3rd Street Market Hall Project receives a $ 2 million loan from Milwaukee Economic Development Corp.
The money will support the expansion of the food and entertainment hall, which will be on the first floor of the The Avenue project. The Avenue is the name of the newly remodeled Shops of Grand Avenue at 275 W. Wisconsin Ave.
MEDC approved a $ 2 million loan Wednesday morning to 3rd Street Market Hall developers Josh Krsnak, Tony Janowiec and Omar Shaikh.
The loan will help create an estimated 128 jobs over two years. The total cost of the project is approximately $ 10.62 million.
The 3rd Street indoor market is slated to open in September, Shaikh said. There will initially be 12 local food vendors, a large central bar with 40 seats, Top golf simulators and play areas and function rooms.
Shaikh said the development group had always planned to apply for a MEDC loan. However, they increased their application amount for two main reasons.
First, the food hall has grown in size. Shaikh said they had added several new areas in the past few months.
The property is now also paying for the expansion of some rental space, he said. Around half of tenants have chosen to pay a higher rent if the owners pay the bill for the finishing works.
The original plan was for each tenant to pay for their own upgrade, and 3rd Street Market Hall was to provide the space with only electricity and water.
This has changed, among other things, as a result of the COVID-19 pandemic, which hit the catering sector particularly hard. Without that option, some of the providers might not be able to move forward, Shaikh said.
Still, the food hall business was already headed in that direction. Shaik said, speaking to other takeaway owners around the country, that this alternative was often preferred by both sides.
“Many of the key executives in this business and some of the operators who own grocery warehouses were turning to a more turnkey solution than the original structure before the pandemic,” he said.
With the MEDC loan, the Shaikh and his partners have completed the financing of the project. The food hall also got its liquor license from the city.
The construction work is proceeding.
The installation of the mechanical, electrical and sanitary systems has been completed. The construction of the bar has been completed and the bar equipment will be delivered shortly. Work on the play areas like snookball and shuffleboard should be finished this week.
The Topgolf and Selfie museum rooms are still under construction. Tenant fit-out work is also pending.
The Avenue project also includes the 52-unit Plankinton Clover Apartments and 190,000 square feet of office space.
Office tenants include Good karma brands and its four Milwaukee-based radio stations, Graef-USA Inc., Milwaukee Downtown Business Improvement District No. 21 and the Metropolitan Milwaukee Trade Associations.