Pandemic puts brakes on construction

REAL ESTATE SIGNS line Lake Street between Washington and Pier streets in Port Washington’s marina district (above), where the final building in Stephen Perry Smith’s Lakepointe Townhomes project was expected to take shape this summer. The coronavirus set the project back, but Perry said he hopes to begin work on the building this fall. Photo by Bill Schanen IV
This was supposed to be construction season in Port Washington’s marina district.
Ansay Development Corp. was expected to be building the second phase of its Lake Harbor Lofts condo project on Pier Street and perhaps start its Newport Shores project.
The third and final phase of Stephen Perry Smith’s Lakepointe Townhomes on Lake Street was expected to begin. Ditto for the initial work on the Prairie’s Edge subdivision on South Wisconsin Street.
Then the coronavirus hit.
“This whole Covid thing has set us back,” Smith said. “What everybody did was hit the pause button.”
Ian McCain, Ansay’s design/construction manager, concurred.
“It sure slowed everyone down for the first several weeks,” he said. “It shifted the market by one to one-and-a-half months.
“The confidence in the buildings was always there. The foot traffic changed.”
But both men agreed that things have picked up as the state reopened and they’ve been able to hold showings and open houses.
“There’s been action in the market recently,” Smith said.
Both Smith and McCain said they used the shutdown to tweak their plans and continue marketing their projects.
“While buyers paused, we kept going,” McCain said. “We had a two or three week pause.”
In Smith’s case, he made adjustments to the plans for his four-unit project along Lake Street, turning each of the units into a single-level townhouse instead of a multi-floor unit.
That, he said, was a request made by potential buyers, many of whom are older and didn’t want to climb three flights of stairs.
Smith said the change, which was approved by the Plan Commission recently, will make the units more appealing to the market.
“I think you’ll sell these units pretty quick,” Plan Commission member Mike Ehrlich, an architect, told Smith. “I think you did a good job listening to your market.”
Smith, who said he’s “cautiously optimistic” about the market right now, said he wants to begin construction late this year.
“If we can get a unit or two sold, we hope to get started (building) this year,” he told the Plan Commission, adding the project would then be completed in 2021. “We’re very excited about this.
“We’re just now getting to market these. It’s a kick-the-tires market. People want to see it.”
The other two four-unit townhouse buildings in the Lakepointe development, one along Washington Street and the other along Pier Street, are constructed. Only two units remain in these buildings, Smith said.
“We really had some traction on those until Covid,” he said.
McCain said the market for Ansay’s Lake Harbor Lofts has been strong. Ansay has sold three of the first four units, and a groundbreaking will be held Thursday, Aug. 20, to begin construction of the second four-unit building. One of those townhouses has already been presold.
“We’ve had interest from across the state for the Lake Harbor units,” McCain said.
A groundbreaking date is expected to be announced soon for the Newport Shores development, which would replace the restaurant on Port Washington’s waterfront with a modern building with a mix of uses — 29 condominiums, office space, a store, restaurant and rooftop pub — Ansay Development Marketing Director Rob Ebert said.
Ansay said in June that it was three condominium presales away from being able to set a groundbreaking date.
“We have enough interest to plan our announcement,” Ebert said. “We’re very excited.”
The L-shaped building, which features a modern design, would encompass the land occupied by Newport Shores restaurant as well as two structures to the west and a portion of the city-owned property south of the eatery.
Newport Shores restaurant will continue to operate through the summer, officials said.
Both McCain and Smith said their projects are bolstered by the fact that units offer lake views, something that is in demand.
Even as these two projects move ahead, developer Tony Polston of Black Cap Halcyon is moving forward with plans to begin work on the Prairie’s Edge subdivision.
The project, which will create Port’s largest subdivision, includes 31 cottages on the east edge of the bluff, 156 apartments, 16 pocket neighborhood single-family homes and 22 townhouses, as well as commercial space.
The city has also approved plans for a 36-unit, 26,000-square-foot assisted living and memory care facility to be built on the north end of the 35-acre parcel.
Polston said the developer of the senior living facility is “anxious to get going,” adding they are hoping to begin construction in August.
The project, he said, will help to springboard the rest of the project, noting the company is finalizing plans for the northern portion of the property.
“Having this building in place gives us a lot of comfort moving forward,” Polston said.
However, plans for the senior living facility — and perhaps the entire development — hit a speed bump last month when the Plan Commission refused to approve several measures needed for it to move forward.
Covid-19 hasn’t hurt the market for Prairie’s Edge, Polston added.
“Our target market is empty nesters. Their stage in life isn’t going to change,” Polston said. “I think it does cause everyone to pause and reflect.
“Economic dislocation is never good. Delays are never good. I personally think more people will be moving to the suburbs as a result.”
What Covid-19 has done, Polston added,, is give his company more time to plan the development.
There is a significant amount of interest in Prairie’s Edge, Polston said.
“We’re just looking forward to getting this project going,” he said.
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