Construction has officially begun on Neutral Edison, a 31-story mixed-use tower in Milwaukee that will become the world’s tallest mass timber building, according to its developer, Neutral. The project is being led by general contractor C.D. Smith, based in Fond du Lac, Wisconsin.

Once completed, Neutral Edison will surpass the record set by Ascent, another Wisconsin-based mass timber building also built by C.D. Smith. The new tower will include 350 studio, one-, two-, and three-bedroom units and roughly 7,200 square feet of retail space.

The structure was designed by New York-based design firm Thornton Tomasetti, which also collaborated on Ascent. According to the contractor, the building is expected to top out in 2026 and open to residents in 2027.

Neutral Edison is being developed with a hybrid structural system. “Since a large portion of the mass timber superstructure is exposed, it required alternate code compliance — namely a fire rating that is equivalent to a construction type I-A performance, which it successfully tested,” said Daniel Glaessl, partner and chief product officer at Neutral, in an email.

The building will include a wide range of amenities, including a full-floor membership club with a gym, spa, sauna, health clinic, and pool. A café, co-working space, and organic grocery store will occupy the ground floor, while the top floor will feature a community garden and entertainment deck.

Glaessl also noted that Neutral secured permits from five different agencies to install a unique cooling system using water source heat pumps. “These pumps utilize the thermal energy of up to 2 million gallons of river water per day,” he said, adding that this approach had previously only been used in an industrial application in the state.

Despite broader industry uncertainty due to President Donald Trump’s steel and aluminum tariffs, mass timber is emerging as a competitive alternative to traditional building materials. During a June 3 webinar hosted by Swedish builder Skanska, experts pointed to rising costs for foreign metals as a challenge for contractors.

However, this trend may benefit the mass timber industry. “If steel prices go up and tariffs caused that throughout the whole system, then what that will really do is help make mass timber cost-neutral or better in more markets across the U.S.,” said Chris Evans, president of Timberlab, a mass timber firm owned by Swinerton.

Neutral Edison’s groundbreaking symbolizes not only an architectural milestone but a broader shift in U.S. construction practices as sustainability and innovation intersect. As the demand for lower-carbon building materials rises, mass timber is gaining favor for its strength, speed of assembly, and aesthetic appeal.

Wisconsin, in particular, has become a surprising leader in mass timber innovation. With both Ascent and now Neutral Edison pushing vertical limits, the state is emerging as a national model for urban timber construction. The Neutral Edison project, with its advanced energy systems and code-compliant fire resistance strategies, may serve as a blueprint for future timber high-rises in other U.S. cities.

Originally reported by Matthew Thibault in Construction Dive.