real estate firm Commercial Edge.

One local office real estate broker described the Milwaukee office market as active, another described it as gradually rebounding.

“The market isn’t growing, and the data isn’t showing a dramatic increase in absorption of space, but there’s certainly a lot of users seeking office space, even if they’re jumping from building to building,” said Jenna Maguire, vice president of the Colliers | Wisconsin’s office brokerage group.

Part of the reason for the activity is that, nearContinued on page 24

11/6/23 7:23 PM

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STORY COVER Office vacancy The vacancy rate for metro Milwaukee’s office market has risen more than 4% since the third quarter of 2019.

N. m

Source: Commercial Association of Realtors Wisconsin

ly four years out from the pandemic’s onset, more companies are comfortable making decisions about what the future of their organization looks like as it relates to office space, while in 2020 or 2021, most users were looking for short-term renewals as they made those decisions.

“Now we’re seeing users who before were testing the waters or had been out of the market for a while are finally coming back and making some commitments,” Maguire said. “We’re past the ‘kick the can down the road’ decision-making approach.”

The work-from-home trend since the onset of the COVID-19 pandemic has hurt demand for office space in recent years. But many employers are now moving from language strongly encouraging their employees to work in the office to mandating it, according to Bill Bonifas, executive vice president at CBRE in Milwaukee.

But to convince employees to come back to work in person, employers need to enhance their office space, many brokers say.

“It used to be that seemingly people were more content with kind of normal office space because the goal was to do your job and get along with the people there,” Bonifas said. “Now it seems like everybody is really having to cater to their employees, so there is a complete flight to quality.”

24 / BizTimes Milwaukee NOVEMBER 13, 2023

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For the first three quarters of the year, class A office buildings in the metro Milwaukee area have seen an additional 111,000 square feet of space occupied, while class B office buildings in the area have seen an additional 249,000 square feet of space vacated in the same time period, CARW data shows, which is a significant indicator of the flight to quality trend.

Further, for office buildings built in downtown Milwaukee since 2015 – the newest supply on the market – the vacancy rate is only 8%, which is down from 17% in 2021. Conversely, downtown office buildings built before 2015 – buildings that might have been struggling before the pandemic with about 25% vacancy – saw flatline vacancy levels until the pandemic, but now are at 45% vacancy, according to Pecor.

“The older class B, class C buildings that weren’t well leased beforehand just continued to lose tenants to some of these newer properties and on average are really struggling now,” Pecor said. “There’s just no demand for some of these properties, they haven’t seen tenant activity in years.”

Conversions, old and new

Historically, aging office buildings would have a secure future so long as they remained updated; however, several trends are complicating this.

The lack of velocity in the office market has resulted in stagnant rents, with rents even decreasing in some class B buildings, according to brokers.

Little growth in rent rates combined with high interest rates and high construction costs has made the cost of renovating office buildings prohibitive in some cases.

“The whole calculus for office redevelopment is unraveling,” Barry said.

As a result, brokers and real estate experts predict more office conversions in the coming years to uses like hospitality and, more often, apartments or condos as demand for housing remains high.

One of Milwaukee’s most iconic office towers is slated to undergo such a conversion.

Built in 1989, the 35-story 100 East building was once one of the city’s premier office buildings.

However, in 2021, the building fell into foreclosure after losing its anchor tenant, Michael Best & Friedrich, to the newly constructed BMO Tower.

Now, the building’s new owners are planning to convert it to 350 luxury apartments.

100 East’s sale was recently finalized, and the building was valued at $29 million, which is about $66 per square foot. Barry compared that figure to a second-generation industrial building – or a building that’s more than about five years old – in Menomonee Falls that’s selling for around $100 per Continued on page 26

11/6/23 7:24 PM

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New Markets Tax Credit Program • Proceeds are used to fund investments (typically structured with a low-interest rate and a forgivable loan component) in qualifying businesses, non-profits, or commercial real estate developments.

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JON ELLIOTT / MKE DRONES LLC

STORY COVER

100 East, 100 E. Wisconsin Ave., was recently purchased by developers planning to convert it to multifamily housing after the building fell into foreclosure in 2021.

square foot.

“You’re saying a second-generation industrial building is worth more than a downtown office tower on a price per square foot?” Barry said. “That takes the whole market upside down.”

Downtown Milwaukee’s building conversion activity was quite active even before the pandemic jolted the office market. Since 2015, 1.5 million square feet of downtown office space has been converted to other uses. That represents an 8% reduction in downtown office inventory, according to Pecor. The result has been 900 new multifamily units and 200 hotel rooms.

Downtown Milwaukee stands out

Despite the challenges to the local office real estate market, there have been several notable bright spots for downtown Milwaukee, which is holding up better than many big city downtown office markets across the country.

In the past five years, a growing number of companies have moved or added office space in or near downtown Milwaukee, with companies like Milwaukee Tool, Rite-Hite, Twin Disc, Regal Rexnord and Church Mutual collectively occupying more than 810,000 square feet of office space.

This year, companies like Veolia North America and Fiserv have announced plans to move downtown and occupy about 190,000 square feet of office space, and Northwestern Mutual also announced a 540,000-square-foot renovation of one 26 / BizTimes Milwaukee NOVEMBER 13, 2023

16-29 NOV 13 Cover Story.indd 26

of its existing downtown office buildings and will close its Franklin campus, moving those employees downtown.

“In every market across the country, there are places that are doing bad and places that are doing just fine, and the places that are not doing as well tend to be downtown areas,” Pecor said. “That is where Milwaukee really diverges from its peers and from the national picture overall.”

A good way to understand why downtown Milwaukee’s office market is standing out is to look at who was building what, and when.

Following an office bulding development boom in the 1980s, construction of new office development in downtown Milwaukee slowed for much of the 1990s and 2000s.

“We weren’t really building new office, or at least not a lot of new office, certainly not relative to

Gard Pecor CoStar Group

“In every market across the country, there are places that are doing bad and places that are doing just fine, and the places that are not doing as well tend to be downtown areas. That is where Milwaukee really diverges from its peers and from the national picture overall.”

Continued on page 28

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JON ELLIOTT / MKE DRONES LLC

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VALERIE HILL

STORY COVER

The 25-story BMO Tower, 790 N. Water St., was completed in 2020 and has attracted tenants from other downtown office buildings including 100 East.

our peers for a good 20 years,” Pecor said.

But since 2015, a flurry of new class A office buildings came online in downtown Milwaukee, such as 833 East in 2016 and the Huron Building and BMO Tower in 2020. These buildings boosted the city’s stock of high-quality office space, which has become paramount in employers’ post-pandemic efforts to lure workers back to the office.

“There’s a six- or seven-year period where we saw a decent amount of speculative supply, most of which was located downtown, with the overall amount of new supply delivered in the suburbs being relatively small, so when companies are looking for quality space, they’re looking toward downtown because that’s where all that quality space is,” Pecor said.

While many working in money management companies and high-end consulting firms, among others, tend to prefer high rises, businesses in fields like architecture or marketing tend to opt for loftstyle office space, according to Bonifas. Milwaukee also has that to offer. Bonifas estimates that around 5.5 million square feet of old industrial space has been converted into office space in downtown Milwaukee and its nearby neighborhoods.

But flight to quality means more than simply having an amenity-rich building. Many professionals, especially of younger generations, are looking to work in vibrant neighborhoods within walking distance of restaurants, shops and entertainment; the neighborhood becomes the amenity and downtowns can be better suited to that, office space brokers said.

Another reason Milwaukee has become a destination for office users is its supply of housing. The Milwaukee metro has undersupplied its housing, especially in the suburbs, according to Pecor. This has made housing costs in Milwaukee’s downtown and the surrounding neighborhoods about the same price, if not cheaper, than many of the city’s suburbs.

“A lot of the talent that companies want lives in and around downtown, where we have seen really strong housing supply,” Pecor said. “Plus, a 25- or 30-minute commute is not very attractive to the younger generations.”

These factors, combined with comparatively short commute times, convenient parking and downtown crime rates down 30% since last year, according to Milwaukee Police Department data, have made the city an attractive destination for companies looking for office space.

“A lot of employees and leaders within organizations see downtown Milwaukee as being an approachable city,” said Michael Streit, executive vice president of JLL Milwaukee’s office brokerage group. “It’s a big city on a smaller scale, so there’s energy and comfort at the same time, which is an attraction.”

Milwaukee’s office, industrial markets well-positioned

While there have been considerable shifts in Milwaukee’s office and industrial real estate markets, the shifts here haven’t been as seismic as in other cities.

While some cities like San Francisco, Austin or Seattle have seen office vacancy jump 8% or more since 2019, CoStar data shows, Milwaukee’s office vacancy only grew by about 4%, according to CARW data.

Similarly, some metros like Orlando, Columbus, Ohio and Washington D.C. have grown their industrial real estate sectors by more than 100% in the past year, data from Commercial Edge shows, Milwaukee’s market has only grown 5.6%, according to data from commercial real estate firm Newmark.

Southeastern Wisconsin has been known to lack large-scale investors that are willing to take risks on development, which, combined with the region’s conservative business culture, has kept the city from following the boom-and-bust cycle that many other big city markets do.

“Milwaukee is historically a market that underbuilds relative to demand,” Pecor said. “We typically have fairly low vacancies because we don’t do a lot of speculative construction locally.”

“We have a lot of assets, but what we don’t have is population growth,” said Andy Hunt, Vieth director of the Center for Real Estate at Marquette University. “That is a massive driver of real estate value and real estate development.”

The region’s seven largest municipalities all saw their population decline between July 2021 and July 2022, according to U.S. Census Bureau data released in May. In Milwaukee, the population was down 2,535 or 0.45% between July 2021 and July 2022, for a total decrease of 13,920 or 2.41% since the 2020 Census.

For the office market, slower population growth has meant that while other cities saw their skylines transform with new office towers, Milwaukee didn’t, but now – on the plus side – has significantly less office space to re-fill.

“Milwaukee has experienced a less-volatile situation with the office market,” Pecor said.

It also has meant that much of Milwaukee’s office space was filled by local companies, rather than satellite offices for national or international firms.

“After the pandemic, a lot of (out-of-market) companies looked at their office portfolio and decided to cut 30% of office space across the country,” Pecor said. “Well, that never really touched Milwaukee like it did other cities. A lot of our biggest office users are locally grown.”

On the industrial side, that’s also meant comparatively little speculative development and – while today some companies could use that development – if the industrial market turns downward, Milwaukee will be able to return to equilibrium quicker.

“In Milwaukee, our highs are less high than other places and our lows are less low,” Hunt said.

“We’re always going to have an advantage in terms of never being as hurt when things aren’t good, and I think right now is a good example of that.” 

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Special Report EVENT COVERAGE

Burish

Gokhman

Newell

Taylor

How commercial real estate pros are handling challenging economic environment

BY BIZTIMES STAFF HIGHER INTEREST RATES, inflation and rising construction costs – plus the hybrid work environment – are all creating challenges for the commercial real estate industry.

