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55+ Apartments
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Park Place Holdings Set to Unveil Phase II in July, Offering a Total of 61 Units
NEENAH, Wis. (June 19, 2024) – Park Place Holdings, a De Pere-based commercial real estate investment firm, is pleased to announce the successful completion of its transformative project, Marathon Flats, a significant adaptive reuse project turning the former Kimberly Clark office building at 2001 Marathon Ave. in Neenah into a thriving 55+ apartment community. With the upcoming completion of Phase II, slated to deliver an additional 30 units in July, Marathon Flats will offer a total of 61 thoughtfully designed residences tailored to meet the diverse needs and preferences of older adults in the Neenah area.
Caleb Hayes, CEO & Founder of Park Place Holdings, expressed his enthusiasm for the project, stating, “At Park Place Holdings, we’re deeply rooted in our Wisconsin communities, driven by a genuine understanding of their real estate needs. Our dedication to local investment and expertise shines through in projects like the Marathon Flats redevelopment. Recognizing the demand for modern, amenity-filled living spaces for older adults, we embarked on this journey to transform the property, ensuring a wealth of amenities at an accessible price point.”
The project, which commenced in June 2022 with initial city meetings, rezoning requests and approvals, was quickly followed by acquisition of the property in August of the same year. Park Place Holdings-Marathon Street LLC purchased the 148,000-square-foot single-story office building from Kimberly Clark Commercial LLC for $3,750,000, or $25.34 per square foot.
Construction kicked off immediately, with Phase I completed in November 2023, marking a milestone in the transformation process. The overwhelmingly positive response from residents and successful lease-up of Phase I spurred the decision to move forward with Phase II, which is scheduled to open July 1, 2024. The residences include a mix of studio, one-bedroom, and two-bedroom units. One-third of the property remains dedicated office space for Kimberly Clark.
Marathon Flats is strategically located in the heart of Neenah, minutes away from downtown and in close proximity to major thoroughfares such as Highway 41, offering residents easy access to conveniences and services. The property boasts an array of amenities, including a large indoor community room, courtyards with gas grills and patio furniture, a golf simulator, fitness center, and secure onsite garages, among others.
Once completed, the conversion project will be worth over $17.5 million. It was primarily funded by Park Place Holdings, with additional financing secured through Bank of Luxemburg, led by Jake Dittman.
Driven by high demand for, and low supply of, 55+ housing in the Fox Cities—where an estimated 30 percent of residents are aged 55 and above, according to 2023 Esri data—Marathon Flats stands out by offering a superior product at a reasonable price point. With rents below the market average, the community fills a critical gap in the local housing market.
While the single-story nature of the office building made it ideal for housing older adults who may face mobility challenges, extensive renovations were necessary to meet residential standards.
“We tackled issues such as completely redistributing electrical and plumbing systems throughout the entire building to ensure safety and functionality for future residents,” said Corey Vanevenhoven, Project Manager for Park Place Holdings. “Fortunately, structural challenges were minimal, allowing us to focus our efforts on creating a comfortable and accessible living environment.”
The conversion of office buildings into residential spaces has gained significant momentum, particularly in light of the COVID-19 pandemic, which has prompted a shift in work dynamics with more employees working remotely. The trend reflects a timely response to evolving needs, addressing both housing shortages and the changing demands of a workforce. Repurposing vacant offices into residences not only restores asset values and tax revenues but also contributes to meeting climate goals and revitalizing neighborhoods. The conversion of the single-story office building into housing for older adults at Marathon Flats highlights the transformative potential of these projects in meeting the evolving needs of communities.
“Marathon Flats represents more than just a redevelopment endeavor,” said Caleb Hayes. “It’s about creating spaces that enhance the quality of life for residents and contribute positively to the fabric of our local communities.”
In the future, Park Place Holdings is exploring additional development opportunities for Marathon Flats, leveraging an additional 20 acres of land on the site for potential expansion once the project is stabilized.
For more information about Marathon Flats, please visit liveonmarathon.com.
About Park Place Holdings
Park Place Holdings’ investment strategy focuses on middle-market commercial properties with asset values from $5 million to $25 million. We are opportunistic investors acquiring commercial properties where our team can drive significant new value and create superior returns on investments through five steps or less. With over 620,000 square feet under ownership, housing more than 170 tenants in the state of Wisconsin, Park Place Holdings is truly local and truly expert.
For more information about Park Place Holdings and our properties, please visit parkplace-holdings.com.
