BUSINESS

Spurred by Foxconn, California firm is buying land near factory site

Rick Romell
Milwaukee Journal Sentinel
Foxconn Technology Group plans to build a large flat-panel display manufacturing plant in Wisconsin.

In the latest sign of Foxconn’s effect on real estate in Racine County, a California development firm has paid $2.45 million for 28 acres at the Highway 11 interchange on I-94.

A newly organized offshoot of Lansing Companies, of San Diego, bought the land, which now is home to an eight-unit motel and the Home Run Heaven baseball park.

The purchase is the second in the area by the California developer. It recently bought a 36-unit apartment building in Kenosha and has its eyes on further acquisitions.

The development of the last few years along the I-94 corridor first attracted Lansing Companies’ attention, and the coming of Foxconn Technology Group and its planned $10 billion manufacturing complex further piqued the San Diego firm’s interest, President and Chief Executive Officer Gregory Lansing said Monday.

“We’re just looking forward to the future there,” he said.

FULL COVERAGE:Foxconn updates

The parcel Lansing bought last week is immediately southwest of the freeway interchange, in the Village of Yorkville. The firm plans to divide the land into smaller lots that it envisions will be developed with a gasoline station, restaurants and perhaps a limited-service hotel.

RELATED:Jagler: Barry sees the I-94 corridor from Milwaukee to Illinois as a prolific business hub

“We intend to move forward very quickly,” Lansing said.

The 28 acres had been owned by Maria C. Vargas of Aurora, Ill. She bought the property, which is actually two parcels that include the motel and sports complex, for $1.3 million in 2005.

Last week, Vargas sold the property for $1.75 million to an entity called Landcorp LLC, which in turn sold to Lansing the same day for $2.45 million, state real estate records show.

The site lacks municipal sewer and water service, but Lansing said his company is prepared to pay to have the lines extended to the property.

Lansing said his company is looking at three other parcels in the area besides the Yorkville property it just purchased.

He said the firm has 48 acres under contract next to the site in Mount Pleasant where Advocate Aurora Health plans to build a $250 million hospital and medical office building. That property is near the Highway 20 interchange with I-94, an area that is developing rapidly.

RELATED:Advocate Aurora Health plans $250 million hospital for Mount Pleasant, setting sights on the future growth from Foxconn plant

Lansing believes such projects, spurred in large part by Foxconn and its plans for a massive electronics factory a few miles south, will create a need for housing and retail, and he wants his company to be part of it.

“We thought it was a great situation, kind of the best of everything,” he said.