New developments are harder to finance because borrowing costs are higher, as is the cost to build. And the post-COVID remote and hybrid work landscape has considerably weakened demand for office space.

To find out how commercial real estate developers and brokers are navigating those challenges, BizTimes Media brought together a panel of experts for its annual Commercial Real Estate and Development Conference at the Brookfield Conference Center on Nov. 17. The panelists include: Transwestern executive vice president Marianne Burish, New Land Enterprises managing director Tim Gokhman, Royal Capital Group chief executive officer Kevin Newell and Three Leaf Partners chief operating officer Derek Taylor.

In advance of the event, BizTimes Milwaukee asked the panelists to respond to a series of questions.

BizTimes: How are the capital markets for commercial real estate affecting your business right now, especially with higher interest rates?

Burish: “Unevenly. Prevailing higher rates are a concern for building owners with renewing notes having higher LTVs (loan-to-value), compounded by many lenders retreating from office lending and/or just being pencils down. Seven percent to 9% prevailing loan rates for new and renewing loans, minimum 60% LTV and often 50% LTVs. Conditions are further exacerbated by lower building valuations due to higher interest rates/cap rates.

“Expect more capital calls and foreclosures in 2024. The strong will survive but weaker borrowers or owners with significant vacancy will be vulnerable. 2023 had a few casualties but if employers continue to struggle with getting folks back to the office – such that the negative (office) absorption stats keep increasing – expect more owners to be on the struggle bus in 2024. As usual, not as bad in Milwaukee as other markets nationally but still,

there will be casualties.”

Gokhman: “There are major challenges with both higher interest rates and a decreasing number of options for capital. Capital is still available for the best projects that make sense, but I think we’ll see a huge drop in housing production in Milwaukee (consistent with national trends).”

Newell: “My capital markets lead teammate, Brian Mays, has been actively watching and sourcing in the markets and has helped to ensure that we have ready capital for projects that have immediate horizons. This includes the residential phase of ThriveOn King, where – despite the historically high interest environment – he led efforts on securing $40 million of committed capital which is set to close in November 2023. Creativity, company track record and strong relationships nationally have been critical to our success.”

Taylor: “Debt markets have certainly constricted. That said, we have worked diligently through our close relationships with lenders in Wisconsin to bring debt to our new construction projects that have broken ground this year, including The Atwater in Shorewood (39 units), Theatre Terrace in Kenosha (71 units), The Fitz on the East side of Milwaukee, with partner Michael DeMichele (55 units), Saukville, and soon, West Allis (247 units).

The impacts of higher interest rates are felt in our projects and by our investors, but, when available, the availability of tax incremental financing in strong submarkets with development-minded communities has helped make these projects a reality. We’re also exploring other debt sources, including life insurance company debt, HUD, debt funds and other sources which are now more viable as traditional banks have pulled back.”

What is keeping you up at night lately?

Burish: “1) The work-from-home and hybrid work trend and increasing impact on office occupancy and hence demand. 2) Domestic and global political risk and attendant economic impacts and instability. Historically, the U.S. has had low to nonexistent risk on this front, making us one of the world’s favorite places to invest. Still very good

comparatively speaking but increasing political dysfunction domestically adds unwelcome uncertainty to decision-making, which is counterproductive to investing and general economic prosperity.

3) (Higher) interest rates further increases risk of a not-soft landing whereas a small retreat over the year of anywhere from 50 to 100 basis points would likely avert a material amount of foreclosure activity.”

Gokhman: “Our kids, the pressure to help build a better Milwaukee, and simultaneously a rapidly broadening national/international scope of our work in mass timber. Not necessarily in that order.”

Newell: “The geopolitical environment is in the midst of a conflict level that we have not seen in some time. This combined with an aggressive domestic Fed policy and upcoming elections presents significant challenges to the macroeconomy.

Significant damage can be done if the appropriate guardrails are not managed appropriately.”

Taylor: “Availability of debt for new construction in 2024. The Fed’s continued rate hikes have forced many traditional banks to the sidelines. I think and strategize often with our team about how to approach lenders in the debt market for our upcoming new construction projects.”

Where do you see the greatest opportunity right now?

Burish: “Office bargain hunters for older product with redevelopment potential, increasing consideration (or need) of sale-leasebacks across all asset classes, solid leasing in the best buildings in the best locations.”

Gokhman: “Mass timber. And I think Milwaukee could be a leader in the national conversation on urban renewal by continuing to make bold decisions (and investments) into workforce housing and public infrastructure.”

Newell: “I believe that we have a significant opportunity to stabilize our inner city neighborhoods with the appropriate public-private partnerships.

With Mayor (Cavalier) Johnson and County Executive (David) Crowley leading the way, I foresee the neighborhoods having a very similar transformation as we have witnessed here in the downtown and near-downtown neighborhoods.”

Taylor: “We recently launched an industrial asset class strategy to acquire value-add assets. We closed on our first acquisition at the end of October and have another Wisconsin opportunity on the heels in mid-November. These opportunities provide our investors with an opportunity to invest in a stable asset, with long-term, in-place leases and rising annual rent bumps. When combined with future cap rate compression once the economy stabilizes, we believe these assets will generate value for our investors as we continue to solve the challenging debt markets for new construction opportunities. We may expand this strategy to multifamily acquisitions in 2024.” ■ biztimes.com / 31

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Special Report CARW SURVEY

Commercial real estate brokers’ outlooks dim

BY ANDREW WEILAND, staff writer METRO MILWAUKEE commercial real estate brokers have a less favorable outlook for the market this year, based on the results of BizTimes Milwaukee’s annual survey of members of the Commercial Association of Realtors Wisconsin.

About 65% of the surveyed brokers describe the current condition of the commercial real estate market as “flat.” That’s a similar response to last year’s survey.

But this year, 23% of the surveyed commercial real estate brokers said the market is “weak,” up from 15.5% last year. At the same time, only 11.4% describe the market as “improving,” which is down from 19.1% last year.

“Market is strong, not improving,” one survey respondent said. “Deals are still getting done, even though some are losing, others are winning.”

When asked if they believe the southeastern Wisconsin commercial real estate market will improve next year, only 43% said “yes,” but that’s an improvement from last year’s survey when only 39.3% said “yes.”

The Federal Reserve raised its benchmark in-

terest rate 11 times in a year in a half, in an attempt to cool inflation, but held the rate steady in September and again on Nov. 1. The higher interest rates have driven up borrowing costs, making real estate projects more expensive and challenging.

When asked about the condition of capital markets for commercial real estate, most of the surveyed CARW members, 55.7%, said they are “declining,” 40.5% said they are “flat” and only 3.8% said they are “improving.” But that’s an improvement from last year when 70.2% said the capital markets were “declining” and only 25% said they were “flat.”

Brokers’ outlook for the local office real estate market continues to slide as work-from-home and hybrid work arrangements continue to hurt demand for office space. Of those surveyed, 53.2% said the local office market is “declining,” up from 45.2% last year. Only 34.2% said the local office market is “flat,” compared to 40.5% last year and only 12.7% said the local office market is “improving,” compared to 14.3% last year.

The metro Milwaukee office real estate market

has a 16.8% vacancy rate and has had negative absorption of 138,000 square feet of space this year, according to CARW’s third quarter market report.

When asked which real estate sector in metro Milwaukee is most in danger of being over-developed, 25.2% said office space, which is an improvement from last year when 36.9% said office space.

This year, apartments were the most popular choice at 41.8%, up from 29.8% in 2022, while 11.4% said industrial space and 8.9% said hotels.

“Current conditions regarding existing inventory of office space, especially downtown, and the cost of funds for investors to refurbish for new tenants and upgrading of systems to meet new standards will test the stability of existing ownership to adapt to the new paradigm, especially with the at-home employee mentality,” one survey respondent said.

Brokers have a more positive outlook of the local industrial real estate market, but not as positive as a year ago. When asked about the southeastern Wisconsin industrial market, most CARW members surveyed, 64.6%, describe it as “flat,” up from 50% last year, while 27.9% describe it as “improving,” down from 39.3% last year. However, this year only 7.6% said the local industrial market is “declining,” down from 10.7% last year.

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The southeastern Wisconsin industrial real estate market has a 4.4% vacancy rate and has absorbed 1.6 million square feet of space this year, according to CARW’s third quarter market report.

CARW member outlook for the local retail real estate market is about the same this year as it was last year. Of those surveyed this year, 59.5% said the retail real estate market is “flat,” compared to 62% a year ago, 32.9% said the local retail market is “improving,” up from 27.4% a year ago and 7.6% said it is “declining,” down from 10.7% a year ago.

I-794 DEBATE For the second year in a row, CARW members were asked about the future of the I-794 freeway in Milwaukee and the idea – supported by some – of tearing down the freeway between downtown Milwaukee and the Historic Third Ward to open up land for development.

CARW members were more supportive of the idea last year, with 51.2% surveyed saying they supported it. This year, brokers are more undecided on the issue. Only 34.2% said they agree with tearing down I-794 between downtown and the Third Ward, while 24% said they disagreed, up from 22.6% in 2022, and 36.7% said they thought only minor modifications should be made to I-794, up from 17.9% in 2022.

“There is not enough information available and it is far too early to have this conversation,” one survey respondent said. “A comprehensive study, including traffic study, needs to be done before we can form an opinion. I think there could be a negative effect and office tenants may elect to move out of the (central business district) to get closer to interstate access, which could result in even more loss of retail and entertainment venues. I am undecided on the topic because I don’t consider a boulevard a logical solution to move the traffic volume at the speed it currently does. We have time to figure this out. There are development sites available downtown that aren’t in the 794 footprint.”

CARW members’ impression of CRE market conditions

Source: BizTimes Milwaukee's 2023 survey of CARW members

“I take 794 in the Third Ward every day and it needs to go,” another survey respondent said. “Converting the Park East Freeway into an at-grade boulevard worked great and created more developable land, tax base, and a more cohesive urban environment. The freeway divides the city with

a lifeless, eerie space that doesn’t feel safe – a dead zone along prime downtown real estate. And why?

Just to save a couple of minutes for us commuters?

I bet it won’t add more than four minutes to a commute but will add infinitely to the quality of life of the city and its tax base.” ■

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Special Report BANKING & FINANCE

What’s a business to do if interest rates stay higher for much longer?

BY ARTHUR THOMAS, staff writer NO MATTER where you look, interest rates are higher than just a few years ago.

The federal funds rate set by the Federal Reserve has increased from zero in early 2022 to 5.25%. Prime rates at banks have followed suit, jumping from around 3% to now more than 8%, adding to the cost of borrowing for businesses. The average 30-year fixed rate mortgage in the U.S. was less than 3% in 2021. It is above 7.6% now.

Of course, interest rates are higher for a reason.

The Federal Reserve began hiking its rate in early 2022 in an attempt to combat inflation. Despite repeated increases over the past year, inflation is yet to return to the Fed’s 2% target.

With inflation remaining stubborn and a relatively strong job and labor market, many signs point to interest rates remaining higher for longer.

