Partnership Looks to Grow Greenspace
/in Grand Rapids /by Tracy WillisA partnership between the city of Grand Rapids and Kent County Drain Commissioner Ken Yonker is focused on developing some much needed greenspace on the city’s Southeast Side. Located at 1516 S Division Ave., the property and an adjacent parcel are two of 11 properties the Grand Rapids City Commission will move forward on. The other nine properties are along Carrier Creek on the city’s Northeast Side. The city plans to turn them into park spaces, while maintaining the storm water management functions that are in place. The parks will focus on recreation opportunities like walking trails, overlooks and benches.
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Amway Grand Plaza’s Renovation Completed
/in Grand Rapids /by Tracy WillisThe $40 million renovation of the Amway Grand Plaza’s 29-story tower is complete. Renovations began in January 2019 and outfitted the tower with new glass that provides guest rooms and the restaurant, MDRD, with floor-to-ceiling views of the city. Prior to the renovations, the 285 tower rooms had windows that started at knee level. According to the chairman and CEO of Van Andel Institute, the tower’s original glass was at the end of its useful life. The new glass is expected to save 10% in energy costs. The tower’s crown was outfitted with new LED lighting. The hotel was received new metal cladding, a backlit crown logo, and updated balcony rooms.
Novel Financing Helps With Inadequate Housing Issues
/in Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisAn inadequate supply of housing is creating problems for businesses and crippling economic development in many communities. As a result, some communities are turning to tax increment financing. Tax increment financing (TIF) enables a developer to regain some of the upfront costs for a project by securing an increase in property taxes for a period of years and diverting them until the spending is repaid. Once the agreed-upon costs are paid off, the higher tax increment goes to local government. TIF has been around for a while but using it to allow new housing to be built that would be affordable to residents is a novel idea. It’s being used where labor and supply costs wouldn’t otherwise allow affordability.
Apartment Construction Gets A Boost Due To Mortgage Rates
/in National, SE Michigan /by Tracy WillisNew construction of multifamily properties jumped 28 percent in August. bringing the market’s multifamily segment to its highest level since 1986. The jump is due to rising mortgage rates. Single-family home construction also increased slightly in August after a two-year low. Borrowing costs have doubled since late 2020 due to interest-rate hikes designed to tame high inflation. Last week, the average rate on a 30-year fixed mortgage surpassed 6 percent. The continued low apartment vacancy rates and low single-family inventory have given multifamily construction a boost.
Ilitch and Ross Propose Hotel Development Near Little Caesars Arena
/in Detroit, SE Michigan /by Tracy WillisThe Downtown Development Authority board signed off on a proposal for a new $190.5 million hotel south of Little Caesars Arena. Plans for the hotel have been in the works for a while. The hotel would be 14 stories tall with 290 rooms. The Ilitch family and developer Stephen Ross submitted the development plan. Together, they would ground-lease the land from an Olympia-owned entity. The hotel, food, beverage and other amenities will create a variety of jobs and attract people to the region. The project would cost $137.3 million. Ilitch and Ross have partnered on projects in the Ilitch family’s District Detroit area in the last year.
Bed Bath & Beyond To Close 5 Michigan Stores
/in National, SE Michigan /by Tracy WillisBed Bath & Beyond Inc. is closing five Michigan locations, as part of a 150-store closing and liquidation plan. Many of the closings are occurring in the upper MIdwest, New York and New Jersey. The changes, along with job cuts for 20% of its workforce, will slash costs. The company has a new $500 million line of credit to get back on good terms with its suppliers. Complicating its turnaround plan, the company’s Chief Financial Officer Gustavo Arnal committed suicide. The rise of Amazon.com Inc. and other online retailers contributed to Bed Bath & Beyond’s struggles. The five affected Michigan locations are Chesterfield, Farmington Hills, Northville, Walker and White Lake.
Apartment Complex Planned at Walker Golf Course Property
/in Western Michigan /by Tracy WillisThe Walker Planning Commission recently approved a preliminary site plan for a 522-unit multifamily apartment complex at the English Hills Country Club property. Further,the Planning Commission also approved a rezoning request for the adjacent property at 1470 Four Mile Road NW. The rezoning request for the adjacent parcel is from agricultural to high-density residential. In addition to Planning Commission approval, that request will also need approval from the Walker City Commission. About half of the proposed apartments will be one-bedroom units. Forty percent would be two-bedroom units and 10 percent would be three-bedroom units. The apartment buildings will take up approximately 30 percent of the two properties, which total 142 acres. The average unit size is 1,000-square-feet.
West Michigan Lakeshore Office Market Remains Stable
/in Western Michigan /by Tracy WillisCompared to larger cities like Chicago or Detroit, the West Michigan lakeshore office market has remained stable through the pandemic. Still, commercial clients are conservative. Some are downsizing their office footprint or relocating to a smaller downtown area, like Holland, so they can still offer a physical business site with nearby amenities when they need to conduct in-person business. Medical office, insurance and financial sectors are particularly active in the lakeshore markets.
Lawyer – No Light at the End of the Pandemic Tunnel for Property Owners
/in Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisThe future of real estate continues to be in a flux. At a federal level, GSEs have continued to extend foreclosure and eviction moratoriums through June 30, 2021. The Center for Disease Control issued its own eviction moratorium in September 2020, and the Biden administration has extended it through March 31, 2021. In Michigan, the pandemic’s eviction moratoriums have expired, although the Michigan Supreme Court has recognized the CDC Order. No formal foreclosure moratoriums were ever instituted in Michigan, but social distancing requirements have halted the proceedings that are held in courthouses which have been closed to the public during the pandemic.
