MILWAUKEE — One of Wisconsin's tallest buildings could soon be turned into apartments.

Since opening in 1989, the 35-story 100 East Wisconsin tower has been home to commercial tenants. However, facing significant vacancy, things could soon be changing.

Real estate developer John Vassallo told Spectrum News 1 that he and Milwaukee-based Klein Development are looking to buy the building and convert it to apartments. Vassallo said he feels, right now, conditions are right to convert the building.

“I think we are in a unique space when it comes to the stability of the state, the overall perception of Milwaukee, a great Mayor saying we are open for business and being super cooperative. All the headquarters moving downtown, just in my opinion we think it is a good time to be here,” said Vassallo.

Despite several large companies, including Fiserv and Northwestern Mutual, moving or increasing their presence in downtown Milwaukee, office vacancies downtown remain higher than they were pre-pandemic. According to data from Commercial Association of Realtors Wisconsin, the office vacancy rate for downtown Milwaukee reached 17% at the end of 2022.

Milwaukee Alderman Robert Bauman represents the area where 100 East is located. Bauman said given declining office space utilization, he supports to plan.

“Conversion to residential I think makes a lot of sense, given the decreasing demand for commercial office space happening after the pandemic, concerns about COVID, and people wanting to increasingly work from home,” said Bauman. “I think you are going to see a continuing shrinkage of perhaps downtown office but an increase in demand for downtown residential so I think the conversion of existing office buildings is a trend we are going to see continuing.”

Vassallo said he and his development partners hope to purchase the building sometime later this year and begin the conversion process. He also said he plans to work with current tenants to make sure they are able to find new office space in the city.