The median projection as of September from members of the Federal Reserve’s Open Market Committee puts the appropriate federal funds rate at 5.1% in 2024. At least one member thought the rate should be more than 6.1%.

Perhaps at some point the Federal Reserve’s interest rate hikes will fully bite, slowing the economy and bringing inflation under control, but for now, businesses are faced with higher borrowing costs and the uncertainty of exactly when and by how much the economy could slow.

To get an idea of what higher rates will mean for the region’s economy and how businesses can navigate higher borrowing costs and uncertainty, BizTimes spoke with 10 bankers and economists from banks active in the southeastern Wisconsin market.

ECONOMIC IMPACT While the Federal Reserve may have been increasing interest rates since early 2022, it takes time for those increases to be felt throughout the economy.

Residential real estate has been hit as home buyers opt to keep the 3% rate they locked in a few years ago and limited inventory pushes prices higher. In southeastern Wisconsin, home sales are down 30% from 2021 through the first three quarters, according to data from the Greater Milwaukee Association of Realtors.

Elsewhere in the economy, Ivan Gamboa, senior vice president and chief commercial lending officer at Tri City National Bank, said the bank is starting to see a drop in spending from its own customers with debit card swipes down year over year.

Kevin Anderson, Milwaukee market president and president of business banking for Old National Bank, noted that across banks there has been some

FEDERAL RESERVE RATE PROJECTIONS Members of the Fed's Open Market Committee have steadily increased their projected appropriate path for the federal funds rate for 2024 and 2025 over the past year, reaching 5.1% for 2024 and 3.9% for 2025 in September.

uptick in credit card and auto loan delinquency, especially for less-than-prime borrowers, as the support and liquidity created by stimulus programs wears off.

Higher rates will also continue to ripple through the commercial real estate landscape.

Anderson noted there’s been some softening for investor-owned projects, which tend to be more price sensitive than other parts of the market and Jay Mack, president and CEO of Town Bank and Wisconsin market head for Wintrust, pointed out there’s an impact on development projects, too, with higher interest expenses making the numbers harder.

While there may be some signs of weakening in parts of the economy and obvious potential impacts, David Anderson, head of commercial banking for southern Wisconsin at BMO, emphasized the lag between the start of rate hikes and the full impact on businesses and consumers. For now, unemployment remains low, and people are able to continue consuming goods and services.

“By definition, you can’t have a recession when you have consumption,” he said.

One risk to the expectation that rates will remain “higher for longer” is that the economy could weaken faster than anyone expects. Gus Faucher, chief economist at PNC, said if a recession does hit, it is possible the Fed will start cutting rates aggressively. If growth slows but the economy doesn’t tip into recession, rates would likely stay higher.

As for where that leaves businesses, Faucher, who recently completed client presentations in Milwaukee and Chicago, said many have expressed optimism about their own company, especially having navigated a myriad of disruptions over the past three years.

“I think they’re cautious,” he said. “Demand is still strong.”

But Faucher also noted there is more uncertainty than even a month or two ago. War in the Middle East and a looming presidential election were two sources of uncertainty mentioned by bankers.

BUSINESS ADVICE For businesses, navigating higher interest rates and the higher operating and capital investment costs that come with them starts with an appreciation of how the past decade of low rates was a departure.

From the start of 2008 through the end of 2021, the average effective federal funds rate was 0.62% and the average bank prime rate was 3.74%. From 1990 to 2007, those rates averaged 4.4% and 7.3%, respectively.

“The low interest period that has ended, was a bit of an anomaly,” said Kevin Anderson.

Brian Andrew, chief financial officer at

Source: Federal Reserve

Continued on page 36

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Special Report

Johnson Financial Group, said the economy has shifted from a period where interest rates have lower highs and lower lows to now having higher highs and higher lows.

“We are in a fundamentally different environment than we have been in,” Andrew said.

Especially heading into the uncertain environment of 2024, bankers repeatedly emphasized the importance of businesses communicating early and often with their banker. They also expressed confidence in the capabilities of southeastern Wisconsin businesses to navigate the challenges.

Gamboa said the advice from Tri-City is to plan early on note maturities, renew earlier rather than later or at least get an understanding of what the bank is willing to do.

“The best bet is just to be proactive,” he said.

John Hazod, regional chief financial officer at Wintrust Financial Corp., pointed to a potential situation where a business’s loan is set to reprice from a 4% interest rate to 8%. Working ahead with your bank can include stress testing to understand how payments may change and get out ahead of any potential cash flow problems.

Kevin Anderson at Old National encouraged business leaders to emphasize planning and to overcommunicate with their bank.

“When everything is rosy, you don’t have to plan as much, you don’t have to watch as closely your cash burn,” he said.

Anderson also encouraged leaders to not assume what their bank will or will not be able to do to support their plans.

“We’re looking for great management teams to bank,” he said. “Most great bankers, collateral is important, but cash flow pays us back.”

Bankers spend their days looking at balance sheets and cash flow statements and may see things a business leader may miss, Anderson said, adding that there are a lot of things a bank can work with when making lending decisions including the term of a loan, amortization, interest rate and debt service coverage. The bank can also structure the loan to meet a business’s needs, optimizing for capital outlay, cash flow or another variable.

Margaret Capper, senior vice president of commercial banking at North Shore Bank, said one area for businesses to pay close attention to is getting their financials done in a timely fashion.

“You don’t want to be reactive,” she said, noting that a given month might have felt strong, but looking at the numbers will prove it. “There’s no emotion in numbers, they are what they are.”

Staying on top of financials can also provide important insight for companies, especially as customers facing their own stress may take longer to pay. Close tracking of receivables can identify issues before they develop into full blown problems.

Capper also said it is important for businesses to feel comfortable being transparent about what they are seeing and dealing with. The banker’s role

RISING RATES Interest rates, including the federal funds rate, bank prime rates, 10-year treasuries and 30-year mortgages, have risen sharply over the two years, a departure from the low-interest environment of the past decade but not out of line with rates from the 1990s and 2000s.

Source: FRED, St. Louis Federal Reserve, Federal Reserve, Freddie Mac

becomes much more advisory in the current environment.

In some cases, a business may want to prepare for a potential recession by eliminating all debt, but that may not be the right use of available cash at this time. In other cases, a business owner may think they need a higher line of credit when, in reality, using a tool like a sweep to pay down the line with existing cash could reduce interest costs and even lower the required line of credit.

“It’s very individualized to each customer,” Capper said. “Bankers need to allow customers to make choices they feel comfortable with.”

While borrowing may cost more, Anderson said banks are still able to support business investment through working capital or financing for an expansion or acquisition.

“There is still plenty of capital out there for those types of projects,” Anderson said.

“It just requires a closer analysis of the projects and growth that need to be financed,” said Greg Larson, CEO of Ixonia Bank.

The Wisconsin economy is one that relies on capital-intensive businesses, especially in manufacturing, and companies need to make choices carefully when it comes to making investments.

“That can use up their dry powder when they should have done something else,” Larson said.

He said the current environment is one in which above-average management teams will shine and having a sound strategic plan has never been more important.

Ixonia is expecting to see a slowdown or very modest recession next year followed by a robust economy in 2025 and 2026. That outlook requires a business to closely analyze capital financing for 2024, but also to be positioned for future growth.

While any good business will be watching costs and maximizing profitability, “it’s also important to make sure you don’t disable yourself with cost cutting,” Larson said.

He also suggested businesses go with a fixed rate when possible.

“Don’t take interest rate risk,” Larson said. “It becomes a predictable expense if you get a fixed rate.

I don’t think that anybody should be gambling that rates are going to be falling significantly.”

One area for companies to invest would be in improving productivity, incorporating artificial intelligence or adding the next generation of automation for manufacturers, Andrew said.

As for how to finance those investments, Andrew said banks are well versed in helping customers think about whether a fixed or floating rate makes sense. If rates are going to trend higher over time, it may make sense to look for fixed rate options, and Andrew encouraged businesses to think about the next five to 10 years, not just the next 18 months.

“I want to take advantage every time rates come down to add leverage at those times,” he said.

BMO’s Anderson said even though many businesses are coming off a couple of strange years, many in Wisconsin are in good shape and have good capital positions. The region’s private companies also benefit from the ability to be patient and opportunistic.

“There are many companies that would love to use this time to purchase other companies, whether that’s strategic or geographic,” Anderson said.

But interest rates also shape those deals. Capper said one deal she was working on cooled off because the buyer wanted a lower purchase price to offset higher interest rates. ■

36 / BizTimes Milwaukee NOVEMBER 13, 2023

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BRINGING A VISION TO LIFE: THE WOODS—A GREATLIFE COMMUNITY

By Matt Cool, Director of Milwaukee Operations CAN YOU BRIEFLY DESCRIBE THE COMPONENTS OF THE PROJECT? The Woods - A GreatLife Community is a new and unique senior living community located on an 11.57-acre wooded site with serene surroundings.

The 139,909 square foot community provides a home-like feel through its connected ranch design with every resident having a private front entry. The twobuilding development includes a 72-unit independent living community with 66 heated underground parking stalls and a 48-unit assisted living residence. The community areas are also accessible from every unit and include hair salons, dining rooms, community rooms, fitness rooms and more.

WHAT WAS THE TIMELINE FOR THE PROJECT? WERE ALL THE DEADLINES MET/EXCEEDED? Stevens Construction Corp. had a 13-month timeline to complete the project. The schedule was altered during construction to include a phased-occupancy plan. The alteration allowed Stevens to complete the assisted living residence first to serve as a business and training center, as well as early leasing. Stevens was able to meet the original schedule and deliver the 48-unit assisted living residence three months before the independent living community was completed.

WAS THERE ANY SIGNIFICANT EVENTS THAT IMPACTED THIS PROJECT OR INFORMED ITS DESIGN?

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The Woods—A GreatLife Community was originally designed as a three-story senior living community. After witnessing his grandfather wave to family members from a third-floor balcony during the height of the pandemic, the owner realized traditional, multi-story senior living residences made access to the outdoors, visiting with family, and building strong community a challenge.

He wanted to create a more home-like community with private front-door access to the outdoors, as well as direct indoor access to shared community amenities from each unit.

WHO MADE UP THE PROJECT TEAM? As with any successful project, a devoted team of strong communicators is key to achieving the project’s goals. The Woods - A Greatlife Community had a committed team of passionate collaborators, problem solvers and visionaries. The vision began with Greg Petrauski, principal and managing member of Infinity Development; the vision was brought to life by architects from RINKA+; and Stevens made the vision tangible.

DID YOU COME ACROSS ANY UNEXPECTED CHALLENGES? HOW DID YOU MEET THEM? The large lot for the project was wetland and exceptionally saturated. Before construction could begin, Stevens needed to perform significant soil stabilization efforts. Soil conditioning included blending cement and fly ash into the soil within the building

footprint to increase its stability prior to the footing and foundation work. Stevens worked closely with Spire Engineering and the geotechnical engineers throughout the soil stabilization process to ensure success—from beginning to end.