Affordable Housing Options Scarce in Michigan
/in Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisAccording to a report released by the National Low Income Housing Coalition, a two-bedroom apartment in Michigan is unaffordable for minimum wage renters…unless they work 77 hours a week. Affordable housing was an issue prior to the pandemic, and the economic upheaval has only made it worse. Lawmakers are doling out billions of dollars in emergency rent aid, but experts agree that this is only a short-term fix. Communities need more affordable housing options. With the eviction moratorium expiring, evictions are expected to increase, making it tougher still for displaced tenants to find a place to live. Governor Whitmer plans to use $100 million in federal COVID-19 relief dollars to create 2,000 new affordable rental homes, with funds going toward grants and loans for development, preservation of existing housing and security deposit assistance.
Challenges Continue With Traverse City’s New Construction Market
/in Northern Michigan /by Tracy WillisHomeowners who want to build in the Traverse City area are facing hurdles. They need to come with cash, a buildable lot, a contractor with a pool of skilled tradesmen, and then more cash to offset the increase in building materials. There has been a 250% increase in lumber prices. The annual average increase is between 3 and 7 percent. Many construction companies are booked months ahead. Those that are available for work are struggling with supply chain issues. Workforce issues also contribute to construction delays.
Outdoor Living Spaces Tip the Scales
/1 Comment/in Detroit, Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisOutdoor living spaces are a tipping point for homebuyers. Buyers are looking to entertain family and friends in pandemic-proof ways. Home owners want access to golf courses, larger yards, attractive landscaping, and outdoor rooms. Previously buyers may have bought a cabin in northern Michigan, but now they want everything just steps away. People are focusing on updating and upgrading their outdoor spaces as much as their indoor spaces. Lakefront property is hot right now. Listed lakefront houses and condos are on the market for about 18 days.
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CDC Mask Policy Reversal Throws Wrench
/in National /by Tracy WillisThe CDC recently took a step backward with its mask policy. Research on the Delta variant is the cause of the reversal. They now recommend that people should wear masks indoors, at least in areas where the coronavirus infection rate is high. The announcement throws a wrench in companies’ return-to-office plans. Many brought workers back, allowing fully vaccinated employees to go without masks. Companies with national footprints may decide to have a consistent mask policy across all offices and sites. The reversal in policy may also cause more corporate vaccine mandates.
Eviction Moratorium Expiration Leaves Renters in a Lurch
/in National /by Tracy WillisThe federal eviction moratorium was scheduled to end on Saturday at midnight, leaving renters to face uncertain futures as they search for housing. Homeless shelters have been adding beds in anticipation. According to a Census Bureau survey, 3.6 million people think they will be evicted within the next two months. The moratorium protected struggling renters in public or private housing if they could prove they had lost income during the pandemic. The moratorium ends when only a small part of the Congress-approved rent assistance has been distributed. Some states have eviction moratoriums that will extend past the federal one.
The Demand for Single-Story Home Construction Increases
/in National, SE Michigan /by Tracy WillisNew single-family housing construction in the Great Lakes region is following a nationwide trend. For the last 4 years, the number of single-story homes being built has gradually increased. The number of two or more storied homes has been decreasing. Although single-story homes are more expensive to build, they appeal to older home buyers who have more money to spend as they downsize their homes. That makes single-story sites very lucrative.
Metro Detroit Rents Begin to Soften Amidst All-Time High
/in Detroit, SE Michigan /by Tracy WillisAlthough metro Detroit’s average rent growth is 5.14% annually, and metro Ann Arbor’s is 7.14%, metro Detroit’s rent market is beginning to soften. According to CoStar Group Inc., asking rents are $1,214 a month in the metro area. In Ann Arbor, the average asking rents are up to $1,443 a month. The largest annual increase between both areas was in Saline, with rents up 26.56% which equates to $1,311 a month. Birmingham/Bloomfield area averages $1,815 a month, which is down from $1,857. Detroit’s west side has the most affordable rent at $726 a month. According to CoStar’s director, inflation, rising interest rates and home sales prices, increasing maintenance costs and a rush of renters wanting t lock in rates contributed to increasing rents.
Vacant WBJK Building To Become Midnight Golf Headquarters
/in Detroit, SE Michigan /by Tracy WillisOn August 5, the deed to the former WJBK-TV Studios building was transferred to another entity called 7441 MGP Properties LLC. The building, located in Detroit’s New Center area, will become the new headquarters for the Midnight Golf Program nonprofit. James Jacob, CEO of Ajax Paving Industries Inc. bought the building through his family foundation and donated it to the nonprofit. He has not disclosed the price he paid for the building. According to the founder and president of Midnight Golf, Renee Fluker, the organization is readying a capital campaign to raise the $10-12 million needed to retrofit the property. The program provides college coaches, life skills training and mentoring to about 1,500 students, mostly first-generation college students.
Metro Detroit’s Fair Market Rents Increase
/in Detroit, National, SE Michigan /by Tracy WillisThe U.S. Department of Housing and Urban Development is predicting rent hikes for the 2023 fiscal year in metro Detroit. It published fair market rents at a 11.9 percent increase for a two-bedroom apartment. The rate is increasing from $1,084 to $1,213, beginning October 1. This increase is higher than the Michigan and national averages which hover around 10.3 to 10.4 percent. Metro Ann Arbor rates are 9.7 percent higher. Kalamazoo County wins the prize for the highest fair market rent increase at 19.3 percent. Private sector data was used to estimate changes. The figures are used to determine rent ceilings for certain low-income and emergency grants, as well as the worth of housing vouchers and the maximum award amounts for Continuums of Care.