Germania owners owe Stir $1 million after eviction for building restoration

by Sean Ryan

Milwaukee Business Journal — March 8, 2020 — A recent court ruling said Milwaukee advertising firm Stir LLC is owed $1.16 million after being kicked out of the historic Germania building for its redevelopment into housing.

Stir’s attorney said the company was in court nearly five years to secure that money judgment and intends to collect, even if it means foreclosing on the property.

“We’re going to get our money out of this,” said Stir’s attorney Kevin Demet. “If we’re not paid, we’re taking over the building.”

Stir leased the eighth floor of the historic Germania building at 135 W. Wells St. before it
was converted into housing. Seeking to empty the property for that restoration,
developers Cardinal Capital Management Inc., Vangard Group LLC and Endeavour Corp.
secured a Milwaukee County Circuit Court ruling in October 2015 saying they could evict Germania’s tenants if they were compensated for any financial losses from a move.

Germania in 2017 opened to tenants after a $21.7 million restoration that converted the building into market-rate and affordable apartments.

But it took years of legal wrangling to determine how much Germania’s owners owed Stir for ending its lease. A Milwaukee County Circuit Court Judge in February issued the $1.16 million ruling in Stir’s favor.

Building owner Germania Historic LLC’s attorneys did not respond to calls for comment. Kalan Haywood of Vangard Group declined comment, and a representative of Cardinal Capital did not respond to a request for comment.

If the decision holds, Germania Historic would need to pay the judgment to Stir, or the marketing firm could file to foreclose on the Germania property to collect. During the 2018 trial, a member of the ownership group testified that more than $2.5 million in profits had been reserved from the Germania project, according to court documents.

“If they had not squandered that money, there should be plenty,” said Demet, of Demet Law Firm in Milwaukee.

After a judge ordered Stir out of Germania in 2015, the firm leased space in the second floor of the 330 Kilbourn office, according to court documents. The company faced higher rent payments at 330 Kilbourn than in Germania, where its 15-year lease was cut short.

There was a five-day court trial in 2018 to determine how much money Stir would be owed. The company paid a low $10.50 per square foot under a Germania lease agreement. Its rent at 300 Kilbourn in 2015 started at $17, according to the court record. In 2020, for example, that’s a difference of $29,826 in rent payments, according to court documents.