ENSURING COMMUNITY ENGAGEMENT AND SATISFACTION DURING THE PROJECT. The project’s land was surrounded by three public schools and a public trail in the woods adjacent to the project. Given the importance of student safety during construction, Stevens created a one-way traffic plan where all manpower and deliveries entered the project site from the West. The company diligently communicated and collaborated with the city to ensure they were comfortable with the safety plan and Stevens’ commitment to the public’s safety.

1134 N 9th Street, Suite 250 • Milwaukee, WI 53233 stevensconstruction.com • (414) 828-5100

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Donated by BizTimes Media

Wisconsin Veterans Chamber of Commerce 313 N. Plankinton Ave, Suite 207, Milwaukee, WI 53203 414-207-4376 | wiveteranschamber.org Facebook: facebook.com/wivetschamber Twitter: @WIVetsChamber LinkedIn: linkedin.com/company/wisconsin-veterans-chamber-of-commerce

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Year established: 2015 Employees: 7 Leadership: • Christian Thornton, president and CEO • Zach Zabel, vice president • Thomas Parr, southwest regional director • Susan Schrank, southeast regional director • Shane Kanneberg, northeast regional director Board: • Alannah McReavey, Bank of America (board president) • Abraham Dispennette, The Lighthouse Group at Morgan Stanley • Dillon Ambrose, Amundsen Davis • Manny Lara, Ready Rebound • Chris Kolenda, Strategic Leaders Academy • Chris Faherty, Deloitte • Donald Placidi, Associated Bank • Toby Canapa, Briggs & Stratton • Jeff Boudreau, Old National Bank

Mission and vision: The Wisconsin Veterans Chamber of Commerce is dedicated to supporting military veterans, veteran-owned and veteran-friendly businesses. On behalf of our members, we serve as an advocate for Wisconsin’s veteran business community and promote economic opportunity for military veterans, military families and veteran-friendly businesses.

Services provided: Invest In Vets, veteran ERG training and best hiring practices; The Command Post, a business development cohort for veteran-owned businesses; member discounts programs, business networking and resources, business and workforce workshops, regional networking events, financial summit, marketing summit, health care summit and annual business conference and expo.

Goals: The Chamber strives to build and sustain lasting partnerships with our members and employees so that we may bring together veteran business owners, veteran friendly businesses and corporate leaders to recognize the contributions veterans make to Wisconsin’s economy and our communities.

Volunteer opportunities: Milwaukee Veterans Day Parade, Volunteer at WVCC regional and statewide events.

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NEW DEVELOPMENT: TAILORED LABEL PRODUCTS NEW HEADQUARTERS

By Cameron Bence, Co-Founder and Partner, Bence Build

CAN YOU BRIEFLY DESCRIBE THE TLP DEVELOPMENT AND BENCE BUILD’S ROLE? Bence Build was awarded the opportunity to develop, design and construct TLP’s new headquarters in Menomonee Falls. TLP, is an engineering-based company that manufactures labels and die-cut adhesive components. Sited on 6.5 acres just west of I-41 on Good Hope Road, the 82,210 square foot facility boarders Menomonee Falls and Milwaukee and joins architecture with manufacturing through bold and impactful design.

While gathering areas are carved throughout the building, the interior draws natural light deep into the office and production space with expansive windows and double-height ceilings.

WHAT WERE TLP’S GOALS FOR THEIR NEW FACILITY AND HOW DID BENCE BUILD ACCOMPLISH THESE? The community built at TLP spans generations, and this new facility was designed to support what was already thriving—a collaborative, fun, problem-solving culture focused on delivering world-class, quality products and service to their customers. The building needed to promote solutions-focused energy directed at their customers’ needs.

As a team we found opportunities to celebrate

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this culture and connectedness through the careful organization of program adjacencies and accenting thresholds between departments. The building plan, along with the materials and finishes, seamlessly threads engineering and office personnel to production teams.

The project is an exercise in restraint; we wanted to honor the building’s structure and the industrial nature of TLP, emphasizing the fact things are made there.

Incorporating an elemental and natural palette of wood, concrete, steel and glass reflects TLP’s authenticity.

WHAT DIFFERENTIATES THE BENCE BUILD PROCESS? We believe architecture and the built environment has the ability to connect people to a place. By providing both the architecture and the construction we ensure the design intent and client vision is never lost while working within our cost parameters.

Bence Build is a young, focused company with a defining history of success that challenges us to exceed the expectations of our clients. We are passionate about design and mastering construction means and methods.

We pride ourselves on our relationships with our development partners, consultants and subcontractors and feel incredibly fortunate to live and work in a community where relationships and trust still come first.

This trust and commitment to our team allows us to provide our clients with an enjoyable experience culminating in a finished project they can be proud of for years to come.

WHAT DOES YOUR TEAM VALUE MOST ABOUT YOUR PROFESSION? Bence Build is motivated by the contribution and value our work reflects in our communities.

Our passion is developing, designing and building meaningful projects carried out with thoughtfulness and appreciation for those who will be working in the spaces we create. We hold ourselves accountable for the implications our projects have on the social, economic and cultural context of today and we are inspired by the positive impacts and future possibilities this awareness creates.

1301 W Canal St Ste 100 • Milwaukee, WI 53233 bencebuild.com • (414) 630-7190

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Special Report VETERANS IN THE WORKPLACE

Creating a military to work pipeline Local veteran, businessman says companies need to get smarter about recruiting former service members

BY CARA SPOTO, staff writer WHEN STEVE CUNDY joined the U.S. Army in 1995, he was a kid straight out of high school.

Four years later, the Army Ranger, conditioned to “jumping out of planes and blowing stuff up,” landed back into a civilian life marked not by adventure, but anonymity.

“I didn’t have a college education. So ultimately, I’m unskilled. What do I do short of killing bad guys and blowing stuff up? There aren’t a lot of jobs out there for that,” Cundy said. “So, I went into the abyss. I lost that sense of purpose.”

As Cundy persevered, steering clear of substance abuse and the depths of deep depression that can ensnare veterans of all stripes, he realized that many of the people who served hadn’t been so lucky.

Today, the president and chief executive officer of Sussex-based Tuatara Consulting and founder of Taskforce Uplift – a nonprofit serving children

of U.S. veterans – spends what spare time he does have helping large companies recruit military personnel, veterans, and their spouses.

“Between 250,000 and 300,000 folks transition out of the military each year. And then when you add all the military spouses that are transitioning with them, you have a perpetual loop of 300,000 to 400,000 people every year leaving the military that are looking for a soft place to land,” Cundy said. “And a lot of companies don’t know the first thing about how to connect those wires to get after that talent.”

BRIDGING THE SKILLS GAP A major part of Cundy’s work involves connecting his clients – some of the region’s largest employers such as Komatsu Mining, Kohler Co., Kohl’s Corp., Eaton Corp. and Rockwell Automation – with Hiring Our Heroes.

Run by the U.S. Chamber of Commerce Foundation, Hiring Our Heroes connects the military community, including service members, military spouses and veterans, with American businesses Cundy looking for workers.

One of the ways Hiring Our Heroes helps connect employers with veterans is through the Department of Defense SkillBridge program, which pairs outgoing military personnel who have 100 days left of service with private-sector employers. While still on the DOD payroll, the service men and women are placed in 13-week internships that are free to employers.

If the intern is a good fit, then the company is required to hire the service member once the internship is over.

HOH runs a similar program – funded by a grant from Deloitte – that serves miliary spouses.

That program can be even more critical to miliary families, as the unemployment rate for military spouses is 21%.

s n a r te e V u o Y Thank

Building Comfort for Generations

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HOH programs often focus on skilled positions, helping Boeing to recruit F-16 mechanics, for instance. But SkillBridge also helps military staff whose skills, educational background or military job, might not have an obvious counterpart in the civilian world.

Milwaukee-based Komatsu Mining, one of the companies Cundy helped connect with HOH, has been recruiting veterans who have worked in motorpools, fixing Humvees and other vehicles.

“They have mechanical aptitude and Komatsu is willing to onboard them in the organization, and pay them $100,000 a year or more, because there’s a shortage of people that can work on their big equipment,” Cundy said.

The whole goal of the program, he said, is to reduce the amount of time a veteran and/or their spouse might have to spend out of work after leaving the service or transferring to a new base.

“I know there’s a direct correlation between getting these folks hired soon after they get out of the military and suicide reduction. Because when you lose that sense of purpose, you start drinking, you start doing drugs, you start those unhealthy behaviors, and I know what that dark place looks like,” Cundy said. “I didn’t do it

because I’m wired a little bit different, but for a lot of my friends that I lost along the way, I know why they gave up.”

GETTING INTENTIONAL Cundy also recommends that companies get intentional with the way they serve and support the veterans already in their organizations.

When he asks companies how many veterans they employ, what their veterans employee resource group is like or if they know what Hiring Our Heroes is, he often gets a lot of bank stares.

“Often times they have veterans inside their organizations, but they don’t have an intentional program to go out there and identify those veterans,” he said. “Some might have a veterans ERG team, but it might not have a strong sense of purpose, or if it does have a strong sense of purpose, it’s not tied to the recruitment pipeline.”

What Cundy recommends in most cases is that the company makes a point to figure out how many veterans they already have in their employee pool. If they don’t have a veterans ERG, he recommends creating one and asking the members to help recruit other veterans.

“Veterans want to work with veterans and, if

they’re happy and they’re really proud of where they’re working, that’s going to help you with your recruitment efforts,” he said. “If you have a deficiency, now you can leverage a veteran ERG team to see where you’re deficient, where there’s mental health issues, where they’re being underutilized, where they feel like nobody even cares about the military in (the) company.”

At Milwaukee-based Rockwell Automation, Cundy has been helping Matthew Smith, an information technology director, ramp up the company’s veteran recruitment efforts, specifically in the IT space.

“There’s a lot of people coming out of the miliary that have experience in cyberspace, technology, project management, or even just leadership qualities, and why wouldn’t we want to leverage that type of talent?” Smith said. “So that’s something that I’ve been working on … to not only look at connecting in the IT organization, but also the greater Rockwell organization as it relates to more professional roles.”

To that end, Smith has been working with HOH’s military and military spouse program to find job candidates. The company also has a veteran’s ERG group that Smith hopes will be instru-

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FOR MORE THAN A CENTURY, Milwaukee Area Technical College has delivered highly skilled workers and highly prepared professionals to area employers.

To sustain and strengthen that mission, MATC has developed its first Academic Multiyear Plan (AMP), a comprehensive, long-range educational blueprint that incorporates labor market trends from our region and data to ensure the college’s programs align with what area businesses need during the next three years.

“The world around us changes rapidly, and our faculty and staff are approaching the institutional academic vision from a ‘jobs of the future’ perspective while embracing education that leads to jobs through innovative technical, hands-on, and/or transfer pathways,” said Dr. Naydeen Gonzalez-De Jesus, MATC’s executive vice president, student success.

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Special Report

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Members of Kohler Co.’s veterans business resource group, known as the Kohler Alliance of Veterans & Supporters.

mental in those recruitment efforts as well as mentorship later on down the line.

