This story is the third in a series spotlighting the neighborhoods around Marquette. The series is running on alternating Thursdays.
Milwaukee's Historic Third Ward is one of the city's oldest neighborhoods, undergoing changes prompted by industrial alterations and disasters. Most recently, the area has undergone an economic boom.
During the past 12 years, net property values have gone from $40 million to $240 million in the Third Ward, the area of downtown from Interstate 794 East to the north, the Milwaukee River to the south and west and Lake Michigan to the east.
That number is expected to reach $500 million in the next three to four years, according to Einar Tangen, chairman of Business Improvement District 2 — the same area as the Third Ward.
The BID directs state money to fund projects to cultivate economic growth in the Third Ward.
Tangen attributes the Third Ward's economic expansion to BID projects such as the Riverwalk, parking garages and a public market planned for North St. Paul and West Water streets.
The BID is hoping for a $2.5 million grant from the state and will have another $2 million to raise through private money to fund the public market, Tangen said. Construction is expected to begin in June and open a year later.
Two parking structures were built in the Third Ward — one in 1994, the other in 2000 — to hold the cars of 1,000 area business employees, Tangen said.
With employee cars off the street, meter parking — including rows of parking spots on side streets — is more accessible to shoppers.
Tangen said the ease of parking encourages business.
The Riverwalk project, also funded by the BID, will eventually form a complete path along the Milwaukee River. A portion from the Milwaukee Institute of Art and Design on East Erie Street to the lakefront is the only portion that still needs to be completed, Tangen said. The Riverwalk construction began in the mid-1990s.
All of the projects, Tangen said, have increased economic value and interest in the Third Ward.
The Third Ward is the oldest commercial area in Milwaukee, according to the Historic Third Ward Association. In the mid-1800s, street fighting was common among its Irish immigrants, giving it the nickname "Bloody Third." In 1892 the "Great Third Ward Fire" destroyed the entire area, prompting a 30-year rebuilding period. Italian immigrants replaced the Irish in the early 1900s and grocery stores, saloons and spaghetti factories were erected. After World War II, however, industry declined because of expansion to the suburbs. Business owners fought one of the latter changes in the Third Ward's composition in the 1970s when a "red light" district was proposed for the area.
The historical look of the Third Ward makes it different from other Milwaukee neighborhoods, said Felix Bofil of Bella Caffe Limited, 189 N. Milwaukee St. Despite its proximity to downtown, the area is usually quiet.
"You would think it's loud around here," Bofil said. "But at night it's a ghost town."
Festivals in the Third Ward's Henry W. Maier Festival Park, also known as the Summerfest grounds, also contribute to an upswing in business, he said.
Condo commotion
A recent spurt of condo developments in the area also has raised the property value in the area, according to real estate broker Beth Savos, co-owner of Stefaniak Group LLC.
The Lofts on Broadway, 191 N. Broadway, are priced between $150,000 and $1,000,000 each, Savos said.
While the interior of the buildings has been changed from their industrial roots into residential property, many of the Third Ward buildings have been placed in the National Register of Historic Places and their exteriors cannot be dramatically changed.
The Lofts on Broadway building was once the factory of Rex Chocolates, "King of Bitter Sweets." At least, that's what an advertisement painted on the west side of the building says.
Despite the growth in the Third Ward, some existing residents haven't been able to keep up with the expansion.
A large community of artists, who once called the small studios in the Third Ward home, wasn't able to afford the higher price of living. The artists are now being pushed out of the area, some say, as pricey condominiums replace studio apartments.
"Artists are being driven out of the Third Ward," Bofil said. "$300,000 condos … used to be $400-a-month rent."
Bofil is one of the artists who used to live in the Third Ward. He recently moved to the Walker's Point area, where he said other artists are also finding homes.
Sparse population
The Third Ward has one of the sparsest, smallest residential populations of the neighborhoods in Milwaukee, according to Savos.
"But that's changing dramatically," she said. "The Third Ward is one of two downtown neighborhoods where you don't need to have a car."
She said a Third Ward resident can get almost anything they need within walking distance of their home. Residents also like that its not densely populated, it is close to the lakefront and "quaint," she said.
The area is home to a mixed bag of over 400 businesses. Many graphic designers, advertising companies and specialty shops can be found in the Third Ward.
Voss Books has been at 229 N. Water St. for two and a half months and owner Kelly Voss said the Third Ward has been welcoming to her new and used bookstore.
She said many Third Ward businesses exchange services — she has a beanbag on loan from Great Lakes Futon down the street and received a discount on beverages from the Milwaukee Ale House — and owners are friendly.
She said the previous two and a half months have been profitable and she expects an increase in sales during the summer because of festivals and an increase in foot traffic.
Voss pointed out the lack of chain stores in the Third Ward, something Bofil liked about the area as well.
"I like that the businesses are owned and operated here," she said. "I think that's why people come down here, to … find something unique."
A Starbucks is located on Water St., but a vast majority of the other businesses in the area are not chains: Paintball Dave's, a paintball facility at 203 N. Broadway; Broadway Paper, a paper supply store at 191 N. Broadway; and Mitchell Leather Factory Outlet, a leather-goods specialty store at 226 N. Water St.
Bofil said car break-ins have become the biggest concern among locals. He once saw two blocks full of parked cars with broken windows. But he has recently seen Milwaukee Police Department officers on foot patrol in the area, especially at night.
Voss said she, too, has seen MPD in the area but has not had any problems with crime.
Future of the Third Ward
Tangen said the future of the Third Ward looks prosperous. The BID's concerns revolve around transportation. They are concerned that the Marquette Interchange will divert traffic out of the Third Ward.
The BID is hoping the city looks into fast rail from Chicago.
"It's the next logical step for Milwaukee," she said. "We would have access to a large group of people and we need more people. We're looking to grow the urban area and link Milwaukee to Chicago."
