for sale beverly place apartments...7.00% 2/26/2017 07 ashton lake apartments 2610 marfitt rd...

FOR SALE

BEVERLY PLACE APARTMENTS105-UNIT MULTIFAMILY PORTFOLIO

JDS REAL ESTATE SERVICES, INC.

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

01EXECUTIVE SUMMARY

02PROPERTY DESCRIPTION

03FINANCIALS

04COMPARABLES

05MARKET OVERVIEW

06DEVELOPMENT BOOM

KIDDER.COM

EXCLUSIVELY LISTED BY

TABLE OF CONTENTS


JENNIFER D. STEIN, CO-BROKER

[email protected] N° 6505385865


CHRIS ARMES, PRIMARY BROKER


KIDDER MATHEWS

LANSING, MIEXECUTIVE SUMMARY & PROPERTY DESCRIPTIONFINANCIALS & COMPARABLES

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SUBJECT PROPERTY

KIDDER.COM

105

TOTAL UNITS

Lansing, MI

SUBMARKET

Situated adjacent to Lansing’s central business district, Beverly Place contains 105 one-, two- and three-bedroom units across three stories. The 83 one-bedroom, one-bathroom units, 21 two-bedroom, one bathroom units and 1 three-bedroom, one-bathroom unit.

BEVERLY PLACE

Originally built in 1961/1972, Beverly Place began renovations in 2016 where 83% of the units have been fully renovated, including the installation of new water saving

toilets, aerators, and faucets. The building’s units feature high-speed internet access, ceiling fans, and cable ready hookups; many units also enjoy balconies and patios.

Residents of Beverly Place enjoy the use of community laundry facilities and a surface parking lot. The property benefits from its location directly across from Lansing’s 13-acre Hunter Park and its recently-renovated pool and splash pad. Michigan State University, Frandor Shopping Center and the rest of downtown Lansing are also nearby, providing Beverly Place’s residents with ample area amenities.

EXECUTIVE SUMMARY

INVESTMENT SUMMARY

Price $4,200,000

Average Price/Unit $40,000

Price/SF $77.85

Cap Rate (2020 Revenue) 7%

GRM 5

Number of Units 105

Total Portfolio SF 53,944

$83.42

PRICE/SF

$42,000

PRICE/UNIT

LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 4

5LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS

PROPERTY SUMMARY

Address 1401 E Kalamazoo

Year Built 1961

Number Of Buildings 5

Number Of Stories 3

Gross Building Size 53,944 SF

Parking Surface Lot 1 Space per unit

Number Of Units 105

Unit Mix1 Bed x 1 Bath (83)2 Bed x 1 Bath (21)3 Bed x 1 Bath (1)

Assessor’s Parcel # 01-01-15-407-081

Rental Restrictions 3 Pet Limit | Breed Restrictions

Utilities Electricity, Gas, Water & Sewer, Tele-phone & Internet

Construction Wood Frame

Type Of Building Garden Style Low Rise

OFFERING TERMS

Price $4,400,000

Price/Unit $42,000

Price/SF $81.57

# of Units 105

Year Built / Renovated 1972 / 2017

Building Size 53,944 SF

Lot Size 4.05 Acres

Cap Rate (2020 Revenue) 7%

BEVERLY PLACE


UNIT AMENITIES

High Speed Internet

Heating

Smoke Free

Garbage Disposal

Balcony

Air Conditioning

Ceiling Fans

Wired for Cable

Carpeting

APARTMENT HIGHLIGHTS

Self-Service Laundry

Walk Score | 63

Across from Hunters Park

Close proximity to Frandor Shopping Center, Michigan State University & Downtown Lansing

