A real estate investment group is planning to convert the Park East Hotel near downtown Milwaukee into 96 luxury apartments.
The group, that includes Mike Klein, of Klein Development, and Derek Schneider, of Millennial Partners, will purchase the hotel at 916 E. State Street on Thursday from Ajit Walia, of Brookfield.
Thursday will also be the last day of operation for the 159-room hotel. Park East Hotel’s Durbar Restaurant and Lounge closed Sept. 2.
The hotel had 50 reservations on its last weekend, said manager D.J. Skaufle. It employs about 30 people.
By the end of September, Klein and Schneider will begin work to completely demolish the interior of the hotel, which sits on 1 acre of land with unobstructed views of Lake Michigan.
“We think we will only be competing against a handful of projects given this incredible location,” Schneider said. “This will be a class A building that is one block from the lake and within walking distance from the central business district.”
The apartments will be a mix of studios, one-bedrooms and two-bedrooms, Klein said. The group also plans on adding an additional floor to the building, which will be used as a community room and rooftop deck.
“The location is pretty phenomenal,” Klein said. “The area has been densely populated for 100 years with residences, high-end condos or class B and C apartments so we feel like there is a niche there that we can fill with class A apartments.”
The first floor space will have 8,500 square feet of retail, which could include a restaurant or coffee shop, Schneider said.
Klein and Schneider grew up together and were friends through Marquette High School. This is the second project they will be working on together. Brothers Joe and Mike Klein, and Schneider, purchased Broadway Central, 241 N. Broadway, in Milwaukee’s Historic Third Ward neighborhood in December 2015. They have since added underground parking, renovated the main entrance, filled the office space and added more retail, including Milwaukee’s first Drybar salon.
“We couldn’t be more excited about the Park East (Hotel) as a redevelopment potential and having this as our next project together,” Klein said.
