GRAND RAPIDS | Development Thread

[animatedmartian]

Grand Rapid's Downtown rental market is reported at 99% occupancy rate.

More than a year ago, Crain's Michigan Business reported that demand for apartments in downtown Grand Rapids was such that the only thing a prospective tenant could occupy was a waiting list. A survey this year by the Chicago real estate firm Triad Real Estate Partners confirms this in numbers: a nearly 99 percent occupancy rate. And apartments have been at capacity for nearly two years.

The survey found that of 1,218 downtown rental units, more than 1,200 were filled, the Grand Rapids Business Journal reported. The Michigan State Housing Development Authority "has reported that our submarket for downtown Grand Rapids is the strongest submarket for housing as it relates to occupancy in the state of Michigan," said Kris Larson, executive director of the Grand Rapids Downtown Development Authority.

The survey found that about 78 percent of the tenants were born after 1977. It also noted that The Rapid's Silver Line (Crain's, May 12) could further bolster community development. The Rapid, the transit system serving metro Grand Rapids, is spending nearly $40 million on the Silver Line, a bus system mimicking light rail that will link the southern suburbs to downtown.

http://www.crainsdetroit.com/article...ut-out-the-for

[LMich]

Downtowns in Michigan aren't building nearly enough housing. Occupancy rates in both Lansing and Detroit are also over 90%, and yet the banks are still very tight-fisted about lending to urban developers. Developers are still having to cobble together traditional sources of financing along with obscure grants and tax credits and the like to get even smallish and mid-sized developments off the ground. It's a shame, really.

[animatedmartian]

I imagine when lenders start seeing economic factors like employment numbers and wages go up, they'll have a little more confidence in lending. But yea, if they went back to their pre-recession style of lending, Michigan would be seeing booming downtowns right about now.

[JonathanGRR]

I posted a few articles about these buildings on the last page. It seems that everyone has reached the consensus that the buildings need to be torn down. Also, engineers believe that the inner building cannot be saved if the outer building is taken down; they have become too reliant on each other. Nevertheless, Rockford Construction is a fairly reliable group of developers. The property might sit empty for a little while, but I'm sure it won't be long.

Demolition sought for slumping buildings in downtown Grand Rapids
Garret Ellison | July 8, 2014

GRAND RAPIDS, MI — Engineers and prospective buyers say there’s no practical way to salvage a pair of slumping downtown buildings along South Division Avenue that city officials placed barricades around earlier this year.

Rockford Construction is seeking permission from the city to demolish both 35 and 41 S. Division Ave., a pair of structurally unsound, century-old commercial buildings that have significantly deteriorated in recent years.

The company, along with a real estate firm owned by Peter Secchia’s family, is under contract to purchase the properties from their longtime owners and hopes to raze both structures to make way for new construction.

The city’s Historic Preservation Commission will hear the application on July 16.

Mike VanGessel, Rockford Construction CEO, said contracted third-party engineers have determined the buildings are too far gone to rehabilitate, and attempting to do so would pose serious safety hazards.

“We really don’t think its wise to put workers in there,” said VanGessel.

Rockford and Secchia’s SIBSCO LLC have a purchase agreement with current building owners Richard and William M. VanGessel, and Jim Heeringa. William M. VanGessel is Mike VanGessel’s cousin.

VanGessel said Rockford and SIBSCO plan to finalize the sale upon approval, if they get it, from the HPC, which must sign-off on the demolition permit application because both structures are within the Heartside Historic District. After that, the city Planning Department would review site plans and zoning.

The lot would be seeded with grass in anticipation of new development, said VanGessel. The companies hope to begin demolition on Aug. 20. There are no plans to convert the lots to surface parking.

“We’re looking to create a project here,” said VanGessel, who believes new construction could benefit the surrounding streetscape.

“We’re doing this as much to help the city and local businesses around us out.”

“We’d like to take care of this as quickly as possible.”

In March, the city blocked the sidewalk in front of both buildings and later installed concrete dividers in the right lane of Division Ave. for pedestrians to get around the structures, located on the southwest corner of Division and Weston Street.

The city issued a notice of repair or demolish on June 13, citing “extensive” violations of the city’s property maintenance and building codes.

Uncertainty around the future of the two buildings and the pending sale forced the closure of Pub 43, a bar located at 43 S. Division, on June 23.

