Developers use alternative resources and creative vision for projects in Milwaukee's central city

When it comes to doing commercial real estate development in Milwaukee's central city, conventional financing usually isn't enough — even if it's available.

But some projects can be brought to life with crowdfunding, donations and other cash sources that rely on a more personal approach.

And that means overcoming Milwaukee's long history of racial segregation — which requires action from all segments of the community.

Those were among the messages delivered by a trio of developers — Melissa Goins, JoAnne Sabir and Juli Kaufmann — who've created several projects in some of Milwaukee's poorest neighborhoods.

"To me, everything we do is relational, not transactional," said Kaufmann, who joined Goins and Sabir in a Wednesday panel discussion, "Revitalizing Milwaukee Neighborhoods," sponsored by Marquette University Law School. The event drew around 200 people.

Kaufmann, who operates Fix Development LLC; Goins, president of Maures Development LLC; and Sabir, co-owner of The Juice Kitchen, all said their businesses turn a profit.

"But there are times when the community good is a greater priority," Goins said.

All three women have helped change the landscape on Milwaukee's north side.

Over 12 years, Goins has developed nine buildings that total around 400 apartments and 20,000 square feet of commercial space. That includes The Griot, an apartment building that opened this summer at 2235 N. Phillips Ave. and will include the reborn American's Black Holocaust Museum.

Many of the apartment units built by Maures Development were partly financed with federal affordable housing tax credits. Those units are provided at below-market rents to people with low and moderate incomes.

Sabir and her husband, Maanaan, seven years ago launched The Juice Kitchen, which sells fruit and vegetable juices and smoothies.

The business has thrived, especially after a retail storefront opened in 2015 at Innovation and Wellness Commons. The Juice Kitchen helps anchor that development at 1617 W. North Ave.

Kaufmann's projects include The Tandem restaurant, which opened in 2016 within a restored former tavern at 1848 W. Fond du Lac Ave.

That development includes office space for other small businesses. Kaufmann and her partners hope The Tandem will help draw other investments to the block.  

Meanwhile, Kaufmann and Sabir are co-developing Sherman Phoenix, a hub of 29 small businesses that opens Nov. 30 at 3536 W. Fond du Lac Ave. 

Sherman Phoenix, which counts Goins among its investors, is renovating a building — a former BMO Harris Bank branch — that was torched during the 2016 riot in the Sherman Park neighborhood.

Many of its businesses are owned by African-Americans.

The tenants range from restaurants and other food vendors, such as Purple Door Ice Cream and Funky Fresh Spring Rolls, to a hair salon, yoga studio and hand-crafted jewelry shop.

Sherman Phoenix's $4 million financing package includes a $250,000 state grant and $225,000 from the city, with those city funds being repaid by the renovated building's property taxes.

But much of the project's capital is coming from around 50 individual investors. Those include one person who invested $100,000.

Many are making a minimum $1,000 investment through what amounts to crowdfunding. Others are making small donations, with Sherman Phoenix also drawing larger foundation grants. 

The individual investors have rallied to support the project as its budget has climbed from an original estimate of $2.5 million, Sabir said.

That amount rose as the number of businesses interested in locating at Sherman Phoenix steadily climbed. The developers initially planned on having around a dozen businesses there.

Kaufmann said Sherman Phoenix is raising a final $200,000 and continues to seek investors and donors.

Conventional financing for a project such as Sherman Phoenix is difficult to obtain, she said.

In part, that's because the property's appraised value isn't high enough to obtain a traditional bank loan.

Also, Milwaukee's central city continues to suffer from a legacy of racism, segregation and disinvestment, Kaufmann said.

But partnerships, like those working on Sherman Phoenix, can overcome challenges, Sabir said.

"A lot of times we try to go forth with our own ability," she said.

Instead, what's needed, is "the power of the collective," Sabir said.

"It has to belong to all of us," she said.

Rebuilding Milwaukee's central city also requires white people to "own this as our responsibility to be the change," Kaufmann said.

All three women see their investments as more than just turning a profit.

"To me, it's really creating beauty where there isn't any," Goins said.

Said Sabir, "There's a significant amount of joy when you see a project come to fruition."

"I use real estate as a tool for social change," Kaufmann said.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.