An Illinois-based developer is proposing a $17 million high-end apartment complex on a vacant city-owned site in downtown Kenosha.
According to city documents, Lake Terrace LLC plans to construct a five-story building that would contain no less than 63 units at a site located at the southeast corner of Fifth Avenue and 59th Street. Lake Terrace is led by Marck Ebacher, a partner at real estate developer Interstate Partners LLC and head of the firm’s Illinois office in Gilberts.
The building would consist of 32 one-bedroom, 27 two-bedroom and four three-bedroom units. Units would vary in size from 602 square feet to 1,300 square feet, and monthly rents would range from $1,300 up to $2,400.
The site for the Lake Terrace project is just south of the 5th Avenue Lofts, a new 60-unit apartment building developed by Kenosha-based Bear Development. Another upscale apartment project for downtown Kenosha is The Brindisi Towers, an $80.5 million, 134-unit apartment and condo development planned at the northeast corner of 52nd Street and Eighth Avenue.
Ebacher said the project will benefit from the commercial district of downtown Kenosha. He noted the city has “made great strides” in turning that area into an attractive place to live and work in. Specifically, he noted the public lakefront spaces.
“They have a long way to go, but they have the baseline there and we’re excited about establishing this project and being a part of the community as it further develops going forward,” he said.
The Kenosha Common Council will vote on a development agreement related to the Lake Terrace project on Wednesday evening. The agreement would give the developer control of the site for six months, providing them time to seek necessary project approvals and secure financing, said Zohrab Khaligian, Kenosha community development specialist.
According to the agreement, the city would sell the land to Lake Terrace for $100,000. Also included in the deal will be land located at the southwest corner of the intersection, which will be used for a 35-stall parking lot. The surface lot will be in addition to the planned 75 indoor parking spaces.
In turn, Lake Terrace is to begin construction no later than February 2021, and complete construction no later than August 2022.
The developer will also be required to provide the city with a budget showing sources and use of funding for the $17 million project, loan commitment letters, executed lender consent and agreement forms, and a $1 million letter of credit “to ensure the timely performance of the development,” according to city documents.
The project is the result of a request for proposals the city issued in May. The city sought developers interested in putting up a multi-family project at the site, which formerly contained a 40-room rooming house, a duplex and a pair of four-unit apartment buildings. The city demolished those structures to prepare the site for redevelopment.
Khaligian said the city received two proposals in response to the RFP. The other proposal, which also called for a residential development, was rejected because it required financing assistance from the city, he said.
In preparing for the Lake Terrace project, the city will combine the four existing parcels into one for the developer.