VETERANS HELPING VETERANS Enlisting veterans to help with recruitment can aid in translating military experience for human resources staff who may overlook just how qualified some candidates are, said Cundy.

“A lot of companies miss out on so much talent, because they have no idea (how skilled some veterans are),” he said. “It could be a West Point graduate who served for 20 years who’s managed multi-billion-dollar pipelines of supply. And they’re like, ‘I don’t think that person’s a good fit for the VP of supply chain position.’”

Kohler Co. has a small team of veterans on staff who review resumes of veteran applicants.

“Translating a veteran’s experience in the military into open positions for Kohler is no small task,” said Bill DeBoer, senior director for corporate properties and facilities management. But, he said, it’s worth it.

It’s a relatively new process for the company, explained DeBoer, a U.S. Navy veteran. But the hope is it will eventually help boost the number of qualified veteran applicants who get considered for jobs at Kohler.

“It’s a numbers game,” he said. “The more we send on, the higher the probability we will make a match.”

Once more veterans are on staff, it’s key to find ways to support them, Cundy said. He points to Delta Defense in West Bend, which employs lots of veterans and has mental health and wellness coordinators on staff.

Kohler also has a robust veterans business resource group, known as the Kohler Alliance of Veterans & Supporters, which spends time recruiting other veterans and fundraising for veteran-focused nonprofits.

“Veterans specifically are a very community-minded group of people,” said Andrea Havlik, sales executive at Kohler Hospitality and a U.S. Air Force veteran. “They want to take care of other veterans.” n

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Help Support Lewiston Please support our friends at the Maine Community Foundation as they raise funds to help the victims and the community in the aftermath of Maine's worst gun tragedy on record.

Donations to the Lewiston-Auburn Area Response Fund will be distributed with deep community guidance, including from MaineCF’s statewide board, engagement by MaineCF’s Androscoggin County Committee and community steering committees.

Scan this QR code to donate Or go to mainecf.org/lewiston

MaineCF administrative fees will be waived and 100% of donations will go to support victims and the community

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NOTABLE WOMEN

METHODOLOGY: The honorees did not pay to be included. Their profiles were drawn from nomination materials. This list features only individuals for whom nominations were submitted and accepted after review by our editorial team. To qualify for the list, nominees must be currently employed in the hospitality industry at a business or nonprofit based in southeastern Wisconsin and serving in a senior-level role at their organization.

MARIA BARTOLOTTA

CEO

DIRECTOR OF CATERING/ GENERAL MANAGER

BARS & RECREATION INC.

IN HOSPITALITY

BizTimes Milwaukee is proud to present its inaugural showcase of Notable Women in Hospitality, spotlighting accomplished professionals in hospitality who are credited with making southeastern Wisconsin a mustsee, must-stay destination. The individuals profiled on the following pages were nominated by their peers and highlight the talent in the region.

MARLA POYTINGER

Over the course of 11 years, Marla Poytinger turned a small painting bar, called Splash Studio, into a Milwaukee-based entertainment brand, known as Bars & Recreation.

“Under Marla’s stewardship as CEO, Bars & Recreation navigated the COVID-19 pandemic that shuttered all four venues for more than three months and impacted business levels to this day,” said Erin Hochevar, vice president of Bars & Recreation. “Despite those setbacks, Bars & Recreation is thriving.”

The business operates a line of immersive activity bars in the area, including AXE MKE, NorthSouth Club, Nine Below, Game Show MKE and its newest concept, Amped: Private Suite Karaoke & Events, which opened in January 2023. The company has another location planned in West Allis. Bars & Recreation employs a corporate team of 22 and more than 50 total employees.

“Despite its small size, Marla’s Bars & Recreation offers industryleading benefits that not only help retain talent, but rival packages provided by some of the largest hospitality providers in the state,” Hochevar said. “Bars & Recreation is a certified woman-owned business that is revolutionizing the ordinary night out in Milwaukee, thanks to Marla’s focus, drive and commitment to doing what is right.”

THE BARTOLOTTA RESTAURANTS Maria Bartolotta, director of catering and general manager for The Bartolotta Restaurants, began her career in hospitality as a young adult in New York City. She worked at several wellrespected establishments, including the famed Rainbow Room.

After moving back to Milwaukee, she worked with her brothers, restaurateurs Paul Bartolotta and the late Joe Bartolotta, at Bartolotta’s Lake Park Bistro, Bacchus – A Bartolotta Restaurant and Ristorante Bartolotta dal 1993. She also led the human resources effort and the onboarding of the food and beverage team at Potawatomi Casino Hotel as part of a Bartolotta management consulting arrangement, before launching Bartolotta Catering & Events.

Bartolotta went on to run the operations at the Grain Exchange as both the general manager and the director of catering, additionally establishing catering services at the Italian Community Center and Discovery World. She also plays a lead role in the charitable arm of The Bartolotta Restaurants, Care-a-lotta.

She has been active with the company for 28 years.

CO N G R AT U L AT I O N S ,

MARIA!

Your sparkle and “hospitality heart” that you’ve shown to our guests day-in and day-out have helped guide our company for over 30 years.

Congratulations on this much-deserved recognition!

MARIA BARTOLOTTA

BARTOLOTTAS.COM

THE BARTOLOTTA RESTAURANTS

44 / BizTimes Milwaukee NOVEMBER 13, 2023

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KELLY SCHWANTES

VICE PRESIDENT OF SALES

EVENT SERVICES MANAGER

WISCONSIN CENTER DISTRICT

WISCONSIN CENTER DISTRICT

Since being named vice president of sales for the Wisconsin Center District in 2018, Megan Seppmann shepherded in a new era of prosperity for the district that saw the occupancy rate for the Baird Center, the UW-Milwaukee Panther Arena and the Miller High Life Theatre increase from 40% to 85%, according to Joe Scialfa, director of communications for WCD. During the COVID-19 pandemic, the Baird Center hosted Milwaukee County’s 2020 Presidential Election recount, a COVID-19 vaccine clinic that administered nearly 145,000 doses, and the immersive Beyond Van Gogh exhibit, which broke the record for the highestgrossing ticketed event in WCD history with 200,000 tickets sold.

She also worked with VISIT Milwaukee to win the bid for the 2020 Democratic National Convention as well as the 2024 Republican National Convention.

Seppmann sits on the board of directors for Big Brothers Big Sisters of Metro Milwaukee. In 2021, she received the Leukemia & Lymphoma Society - Wisconsin Chapter’s Community Involvement Award. In 2020, she established the Megan M. Seppmann Hospitality Scholarship at her alma mater, Southwest Minnesota State University.

During her time at the Sharon Lynne Wilson Center for the Arts in Brookfield, Kelly Schwantes, now event services manager for the Wisconsin Center District in downtown Milwaukee, was accepted into the fall 2022 cohort for Forward 48, a regional leadership development program.

“Her conversations with leaders like Erickajoy Daniels from Advocate Aurora and Peter Feigin of the Milwaukee Bucks were a privilege that propelled her to lead the way for inclusive and dynamic conversations in the hospitality sector,” said Ian Abston, founder of the Hoan Group, Forward 48 and Light the Hoan. “She challenges and encourages her peers to lead with empathy and think creatively with clients of all backgrounds who choose to bring their business to Milwaukee.”

Once she completes her first year with WCD, Schwantes plans to earn her certified meeting professional certification.

Recently, Schwantes was selected by the board of directors at the Milwaukee Choristers to lead the venue selection committee for a three-year term.

CAROLINE O’HALLORAN DIRECTOR OF HOSPITALITY

SPRECHER BREWING CO. Caroline O’Halloran has been in the hospitality and craft brewery industry for more than 20 years.

As director of hospitality at Glendalebased Sprecher Brewing Co., O’Halloran has increased taproom and gift shop sales by 30% year-over-year and increased private events sales by 300%, according to Jennifer Nyquist, Sprecher’s director of human resources.

“Her responsibilities extend beyond hospitality as she leads our e-commerce team and is part of the overall marketing efforts.

Caroline has reignited excitement for Sprecher by engaging the local community, partnering with causes and focusing on customer experience,” Nyquist said.

Since joining Sprecher in June 2022, O’Halloran has been instrumental in managing a staff of more than 10 people, running the brewery’s social media, opening the Sprecher Taproom at Bayshore this past summer in partnership with the North Shore Chamber of Commerce and leading a Halloween event that draws more than 500 attendees.

W IS CONSIN C EN TER DISTRICT IS PROUD TO CONGRATULATE TWO

N OTABLE WOMEN IN H OSPITALITY:

Megan Kelly Seppmann Schwantes AN D

V i ce P re s i d e nt of Sa l e s

Eve nt Se rvi ce s M a n a g e r

This exciting distinction is a true reflection of your dedication to providing experience obsessed levels of service to the clients and guests we serve.

Congratulations!

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KAELYN CERVERO

CARMEN SMALLEY

DANA JOHNSON

OWNER/PRESIDENT

LEAD INSTRUCTOR FOR HOSPITALITY AND EVENT MANAGEMENT

GENERAL MANAGER

41FORK HOSPITALITY MANAGEMENT AND NOBLE CATERING & EVENTS With more than 20 years of experience in the hospitality field, Kaelyn Cervero is now taking on the new role of entrepreneur as the owner of Noble Catering & Events and 41Fork Hospitality Management, both based in Milwaukee.

She is also the proprietor of the four new food and beverage concepts at the Associated Bank River Center office tower: Toro Tacos and Bowls, On Rye Deli, Knockbox Coffee and Vault cocktail bar.

Throughout her career, Cervero has demonstrated mentorship and leadership skills through management roles at Potawatomi Casino Hotel as well as Advocate Aurora Health and other Milwaukee area hotels, according to Cat Graber, marketing coordinator for 41Fork.

“Team development and community outreach have been passions of hers throughout her career,” said Graber.

Cervero is the former president of the Southern Wisconsin Chapter of the National Association of Catering and Events, where she served on the board for more than eight years. She currently serves on the boards of the Wisconsin Restaurant Association and on the MATC Event Management Advisory Council.

MILWAUKEE AREA TECHNICAL COLLEGE Carmen Smalley, lead instructor for hospitality and event management at Milwaukee Area Technical College, has made an impact on the hospitality industry by sharing her expertise with future leaders in the field and providing them with optimal opportunities, according to Carl Meredith, dean of the business and management pathway at MATC. “Prior to teaching at MATC, while working in the industry, Carmen dedicated herself to the hospitality field through serving on committees, serving on boards and connecting with a range of folks in and outside the industry,” Meredith said.

Today, Smalley maintains those connections by serving on the board of the Greater Milwaukee Hotel & Lodging Association.

“This allows her to connect her students to the industry and the opportunities available to them,” he said. “Each semester she works with hospitality industry partners to tour facilities, bring in guest speakers, promote the industry’s various scholarships and connect students to attend and volunteer at various industry organizations.”

In 2022, Smalley received the Associate of the Year award from the Wisconsin Hotel & Lodging Association.

SAINT KATE – THE ARTS HOTEL Dana Johnson, general manager of Saint Kate – The Arts Hotel, has had a 25-year career in the hospitality sector, which, colleagues say, is a testament to her extensive knowledge and expertise.