4.7 mi to Capital Region International Airport

NEARBY SCHOOLS

Riddle Elementary School

Pattengill Academy

Eastern High School

FORWARDS LOOKING 2020 FINANCIAL SUMMARY

ANNUALIZED OPERATING DATA

Current

Gross Potential Rent $847,800

Vacancy $41,760

Loss to Lease $-26,892

Other Income $0

Total Income $779,148

ANNUALIZED OPERATING DATA

Current

Taxes $82,392

Insurance $21,845

On-Site Payroll $164,611

Management Fee $32,987

Contract Services $7,209

Repairs and Maintenance $19,339

Legal & Collection $15,385

Telephone/Internet $4,385

Garbage Removal $2,990

Electricity $28,188

Gas $27,622

Sewer and Water $43,149

Misc. & Reserves $21,200

Total Operating Expenses $471,302

Net Operating Income $307,846

BEVERLY PLACE

Situated adjacent to Lansing’s central business district, Beverly Place contains 107 one-, two- and three-bedroom units across three stories. The 83 one-bedroom, one-bathroom units, 20 two-bedroom, one bathroom units and 1 three-bedroom, two-bathroom unit. Originally built in 1961/1972, Beverly Place began renovations in 2016 where 83% of the units have been fully renovated, including the installation of new water saving toilets, aerators, and faucets. The building’s units feature high-speed internet access, ceiling fans, and cable ready hookups; many units also enjoy balconies and patios.

Residents of Beverly Place enjoy the use of community laundry facilities and a surface parking lot. The property benefits from its location directly across from Lansing’s 13-acre Hunter Park and its recently-

renovated pool and splash pad. Michigan State University, Frandor Shopping Center and the rest of downtown Lansing are also nearby, providing Beverly Place’s residents with ample area amenities.

POTENTIAL RE-DEVELOPMENT

Although the portfolio is currently positioned as workforce housing, Beverly Place can be a significant Re-development play. Beverly is well located between the University and Downtown Lansing. The entire corridor between Michigan State and Downtown is currently under major re-development. A new Hospital is being built in close proximity to the property as well as high-end Multi-Family, Condominium, and Retail assets. It is part of the cities development plan to significantly upgrade the corridor in the past and future years. They are very pro-development in the corridor. A 300 unit mixed-use project is high on the city plannings list for the site.

BEVERLY PLACE



FINANCIALSBEVERLY PLACE PRICING AND UNDERWRITING

Address Price Price/Unit Price/SF CAP Rate

BEVERLY PLACE 1401 E Kalamazoo Lansing, MI 48912

$4,400,000 $42,000 $81.57 7%

Total $15,200,000 $53,901 $85.50 6.9%

UNIT MIX

Unit Type Number of Units Average SF Price/Unit Price/SFGross Potential Monthly Rent

