KG Development Group Seeks Funding for $28M Meinecke Lofts Senior Housing in Milwaukee

KG Development Group is pivoting its strategy for the proposed Meinecke Lofts, an 83-unit affordable housing redevelopment of the former Perlick Corporation factory at 3100 W. Meinecke Ave. in Milwaukee. After missing out on competitive low-income housing tax credits, the developer is now pursuing a noncompetitive 4% federal tax credit program. The total project cost is estimated at approximately $28 million, requiring a complex capital stack of 10 different funding sources to move forward.

As part of the financing strategy, the Redevelopment Authority of the City of Milwaukee (RACM) is expected to act as a conduit for a $7.6 million loan. The development plan designates 80% of the units for individuals aged 55 and older, with the remaining units potentially reserved for health care workers. Engberg Anderson is leading the design, and Catalyst Construction is slated to serve as the general contractor. RACM has provided conceptual approval for the bond plan as the developer continues to secure equity through partners including WNC, U.S. Bank, and New Point Capital.