“Her profound understanding of hospitality operations, combined with her outstanding financial acumen, has played a pivotal role in the success of Marcus Hotels & Resorts,” said Peggy WilliamsSmith, CEO of VISIT Milwaukee. “Dana has a remarkable ability to analyze complex financial data, identify key trends and make strategic decisions that have positively impacted the bottom line.”

Prior to assuming her role at the 219-room Saint Kate in October 2022, Johnson was executive director of sales for Marcus Hotels & Resorts’ Milwaukee market, where she managed the sales teams for the company’s three Milwaukee properties: Saint Kate, The Pfister Hotel and Hilton Milwaukee City Center.

“One of Dana’s most notable strengths is her leadership skills.

She has a natural ability to inspire and motivate team members, fostering a positive work environment that encourages collaboration and innovation,” Williams-Smith said. “Furthermore, Dana excels as a relationship manager. Dana’s ability to connect with people on a personal level has resulted in increased customer satisfaction and loyalty, reflecting positively on the reputation of Marcus Hotels & Resorts.”

BRAVO, DANA! Congratulations to our very own Dana Johnson for being selected as one of 2023 BizTimes Media Notable Women in Hospitality!

Milwaukee’s premier craft catering company noblecateringco.com

DANA JOHNSON General Manager: Saint Kate – The Arts Hotel

Congratulations to Kaelyn Cervero, CPCE, recognized on the list of 2023 Notable Women in Hospitality!

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CRYSTAL COENEN

BETH HEIDORN

EXECUTIVE CHEF AND OWNER

GENERAL MANAGER

EXECUTIVE DIRECTOR

THE GEORGE AND MADCAP LOUNGE

RACINE ZOO

LISA KAYE CATERING LLC Lisa McKay, executive chef and owner of Lisa Kaye Catering, graduated from Milwaukee Area Technical College’s Culinary Arts and Culinary Management program in 2014 and has operated her own company since 2008.

She is also involved in the Milwaukee community, offering cooking classes, providing a summer culinary camp for teens, and is active in the Milwaukee chapter of the American Culinary Federation.

In 2013, she was appointed director of ACF Milwaukee’s Chef and Child Foundation, where she helps fight childhood obesity through educational seminars in schools, teaching students healthy eating habits, said Paul Carrier, lead faculty and department chairperson at MATC. “McKay has led the Youth Culinary Summer Camp for the past seven years, giving more than 50 children between 6 and 17 years old hands-on experience cooking a range of multicultural cuisines,” said Carrier. “McKay is passionate about developing younger chefs. She employs culinary students, which helps enhance their skills, increase their confidence and inspire their entrepreneurial spirit.”

When she became general manager and lead sales executive of The George and Madcap Lounge in spring of 2021, Crystal Coenen was a member of the team that introduced the new event venue in Milwaukee’s Walker’s Point neighborhood to the public.

Working with catering partner Saz’s Hospitality Group, Coenen focused on the customer experience from the outset.

Coenen developed a love for the hospitality industry as a teen and pursued her interest as a student at the University of WisconsinStout, according to Vicky Morrison, partner at National Block LLC. “During her 20 years in the industry, she has had a chance to mentor associates in a broad range of areas, including food safety, cooking techniques, team building, event management and customer relations,” Morrison said.

“Recognizing the need to be a good community partner, Crystal has arranged for nonprofit groups to host their meetings at The George and Madcap Lounge,” Morrison added.

CORINNE KAEHLER

CHEF AND OWNER

BENSON’S RESTAURANT GROUP

Kaehler earned an associate degree in culinary arts at Milwaukee Area Technical College. She says the lessons learned from chefs, line cooks and the continuous learning in the culinary profession built on that foundation.

After her MATC graduation, Kaehler served four years as a line cook at several Bartolotta restaurants. That led her to Benson’s Blue Bat Kitchen in 2021. In September 2022, she transitioned to Onesto and became executive chef one year later.

“Corinne is passionate, caring and has a true love for Milwaukee’s culinary scene as well as mentoring and training several of our current culinary arts students to great successes,” said Paul Carrier, lead faculty and department chairperson of MATC’s Culinary Arts program. “She is truly a rising star in southeastern Wisconsin’s dining scene.”

Before coming to Racine, Heidorn served in leadership roles at establishments such as Jungle Island in Miami and the San Diego Zoo Safari Park. Now in Wisconsin, Heidorn is involved with Racine Area Manufacturers and Commerce and Downtown Racine Corp.

The Racine Zoo also partners with Real Racine, Mount Pleasant Tourism Commission and the Wisconsin Department of Tourism.

Heidorn manages a staff of more than 30 and 100-plus volunteers.

She also manages the relationship between the zoo and its board of directors and the City of Racine.

“Under her leadership, the zoo has maintained its Association of Zoos and Aquariums accreditation and is also involved with the Wisconsin Association for Environmental Education.

Plus, zoo staff members serve on committees in the Advancing Conservation through Empathy for Wildlife network, including as species survival plan coordinator for the Bearded Emperor Tamarin Signature SSP Program,” said Tim Mason, owner of Express Employment Professionals and Heidorn’s husband.

MALAYSIA CAMPBELL-LEUNG

EXECUTIVE CHEF AT ONESTO

Corinne Kaehler’s career began with her mother’s influence and a batch of scratch-made cookies.

Today, Kaehler serves as the executive chef at Onesto in Milwaukee’s Third Ward, an Italian restaurant within Milwaukee-based Benson’s Restaurant Group.

As executive director of the Racine Zoo, Beth Heidorn has worked to implement programming that’s both entertaining and educational, colleagues say.

FUSION AND SPICE CATERING

NOTABLE WOMEN IN HOSPITALITY

Born and raised in Jamaica, Malaysia Campbell-Leung, chef and owner of Fusion and Spice Catering, learned to cook after her mother suffered a stroke.

Later, she moved to Zundert, Holland and traveled across Europe, sampling local food. After moving to the U.S., Campbell-Leung earned an associate degree in culinary arts at Milwaukee Area Technical College.

“Malaysia is a gastronomic globetrotter,” said Paul Carrier, lead faculty and department chairperson for MATC’s culinary arts program.

Six months after graduation, Campbell-Leung opened Fusion and Spice Catering on the northwest side of Milwaukee, serving business events, weddings and other social gatherings. The company offers entrees, appetizers and buffet spreads in many cuisines, including classic American, French, Italian and Mexican.

Thank you to our 2023 Notables Networking Sponsor:

“Malaysia has the passion and skill to create memorable food experiences,” Carrier said. “She also has mentored many of our culinary students to greater successes. She has found success through hard work and determination. No matter what she is challenged with, she always ends up a shining star.”

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Strategies PLANNING

Avoid the survival mindset Take time to plan your exit strategy 81% OF BUSINESS OWNERS who recently sold their business wish they had spent more time preparing their business and themselves for a sale.

Do I have your attention?

I came across this statistic in a UBS-sponsored survey conducted earlier this year of 123 recently exited business owners. Honestly, I’m not surprised.

In fact, I think the percentage could be even higher.

So, why is this the case?

Why do so many business owners look back at their selling experience with at least some degree of doubt, uncertainty, regret, or worse?

Why, when preparing for the most important financial and personal experience of their lives, do they often not invest enough time in the process?

The answer may lie in what I call 3F Thinking: Fires, Fears and Folly.

1. Fires - “I have fires to put out today and no time to prepare for tomorrow.”

2. Fears - “I don’t like asking for help and don’t know where to find it.”

3. Folly - “I’m at my best when I wing it and fly by the seat of my pants.”

3F Thinking is a survival mindset that most entrepreneurs are born with. It’s what makes them so successful, but it can also be their downfall when it comes to preparing for The Dream Exit. It’s what makes them an entrepreneurial superhero. But all superheroes have their kryptonite, too, and when it comes to preparing for The Dream Exit that all successful entrepreneurs deserve, 3F Thinking might just be it.

The Dream Exit happens when the entrepreneur achieves two things: selling the business for its maximum value and being ready to maximize meaning and purpose in post-exit life.

How then can we square up the dichotomy of 3F Thinking with the goal of a Dream Exit?

The first step as I learned from a mentor is that all progress starts with the truth. 3F Thinking is real and must be transformed.

The second step is more challenging because it’s like dealing with kryptonite. Maybe you grew up watching Superman in the movies or on TV like I did. If so, you’ll recall that he is helpless against kryptonite, the fictional mineral from his home planet, Krypton.

Superman had no natural antidote for kryptonite, and you might not either for your 3F Thinking. He needed help from equipment like lead shields or super suits and relied on help from allies to remove the kryptonite or keep him away from it.

Just like Superman, you’ll likely need support from equipment and allies to overcome your 3F thinking. For example, a teacher and a playbook that will help you acknowledge and move past any 3F Thinking that’s preventing you from focusing on and preparing for The Dream Exit you deserve.

It may feel like an enormous challenge to put a Dream Exit Playbook together, like eating an elephant or walking a thousand miles. Fortunately, the ancient proverbs give us great advice when it comes to conquering big challenges. Start small. You eat an elephant one bite at a time and begin a journey of a thousand miles with a single step.

So, let’s start small by reflecting on these four key questions to initiate the assembly of your Dream Exit Playbook: 1. What is a business exit strategy? It’s a plan that outlines how a business owner will sell or otherwise transition out of their business.

This sounds simple, but it’s not.

2. What are the different types of exit strategies? These include selling the business to a

third party, passing it on to family members, selling to employees or co-owners, or liquidating. Each has pros and cons.

3. How can an exit strategy benefit my business now? A well-planned exit strategy can help guide business decisions and increase the current value of the business.

4. Why is planning an exit strategy important? An exit strategy is not just about selling the business. It’s about defining the business owner’s goals, ensuring the business’s longevity, and maximizing the value of the business.

3F Thinking is real, but it shouldn’t keep you from preparing for The Dream Exit you deserve.

Remember, a staggering 81% of business owners wish they had prepared more for their exit. That doesn’t sound like a dream. Take that small bite and that first step today. Kryptonite neutralized. 

MIKE MALATESTA Mike Malatesta, founder of Advanced Waste Services, is The Dream Exit expert, host of the How’d it Happen podcast, and author of “Owner Shift: How Getting Selfish Got Me Unstuck.” He can be reached at thedreamexit@gmail.com

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ENTREPRENEURSHIP

Artist Dennis Pearson sitting on one of his Beasties.

The Beastie invasion Local artist created iconic creatures YOU MAY HAVE NOTICED the presence of colorful creatures called Beasties sitting on someone’s mantle, windowsill or lounging on their front lawn.

These creatures were spotted at the Milwaukee County Zoo in 2018 as part of the “Beastie Safari,” the streets of downtown Milwaukee in 2002 and in local art galleries.

Beasties are found all over the country and the world. They have been spotted in Christchurch, New Zealand; Scottsdale, Arizona; Chicago’s Lincoln Park and Des Moines, Iowa.

They come in all colors and sizes and poses.