The two buildings, a block south of Fulton Street, have escaped the significant reinvestment around the Heartside district since the mid-1990s, when the Van Andel Arena sparked revitalization of a once-blighted area.

The buildings have been noticeably crooked for years. Officials said the renewed scrutiny was due in part to a lack of regular structural reports that have been requested by city staff since 2004.
...

http://www.mlive.com/business/west-m...ldings_ar.html

[LMich]

It's sad and unfortunate, but at least they are pretty clear that they are going to grass over the lots awaiting future development and not try to make money off of them for parking.

BTW, what's the nearest Silverline BRT stop to these structures?

[JonathanGRR]

The BRT turns off Division at Wealthy Street, so the line does not pass directly in front of these buildings. Nonetheless, the station at Fulton & Ransom would be the closest.

[animatedmartian]

Belknap Lookout developers propose 75-unit apartment complex with restaurant and retail near Medical Mile
By Jim Harger. July 31, 2014.



A development group is planning to build a 75-unit apartment complex with a restaurant and retail space in the Belknap Lookout neighborhood overlooking the Medical Mile.

Plans for The Gateway at Belknap call for razing 12 older homes north of Hastings Street NE between Clancy and Coit avenues, according to plans submitted to the city’s Planning Department by John Wheeler, president of Orion Real Estate Solutions.

The city Planning Commission will conduct a public hearing on the developers’ request to rezone the land to a “planned redevelopment district” at 1 p.m. on Aug. 14.

The mixed-use development would cover 1.59 acres and include a combination of residential and commercial buildings. Two buildings along Hastings Street would include 6,500 square feet of ground floor space for a restaurant and 5,000 square feet for retail.

“The upper two floors of those buildings, as well as the remainder of the buildings along Clansy (sic) Avenue will be residential, consisting of a total of 75 units,” the application said. Thirty-eight units will have two bedrooms, 25 will have one bedroom and 12 units will be studio apartments.

The project also will include 135 on-site parking spaces behind the buildings along Clancy, the application said.

A spokesman for Orion said more information about the project will be available next week.

The Gateway at Belknap project is the latest in a series of developments being eyed for Belknap Lookout, a residential neighborhood that overlooks the downtown area.

....

Looks like a really nice project. Hope it gets approved.

[JonathanGRR]

Yep! You also have these new renderings presented at the groundbreaking for ArenaPlace:




http://www.urbanplanet.org/forums/index.php/topic/115925-158-weston-sw-arena-place-mixed-use-development/page-5

These renderings for some renovation work being done to 25 Ottawa also showed up this past week:




https://www.facebook.com/25OttawaGRMI

[animatedmartian]

ArenaPlace looks cool but they should have kept going with covering up the parking garage. But overall nice.

[animatedmartian]

The Gateway at Belknap getting 11 additional units. Good sign.

More demolitions proposed in Grand Rapids to make way for apartments near Medical Mile

[animatedmartian]

20-story residential tower planned at The B.O.B. in downtown Grand Rapids
By Matt Vande Bunte. August 26, 2014.



A long-planned expansion of The B.O.B. will include a 20-story residential tower, according to a concept presented this morning to City Commission.

Greg Gilmore and housing developer John Wheeler aim to start construction in June 2015 and finish it in December 2016. The project will include a 4-story expansion of The B.O.B. and a 20-story Venue Tower on a former city property.

The housing will include about 90 apartments and probably 16 condominiums on the top few floors, Wheeler said.

“We’re a big city with no housing,” said Wheeler, who’s also developing Arena Place, now under construction next to Van Andel Arena south of Fulton Street. “There’s just nothing available in this town to buy.”

....

Kind of bland design, but good news for GR nonetheless. (Then again, this might not be final design)





• Video Link

[JonathanGRR]

Man, ya beat me to it! Hopefully this does come to fruition, as this isn't the latest iteration of this project. With John Wheeler (a higher-profile developer in the area) connected with the project, there seems to be more of a chance. I would also imagine it would be harder to back out after such a step-up from the previous proposal.


In other news, the Silver Line BRT opened yesterday. The Rapid is offering free rides this week, so hopefully I get catch one!

[JonathanGRR]

New residential infill announced for the East Hills neighborhood:

Grand Rapids developer unveils plans for Cherry and Eastern corners
RAPID GROWTH | THURSDAY, AUGUST 28, 2014

As a "next step" in the process to redevelop the Southeast and Southwest corners of Cherry Street and Eastern Avenue, developer Cherry Street Capital will present conceptual drawings of the projects to the East Hills Council of Neighbors on September 8th. These plans began to pick up steam after the non-profit Project Rehab decided to put the two properties on the market.

