<div>USA TODAY Network via Reuters ConnectOne of downtown Milwaukee‘s best-known historic buildings is facing a foreclosure suit tied to its anchor tenant: The Grain Exchange events venue.The Mackie Building, 225 E. Michigan St., also features some smaller commercial tenants as well as 25 apartments – all of them performing well, said building operator Joshua Jeffers. But The Grain Exchange, known for hosting parties and other events in an ornate, historic setting, hasn’t gotten back to the level of business it saw before the COVID-19 pandemic, Jeffers said. “It’s not even close,” Jeffers told the Milwaukee Journal Sentinel.The Grain Exchange, operated by Bartolotta Restaurant Group, pays rent based on a percentage of its revenue, Jeffers said. And that lower rent has made it difficult for the building’s owner to make mortgage loan payments, he said. Meanwhile, a renewal of Bartolotta’s lease, which is winding down, hasn’t yet been completed, Jeffers said. That led Waukesha State Bank to file a foreclosure suit against building owner 225 East Michigan Street LLC, an affiliate of development firm J. Jeffers & Co.225 East Michigan has defaulted on a $6.57 million loan, said the suit, filed in Milwaukee County Circuit Court on Aug. 3. The building owner owes $5.9 million in principal on that five-year loan, which has a June 2027 due date. The total owed is $6.2 million, including interest and other fees, according to the bank. The bank also filed a separate suit in Waukesha County Circuit Court seeking a money judgment against Jeffers and several affiliates of his development firm. Jeffers is confident the financial issue can be resolved. “I have a lot of resources,” he said. A spokesperson for Bartolotta Restaurant Group LLC said the firm appreciates its partnership with Jeffers, and doesn’t anticipate the lawsuit having any impact on The Grain Exchange staffing, service, or events. “We’re confident Josh has the strategy in place to resolve this,” the spokesperson said. Along with The Grain Exchange, Bartolotta operates such Milwaukee-area restaurants as Lake Park Bistro, Bacchus, Joey Gerard’s, Harbor House, and Mr. B’s. Jeffers’ group bought the Mackie Building in 2014, and in 2016 did a $14 million renovation that converted three underused floors from offices to 25 apartments. The Grain Exchange has served as the building’s main financial driver, Jeffers said. But that business took a big hit from the pandemic. Still, Jeffers said the odds are “very high” the building’s financial issue will be resolved. He said the lease renewal with Bartolotta has been delayed in part by ongoing discussions over “what the next era of The Grain Exchange will look like” as possible building improvements are contemplated. The venue, which Bartolotta has operated since 2008, opened in 1982. Meanwhile, Jeffers is proceeding with plans to convert the neighboring historic Mitchell Building, 207 E. Michigan St., from offices into 60 apartments. His firm is about to complete its financing package for that development, which includes $1.9 million provided through a new tax incremental financing district. That financing district will use property tax revenue generated by the improved building. Jeffers’ other projects include the 269-unit Fieldhouse Flats, an affordable housing development being built on a block bordered by West Juneau, West McKinley and North Phillips avenues and North King Drive. That Deer District development will include a new Milwaukee Area Technical College athletic facility. </div>

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One of downtown Milwaukee‘s best-known historic buildings is facing a foreclosure suit tied to its anchor tenant: The Grain Exchange events venue. The Mackie Building, 225 E. Michigan St., also features some smaller commercial tenants as well as 25 apartments – all of them performing well, said building operator Joshua Jeffers.

Historic Milwaukee building faces foreclosure suit

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One of downtown Milwaukee‘s best-known historic buildings is facing a foreclosure suit tied to its anchor tenant: The Grain Exchange events venue. The Mack

Historic Milwaukee building faces foreclosure suit

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