Brookstone Capital plans $11.5M apartment complex downtown
Brookstone Capital is at it again.
Coming on the heels of its recent blockbuster announcement of a new $40 million development with 108 rental units at 20 E. Fulton St. downtown, the Midland-based development firm headed by Karl Chew is planning to convert the former Park Professional Building at 345 State St. SE into an apartment complex at a cost of $11.5 million.
The firm’s plan is to build 34 apartments — six one-bedroom and 28 two-bedroom units — into what is essentially two vacant buildings at 345 State St. The project involves adding two stories onto the main building and one floor to an adjacent structure on the same property. Doing that will give Brookstone Capital four floors and 54,000 square feet of space for the apartments.
The developer has asked the city for a payment-in-lieu-of-taxes, or PILOT, for the project, which will be partly financed by low-income housing credits from the state. A PILOT will allow Brookstone Capital to pay the city 4 percent of its annual rental revenue every year instead of property taxes. The PILOT could be in effect for as long as 40 years.
Stratus Properties LLC owns the State Street property in Heritage Hill. The firm bought it in 2006 for $718,467, according to Kent County records. The site has a taxable value of $303,400.
City commissioners will take up the PILOT request for the property and a second PILOT application from Brookstone Capital for 20 E. Fulton on Tuesday. Half of those 108 apartments, or 54 units, at the Fulton Street and Sheldon Avenue site will be affordable and the development firm is requesting a PILOT for those.
Commissioners will hear two more PILOT requests at the same time on Tuesday.
One will come from the Inner City Christian Federation. ICCF is building a four-story structure with 28,000 square feet that will have commercial space and 22 apartments at 435 LaGrave Ave. SE, near Wealthy Street and South Division Avenue. A dozen of the units will be rented as affordable with the remaining 10 going at market rates. ICCF is investing nearly $5 million into the project.
The second will come from LC Consultants LLC of Ann Arbor. The development firm plans to renovate the former Klingman Furniture Co. building at Wealthy Street and Ionia Avenue SW, near the new Downtown Market, into apartments with commercial space. Eighty-three affordable loft units are planned for the 150,000-square foot building, which will also feature 15,000 square feet of retail space.
LC Consultants will split the project into two condo units with each costing $16 million to develop for a total investment of $32 million. Robert Jacobson heads LC Consultants.
LC Companies, also of Ann Arbor, recently finished converting the former Baker Furniture Building at 40 Logan St. SW, also near the Downtown Market, into Baker Lofts, which has 87 apartments. The $18.5 million project was completed last month. Mike Jacobson heads LC Companies.