Two years after taking over operations of the Downer Theatre on Milwaukee’s East Side, nonprofit organization Milwaukee Film has purchased the historic property with “ambitious” renovation plans in the works, according to a press release Monday.

Milwaukee Film, which puts on the annual Milwaukee Film Festival and also owns the nearby Oriental Theatre, purchased the Downer Theater from Seattle-based real estate investor Bridge33 Capital for $1.55 million, the nonprofit said.

With the sale, Milwaukee Film has launched a multi-year capital campaign to raise a goal of $8 million for historic preservation, renovation and improvements to the Downer Theatre, which is considered the oldest movie theater in Wisconsin. The fundraising target covers the cost of the building purchase, all renovation phases, and builds in a reserve to account for inflation and future repairs, a representative of Milwaukee Film told BizTimes.

Milwaukee Film has operated the small, two-screen theater at 2585 N. Downer Ave. since March 2024 through a strategic rental agreement with Bridge33, which acquired the Downer Theatre and surrounding retail properties in early 2020. Milwaukee Film stepped in after Landmark Theaters, which had run the 111-year-old theater since 1990, closed the venue in September 2023. The theater reopened in April 2024, just in time for that year’s film festival.

“Owning the Downer Theatre is a dream come true for Milwaukee Film,” said executive director Susan Kerns in a statement. “It affords our organization stronger financial footing and ensures our ability to provide the city we love with the film festivals and year-round programming it deserves. We’re delighted to close this deal in time for this April’s Milwaukee Film Festival.”

The 18th annual Milwaukee Film Festival is set for April 16-30.

Milwaukee Film purchased the Downer Theatre through “a number of private donations,” along with a low-interest loan from The Helmerich Trust, based in Tusla, Oklahoma.

“Buying the building is just the beginning,” Kerns said. “We have ambitious plans to restore this historic cinema in a way that honors its legacy while ensuring it serves today’s audiences.”

Those plans include upgraded seating, expanded accessibility features, upgraded audio and projection systems and the addition of 35mm film capabilities “to reconnect the theater with its rich tradition of cinema exhibition,” said Kerns. The venue’s restrooms and lobby area will also undergo a refresh. Renovations aren’t expected to start until after the 2028 Milwaukee Film Festival, and the Downer Theatre will close during the project, said the Milwaukee Film representative.

Bridge33 Capital purchased the Downer Theatre and surrounding retail properties in 2020 for a total of $11.25 million, according to state records. The transaction included a pair of properties at 2608-2650 N. Downer Ave. and 2551-2597 N. Downer Ave., totaling nearly 61,000 square feet. Tenants of those buildings include Cafe Hollander, Rohr Jewelers, Pizza Man, Henry’s Tavern, Stone Creek Coffee, Boswell Book Co. as well as newer additions such as SereniTea and Tropical Smoothie Café.

“Our goal for the Downer Theatre was always to foster a vibrant neighborhood hub and eventually transition the asset to a sustainable, long-term owner,” said Matt Galas, asset manager at Bridge33 Capital. “By revitalizing the surrounding retail mix and maintaining a flexible partnership with Milwaukee Film over the last two years, we were able to bridge the gap to permanent local ownership. We are proud to have served as stewards of this property and to pass the torch to an organization that is so vital to Milwaukee’s cultural fabric.”

Milwaukee Film said its operation of the Downer Theatre has made an economic impact on the Downer Avenue neighborhood, pointing to data from trade organization Cinema United: for every $1 spent at a movie theater, an additional $1.50 is spent in the surrounding neighborhood on food and drink, shopping, parking, etc. In 2025, the Downer Theatre generated an estimated $952,500 to the neighborhood.