Downtown's former M&I Bank building could be redeveloped as mix of offices and apartments

A downtown Milwaukee office tower that's been vacant since 2020 could be redeveloped into a mix of office space and either apartments or a hotel under the operator's new vision.

The 20-story former Marshall & Ilsley Bank Building , 770 N. Water St., had been listed for sale over the past year by the Irgens development firm.

The firm acquired the building as part of its development of the neighboring 25-story BMO Tower , 790 N. Water St. The tower is named for BMO Harris Bank, which moved there four years ago from the former M&I Building − named for the bank which BMO Harris acquired in 2011.

Irgens initially planned to convert the M&I Building into around 240 apartments. But the firm, which focuses on office and industrial buildings, last year listed it for sale in hopes of attracting apartment developers.

High interest rates have dampened the market's enthusiasm for a conversion project, said Mark Irgens, the firm's chief executive officer.

So, Irgens decided to take the 290,821-square-foot building. off the market and take another look at redeveloping it.

"I wouldn't have bought it if I didn't feel it was really great real estate," Irgens told the Milwaukee Journal Sentinel.

His latest vision: create ground-floor retail use, with office space on the building's upper floors and either apartments or a hotel on floors two through 10.

That would be an unusual mix. It reflects Irgens' belief that the Milwaukee-area office market is relatively strong despite the increased popularity of remote work.

BMO Tower just leased around 6,800 square to Hinshaw and Culbertson. That law firm will move from the 100 East office tower − itself being converted to apartments.

Along with another pending lease, BMO Tower's occupancy rate will soon exceed 90%, Irgens said. Pending deals at the firm's 18-story 833 East building, 833 E. Michigan St., will boost that building occupancy rate to a similar percentage, he said.

Downtown Milwaukee's office market had a first-quarter vacancy rate of 17.1%, according to the Commercial Association of Realtors-Wisconsin survey.

Redeveloping the M&I Building would be an expensive project. Renovations would include replacing all of the building's lighting, plumbing and mechanical systems, as well as its windows, Irgens said.

That would be financed in part with state and federal historic preservation tax credits.

The 56-year-old building carries historic and architectural significance, according to a filing with the National Register of Historic Places.

Its modernist design is part of a dramatic shift in the development of bank buildings following World War II, the filing said, with the industry rebranding from staid and traditional to "a more open, welcoming, and customer-oriented model."

Also helping making the project feasible would be the Federal Reserve's long-awaited interest rate cuts , Irgens said. The Fed has held off in order to reduce inflation, but there lately have been indications the first reduction could come this fall.

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

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This article originally appeared on Milwaukee Journal Sentinel: Downtown's former M&I Bank building could be redeveloped as mix of offices and apartments