They have even been seen on the White House lawn, as part of the Easter Egg Roll during the Reagan Administration.

Where did these creatures come from, why are they here and who created them?

After much research and investigation, I found the source of these whimsical creatures. The person responsible for this invasion of color and whimsy is Dennis Pearson, a local artist and businessman.

I first met the 84-year-old entrepreneur at an event at the Impressions Day Spa in Mequon on a sunny September Saturday afternoon. The parking lot was inundated with Beasties of all sizes, shapes and bright colors. Some large enough to sit on, others small enough to lounge on your coffee table or desk. Dennis greeted each customer with a smile, took pictures with his fans and grinned as his Beastie Babies were adopted by these total strangers. It is not unusual for his fans to own more than one Beastie. My wife and I own four, two large and

three small. These whimsical characters light up a room, a garden or a kitchen. Each of them have unique personalities based on their color, paint scheme or pose.

Dennis started out as a lithographer in the 1960s who incorporated make-believe animals in his drawings. This led to some pen and ink drawings of these mythical creatures. At the same time, he wanted to explore different mediums. Dennis began to experiment with paper mâché animals created from chicken wire. His brother owned a body and fender shop where he repaired damaged Corvettes with fiberglass. Dennis saw the use of this material as a way to permit his animals to live outside and be more colorful. He also decided to use automotive paint and clear coat so his animals could withstand the Midwest climate.

Dennis’s original idea was to create animals that were primitive with a childlike look to them.

From this idea came the famous “Beastie” as defined in the dictionary as a real or imaginary animal.

Actually, the name was given to these little creatures by a visitor to the Lakefront Festival of Art in 1962. Dennis told me he won the festival and one woman asked, “What are these creatures?”

Another woman answered, “They’re Beasties,” and the name stuck.

Well, now these beasties are real and come in all sizes, shapes and colors and have been the foundation of Dennis’s business enterprise.

Dennis’s artistic journey has been influenced by other famous artists, including Andy Warhol, Pierre Bonnard, a French artist famous for his inventive color combinations, as well Alexander Calder, Matisse and Richard Diebenkorn. He has turned this artform into a thriving business with its own website and following.

Many artists don’t enjoy the success of their labors while alive, Dennis does. He continues to build his business and market by expanding his line of products, by changing their poses, creating new forms to be used as benches, pins, earrings and con-

versation pieces. He has extended the product life cycle by augmenting his basic design and creating a collection of product offerings that permits his customers to build their Beastie collections.

Dennis has begun to do some bronze castings to build on his existing product offerings. This is a new medium for him and another way to expand his product line. He plans to continue to create paintings, drawings and works in leaded glass.

But most of all, he plans, at 84, to keep creating new generations of Beasties in fiberglass. So, keep your eyes open for this coming invasion of color and whimsy. 

CARY SILVERSTEIN Cary Silverstein, MBA, is a speaker, author and consultant, a former executive for Gimbel’s Midwest and JH Collectibles, and a former professor for DeVry University’s Keller Graduate School. He can be reached at csilve1013@aol.com. biztimes.com / 49

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Strategies

Tip Sheet 5 steps for onboarding a nonfamily CEO LEADERSHIP CHANGE in a family business is complicated.

In a recent Harvard Business Review article, Christin Wing, a senior lecturer at Harvard Business School, and Rohit Gera, managing director of a third-generation real estate development business in India, detailed a five-phase process for incoming chief executives to follow when taking over a fami-

NOTABLE WOM

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IN STEM

LL ADONICA RANDAPROBLEM SOLVER PRESIDENT AND ABAXENT LLC

CHIEF

LLC, Adonica RanPewaukee-based Abaxent problem solver of that is certified minority As president and chief company in Wisconsin chief operating technology solutions dall leads the only according to the company’s owned and operated, and Black-woman

al engineering officer Sabrina Robins. with a computer science/electric degree in bioRandall graduated a master’s In the mid-1970s, and Technology, and a patent in School of Science In the 1980s, she received degree from Missouri from Marquette University. medical engineering on MRI suite lighting. with Johnson Controls team that partnered care facility at Abaxent technical the COVID-19 alternate Randall also led the for Fiserv Forum and the network technology Park. among us and has Wisconsin State Fair figure who has lived hidden American of color. Her woman precious a a as is “Ms. Randall and technology Robins. in the world of science and beyond,” said made a major impact the state of Wisconsin been significant in contributions have

N O TA B L E W

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MARCH 27,

2023

ly firm. Each step is expected to last about a month.

1. Learn: The first phase begins before the new CEO even officially starts. Initially it consists of reading up on the company, starting with a panoramic view and getting increasingly more detailed. The outgoing CEO should be setting up meetings for phase two.

2. Listen: After the new CEO officially starts, they will spend much of the first month meeting with the executive team to share information and build relationships. “During these meetings, the new CEO should only ask questions and listen,” Wing and Gera write. The phase concludes with the new CEO documenting the company’s strengths and weaknesses in portfolio, processes, people and partners.

3. Observe: The new CEO will continue with meetings but increasingly move beyond only listening to sharing more opinions and observations. Still, the new CEO should pay

ORDER YOUR REPRINTS!

attention to family dynamics when suggesting changes.

4. Own: By this point, the new CEO will be supervising direct reports and handling daily management. If the outgoing CEO is remaining with the company, it may make sense to move to an office in a different area to give “literal and figurative space.”

5. Evaluate: By the fifth month, the new CEO should “be given the latitude necessary to evaluate the company’s needs and pursue them boldly.” With that freedom comes accountability, although the authors note the new CEO should recognize a family business may view success with a focus on measures like dividend growth, developing the next generation or community reputation.

The authors also note the importance of the outgoing CEO letting go of the reins, noting it is one of the hardest parts of the transition. 

Advertise in these upcoming special reports to get your message in front of area business executives.

Manufacturing: Food & Beverage

December 11, 2023

Space Reservation: November 22, 2023

Awards, cover stories, special reports, advertisements, feature stories, whatever your interests may be. We’ll provide reprints of any published material.

Economic Trends 2024 January 29, 2024

Space Reservation: January 10, 2024

9

Visit biztimes.com/reprints or email reprints@biztimes.com today for more information.

Contact Linda Crawford today!

Phone: 414.336.7112 Email: advertise@biztimes.com

50 / BizTimes Milwaukee NOVEMBER 13, 2023

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BizConnections

AWARD WINNING LEADERS IN ENVIRONMENTAL SUSTAINABILITY PROGRAMS AND WASTE MANAGEMENTS SOLUTIONS

Wisconsin’s Newest Licensed Hazardous Waste Treatment, Storage and Disposal Facility

Contact Pavlic Vending

• Great Customer Service • Continuous Growth • Transportation Services

to get your market today!

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• Family Owned & Operated Since 2002 • Sustainability Programs • Compliance Services (WDNR, EPA & DOT)

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“Passion and Commitment to Excellence”

The Patriot Gear Patriotic and 2nd Amendment Gear for men and women.

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Commercial, Residential & Post-Construction Cleaning 262-317-1003 beautifulcleaning.com

SHARE YOUR PRODUCT /SERVI CE OR ADD YOU R B U S I N ES S CAR D Business Hours: Mon. - Business Fri. 9:30 -Hours: 5:30 Saturdays Mon. - Fri. 9:30 9:30- 1:00 - 5:30 Saturdays 9:30Hours: - 1:00 Business Mon. - Fri. 9:30 - 5:30 Saturdays 9:30 - 1:00

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- Repairs of most Shades and Blinds Owner

advertise@biztimes.com or 414-336-7112

Fax: 414 • 321•5999 kathysshadeshop.com

GET THE WORD OUT! News? Press Releases? Awards?

Show them off in BizTimes’ new BizUpdates section.

Submit your company news at biztimes.com/bizconnect biztimes.com / 51

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BizConnections NONPROFIT MILWAUKEE REP GETS $5 MILLION GIFT FROM DAVID HERRO AND JAY FRANKE The Milwaukee Repertory Theater received a $5 million gift from philanthropist David Herro and his partner, Jay Franke, a Milwaukee Rep trustee.

The studio theater in the new Associated Bank Theater Center will be named the Herro-Franke Studio Theater in their honor.

Although the bulk of the donation is being allocated to the Powering Milwaukee Campaign, the couple asked that $1 million be dedicated to the John “Jack” D. Lewis New Play Development Fund. The fund supports the development of new plays and playwrights produced in the studio theater and beyond.

The Powering Milwaukee Campaign will fund construction of the Associated Bank Theater Center – a new theater complex for The Rep that will include three state-of-the-art performance spaces, a large, unified lobby, a dedicated Herzfeld Foundation Education & Engagement Center to serve the theater’s 20,000-plus students, and an expanded off-site production center employing hundreds of local artisans.

The campaign is now more than 90% funded with construction expected to start in May 2024.

—Cara Spoto, staff writer

C ALENDAR Radio Milwaukee’s new Urban Alternative Channel HYFIN will host the second-annual Blackity Black Holiday Market on Saturday, Nov. 25 from 10 a.m. to 3 p.m. at Turner Hall, 1040 Vel R. Phillips Ave., Milwaukee.

Ignite The Spirit-Milwaukee will host its annual Milwaukee Firefighter Calendar Release Party on Thursday, Nov. 30 from 6:30 to 9 p.m. at The Cooperage, 822 S. Water St., Milwaukee. The event is presented

by Reliant Fire. Tickets are $40. Proceeds will benefit firefighter families experiencing hardships.

Skilos, Hounds Around Town and South Milwaukee Arcade are sponsoring the Ales & Tails MKE event, benefiting the Wisconsin Humane Society, on Sunday, Dec. 3 at 1 p.m. at the South Milwaukee Arcade, 1200 Madison Ave., South Milwaukee.

NONPROFIT

SPOTLIGHT

CENTER FOR VETER ANS ISSUES INC.

3400 W. Wisconsin Ave., Milwaukee, WI 53208 414-345-4254 | cvivet.org Facebook: facebook.com/Center4Veterans Instagram: @cvivets LinkedIn: linkedin.com/company/center-for-veterans-issues-inc

Year founded: 1989 Mission statement: The Center for Veterans Issues Inc. provides housing and supportive services to help improve the quality of life for all veterans, their families and the communities in which they live and serve.

Primary focus: Housing and homeless assistance.

Other focuses: Supportive services and mental health.

Number of employees: 80

D O N AT I O N R O U N D U P Tim Sullivan, the dean of Carroll University’s business school, and his wife, Vivian, donated $10 million to the school. | Former Milwaukee Public Museum board member Ross Read and his wife, Mary Read, committed $2 million to support MPM’s endowment. | The Culver’s restaurant chain and members of the Culver family pledged $1 million to create an exhibit at the future Milwaukee Public Museum dedicated to the state’s longtime passion for frozen custard. | Marcus Theatres raised nearly $315,000 for Children’s Wisconsin as part of its upcoming Hollywood Night fundraiser. | Molson Coors donated $150,000 to Milwaukee Area Technical College and Milwaukee School of Engineering to fund college completion grants. | Festival Foods, their vendor partners and customers donated more than $40,000 to feed hungry families in Wisconsin as part of its Food for Neighbors program, and $760,000 worth of various food items to local food pantries across the state.

