Dwight Capital Provides $114M HUD Loan for Milwaukee Office-to-Resi Conversion

A joint venture between Klein Development and MOS R.E. has sealed $114 million of U.S. Department of Housing and Urban Development (HUD)-backed debt for the conversion of a Milwaukee office tower into luxury apartments, Commercial Observer has learned.

Dwight Capital closed the HUD 221(d)(4) substantial rehabilitation loan to convert a 34-story building at 100 East Wisconsin Avenue in Downtown Milwaukee into a 373-unit multifamily project in a deal originated by Keith Hoffman and Jack Tawil. The loan marks the largest multifamily HUD loan in Wisconsin history and the biggest financing approved by HUD’s Midwest office, according to Dwight. 

Located along the Milwaukee River, 100 East Wisconsin is the third-tallest building in Wisconsin and will become the tallest residential tower once completed. It will have studio, one-, two- and three-bedroom units. Community amenities will include a fitness center, a yoga studio, spa, coworking space, a conference room, a pet lounge, a game room and a rooftop deck with a swimming pool.

The 1989-built 100 East Wisconsin was added to the National Register of Historic Places in January 2025 to qualify the office-to-resi conversion project for federal and state historic tax credits, according to Dwight. The City of Milwaukee also provided a tax increment financing package of up to $16.6 million through its newly established tax increment district.

“We are thrilled to have closed this record-breaking construction loan and are excited for what this huge milestone will do for the future of Downtown Milwaukee,” Joe Klein, managing partner at Klein Development said in a statement. “100 East is an iconic project that has been years in the making.”

Andrew Coen can be reached at acoen@commercialobserver.com.