616 Lofts files for bankruptcy
A local developer has filed for bankruptcy.
616 Lofts has filed for Chapter 7 bankruptcy as of Dec. 31, 2018, according to documents from the U.S. Bankruptcy Court Western District of Michigan.
The bankruptcy was filed by James Cook, who listed himself as the co-manager of 616 Lofts. Cook listed the firm’s liabilities were between $1 million and $10 million, and its assets were between $0 and $50,000.
Grand Rapids creditors listed in the filing were 616 Holdings LLC, David & Wierenga PC, Donald Visser, Rhoades McKee, First Companies, FITB LLC, and various municipalities, including Kent County Circuit Court, Michigan Department of Treasury and the U.S. Attorney’s Office Western District of Michigan.
The filing did not indicate how much each creditor was owed.
616 founder and CEO Derek Coppess told the Business Journal in June 2017 that he’d entered a partnership with Mount Pleasant-based KMG Prestige Inc. for back-end operational support and “right-sized” its staff, trimming from nearly 30 employees to fewer than 10.
Coppess at the time said there were financial benefits to the partnership, which would allow him to focus 100 percent on development moving forward.
The staff restructuring also resulted in the loss of former Director of Development Jeff Olsen and Director of Community Relations Monica Steimle-App, the firm’s first employee.
Olsen has since become a partner with Jackson Entertainment, LLC, the group behind the Studio Park mixed-use project underway in downtown Grand Rapids. Steimle-App is now vice president of property management at Rockford Construction.
Since 616 Development’s founding in 2011, the company had built a portfolio of seven communities and more than 300 units with a major focus on market-rate housing, according to an earlier Business Journal report.
Most recently, the seven properties in the 616 Lofts portfolio underwent a rebranding as “Lofts of Grand Rapids.” KMG Prestige told the Business Journal it took over property management responsibilities, and ownership, of the 616 Lofts portfolio in the summer of 2017.
Coppess’s attorney did not immediately respond to interview requests at press time.