Milwaukee, WI

HIGHLIGHTED AREAS

The Opportunity

Highgrove has been working closely with real estate professionals in Milwaukee to seek out and acquire properties in the area at discounted prices up to and in some cases exceeding 50% off of fair market value. The goal of HHM is to amass 1,100 properties in the Milwaukee. Properties purchased according to our all cash-strategy provide tremendous cash flow of 12%-18% returns annually, while allowing their values to increase to the top of the market.

Considering that the average price of a property purchased for investment purposes, including rehabilitation, averages approximately $35,000 and receives an average net income of $6,322 per year, each property generates a gross annualized return rate of just over 20% and in some cases have exceeded 30%. 

Milwaukee, Wisconsin

Milwaukee is the largest city in the State of Wisconsin. It is the county seat of Milwaukee County and is located on the southwestern shore of Lake Michigan. According to 2015 census estimates, the City of Milwaukee has a population of 589,697.
​It is the main cultural and economic center of the Milwaukee–Racine–Waukesha Metropolitan Area, with a population of 2,043,904.

Milwaukee is Home to Nine Fortune 500 Companies

These nine Fortune 500 companies bring Milwaukee to 5th place in the U.S. when ranked with other cities that are home to Fortune 500 companies. These companies, along with service, managerial, and healthcare industries, combine to make up nearly 45% of the workforce in the Milwaukee area. Additionally, there are a number of Fortune 500 companies in the Chicago area. This bodes well for Milwaukee, which is considered to be a “commuter” city for many in Chicago’s workforce. With the availability of jobs and a more reasonable cost of living, Milwaukee is showing great promise as the economy strongly recovers and the housing market climbs upward.

Milwaukee Population Poised to Increase

  • Milwaukee’s population is expected to grow in conjunction with the new large scale business and real estate developments across the city. Northwestern Mutual’s downtown development is set to create over 1,000 construction-related jobs through 2018 while bringing in 1,900 new jobs to the city and retaining 1,100 existing jobs located downtown.
  • GE Healthcare’s headquarters recently moved to the Northern Illinois/Southern Wisconsin area and will drive demand for housing and rentals as employees commute to escape Illinois’ high cost of living.
  • A younger generation of workers (millennials), are set to be employed, and will create a higher demand for rentals in addition to the commuters as opportunity presents itself for them to progress and prosper.

Milwaukee Downtown Redevelopment

Beginning in 2002, the city of Milwaukee has worked hard to redevelop
the downtown area into a more modern city. One of the city's crowning achievements has been its new Streetcar system. This system will make commutes around the city easier and also ease traffic conditions through the city. In addition, multiple, large scale commercial construction projects have taken place, bringing jobs. As more companies begin to see the appeal of moving to Milwaukee, the opportunity for jobs will continue to increase, driving demand even higher for housing in the area.

Ongoing Developments:

  • Foxconn Industrial Park
  • Northwestern Mutual Tower and Commons and Residential & Mixed-Use Development
  • MKE Lofts (Posner Building)
  • The Milwaukee StreetCar
  • Milwaukee Lakefront Gateway Project
  • Milwaukee Bucks Arena

Milwaukee at a Glance

PROS

  • Increasing younger demographic.
  • Large healthcare providers based in the area provide large range of employment opportunity to residents.
  • Milwaukee has become a supplier of commuting employees to its neighboring state/city Chicago, Illinois.

CONS

  • 5th on the list of “Healthiest Housing Markets” in the United States meaning there is a potential for greater competition.
  • Workforce is repositioning itself starting in 2015. Reports how a quick recovery in the office, blue collar and healthcare arenas.

Housing Inventory & Average Sales Prices

Milwaukee has shown a healthy recovery in home values and a steady decrease of inventory, making this the most opportune time to acquire properties in the area. The majority of the remaining inventory is comprised of lower valued homes which require capital improvements that homebuyers in the same price range could not afford to complete.

“The metro Milwaukee housing market is the third healthiest in the nation, according to a new Health of Housing Markets Report from Columbus, Ohio-based Nationwide.” –Milwaukee Business News (Biztimes) Dec, 2015

Rentals in the Milwaukee Area

Milwaukee rents have remained fairly stable through the last six years.    A two bedroom unit has averaged just above $900 per month since 2009 and a one bedroom unit has averaged just under $800 per month.

As the chart shows, the rental rates have been climbing steadily especially after a slight decline in 2013 and are projected to continue to climb as the demand for rentals increases.

Recent Acquisitions

Milwaukee, WI
Bedroom: 4
Bathroom: 2
Sq Ft: 1,931
Year Built: 1926

Milwaukee, WI
Bedroom: 4
Bathroom: 2
Sq Ft: 2,246
Year Built: 1929

Milwaukee, WI
Bedroom: 5
Bathroom: 2
Sq Ft: 2,000
Year Built: 1902

Milwaukee, WI
Bedroom: 5
Bathroom: 2
Sq Ft: 1,762
Year Built: 1962

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