Key donors: Milwaukee Tool, The Home Depot Foundation, Tabak Law, BMO, Lemberg Electric, PBBS Equipment Corp. and Social Development Commission Executive leadership: » Eduardo Garza Jr., president and chief executive officer » Berdie Cowser, Ph.D., vice president of housing and development » Michael Beal, vice president of programs and services » Jason E. Johns, vice president of corporate community relations and general council

Board of directors: » George Hinton, Ph.D., board chairman, Social Development Commission » Eduardo Garza Jr., president and CEO, Center for Veterans Issues Inc. » John Cornell, vice chair, Crescendo Trade Risk » Guy Temple, secretary, Reinhart Boerner Van Deuren » Craig Hirt, treasurer, Wipfli » Members: Jason Isaacs, Ashley Ferus, Dr. Charles Allen, Michael Dwyer and Marland Henderson Is your organization actively seeking board members for the upcoming term? Yes. What roles are you looking to fill?

People skilled in accounting, human resources, housing development and construction.

Ways the business community can help: Support fundraisers, programs and our Heroes Market food drives.

Key fundraising events: Annual Golf Outing in June, Annual Golf Marathon in September and Annual Veterans Ball in November.

52 / BizTimes Milwaukee NOVEMBER 13, 2023

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GROW YOUR BUSINESS EXPONENTIALLY

MAY 22, 2024 Brookfield Conference Center

Exhibit | Sponsor | Present biztimes.com/bizexpo2024

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BizConnections VOLUME 29, NUMBER 12 | NOVEMBER 13, 2023

GLANCE AT YESTERYEAR

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION: 414-336-7100 | circulation@biztimes.com ADVERTISING: 414-336-7112 | advertising@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7100 | reprints@biztimes.com

SALES & MARKETING

PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com COMMUNITY ENGAGEMENT / OWNER Kate Meyer kate.meyer@biztimes.com

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR Arthur Thomas arthur.thomas@biztimes.com ASSOCIATE EDITOR Maredithe Meyer maredithe.meyer@biztimes.com REPORTER Ashley Smart ashley.smart@biztimes.com

Old Manegold Mill

REPORTER Cara Spoto cara.spoto@biztimes.com

This Herman Wudtke photo shows the Old Manegold Mill at what is now 400 N. Plankinton Ave. in Milwaukee. Originally built by George and John Burnham in 1853 as a grain elevator, the building was sold in 1866 to Chapin Miles and Company, rebuilt and used for floor milling.

It was later sold to Charles Manegold and Son and rebuilt again in 1880 and was known as Reliance Flour Mills until 1909. When the photo was taken in the 1960s, the building was home to the Old Mill Inn and Fairbanks, Morse & Co., a maker of scales. Today the site is vacant.

REPORTER Hunter Turpin hunter.turpin@biztimes.com INTERN REPORTER Ellie Batten ellie.batten@biztimes.com

A huge test for downtown retail KOHL’S RECENTLY celebrated the grand opening of its downtown Milwaukee store on Wisconsin Avenue.

It will be fascinating to see how well this store performs. This is a very big test for downtown Milwaukee’s retail marketplace. If the store is successful, other retailers could be convinced to open locations downtown. But if the store fails, it will remain very difficult to attract more stores downtown.

At 35,000 square feet, the small-format Kohl’s store is less than half the size of a typical 80,000-square-foot suburban Kohl’s store. Even so, it is an extremely significant addition to downtown Milwaukee. It has been many years since a similar department store opened downtown.

The store is located in the space formerly occupied by Boston Store, which operated there from 1900 until 2018 when parent company BonTon went out of business. The space has been vacant since then.

The Boston Store was the last of downtown Milwaukee’s department stores which, in its heyday, also included Gimbels. Marshall Fields acquired the downtown Gimbels store in 1986, but it closed in 1997.

Gimbels/Marshall Fields and Boston Store were connected to and served as the anchor stores for Grand Avenue Mall, which opened in 1982 to much fanfare. But over time, the Grand Avenue declined severely, unable to compete with suburban shopping centers.

Downtown Milwaukee is no longer the retail destination it once was, but there are several reasons to believe that the opening of the Kohl’s store could be the beginning of a downtown retail revitalization. The former Grand Avenue Mall has new life as The Avenue, a lively combination of apartments, office space, a food hall and some remaining retail, including T.J. Maxx, Foot Locker and Walgreens.

The surrounding neighborhood is booming.

Fiserv is moving its corporate headquarters to floors above the Kohl’s store. Across the street, a $456 million expansion project is doubling the size of the Baird Center (downtown’s convention center). Milwaukee Tool’s new downtown office building is nearby. Fiserv Forum and the Deer

SENIOR ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com ACCOUNT EXECUTIVE Robin Briese robin.briese@biztimes.com ACCOUNT EXECUTIVE Paddy Kieckhefer paddy.kieckhefer@biztimes.com ACCOUNT EXECUTIVE Christy Peterson christy.peterson@biztimes.com SALES ADMIN Shannon Whiting shannon.whiting@biztimes.com

ADMINISTRATION ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com AUDIENCE DEVELOPMENT ASSOCIATE/CIRCULATION Derik Sneide derik.sneide@biztimes.com

PRODUCTION & DESIGN SENIOR GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com

Independent & Locally Owned

— Founded 1995 —

— Photo courtesy of the Milwaukee Public Library / Historic Photo Collection

COMMENTARY

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com

District are only four blocks to the north.

Years of residential development has increased the population density of downtown Milwaukee. Downtown Milwaukee and adjacent areas, including the Historic Third Ward and parts of Walker’s Point and the Lower East Side, now has a population of nearly 30,000, up 35% since 2000, according to a report by Washington, D.C.based International Downtown Association.

It will be interesting to see if that population growth is enough to support a downtown Kohl’s store, and perhaps additional stores.

A former co-worker of mine used to love to shop at the downtown Boston Store on Black Friday, because it was so dead. Nice for her, but that’s obviously not a sustainable business model. Downtown residents, workers and visitors need to shop at downtown stores – including Kohl’s – in order for them to survive. ■

T

o a d H t a o

ANDREW WEILAND EDITOR

P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland

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Dan Katt

5 MINUTES WITH…

DAN KATT

Development manager, Mandel Group Inc. Co-founder, Good City Brewing SEVEN YEARS after co-founding Good City Brewing, Dan Katt has returned to the world of commercial real estate. He recently joined Milwaukee-based multifamily real estate development firm Mandel Group as development manager, working alongside the firm’s senior partner Bob Monnat. Before jumping headfirst into Milwaukee’s craft brewery scene, Katt worked in business development roles for construction firm J.H. Findorff and then Eppstein Uhen Architects. In 2013, he founded his own real estate development firm, Craft Development. Katt remains part owner of Good City and now – with day-to-day operations securely in the hands of the brewery’s next generation of leaders – his sights are set on a new chapter of his career. He shared his perspective in a recent interview with BizTimes Milwaukee associate editor Maredithe Meyer. The following excerpts of their conversation have been edited for length and clarity. Check out the full story at biztimes.com/dan-katt TAKING THE LEAP “Over the past probably the past year or two, we’ve been able to get our operations team to run the day to day (at Good City) and have been able to hand off more and more, and quite frankly – with where the industry is at – there’s not as much growth. We have three managers (Andy Hartzell, Dane Mariani and Manny Ramirez) who are running the brewery, taproom and kitchen. They all earlier this year were brought into fractional ownership of the business. They’re the people who are really involved on a day-to-day basis, so we were happy to do that, and they’re certainly

well-deserving. So, then in the early summer, I was thinking about either kicking off some new real estate projects on my own, which is what I had been doing prior to Good City, but then I reconnected with Bob Monnat at Mandel – I’ve known Bob for 20 years – and he expressed a desire to maybe try and make something work together. I’ve been working either independently or as an entrepreneur for basically a decade. Mandel is an incredible blue-chip sort of place, and it was going to be a pretty short list of places I’d consider actually working, besides working for myself.”

FROM EMPLOYER TO EMPLOYEE “Honestly, after 10 years of (working for yourself) it can be pretty lonely at times … you’re used to maybe not having the same resources that you would at a more established place. So, I feel like I get to not only deepen my knowledge and learn a lot, particularly in multifamily development, but also on a larger scale, I’m able to work on projects that are likely beyond what I could have done myself, so that’s super rewarding. There’s just a really great culture (at Mandel Group) and great team of people, and it is very entrepreneurial and project based, and that all feels very familiar and natural.”

HANDING OVER THE REINS “It’s also experimental in a way for me because Good City was a baby and it’s grown up a little bit, so it takes a little bit of courage to step aside and trust that it’s still going to be executed incredibly well. We really could not have better people, so I’m really grateful for that. When I think about where we were when we started in terms of experience of running a brewery or a restaurant, our team has way more experience than those of us who started it. … We’ve built a brand; we’d like the business to continue to grow and that’s why you bring in and you elevate leaders and managers because you want it to be sustained over the long haul. And you want to create opportunities for people to stay and grow their own careers, and so sometimes that requires you to get out of the way of yourself.” ■ biztimes.com / 55

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Presents:

NOVEMBER 30, 2023 • Italian Community Center 2:00 PM: Registration & Networking | 2:30-5:00 PM: Program 5:00-6:30 PM: Cocktails & hors d’oeuvres

Celebrating the journey

Learn from innovators and entrepreneurs powering the region’s future Join us as we recognize innovators and entrepreneurs taking the southeastern Wisconsin economy to the next level.

This year’s award winners will share insights on how they built their businesses, developed new products and overcame challenges.

Lifetime Achievement winner Jerry Jendusa will discuss what’s fueled his multiple entrepreneurial endeavors and lessons learned along the way. Regional Spirit winner Dean Amhaus will share insights on the collaboration that makes Milwaukee an international destination for water companies.

The program continues with a breakout session on strategies for securing your innovation and financing options for entrepreneurs running growing companies.

Attendees can connect with winners as the event concludes with a networking reception featuring cocktails & hors d’oeuvres.

Lifetime Achievement Entrepreneur Winner: Jerry Jendusa, CEO, BreakthrU Family of Companies (1) Regional Spirit Award Winner: Dean Amhaus, President & CEO, The Water Council (2) Entrepreneurship Winners: - Norrie Daroga, President, CodeBaby - Roy Dietsch, CEO, PartsBadger - Britt Gottschalk, Founder and CEO, Geno.Me - Paul Stillmank, Founder & Executive Chairman, 7Rivers Innovation Winners: - Adam Aerospace Corp., Michael Anton Adam, CEO - Hydro-Thermal, Jim Zaiser, President and CEO - Octane Coffee, Adrian Deasy, Founder & CEO - Synthetaic, Corey Jaskolski, CEO

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Meet and learn from this year’s award winners and network with your peers!

Register Today at biztimes.com/ieforum Sponsors:

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