A new Milwaukee-area project with around 20 apartments is part of a movement that could help meet U.S. demand for more housing – even as those developments face financing challenges.
Union Green just opened at 6400 W. Greenfield Ave., West Allis. It features eight three-bedroom townhomes, 11 walk-up apartments, and ground-floor retail.
It’s part of what’s called housing’s “missing middle” – developments landing between single-family homes and larger apartment and condominium buildings.
Such projects remain rare in Wisconsin, said Jacques Gordon, director of the Graaskamp Center for Real Estate at the University of Wisconsin-Madison’s Wisconsin School of Business.
But they’re growing nationally, Gordon said, as developers and community officials explore ways to finance and construct such buildings.
Union Green is just south of single-family homes, and just west and north of mid-rise apartment and condo developments. It’s a five-minute walk from the West Allis Farmers Market, 6501 W. National Ave.
The monthly rents range from around $2 to $2.50 per square foot, including $1,650 for a 750-square-foot, one-bedroom unit.
While the rents are market rate, they’re affordable to a large swath of Milwaukee-area residents, said developer Jeff Hook.
No pool, no elevator keeps costs down
That’s partly accomplished by skipping amenities typically found in larger apartment communities, Hook told the Milwaukee Journal Sentinel.
Union Green’s apartments have in-unit washers and dryers, balconies, and quartz countertops. The townhomes also include front patios and private garages.
But the development doesn’t have such group amenities as a fitness room, swimming pool, and fire pits.
Union Green’s residents can pay extra to use those features at Element 84 Apartments, 1482 S. 84th St. – about a five-minute drive.
“This isn’t about cost cutting,” Hook said. “It’s about cost efficiency.”
That includes not adding an elevator within the three-story apartment building. Instead, there’s a single stairwell, with ground-floor units accessible for people with disabilities.
Union Green’s design features front door entrances for the townhomes, and all-corner units for the apartments. The L-shaped building blends into a city-owned pocket park along Greenfield Avenue.
That makes it easier for residents to become acquainted with one another, said Hook, who operates JJH3group LLC.
“I think people enjoy this type of living community,” Hook said.
Large firms pass on missing middle projects
So, why are such developments so rare they earn the “missing middle” moniker?
“The biggest issue is financial,” said Joe Galbraith, a partner at Galbraith Carnahan Architects LLC, which designed Union Green.
The $7.5 million development’s funding includes a tax incremental financing district, approved in 2024 by the city.
That allows the development’s owners, which include Hook and Galbraith, to recover up to $4.1 million from Union Green’s property tax revenue. That’s provided through annual payments of up to 27 years.
Also, the city sold the 0.4-acre site to the developers for $1. It was once home to The Spot Lite, a strip club, and a building that housed Crawdaddy’s restaurant before the eatery moved several years ago to 9427 W. Greenfield Ave.
Among other things, the city financing covered the cost of demolishing the dilapidated buildings.
It also allowed the developers to finance Union Green through 25% cash equity, with a Forte Bank loan covering remaining costs, Hook said.
Without the city’s help, the equity share would’ve been 40%, Hook said, greatly reducing the projected returns to a level that wouldn’t attract investors.
But, even with city financing help, large firms generally don’t develop apartment buildings of Union Green’s scale, Hook said.
That’s mainly because those companies have higher overhead costs by employing project managers and other professional staff, he said.
Developer left Opus to do small projects
Hook comes from that world.
He was a structural engineer for 15 years at Opus Group. It’s developed such large projects as Waukesha’s Shoppes at Fox River and a FedEx truck terminal in Oak Creek.
Hook left Opus in 2021 to start his own firm to develop missing middle housing.
“This is like the smallest project I’ve ever done,” he said.
Union Green took three years to bring to life. That timeline might’ve been daunting for other small firms lacking Hook’s experience and connections.
Those connections include Hook’s relationship with Galbraith.
Both grew up in West Allis, and turned to family and friends to help provide equity cash for Union Green.
But their biggest investor is a Galbraith Carnahan client – who helped secure a crucial personal guarantee for Forte Bank’s loan.
With Union Green leasing out its units at a strong pace, Hook and Galbraith are focusing on their next middle middle project: four townhomes and a three-story, 10-unit apartment building at 7746 Menomonee River Parkway, Wauwatosa.
The Community Development Authority in September endorsed the project. Hook and Galbraith are negotiating with city officials for a possible tax incremental financing district.
That financing proposal could undergo Common Council review on April 28, said Mark Hammond, Wauwatosa development director. With city approval, he said, construction could start in October.
Milwaukee, Shorewood see missing middle plans
Similar developments could surface in other Milwaukee-area cities, Gordon said.
“All these communities do talk to each other,” he said.
It would be helpful for communities to create clear zoning and design standards to make it easier for missing middle projects to be built, Gordon said.
Other municipalities have seen such developments financed in part with federal, state, and local funding that require below-market rents for people generally earning up to 60% of the Milwaukee area’s median income.
That includes The Hampton, a 17-unit building under construction at 4800 N. Santa Monica Blvd., Whitefish Bay.
It’s to open in May. Developer Spoerl Commercial LLC is planning a similar project, The Oak Leaf, at 4450 N. Oakland Ave., Shorewood.
Milwaukee Mayor Cavalier Johnson’s Department of City Development issued a November request for proposals to build up to 25 missing middle housing units scattered on smaller lots throughout the city.
Those subsidized homes, including townhouses and duplexes, would be sold to people earning up to 80% of the area median income. The department is negotiating contracts with prospective developers.
Also, a three-story, 24-unit apartment building is planned for 3501 S. Howell Ave., if that project obtains federal affordable housing tax credits. The 2026 tax credits awards are to be announced in May by the Wisconsin Housing and Economic Development Authority.
West Allis wants more missing middle housing
In West Allis, Union Green received a warm welcome from city officials, including Mayor Dan Devine.
The Common Council unanimously approved the project plans, and Devine said the community would welcome more missing middle projects.
Union Green adds housing options while supporting the neighborhood’s walkable character, said Patrick Schloss, city development director.
Meanwhile, Hook and Galbraith are talking with prospective restaurant tenants for Union Green’s 2,500 square feet of commercial space.
“We’re really trying to find a local operator,” Galbraith said.
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Bluesky, X and Facebook.
This article originally appeared on Milwaukee Journal Sentinel: New development with 19 apartments is a rare ‘missing middle’ project
Reporting by Tom Daykin, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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