Back in June, Rapid Growth spoke with Cherry Street Capital about the plans to rehabilitate and add onto the Project Rehab building at the Southeast corner into 17 condominiums, priced between $200 - $400,000. They also plan to renovate the yellow house at the Southwest corner of Cherry and Eastern for office and possible retail, and construct five new infill buildings that will contain 33 market rate apartments.

The projects will be presented to the Historic Preservation Commission in October, as the properties reside in both the Cherry Hill Historic District and Fairmount Square Historic District. If all goes as planned, construction is expected to begin in Spring 2015.
...

http://rapidgrowthmedia.com/devnews/...ners82814.aspx

[JonathanGRR]

Here are details on a project planned by 616 Development and Rockford Development. Given these players, the project is nearly guaranteed to see a completion.

Proposal calls for 85 apartments on Grand Rapids' West Side
Matt Vande Bunte | September 16, 2014

GRAND RAPIDS, MI – 616 Development and Rockford Development Group plan to renovate a century-old West Side factory into 35 market-rate apartments and put up a new 50-unit apartment building across the street.

Construction on the $17.2 million Lofts on Alabama at 420-421 Alabama Ave. north of Bridge Street NW could start later this year and wrap up by the end of 2015, according to papers filed with the city. Developers are seeking Brownfield tax credits.

Developers plan to remove a past addition to the 420 Alabama building and convert the original 39,000 square feet into 35 apartments, with about 64 surface parking spaces behind the building and along First Street NW. A new 49,600-square-foot, three-story building at 421 Alabama would house 50 apartments, above 36 underground parking spaces.
...

http://www.mlive.com/business/west-m...l#incart_river

[JonathanGRR]

Originally Posted by jonathan.jam

I posted a few articles about these buildings on the last page. It seems that everyone has reached the consensus that the buildings need to be torn down. Also, engineers believe that the inner building cannot be saved if the outer building is taken down; they have become too reliant on each other. Nevertheless, Rockford Construction is a fairly reliable group of developers. The property might sit empty for a little while, but I'm sure it won't be long.



http://www.mlive.com/business/west-m...ldings_ar.html

Demolition has started on these two buildings. The goal is to get it done before ArtPrize starts tomorrow.

[JonathanGRR]

Two new buildings have broken ground in Eastown. It should be a good project for the area.

Eastown apartment and retail project breaks ground
Jim Harger | September, 22, 2014

GRAND RAPIDS, MI – Orion Construction broke ground on Monday, Sept. 22, for Eastown Flats, a mixed-use development that will bring apartments and retail to two vacant lots at 1400 Wealthy and 1415 Wealthy St. SE.

When completed by the summer of 2015, Eastown Flats will add 35 one-bedroom and two-bedroom apartments and 1,830 square feet of retail space to the neighborhood.

First proposed more than a year ago as an apartment-only project, the plan was revised to include retail space at the request of neighborhood association leaders, who wanted to see more retail along the commercial corridor.
...

http://www.mlive.com/business/west-m...l#incart_river

[JonathanGRR]

The details were starting to unfold a week or so ago, but now the announcement has been officially made:

Brewery plans $10M location in Grand Rapids
Pat Evans | October 7, 2014

A growing brewery in the region is planning to expand its presence by opening a $10-million location in Grand Rapids.

New Holland Brewing Co. in Holland said this afternoon, after more than a week of speculation, that it's planning to open a taproom and restaurant and brewing and distilling operations in the 400th block of Bridge Street NW at Broadway Avenue NW — following more than seven years of searching and negotiations.

The more than $10-million project comes with the help of Rockford Construction in Grand Rapids and its Rockford Development Group.

Rockford Construction, which is based on the west side, previously announced its intentions to revive the Bridge Street NW corridor.

Half of the project will also feature residential and retail space by Rockford.

Demolition of buildings currently at the site will occur next March. The New Holland space should be complete by late 2015 or early 2016, and the other half of the development to be finished by April of 2016.
...

http://www.grbj.com/articles/80758-b...n-grand-rapids

[JonathanGRR]

Detroit's famous Slows BBQ will be coming to GR's Downtown Market next spring:

Ryan Brinkerhoff
Slows BBQ to open in Grand Rapids Downtown Market
Sylvia Rector | October 21, 2014

Slows Bar BQ will begin serving its low-and-slow smoked brisket, ribs and pork in Grand Rapids next spring after being selected as the first of only two restaurants to operate in Grand Rapids' Downtown Market, an innovative $32-million facility showcasing local food producers and purveyors.

