Downer Avenue's former Chancery restaurant will be divided into two new storefronts--with a bubble tea house/tavern planned for one of the spaces.

A plan is proceeding to redevelop the former Chancery restaurant on Milwaukee's east side − which has been vacant since 2007.

Building operator Bridge33 Capital LLC's proposal to create two retail storefronts within the former Chancery has been approved by the Plan Commission.

The two spaces, with around 1,700 and 2,100 square feet, will have addresses of 2569 and 2573 N. Downer Ave.

Along with facade changes, Bridge33 Capital plans to renovate the interior spaces to a "white box" status − preparing them for future tenant build-outs, said Steve Esser, the project architect.

Esser, of Patera Architecture and Engineering, didn't discuss a project timeline or name prospective tenants during his Monday presentation to the commission. He referred the Journal Sentinel's questions to a Bridge33 Capital representative who didn't immediately respond.

In March, bubble tea house SereniTea filed for city licenses to operate a cafe/coffee shop and tavern within part of the former Chancery space. SereniTea sells fruit and milk teas and bubble or "boba" teas with tapioca pearls.

In July, SereniTea operator Manpreet Singh applied for an occupancy permit for around 1,700 square feet at that site. Singh didn't respond to requests for more information about his plans.

SereniTea also operates at 1414 W. Wells St., near Marquette University, and at Glendale's Bayshore development.

The former Chancery's redevelopment would be the latest in a series of investments Bridge33 Capital has made in the Downer Avenue business district.

Bridge33 Capital in 2020 bought the building at 2551-2597 N. Downer Ave. and a building at 2608-2650 N. Downer Ave. for $11.25 million.

The buildings total around 61,000 square feet and their tenants include Starbucks, Boswell Book Co., Downer Theatre, Cafe Hollander, Breadsmith and Stone Creek Coffee.

Bridge33 Capital converted second-floor office space above the former Chancery and Optix on Downer into 13 apartments. Those units opened in late 2021.

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The firm also is building four townhome-style condos at 2604-2606 E. Park Place, at the corner of Park Place and Downer Avenue. But construction work appears to have stopped.

Bridge33 Capital's buildings that include the former Chancery were owned for several years by Downer Delaware LLC, a group led by Joel Lee, president of Van Buren Management Inc.

Downer Delaware's plans to redevelop the buildings, including a condo tower, were hurt when the housing bubble burst in 2007, followed by the Great Recession. The properties went into foreclosure.

An investment group with ties to New York-based financing firm C-III Capital Partners LLC took control of the properties in 2015. It made investments and attracted such new tenants as Stone Creek Coffee, Robert Laurence Hair Studio and Salon Nova & Lash Boutique.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.

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This article originally appeared on Milwaukee Journal Sentinel: Plan proceeding to redevelop Milwaukee's long-vacant former Chancery