Dwight Capital Closes $114 Million HUD 221(d)(4) Loan for Milwaukee Office-to-Multifamily Conversion
Dwight Capital has closed a $114 million HUD 221(d)(4) substantial rehabilitation loan for the conversion of 100 East Wisconsin, a 34-story office tower in downtown Milwaukee, into a 373-unit luxury apartment community, the firm announced. The transaction sets multiple records in commercial real estate financing: it is the largest multifamily HUD loan ever closed in Wisconsin, the largest multifamily loan approved by HUD's Midwest Region Office — which oversees lending across six states — and the largest HUD 221(d)(4) construction loan in Dwight Capital's history.
A Landmark Office Tower Becomes Milwaukee's Tallest Residential Building
Located at the heart of Milwaukee's downtown central business district along the Milwaukee River, 100 East Wisconsin is currently the state's third-tallest building. Upon completion of the conversion, the property is expected to become the tallest residential building in Wisconsin.
The redevelopment will transform the existing office tower into a luxury apartment community offering studio, one-, two-, and three-bedroom units. The planned amenity package includes a fitness center, yoga studio, spa, co-working space, conference room, pet lounge, bike storage, multiple lounge and bar areas, a game room with a sports simulator, and a rooftop deck with a swimming pool.
Loan proceeds will be used for both the construction and permanent financing of the development.
Historic Designation Unlocks Tax Credits and City Incentives
At just 35 years old, 100 East Wisconsin is among the youngest buildings ever added to the National Register of Historic Places, having received that designation on January 16, 2025, in recognition of its architectural and historic significance. The listing qualified the project for both federal and Wisconsin state historic tax credits.
The City of Milwaukee further supported the project with a tax increment financing package of up to $16.6 million through a newly established tax increment district.
Deal Team and Developer Commentary
Dwight Capital Managing Director Keith Hoffman and Jack Tawil originated the loan on behalf of the developers: Klein Development, led by Joe Klein, Michael Klein, and Derek Schneider, and MOS R.E., led by Johnny Vassallo.
"We are thrilled to have closed this record-breaking construction loan and are excited for what this huge milestone will do for the future of downtown Milwaukee," Joe Klein said. "100 East is an iconic project that has been years in the making, and Dwight Capital's team delivered an outstanding experience from day one in getting this loan approved and closed. Their sophistication, strategic guidance, and true all-hands-on-deck approach were critical in successfully navigating what was a very complex transaction. Keith, Jack, and the entire Dwight underwriting and closing teams were proactive, solutions-oriented, and always available, making them an exceptional partner on this landmark project."