A Middleton developer who originally planned to build 19 townhouses has requested to change the proposal to construct a 44-unit apartment building instead, according to a report from the Wisconsin State Journal. The developer, Terrence Wall, says rising construction costs after the COVID-19 pandemic made the townhouse project financially unviable, driving prices from $350,000 to over $500,000 per unit. Higher interest rates have also dampened housing demand. The developer says the townhouse stairs deterred senior buyers, while younger buyers were priced out.
Five of the planned townhouses have already been built next to an 87-unit apartment complex completed in 2020. The new proposal would replace the remaining 14 unplanned townhouses at 2431-2439 Parmenter St. and 2420-2446 Clark St. with a single building containing 30 studio and 14 one-bedroom apartments. Projected rents are $1,595 for studios and $1,900 for one-bedrooms. The developer claims the studios meet affordability criteria but does not plan to seek affordable housing tax credits.
City planning staff raised concerns about the new building’s setbacks from property lines and impervious surface area. While the proposal aligns with approval criteria, the city planner notes it would reduce homeownership and “missing middle” housing options like townhouses in the area. The city’s Plan Commission voted to revisit the proposal later after requesting the developer address setbacks, permeability, include some two-bedroom units, and enable potential future condo conversion of the apartments.
