High-rise not above worries
Mark Irgens shows off downtown’s newest office tower as pandemic brings big concerns for developers.
Normally, developer Mark Irgens would be happily showing off his firm’s latest project: the $137 million BMO Tower, downtown Milwaukee’s newest office high-rise. ❚ These are not normal times. ❚ As he leads the tour, Irgens continually checks his phone for emails with information about the new order from Gov. Tony Evers shutting down many Wisconsin businesses. He’s worried about how the stay-at-home order will affect construction projects — including this one.
“Right now, we believe the State of Wisconsin will allow commercial construction to continue,” said Irgens.
But, maybe the city’s separate order will be different — or perhaps the shutdown of city building inspections will bring delays to BMO Tower, which is to be substantially completed by April 10.
“We’re not certain what’s happening,” Irgens said earlier this week.
Welcome to the new normal for commercial development.
As the coronavirus pandemic rages, development and construction firms are among the businesses scrambling to adjust to work shutdown orders — as well as changing how they operate to help prevent the outbreak from spreading among their employees.
Evers’ “safer at home” order allows construction trades to continue operating. But that doesn’t cover all construction projects.
One portion of the order allows construction of hospitals, long-term care and assisted living facilities, road and other public works, schools and housing.
The order also permits essential business and operations construction; construction necessary for essential governmental functions, and for “maintaining the safety, sanitation, and essential operation of residences, Essential Activities, Essential Governmental Functions, and Essential Businesses and Operations.”
It’s those provisions that Irgens and other developers hope will allow them to keep operating.
The 25-story BMO Tower, 790 N. Water St., replaces the former BMO Harris Bank building’s parking structure. The current bank building is at 770 N. Water St.
The privately financed 379,600square-foot office tower has two anchor tenants: BMO Harris Bank, with 127,000 square feet, and law firm Michael Best & Friedrich, with 62,300 square feet. The other announced tenants so far are Heartland Advisors Inc. and Andrus Intellectual Property Law.
Because BMO Tower is anchored by a bank, and banks are considered essential businesses under the state order, the tower’s construction also can be deemed essential.
Irgens was getting information about the state order when it was issued Tuesday morning — while leading the Journal Sentinel on a walk-through at BMO Tower.
The initial read of the Evers order looks good for the construction industry, he said.
But, a pending similar city order could be more restrictive, and construction industry groups were trying to learn more from Mayor Tom Barrett’s administration.
Shutting down the BMO Tower project would hurt a lot of people.
“We have 300 men and women working on the job who want to continue working here,” said Irgens, chief executive officer at Irgens Partners LLC.
Fortunately, it’s a big job site, and those workers can maintain social distancing by spreading out, said Timothy Gasperetti, vice president of design and construction administration at Irgens Partners.
So, elevator rides now have limits on the number of passengers. And small group meetings are happening with workers standing six feet from one another.
Chicago-based Pepper Construction, the project’s general contractor, has added hand washing stations — similar to those used at music festivals, Gasperetti said.
There are signs throughout the job site reminding workers to wash their hands and to remain apart from one another. And those points are emphasized at daily morning meetings before work begins, he said.
Also, the BMO Tower job site was shut down on Monday for an extensive cleaning of handrails, door handles and other “high-touch” surfaces.
Finally, workers are told to stay home if they don’t feel well.
Meanwhile, the building tour starts at the 25th floor, where Michael Best & Friedrich had been planning to move on April 17.
One of the highlights are the floor-toceiling windows. BMO Tower has more of those than any other Milwaukee office tower, Irgens said.
Also, the design, by Kahler Slater, includes cantilevers that replace traditional columns at the corners — which removes obstructions of views of Milwaukee’s skyline and better shows off the curved corner windows.
The top floor includes an outdoor balcony. That’s another unusual touch for a downtown office building, but one that is growing in popularity among tenants, Irgens said.
He paused to check his phone. An email from a local industry lobbyist has landed, saying the city’s workplace shutdown order isn’t meant to affect construction projects.
“That means we can keep working,” Irgens said, his face brightening.
He then added, “We’ll see if it happens.”
Back to the tour, with Irgens touting another selling point: a new building like BMO Tower can take advantage of larger floors, and improvements in construction and energy technologies, to provide more efficient work space.
So, for example, Michael Best & Friedrich now leases around 90,000 square feet at the 100 East tower, completed in 1989 at 100 E. Wisconsin Ave. The firm will reduce its space by about 30 percent after moving to BMO Tower.
“If they can fit more people into less space, their total (rent) payment goes down,” Irgens said.
Meanwhile, Irgens has another problem.
The Milwaukee Department of Neighborhood Services has just suspended its operations, which includes building inspections.
Those happen periodically on large constructions sites, and a lack of inspections can greatly slow down or even stop work.
“We think it’s being addressed within DNS,” Irgens said, again checking his emails.
(One day later, DNS Commissioner Erica Lewandowski and other city officials announced a plan to reestablish limited department operations).
The economic turmoil caused by the coronavirus pandemic is unlike anything ever seen by Irgens, a developer for 35 years and a former banker.
“This uncertainty in the workplace on what you can or cannot do ... is very disconcerting,” he said.
And it comes after Irgens in January fired the project’s general contractor, J.H. Findorff & Son Inc., over concerns about work delays and hired Pepper Construction to finish the job.
Meanwhile, Irgens Partners and its leasing agent, Colliers International, are seeking tenants for the remaining 207,900 square feet at BMO Tower.
Also, Irgens bought the current 20story BMO Harris building, and will extensively renovate the 52-year-old structure into new offices and street-level commercial space after the bank moves next door to BMO Tower.
That building, named 770 North, could cost $90 million to redevelop.
Irgens had been negotiating with a prospective restaurant tenant for 770 North’s street level before the pandemic hit hard. That tenant has since called a timeout on those talks, he said.
But 770 North and BMO Tower are in the heart of downtown, next to City Hall, and within short walks of amenities such as the RiverWalk, Fiserv Forum and The Hop streetcar, Irgens said. That will help attract tenants.
“It’s really just a great location,” he said.
The tour winds down on the tower’s ground floor, which will include a marble-adorned lobby with a 23-foot-high display for showing videos, such as a flyover of downtown and scenes of historic Milwaukee buildings.
There’s also an outdoor plaza, where workers are pouring concrete.
It will feature a bronze sculpture, based on NAACP founder W.E.B. Du Bois, by Radcliffe Bailey that was part of the 2019 Sculpture Milwaukee display. The work’s title?
“Pensive.”
“We have 300 men and women working on the job who want to continue working here.” Mark Irgens chief executive officer, Irgens Partners LLC