BEVERLY PLACE: 1 Bed, 1 Bath 83 472 $650 $1.38 $53,950

BEVERLY PLACE: 2 Bed, 1 Bath 21 672 $750 $1.12 $15,750

BEVERLY PLACE: 3 Bed, 1 Bath 1 2,000 $950 $0.48 $950

Total/Weighted Avg 105 Units 53,944 $692/Unit $1.10/SF $70,650

BEVERLY PLACE

EASTSIDE

WEST LANSING

OLD EVERETT NEIGHBORHOOD

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Hunter Park Municipal Park

Crego Park

Carl G Fenner Arboretum

Scott Park

Reutter Park

Scott Woods Park

Benjamin Davis Park

Cavanaugh Park

Lansing Country Club

Risdale Park

RED Cedar Natural Area

Oak Park

Forest Akers Golf Course

Frandor Shopping Center

Transportation Museum

Sparrow Hospital

Jolly Cedar Plaza

Lansing Railroad Depot

GM Grand River Assembly Plant

MICHIGAN STATE UNIVERSITY

LANSING CATHOLIC HIGH SCHOOL

EVERETT HIGH SCHOOL

WAINWRIGHT ELEMENTARY

RIO ELEMENTARY SCHOOL

POTTER PARK ZOO



SALES COMPARABLESBELMONT PARK, MARVIN GARDENS & BEVERLY PLACE

Address# of Units

Year Built Price Price/Unit Price/SF CAP Rate Sale Date

01 AUTUMN RIDGE APARTMENTS

900 Long BlvdLansing , MI 49811

618 1977 $34,500,000 $55,825Common laundry

— 5/22/2014

02 WOODLAND LAKES APARTMENT

4320 Dell RdLansing, MI 48911

344 2004 $31,500,000 $91,570 $82.85 6.85% 6/30/2014

03WATERS EDGE

7530 Waters EdgeLansing, MI 48917

120 1996 $7,000,000 $58,333 $51.07 7.45% 1/23/2015

04PLUMTREE APARTMENTS

229 Parkwood DrLansing, MI 48917

406 1969 $20,200,000 $49,754 $40.18 6.95% 3/29/2016

05FAIRFAX APARTMENTS

831 Brookside Ln Lansing, MI 48917

156 1988 $14,600,000 $93,590 $98.17 5.75% 12/9/2016

06 SANDSTONE CREEK APARTMENTS

1110 Jenne StLansing, MI 48917

169 1975 $7,700,000 $46,107 $50.59 7.00% 2/26/2017

07 ASHTON LAKE APARTMENTS 2610 Marfitt Rd Lansing, MI 48911

120 1989 $8,500,000 $70,833 $72.73 - 6/15/2018

08 RIVERSHELL APARTMENTS 3615-3625 Bayview Dr Lansing, MI 48911

136 1968 $5,600,000 $41,176 $49.12 - 03/29/18

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WEST LANSING


LANSING, MICHIGAN



RENT COMPARABLESBELMONT PARK & MARVIN GARDENS

Address# of Units

Year Built

Unit Type BD/FB/PB Unit SF Qty Rent Rent/SF

01PLUMTREE APARTMENTS

229 Parkwood DrLansing, MI 48917

406 1969

1/1/02/1/02/1/13/1/1

664 900 950 1,166

64204 50 88

$695 - $820$755 - $890$805 - $910$940 - $960

$1.05 - $1.23$0.84 - $0.99$0.85 - $0.96$0.81 - $0.82

02900 WEST TOWNHOMES

900 Edgewood Blvd Lansing, MI 48911

160 19952/1/13/2/1

8921,211

8080

$875 - $930$1,020 - $1,190

$0.98 - $1.04$0.84 - $0.98

03 WILLOW POND APARTMENTS

7500 Yellow Wood RdLansing, MI 48917

136 19982/1/13/2/14/2/0

1,0001,2001,400

348517

$875 $985$1,150

$0.88$0.82$0.82

04EDGEWOOD VILLAS

1010 W Edgewood Blvd Lansing MI 48911

150 20041/1/02/1/13/1/1

720 9251,120

189042

$638$794$871

$0.89$0.86$0.78

05 RESIDE 3031 APARTMENTS

3031 S Washington Ave Lansing MI 48910

138 19651/1/02/1/02/1/0

615 755 885

811740

$585 - $635$685 - $720$695 - $740

$0.95 - $1.03$0.91 - $0.95$0.79 - $0.84


RENT COMPARABLESBEVERLY PLACE

Address# of Units

Year Built

Unit Type BD/FB/PB Unit SF Qty Rent Rent/SF

01 STADIUM DISTRICT

APARTMENTS

500 E Michigan AveLansing, MI 48912

42 2007

1/1/02/2/02/2/02/2/0

597 910 9251,250

1016115

$1,043$1,254$1,368$1,677

$1.75$1.38$1.48$1.34

02 VINE STREET APARTMENTS

1418 Vine St Lansing, MI 48912

14 19660/1/01/1/02/1/0

467 703 893

167

$407$561$637

$0.87$0.80$0.71

03MOTOR WHEEL LOFTS

707 Prudden St Lansing, MI 48906

119 2006

1/1/02/1/02/2/03/2/0

7241,3861,4301,610

943184

$1,172$2,210$2,650$2,935

$1.62$1.59$1.85$1.82

04JI CASE LOFT

113 Pere Marquette Dr Lansing MI 48912

21 2013

1/1/02/1/02/1/02/2/0

9651,1001,6801,370

11118

$1,245$1,617$2,460$1,888

$1.29$1.47$1.46$1.38

BEVERLY PLACE

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EASTSIDEWEST LANSING



MARKETING OVERVIEWTHREE-PROPERTY, 282-UNIT MULTIFAMILY PORTFOLIO LANSING MARKET OVERVIEW

KIDDER.COM


Lansing is the capital of the US state of Michigan. It is mostly in Ingham County, although portions of the city extend west into Eaton County and north into Clinton County.