The choice of Detroit's nationally known 'cue joint was announced by Downtown Market president and CEO Mimi Fritz and other officials in a news conference at the complex this afternoon.

In an interview with the Free Press last week, Fritz said the privately owned, mixed-use market began searching for the right restaurant tenant 2½ years ago, while the building was still under construction; it first approached Slows just two months ago.

Bringing in a Detroit restaurant — despite having so many respected restaurateurs and chefs in its own city — does not conflict with the project's focus on local foods, Fritz said in the interview. "We look at local — at being a place for local foods — as all of Michigan. We don't look at just our own neighborhood."

Slows had not been looking to open another location, chef and co-owner Brian Perrone told the Free Press last week; the Grand Rapids opportunity "kind of fell into our laps. It more came to us, than us to it."

After the market's real estate broker approached him, he and other Slows owners — brothers Ryan and Phil Cooley and chef de cuisine Mike Metevia — visited the market, met its backers and toured Grand Rapids.

"So much is going on out there, it's awesome. I'm really surprised at its vibrancy and how cool everything is," the chef said.
...
Fritz plans to announce the market's second restaurant — one that's primarily a "beverage component" but "not a brewery," she said — next week.

The year-old Downtown Market includes an outdoor market shed where dozens of farmers and other food producers sell their products in season a few days a week, and a sleek, state-of-the-art vendor hall open daily with about 20 specialized food purveyors, each in a permanent space and

They range from a chocolate-maker, artisan bread baker and olive oil shop to fishmonger, produce market and a whole-animal butcher that dry-ages its beef.
...

http://www.freep.com/story/entertain...pids/17671651/

[JonathanGRR]

Here are various projects underway for the Creston neighborhood, northeast of downtown:

Where 616 Development plans to build market-rate apartments next
Matt Vande Bunte | October 22, 2014
GRAND RAPIDS, MI – 616 Development plans to build 40 market-rate apartments on Plainfield Avenue NE in what the firm called the beginning of a growing presence in the Creston neighborhood.

The housing developer plans to raze a former billiards bar at 1359 Plainfield Ave. NE and build studio, 1-bedroom and 2-bedroom apartments atop 2,600 square feet of ground-floor retail space. 616 unveiled plans at a Wednesday, Oct. 22, press conference in the neighborhood, where founder Derek Coppess said to expect from his company “a little bit more of what you saw” in the future.

“I think you’re going to see a whole different neighborhood,” Coppess said. “There’s great bones here, great history, great traffic. You need an infusion of market-rate people who are here 24-7.”

616 announced its apartment project in conjunction with development plans of two other landowners: Greg Gilmore said he’s looking at putting a rooftop deck on his Red Ball Jet Café at 1431 Plainfield Ave. NE, and the new owners of Creston Market are renovating the store at 1403 Plainfield Ave. NE and doubling its size.

“Our hope is it encourages other developers, other businesses to come into the area,” said Monica Steimle, 616 spokeswoman. “We have been starting to look into the neighborhoods (for our housing projects). It’s really starting to come back as a way of life.”

Right next to the 616 apartment site, the owners of Sun Title are renovating 1365 Plainfield Ave. NE and hoping to bring in a restaurant. They’re also overhauling the Creston Market, blowing out walls and bringing an old meat cooler back to life as a wine cellar. The store will stock more craft brews and put in a cappuccino bar, gourmet coffees and more take-out food and beverage.

“We’ll have our staple of things that people (living in the neighborhood) need, but it’s going to have a big convenience aspect as well,” owner Tom Cronkright said. “This is a huge corridor for commuters.”

Gilmore said the new investment in the Creston neighborhood is prompting him to dust off old plans for a rooftop deck at the Red Ball Jet Café.
...

http://www.mlive.com/news/grand-rapi...l#incart_river


616 Development


Creston Market


Red Ball Jet Café

[subterranean]

Thanks for keeping us updated. I love this city. Detroit, Ann Arbor and Grand Rapids are all doing some pretty amazing things. Hopefully Lansing can follow suit.