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Developer plans $16.2M lofts in Grand Rapids
An urban developer is planning a $16.2 million mixed-use development with apartments and ground floor commercial space in Grand Rapids.
Now that the firm is solidly entrenched on the second floor of 16 Monroe Center, also known as 616 Lofts at Kendall, and has begun its conversion of a former church in the Heritage Hill neighborhood into 616 Lofts on Prospect, Grand Rapids-based 616 Development is undertaking a new project.
Lofts on Michigan
The development company and community builder is heading to the city’s Brownfield Redevelopment Authority this morning to request a brownfield and an obsolete-property designation for a building at 740 Michigan St. NE and the adjacent parking lot just east of it. The property is on Michigan Street between College and Diamond avenues.
616 Development plans to invest about $16.2 million into the site for a mixed-use development the firm is calling Lofts on Michigan.
The project involves razing the existing two-story building and putting up a new four-story structure that will have about 54 market-rate apartments on the upper three levels and 9,700 square feet of ground floor commercial space.
Lofts on Michigan will also have 95 parking spaces, with 68 of those to be built below ground.
The Midtown Neighborhood Association and the Michigan Street Corridor Association support the project, said City Economic Development Director Kara Wood.
616 Development is likely entitled to receive more than $3.3 million in reimbursements from the higher property tax the completed project will generate, according to the state’s statute. The reimbursement figure is the amount the firm will spend on improving the obsolete and vacant site.
The tax reimbursement will take 21 years to be fulfilled, if the brownfield authority, the city commission and the state approve the plan that's being proposed.
616 Development bought the building and the parking lot in September for $550,000. The building has a taxable value of $270,000, and the lot has one of $26,900, according to Kent County property records. The building site is nearly seven-tenths of an acre.
Should the brownfield authority approve the request today, the proposal will go before the city commission for its approval.