Former King Drive Schuster’s revamp advances

The redevelopment of a historic former department store just north of downtown Milwaukee is taking a big step forward with the property’s sale.

Royal Capital Group LLC plans to convert much of the six-story former Schuster’s department store, 2153 N. King Drive, into 131,000 square feet of offices and research space.

Medical College of Wisconsin, based in Wauwatosa, plans to move community engagement programs to the King Drive building, and Greater Milwaukee Foundation will move its offices and operations there from 101 W. Pleasant St., in the nearby Schlitz Park office park.

Royal Capital also plans to create 40,000 square feet of community space on the first floor, according to plans first outlined in 2019.

The medical college, foundation and Royal Capital will create the ThriveOn Collaboration.

“The vision of the ThriveOn Collaboration is for a Milwaukee that is equitable, healthy, and thriving for all,” according to a statement released Tuesday.

“This development will address ThriveOn Collaboration’s five priority areas: early childhood education, health and wellness, social cohesion, housing and economic opportunity,” Gregory Wesley, senior vice president of strategic alliances and business development at MCW, said in a statement.

The foundation is extending its commitment to the collaboration through a $10 million impact investment, said Ken Robertson, foundation executive vice president, chief operating officer and chief financial officer.

“This building will be our home for generations, our stake in the ground, and we will use every tool that we have to make it successful,” Robertson said.

Also, the building’s upper levels on its west side are to be converted into 77 one-, two- and three-bedroom apartments, including 53 affordable units for low- and moderate-income renters.

Apartment residents are to park in the building’s lower level. A six-level, 315-space parking structure is planned near the building’s southwest corner for people using the offices.

Construction is scheduled to begin in February, and slated for completion in spring 2022.

“Not only is this investment rewarding to me personally, but I am confident this unique model will serve as an inspiration and a source of pride for our local community and like-minded communities across the nation,” said Kevin Newell, Royal Capital president and chief executive officer.

The $100 million project is proceeding with Monday’s sale of the building to a Royal Capital affiliate, VPMLK P1 LLC, for $9.2 million, according to state real estate records.

The property was sold by Schusters Redevelopment LLC, led by Michael Coakley, president of C.H. Coakley & Co., a moving and storage business located at the building.

C.H. Coakley plans to move its storage operations to other locations but keep its offices at the redeveloped building.

The project is a huge boost for Milwaukee’s Harambee and Bronzeville neighborhoods, which have seen other new projects in the past year.

The building’s sale comes less than a week after Dohmen Co. Foundation Inc. announced plans to move in 2021 to the former Fein Brothers building, at 2007 N. King Drive, after major renovations. The foundation is now in the Historic Third Ward, at 215 N. Water St.

Other new development include the Chris Abele Legacy Co-Working and Innovation Space, which is to open in January at a renovated building at 1920 N. King Drive.

That $650,000 project will house offices for the African American Chamber of Commerce of Wisconsin, as well as co-working space, a shared commercial kitchen and a coffee shop.

The main financing source for the Schuster’s development will be commercial loans totaling $39 million, according to a Department of City Development report.

Other sources include $16.6 million in state and federal historic preservation tax credits, $15 million in city financing provided through the renovated building’s property taxes, $7.4 million in equity cash and $6.2 million in federal affordable housing tax credits.

The former Schuster’s store was constructed in stages, with the first portion built in 1907, and additions constructed in 1913, 1918, 1941, 1948 and 1950, according to the Wisconsin Historical Society.

It was the main location for the small Schuster’s chain, which was acquired by the Gimbels department store chain in 1962.

In the 1970s, Gimbels converted the King Drive building into a warehouse. C.H. Coakley has controlled the property since 1992.

ENGBERG ANDERSON ARCHITECTS The former Schuster's department store on North King Drive is to be redeveloped into apartments, offices and other new uses.