MMCC Arranges $8.7M Construction Loan for 48‑Unit Marshview Apartments in Sheboygan Falls
A regional lender provided an $8.7 million construction loan for a new 48‑unit apartment project near the intersection of Wisconsin Highways WI‑23 and WI‑32 in Sheboygan Falls. The financing was arranged by Marcus & Millichap Capital Corporation (MMCC) through its Milwaukee office to support the ground‑up development of Marshview Apartments.
What the loan covers and basic terms
The loan is a five‑year facility with a fixed interest rate of 6.2%. The first 30 months (2.5 years) of the loan require interest‑only payments, after which the loan converts to a 30‑year amortization schedule. The loan‑to‑cost ratio for the package is 77%, and MMCC characterized the financing as a competitive mini‑perm construction package selected from multiple offers. Lender and developer timelines project roughly 12 months for construction.
Project description and design
Marshview Apartments is planned as a four‑building complex consisting of four 12‑unit buildings for a total of 48 units. Each unit will be exclusively two‑bedroom, two‑bath, with interior sizes ranging between 1,230 and 1,300 square feet. The site plan includes approximately 114 surface parking spaces and attached single‑car garages for some units.
Amenities and unit features
- Private direct entry for each unit
- Attached single‑car garages
- Private patio or balcony
- On‑site laundry facilities
Location and approvals
The site is located near Plank Trail Lane, southwest of the WI‑23/WI‑32 intersection in Sheboygan Falls. Plans were submitted to the local plan commission in April and were reviewed and approved through late spring and summer. Groundbreaking took place in August, and construction is under the oversight of a local project lender and general contractor with a 12‑month build projection.
Development and project team
The developer is Mequon‑based Brew City Capital Group. Waukesha‑based Duffek Construction is serving as general contractor. The project design and support team includes architecture firm KCB Buildings, civil engineer Kapur and Associates, and legal counsel Michael Best & Friedrich.
Public support and financing context
Sheboygan County supported the project with $1.2 million in tax increment financing (TIF) to be disbursed to the developer over 10 years. The total project cost has not been publicly disclosed. MMCC is a subsidiary of a national commercial real estate firm and provides a range of capital markets solutions; in 2024 the parent company’s capital arm closed more than 1,200 transactions totaling around $9.1 billion.
Market notes and rationale
Developer statements indicate the area is experiencing low rental vacancy and limited new supply. Local employers cited as providing a stable employment base include a range of manufacturers, insurers and healthcare employers that support demand for new housing in the county. The financing structure was designed to align with projected construction and stabilization schedules and to provide interest‑rate protection over the term of the mini‑perm facility.
Next steps and timeline
With financing in place and site work underway, the borrower and lender expect the construction phase to take about one year. Following the interest‑only construction period, repayments will transition to long‑term amortization intended to support stabilization and lease‑up. The developer will proceed with vertical construction under the general contractor and coordination from the project team.