The 2010 Census placed the city’s population at 114,297, making it the fifth largest city in Michigan. The population of its Metropolitan Statistical Area (MSA) was 464,036, while the even larger Combined Statistical Area (CSA) population, which includes Shiawassee County, was 534,684. It was named the new state capital of Michigan in 1847, ten years after Michigan became a state.

The Lansing Metropolitan Area, colloquially referred to as “Mid-

Michigan”, is an important center for educational, cultural, governmental, commercial, and industrial functions. The area is home to two medical schools, one veterinary school, two nursing schools, two law schools—including Western Michigan University and Michigan State University—a Big Ten Conference university (Michigan State), the Michigan State Capitol, the state Supreme Court, the Court of Appeals, a federal court, the Library of Michigan and Historical Center, and headquarters of four national insurance companies

As the capital city of Michigan and next-door neighbor to one of the state’s major universities, Lansing attracts people from all across the region and benefits from a culturally diverse landscape. Downtown is a charming, historic district along the Grand River. The Michigan State Capitol overlooks a walkable collective of storefront shops, cafes, and bars, mainly situated along South Washington Square. Lush riverside parks like Hawk Island and Scott Woods give the locals scenic areas to picnic, exercise, or just hang out and enjoy the scenery.

472,400METRO POPULATION

$98,440AVERAGE HOUSEHOLD INCOME

$98,484MEDIAN HOME PRICE

LANSING, MICHIGAN

FLOURISHING METROPOLITAN AREA

Rated as the 3rd best economy in the mid-west, Lansing is experiencing strong economic growth and development throughout its neighborhoods, leading to a metropolitan area with high sustained demand for multifamily properties.

Major employers such as Jackson National Life Insurance Co. recently investing upward of one

hundred million dollars and General Motors have recently invested $580 Million in local expansion efforts, helping fuel Lansing’s strong annual job growth and low unemployment figures. Developers continue to invest in multi-million dollar mixed-use projects in downtown Lansing, with private investment in development experiencing a strong surge in the post-recession years. Overall, Lansing remains poised for steady and stable growth over the long term.

Each year, 4.8 million people visit the region, helping to generate an economic impact of $1.1 billion, according to the visitors bureau. To that end a $15-million Hilton Homewood

1.5%PROJECTED JOB GROWTH

11.3%COST OF LIVING

(BELOW NATIONAL AVERAGE)

$24.4 BIN GROSS METRO PRODUCT

Suites is among four hotels in various stages of construction across Greater Lansing. Another three are approved and slated to open within the next few years. Four more hotels are still in the early planning stages.

In addition to the strong employment drivers, the market enjoys a robust average household income of over $98,000 in Q1 of 2017. The annual average household income has enjoyed a positive growth rate in every year since 2005. The high average household income is derived from several high paying employment opportunities in Lansing. Other Primary drivers of high income employment include, education, with the Michigan State University and medical jobs with Sparrow Health System, which is the largest health system in the area.



