Milwaukee-based
Mandel Group received initial approvals Monday for its postponed apartment proposal at a prominent site in Wauwatosa's village area.
The project would replace a city-owned parking lot at Wauwatosa and Harwood avenues with 157 market rate apartment units in a five-story building. The project would provide 189 parking spaces for residents and replace the existing lot's 98 public spaces at a one-to-one ratio, developer documents show.
Known as
Harlow & Hem, the project was first proposed in 2020 as a $32.7 million project with fewer apartment units — some of which were slated to be below market rate — and four townhomes. Project costs ballooned to more than $43 million as a result of rising construction costs and higher interest rates. Mandel Group redesigned the project a couple of times to create more efficiencies, according to
Phillip Aiello, chief operating officer, and the firm landed on the current proposal, which will cost $37.4 million.
The current proposal includes mostly studios and one bedroom units, with some two- and three-bedroom units.
"That's largely because that's what the market is demanding," Aiello told the Wauwatosa Plan Commission. "The studios and one bedrooms are really in the highest demand."
Mandel Group will buy the current site of the Blanchard Street parking lot for $200,000 from the city, according to an agreement signed by both parties. Mandel is also planning to seek tax incremental financing for the project, though details for that have not yet been released.
The group can close the sale and start construction April 1, 2025, as long as they obtain all necessary permits, licenses and approvals from the city and Milwaukee County, according to the agreement.
Monday's Plan Commission approvals came after a lengthy public comment session in which dozens of residents voiced their opposition to the project.
Neighbor concerns included traffic, limited parking, building height and design, as well as what impact renters could have on the neighborhood character.
The project will still need approval from Wauwatosa's Design Review Board, where it could face challenges, commissioners said. Any public financing for the project will also need to be approved by the Common Council.
Mandel's approvals come after Milwaukee-based
Three Leaf Partners proposed a 163-unit market-rate apartment complex across the street, at the site of St. Bernard's Congregation. The city's Design Review Board has asked Three Leaf to revise its plans for that project.
