JLL Arranges $39.1M Construction Takeout Loan for Tennessen Flats in Menomonee Falls
JLL Capital Markets has arranged $39.1 million in construction takeout financing for Tennessen Flats, a 173-unit Class A multifamily community in Menomonee Falls, Wisconsin, the firm announced Nov. 10. JLL worked on behalf of sponsors Weas Development and Klein Development to secure the floating-rate loan from an entity managed by Argentic Investment Management LLC (Argentic). The financing refinanced the property's existing construction loan.
JLL Financing Details for Tennessen Flats
The loan converts construction debt into property-level financing for a project completed in 2025. At the time of closing, Tennessen Flats was completing lease-up. The $39.1 million loan equals roughly $226,000 per apartment, a loan-per-unit figure rather than a valuation metric.
JLL's Capital Markets Debt Advisory team represented the borrower. The team included Senior Directors Phil Galligan and Brian Walsh, and Senior Analysts Christian Johnston and Merrick Evans.
"Tennessen Flats benefits from a best-in-class sponsorship team with a deep and proven track record in the Milwaukee market," said Galligan. "Weas Development and Klein Development together represent more than $2 billion of completed projects in the Milwaukee area since 1981, and that experience gave lenders significant confidence."
Property Overview: 173 Class A Units Northwest of Milwaukee
Tennessen Flats is located at N72W12929 Good Hope Road, about 15 miles northwest of Downtown Milwaukee. The property consists of three four-story residential buildings and two standalone retail buildings totaling 15,360 square feet, for five buildings in all. Project materials identify March 2025 as the completion date.
The community offers studio, one-, two- and three-bedroom units with high-end finishes. Public apartment listings show unit sizes ranging from approximately 592 to 1,322 square feet. Amenities include a resort-style pool, rooftop terraces with grilling stations, a fitness center, a yoga studio and an oversized resident lounge.
The site offers immediate access to Interstate 41 and U.S. Route 45, as well as to numerous Fortune 500 headquarters in the Milwaukee area.
Eastern Waukesha County Submarket and Milwaukee Multifamily Conditions
Tennessen Flats sits in the Eastern Waukesha County submarket. JLL reported a 2026 vacancy rate of 4.4% there, expected to tighten to 3.5% by year-end. The submarket recorded net absorption of 560 units over the past year against 200 units of new deliveries.
Broader Milwaukee data points in the same direction. Colliers reported second-quarter 2026 asking rents of $1,598 per unit, effective rents of $1,568 and vacancy of 4.9%, with occupancy at 95.1%. Absorption of 981 units exceeded 526 completions. Another Milwaukee market report placed third-quarter occupancy at 96.4%, with annual effective-rent growth of 3.5%.
For context, Apartment Loan Store data placed suburban Class A multifamily cap rates around 4.75% in 2026, and Milwaukee multifamily cap rates at an average of approximately 5.2%. Those are market benchmarks rather than figures for Tennessen Flats.
The Parties: Weas Development, Klein Development and Argentic
Weas Development, founded in 1997, is a real estate development and asset and property management company. The firm reports 2.2 million total completed square feet of real estate and more than $330 million in development value.
Klein Development was founded in 1981 by Dennis Klein and is one of the largest privately held real estate development companies in Wisconsin. The family-led company is led by Michael Klein and Joe Klein and specializes in new construction, historic renovations, project financing and community-focused investments.
Argentic is an investment manager of commercial real estate lending and investment vehicles that provides fixed-rate and floating-rate debt financing to property owners across the United States.
JLL Capital Markets says it has more than 3,000 Capital Markets specialists worldwide, with offices in nearly 50 countries. Its services span investment sales, debt advisory, equity advisory and recapitalization.
Outlook for Lease-Up and Stabilization
The takeout financing moves Tennessen Flats from the development phase toward stabilization as lease-up continues. Submarket vacancy that JLL expects to tighten to 3.5% by year-end, together with absorption that exceeded new deliveries over the past year, forms the operating backdrop for the property's remaining lease-up.