Lincoln Avenue Capital to Develop Wisconsin Affordable Community

The Wisconsin Housing and Economic Development Authority provided bond funding.

Property at 350 Bishops Way, Brookfield, Wis.
Bishops Woods’ facade will feature a mix of lap and panel siding with brick veneer. Image by Knothe & Bruce Architects, courtesy of McShane Construction Co.

Lincoln Avenue Capital has begun pre-development work on Bishops Woods, a 203-unit affordable community in Brookfield, Wis. McShane Construction Co. will serve as general contractor, while Knothe & Bruce Architects provided design services. Completion is expected in December 2025.

The project received zoning approval from Brookfield’s common council in an 8-6 vote in 2022. Two years later, the Wisconsin Housing and Economic Development Authority, with Zions Bank as trustee, issued a total of $38.7 million in bonds, Yardi Matrix data shows.

The development received two separate loans of $4.8 million and $33.8 million, with the former being a 2-year loan at a 5 percent fixed rate and the latter being a 19-year loan at a 4.75 percent fixed rate, according to the same data provider.

READ ALSO: How Affordable Housing Is Faring Amid Current Uncertainties

Bishops Woods will serve residents earning between 40 and 80 percent of the area median income—roughly $43,000 to $86,000. The asking rent would be $400 less than the average rent in Brookfield.

Spanning nearly 4 acres, the community will include a four-story podium-style structure resting atop a two-story underground parking garage. Floorplans call for one- to three-bedroom units, which will feature granite countertops and vinyl plank flooring, among others. Moreover, eight units will provide office suites with separate exterior entrances.

Community amenities are slated to include a clubroom, gym, outdoor grilling area and playground. Adhering to Wisconsin Green Built Home Standards, the project will incorporate electric heat pump systems, as well as a solar-powered 200-kW cooling system.

Located at 350 Bishops Way, the development will take shape in the Bishops Woods office park. U.S. Route 18 and Interstate 94 are less than 1 mile away, while downtown Milwaukee is some 10 miles east. Several transit stops, retail facilities and the Krueger park are within walking distance.

Lincoln Avenue Capital’s affordable Wisconsin footprint

LAC’s national portfolio comprises more than 120 properties, including approximately 22,000 units. In Wisconsin, the firm’s footprint consists of more than 300 under-construction units, as well as 580 units in the planning and permitting phases, according to Yardi Matrix data.

Earlier this year, LAC broke ground on The View at Huxley Yards, a 303-unit affordable community in Madison, Wis. The company also plans to build The Victoria at Huxley Yards, a 250-unit affordable senior housing community.

Financing for the projects includes Federal LIHTC provided by the Wisconsin Housing and Economic Development Authority and the National Equity Fund, Solar Tax Credits purchased by the NEF, an Opportunity Zone Fund Investment, a Citi Cash Collateralized Taxable and Tax-Exempt construction-to-permanent loan and tax increment financing from the City of Madison, as well as a Brownfield Idle Sites Grant from the Wisconsin Economic Development Corporation.

Last year, LAC entered pre-construction phases for The Derby Apartments, a 70-unit affordable project in Madison. McShane Construction Co., as well as Knothe & Bruce Architects, are also part of the development.

Milwaukee’s affordable multifamily pipeline

Milwaukee’s supply pipeline had roughly 6,100 units under construction as of June, accounting for 6.3 percent of total stock, according to Yardi Matrix. Of these, more than 610 units were fully affordable, representing 9.9 percent of the pipeline and 3.4 percent of total affordable inventory.

Battling economic headwinds, developers broke ground on some 80 units in the metro year-to-date as of May, a sharp decrease compared to last year’s figure of more than 1,000 units during the same interval, according to the same data provider.

You May Also Like