In Milwaukee, LISC steps up where other lenders back off
Joe Dahl, a Milwaukee developer, sought the help of LISC Milwaukee to transform vacant buildings in the Harambee neighborhood into attractive apartment buildings. LISC provided a $72,000 loan when other lenders turned him down.
Milwaukee developer aims to improve city living
22 Oct 2012 - Tom Daykin, Journal Sentinel
Dahl, who in 2011 earned a master's degree in business administration at UWM, figured the lending relationships from his nine years in commercial real estate would help him obtain financing to redevelop the King Drive building.
Instead, Dahl found that lenders weren't interested. One banker was eager to do business when Dahl described the projected revenue from the redeveloped building, but backed away when he learned that it was on King Drive.
So Dahl turned to the Milwaukee office of Local Initiatives Support Corp., a nonprofit group that supports community development.
"Had LISC not stepped up to the plate," he said, "this deal would not have gotten done."
The New York-based group, funded mainly by foundation grants and loans from banks and other commercial lenders, provided a $72,000 loan to help finance Dahl's $90,000 purchase. The group's Milwaukee office has focused much of its efforts on the Harambee neighborhood, an area that includes Dahl's King Drive property.
The property had been assessed at $119,900 before Dahl bought it. But it had been empty since the previous tenant, Wisconsin FACETS, a nonprofit group which leased most of the building, moved in August 2011 to The Tannery office park in Walker's Point because it needed more space. Continued[+]...
> Read the full Journal Sentinel article.
> Visit the LISC Milwaukee website.
Article Type: News