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Alexander Lofts
Alexander Lofts
Milwaukee, Wisconsin
Acquire a historic adaptive reuse apartment community below replacement cost with immediate cash flow and operational upside in one of Milwaukee's strongest infill submarkets.
Investment Highlights
Core-Plus Multifamily
Purchase Price: $6.3 million
Hold Period: 5 Years
Target IRR: 16.3%
Equity Multiple: 2.0x
Average Cash Yield: 8.0%
Minimum Investment: $25,000
ACCEPTING COMMITMENTS
Executive Summary
Alexander Lofts presents the opportunity to acquire a recently redeveloped, 60-unit multifamily community in Milwaukee at an attractive basis significantly below replacement cost. Acquired for $6.3 million, or approximately $105,000 per unit, the Property offers investors immediate in-place cash flow through a fully leased asset while providing a clear path to value creation through operational improvements rather than capital-intensive renovations.
Originally constructed in 1919 as the historic Hill Department Store and thoughtfully redeveloped into loft-style apartments in 2017, Alexander Lofts offers a differentiated product featuring high ceilings, hardwood floors, quartz and granite countertops, gated parking, and modern amenities. The recent redevelopment substantially reduces near-term capital requirements, allowing Orinova to focus on improving property operations while preserving the strong resident experience that has resulted in 100% occupancy.
The investment thesis is driven by disciplined asset management. Current ownership primarily operates affordable housing, and Alexander Lofts is its only market-rate apartment community. By integrating the Property into Tenova Management's existing Milwaukee platform, Orinova expects to improve operating efficiency, reduce controllable expenses, strengthen collections, and capture additional ancillary revenue opportunities while maintaining a measured approach to rent growth. Combined with favorable Milwaukee market fundamentals, limited new supply, and a conservative financing structure, the business plan is designed to generate durable cash flow alongside meaningful long-term value creation for investors.
Why We Like This Investment
Attractive Acquisition Basis
Alexander Lofts is being acquired for $6.3 million ($105,000 per unit), representing more than a 50% discount to the seller's approximately $13.2 million redevelopment cost basis. This attractive entry point provides meaningful downside protection while positioning investors to benefit from future appreciation.
Immediate Cash Flow
The Property is currently 100% occupied, generating stable in-place cash flow from day one. Unlike many value-add investments, the business plan is not dependent upon lease-up risk or extensive capital improvements to produce investor distributions.
Limited Capital Requirements
Originally redeveloped in 2017, Alexander Lofts offers a modern, loft-style product that requires minimal near-term capital investment. The Property Condition Report identified only approximately $4,000 of immediate repairs, allowing capital to be focused on operations rather than renovations.
Operational Value Creation
The primary opportunity is operational—not physical. Current ownership primarily operates affordable housing, and Alexander Lofts is its only market-rate apartment community. By integrating the Property into Tenova Management's established Milwaukee platform, Orinova expects to improve operating efficiency, reduce controllable expenses, strengthen collections, and enhance long-term NOI.
Business Plan
Alexander Lofts is not a heavy-renovation value-add investment. The business plan is centered on improving operations, reducing controllable expenses, strengthening collections, and preserving the Property’s strong occupancy profile. Because the Property was redeveloped in 2017, capital improvements are expected to be limited, allowing Orinova to focus on the highest-impact value creation lever: creating a cleaner and more durable NOI profile.
Key Initiatives
Operational Reset
Transition the Property from the current affordable-housing-oriented management structure to Tenova’s local, institutional-quality market-rate multifamily platform.
Expense Control
Reduce administrative costs, re-bid insurance, lower management-related payroll, and eliminate unnecessary corporate overhead allocations where appropriate.
Bad Debt Reduction
Improve tenant screening, collections, lease administration, and resident oversight to bring bad debt closer in line with the Sponsor’s broader market-rate portfolio.
Measured Rent Growth
Continue recent lease trade-out momentum above 3% while prioritizing occupancy and retaining residents who pay on time.
Ancillary Income
Evaluate additional revenue opportunities including parking, storage, pet fees, and potential use of the Property’s approximately 8,000 square foot basement for storage income.
Limited Turnover Costs
Address repair and maintenance items proactively as units roll, rather than pursuing a broad renovation program that could disrupt occupancy or cash flow.
Why Milwaukee?
At Orinova Capital, we seek investments in markets supported by durable economic fundamentals rather than speculative population growth. Milwaukee continues to demonstrate the characteristics we value most: a diversified employment base, attainable housing, limited long-term supply growth, and resilient renter demand. We believe these fundamentals position well-located multifamily communities to generate stable cash flow while providing attractive opportunities for long-term value creation.
Durable Demand
Transition the Property from the current affordable-housing-oriented management structure to Tenova’s local, institutional-quality market-rate multifamily platform.
Improving Supply Fundamentals
Reduce administrative costs, re-bid insurance, lower management-related payroll, and eliminate unnecessary corporate overhead allocations where appropriate.
Strategic Location
Improve tenant screening, collections, lease administration, and resident oversight to bring bad debt closer in line with the Sponsor’s broader market-rate portfolio.
Relative Affordability
Continue recent lease trade-out momentum above 3% while prioritizing occupancy and retaining residents who pay on time.
We believe attractive real estate investments begin with strong market fundamentals. Our focus remains on acquiring well-located assets in durable Midwest markets where long-term demand supports consistent cash flow and disciplined value creation.