FLOURISING METROPOLITAN AREA

YearVanacy Rate

Vacancy Change

Asking Rent

Asking Rent Change Population

Population Change Households

Household Change

Average HH Income

Average HH Income Change Employment

Employment Change

2012 3.0 -130 (BPS) $732 2.5% 467,300 0.2% 187,540 0.7% $88,825 2.8% 217,100 0.5%

2013 2.9 -10 (BPS) $748 2.2% 469,110 0.4% 189,260 0.9% $88,043 -0.9% 221,900 2.2%

2014 2.8 -10 (BPS) $762 1.9% 471,270 0.5% 190,910 0.9% $90,785 3.1% 222,670 0.3%

2015 2.0 -80 (BPS) $784 2.9% 472,540 0.3% 192,070 0.6% $94,836 4.5% 226,500 1.7%

2016 2.2 20 (BPS) $812 3.6% 473,670 0.2% 192,940 0.5% $97,645 3.0% 233,170 2.9%

2017 2.1 -10 (BPS) $818 0.7% 474,320 0.1% 194,250 0.7% $101,765 4.2% 236,530 1.4%

2018 2.0 -10 (BPS) $829 1.4% 474,790 0.1% 195,470 0.6% $105,617 3.8% 239,230 1.1%

2019 2.0 0 (BPS) $848 2.2% 475,140 0.1% 196,730 0.6% $109,591 3.8% 241,250 0.8%

2020 2.1 10 (BPS) $871 2.8% 475,380 0.1% 197,920 0.6% $113,261 3.3% 242,120 0.4%

2021 2.2 10 (BPS) $894 2.6% 475,760 0.1% 199,120 0.6% $116,392 2.8% 242,500 0.2%

INVESTMENT HIGHLIGHTS

1Q 2017 Avg SF YTD 1 Year

Studio/Efficiency $611 524 -4.8% 5.8%

1 Bedroom $679 680 -1.6% 3.9%

2 Bedroom $862 976 0.6% 2.9%

3 Bedroom $1,138 1,240 0.9% 6.1%

Avg over period ending 3/31/17 12/31/16

VACANCY RATE DISTRIBUTION

Low 25% Mean Median 75% High

0.0% 1.0% 2.0% 1.6% 2.7% 10.4%

INVESTMENT HIGHLIGHTS CONTINUED

ABOVE-AVERAGE MSA MULTIFAMILY PERFORMANCE

Throughout the Lansing-East Lansing metropolitan statistical area, rental apartment activity has been strong in recent quarters. Effective rents grew by 1.9% between the first and second quarters of 2017, corresponding to a 3.7% annual growth rate; this far exceeds the

national average growth rate of 2.3%. Occupancy throughout the market is equally strong. Market forecast in the next 3 years puts Lansing in the top 3 economies in the midwest and the top 20 nationally. With an occupancy rate of 98 % in the second quarter of 2017; since 2011, the overall rate of occupancy throughout the market has averaged a robust 97%.

UNIT MIX RENT DETAILS

4.3%8.5%

8.6%12.8%

12.9%17.1%

30.1%Over

25.8%30.0%

21.5%25.7%

17.2%21.4%

Under 4.2%

Number of Properties

VACANCY RATE DISTRIBUTION

0

20

40

60

80

100

1 Bed 3 Bed2 BedStudio

Lansing Midwest US

ASKING RENT COMPARISONS

0

$500

$1,000

$1,500

$2,000

1 Bed 3 Bed2 BedStudio

Lansing Midwest US

ASKING RENT PER SF

0

$0.50

$1.00

$1.50

$2.00

$2.50



DEVELOPMENTSLANSING, MICHIGAN

Address Description

01SPARROW HEALTH SYSTEMS

1215 E Michigan AveLansing, MI

Sparrow Health System is developing a $64 Million five story Herbert-Herman cancer center. The glass-fronted 132,000 square foot building will house all of the health system’s cancer treatments under one roof for the first time. Complimenting the hospital will be a new dining area, called the Gathering Place featuring a full service Starbucks.

02 SPARROW HEALTH SYSTEM HEALTH CENTER & LABORATORY

1210 W Saginaw StLansing, MI

Also in development is the $20 Million, three-story health center which is set to partially open in November for primary care services. Sparrow Health System is nearing completion of a $10 million Sparrow Reference labora-tory. The 35,000 sf facility will house labs located within the St. Lawrence campus.

03LOC PERFORMANCE PRODUCTS

1600 N. Larch St Lansing, MI

LOC Performance Products announced a $96.5 million expansion to the 1600 N. Larch St property. The expan-sion will provide 700 new jobs and is expected to create a huge economic boost in the area.

