RACINE, WI – Hovde Properties, a commercial real estate developer, announced plans that it wants to build a $40 million hotel and multi-family housing project at 233 Lake Avenue.
A potential sale is far from being finalized, however, and isn’t expected to be completed until April 2020, according to a press release by the City of Racine.
The Madison-based developer is seeking an option agreement with the Racine Redevelopment Authority to build two multi-family buildings, which will be four to five stories tall and have 190 market-rate units.
Eric Hovde, chief executive officer of Hovde Properties, said the project was developed in collaboration with Mary Cory Mason and city staff.
“Hovde Properties has developed a strong and collaborative relationship with Mayor Mason and his staff,” the press release reads. “Our team looks forward to continuing our joint efforts to explore a building development that will advance the revitalization of the City of Racine and provide housing and hotel space to meet the needs of the area’s growing economy.”
What’s involved with the Hovde Properties project
The project could include market-rate units with studio, one-bedroom, and two bedroom units. The building will also include a dedicated amenity building, workout facility, club room, and outdoor activity centers. Hovde Properties will own and manage the multifamily buildings.
The developer also plans to build a 100-room hotel. Once built, it would be owned and operated by a separate entity.
“I am very excited to announce this partnership with Hovde Properties,” Mason said. “We have an amazing downtown, but it needs more high-quality housing and hotel space. Hovde’s investment of $40 million will provide nearly 200 housing units and a hotel with lake views in the heart of downtown. With developments like this, Racine will be the community of choice for people to work, live and play in southeastern Wisconsin.”
Next steps on the project
The Racine Redevelopment Authority will vote on approving granting Hovde site control through an option agreement, which includes paying the City of Racine $40,000. Once approved, the agreement would allow the developer exclusive rights to the property until April 30, 2020. The agreement allows Hovde access to the property so that it can assess the property. Those assessments would cost Hovde $200,000.
Once that work is completed, the RDA, City of Racine and Hovde Properties can develop the “financial terms” of the development that includes a final price for the property. The purchase price would be a separate agreement.