For investors interested in conducting additional market due diligence, the Opportunity Resources at the top of this page include a detailed market analysis prepared specifically for Alexander Lofts. You can also explore the latest edition of the Orinova Midwest Multifamily Market Brief, where we provide ongoing research and commentary on apartment fundamentals, supply and demand trends, capital markets, and investment activity across Milwaukee, Madison, and Racine.
The Property
Originally constructed in 1919 as the Hill Department Store and thoughtfully redeveloped into loft-style apartments in 2017, Alexander Lofts combines historic character with modern finishes and amenities. The Property offers residents a differentiated living experience in one of Milwaukee's most recognizable historic commercial corridors, while requiring minimal near-term capital investment.
Historic Character
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Adaptive reuse completed in 2017
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High ceilings
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Hardwood floors
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Bay windows
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Loft architecture
Modern Living
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Quartz/granite countertops
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Stainless appliances
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Air conditioning
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In-unit laundry (townhomes)
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Island kitchens
Community Amenities
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Fitness center
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Clubhouse
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Gated parking
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Storage
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Bicycle storage
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Milwaukee Public Library adjacent to the property
Walkable Neighborhood
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Walk Score 90
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Six minutes from Downtown
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Historic Mitchell Street
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Public transportation
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Employment centers
Investment Risks & Mitigating Factors
Every real estate investment involves risk, and actual results may differ from projections. We believe transparency is an important part of building long-term investor relationships. The following summarizes several of the principal risks associated with this investment, along with the factors that we believe help mitigate those risks. This discussion is not intended to be comprehensive and is intended as a summary and should be read in conjunction with the Investment Memorandum and offering documents.
Operational Execution
Risk
A significant portion of the business plan relies on improving property operations, including reducing controllable expenses, strengthening collections, and implementing Tenova Management's operating platform. If these initiatives are not achieved as anticipated, operating performance could fall below projections.
Mitigating Factor
The value creation plan is based on specific operational initiatives rather than broad assumptions. Tenova currently manages more than 500 multifamily units throughout the Milwaukee market, providing an established local platform with experience implementing similar operational improvements.
Market Conditions
Risk
Changes in the broader economy, employment trends, interest rates, or apartment market fundamentals could impact occupancy, rental growth, property values, or exit pricing.
Mitigating Factor
Milwaukee continues to benefit from a diversified employment base, improving supply-demand fundamentals, and relatively limited new apartment construction. The investment is also underwritten with a focus on stable cash flow and operational improvements rather than relying solely on market appreciation.
Revenue Growth
Risk
Projected returns assume continued rent growth and stable occupancy. If market conditions soften or affordability pressures increase, revenue growth may be lower than anticipated.
Mitigating Factor
The business plan assumes measured rent growth supported by recent lease trade-outs rather than aggressive rent increases. Maintaining high occupancy and resident retention remains a primary objective throughout the investment period.
Exit Strategy
Risk
Property values at disposition may differ from current projections due to changes in capitalization rates, financing markets, or investor demand.
Mitigating Factor
Alexander Lofts is being acquired at an attractive basis relative to both replacement cost and recent comparable transactions. Additionally, the business plan is designed to create value through improved operating performance, providing multiple potential paths to realizing value over the hold period.
Frequently Asked Questions
Every investment is unique, and we encourage prospective investors to perform their own due diligence before making an investment decision. Below are answers to several of the questions we are most frequently asked. If you have additional questions, we welcome the opportunity to discuss the investment with you directly.
What is the minimum investment?
The minimum investment is $25,000.
How are distributions made?
The investment is projected to make monthly cash distributions, subject to available cash flow and the discretion of the Manager. Distributions are deposited directly to investors' designated ACH account through the Juniper Square investor portal.
When will I receive tax documents?
Investors should expect to receive an annual Schedule K-1 through the Juniper Square investor portal on March 15th of each year. While timing may vary, K-1s are generally targeted for delivery before applicable tax filing deadlines.
Can I invest through an LLC, trust, or retirement account?
Yes. Many investors participate through legal entities, trusts, self-directed IRAs, or other retirement accounts. We recommend consulting your legal or tax advisor to determine the ownership structure that best fits your individual circumstances.
How long is the expected investment?
The business plan contemplates an approximately five-year hold, although market conditions may result in a shorter or longer holding period if doing so is in investors' best interests.
How involved is Orinova after closing?
Orinova provides active asset management throughout the investment, working closely with Tenova Management to oversee operations, monitor financial performance, execute the business plan, communicate with investors, and evaluate strategic decisions throughout the hold period.
How will I receive updates?
Investors receive ongoing communication through the Juniper Square investor portal, including distribution notices, quarterly reporting, tax documents, and other investment updates.
What happens if market conditions change?
Real estate investments involve risk, and market conditions may change throughout the hold period. Orinova continually evaluates the business plan and may adjust operating strategy, refinance timing, or disposition plans when appropriate to protect investor interests.
How do I move forward if I'm interested?
Schedule an introductory call using the link below. After discussing the opportunity and determining that the investment is an appropriate fit, subscription documents and funding instructions will be provided securely through Juniper Square.
Ready to Take the Next Step?
If you've reviewed the opportunity and believe Alexander Lofts may be a good fit for your investment objectives, we'd welcome the opportunity to discuss the investment in more detail and answer any remaining questions.
Schedule an Opportunity Review Call
A 30-minute discussion to review the business plan, answer questions, and determine whether Alexander Lofts is a good fit for your investment objectives.
Request an Invitation to Invest
Ready to move forward? Complete the brief form below and we'll provide access to the offering documents through Juniper Square.
We believe every investment decision deserves a conversation. Before accepting a commitment, we encourage prospective investors to speak with us directly to ensure the opportunity aligns with their investment objectives.