04 SCHOOL FOR THE BLIND PROJECT

656 W Maple StLansing, MI

Indianapolis-Based TWG Development will redevelop the former Michigan School for the Blind to low-income senior housing. At $24.4 million the plan includes creating 72 multi-family units and 60 senior units between 3 buildings.

05 REO TOWN INVESTMENT - THE VENUE AT EAST TOWN

2010 – 2020 East, Michigan AveLansing, MI

REO town has seen a $500,000 investment that will allow for development of a brewery and pottery studio.Lansings East Side is the site of “The Venue at East Town”, a $5 million 4 story development that will have 39 apartments atop retail space on the first floor. The Gillespie Co. Strange Matter Coffee and Rajje’s Taphouse have been named as tenants.

06 500 SOUTH WASHINGTON AVENUE

500 South Washington Avenue Lansing, MI

Urban Systems purchased the 500 South Washington Avenue block in the beginning of 2018. The development plans for the property include building a five-to eight-story 170-unit apartment building. The building will also have retail space on the SW corner of Washington Avenue and Lenawee Street.



Address Description

07ARCADIA ALES & SMOKEHOUSE


Lansing developer Kris Elliot of Urban Feast obtained the licensing from Arcadia Brewing Co. to build a brew-pub and restaurant at 2101 E. Michigan Ave. The 10,000-square-foot brewpub will serve Arcadia brands and will also brew six Lansing-only beers on site. The project will also include an outdoor patio to accommodate 150 people.

08CENTER CITY DISTRICT

Albert Ave and Grand River AveLansing, MI

Ballein Management of East Lansing has partnered with a Chicago developer to build two 12-story buildings in downtown East Lansing. The first building would be located on the 100 block of East Grand River Avenue and would include apartments with a grocery store on the first floor. The second would be built in City Lot 1 off Albert Avenue. It would include retail space on the first floor, a parking deck on the next five levels and housing for people 55 and older in the top six floors.

09HILTON HOMEWOOD SUITES

2201 Showtime DrLansing, MI

Hilton Homewood Suites will be the third hotel built since 2015 at the Heights in Eastwood in Lansing Township. Hyatt Place and Fairfield Inn both opened within the last two years at the heights. The 7 story hotel, located next to Walmart, will have 139 rooms.

10 SPRINGHILL SUITES BY MARRIOTT

1100 Trowbridge RoadLansing, MI

A $10-million Spring Hill Suites hotel will be built at the former Howard Johnson motel at 1100 Trowbridge Road in East Lansing. The four-story hotel will have 88 rooms, a swimming pool and a fitness center. A one-story retail building will also be constructed on the site, which will accommodate four tenants, anchored by a restaurant and a drive-thru coffee shop.

11COSTCO

5800 Park Lake RdLansing, MI

A 157,000-square-foot retail warehouse is being built at 5800 Park Lake Road, the site of the former Four Winds Golf Course. When it opens, Costco will employ 150 people. The $30-million project includes a tire center and a standalone gas station that will have 24 pumps.

12MARKETPLACE APARTMENTS

313 N Cedar StLansing, MI

Developer Pat Gillespie is building more riverfront apartments in downtown Lansing. The expansion of Mar-ketplace apartments will add 79 rental units to the area, half of which overlook the Grand River while the rest overlook the Cooley law School Stadium. The apartment complex will have a rooftop patio and amenities that take advantage of the riverfront, though specifics have not yet been announced.

DEVELOPMENT BOOMTHREE-PROPERTY, 282-UNIT MULTIFAMILY PORTFOLIO LANSING DEVELOPMENT BOOM

KIDDER.COM

QUALITY OF LIFE

11.3% Below National Average Cost of Living

21 Minute Average Commute

2,418 Crimes per 100K Residents

EDUCATION

93.1% High School Attainment

34.2% College Attainment

13.8% Graduate Degrees

Top College Michigan State University

HOUSING

$143,400 Median Home Price

7.1% Increase Home Price Change

DEVELOPMENT BOOM

The already up and coming metropolitan area of Lansing is continuing to see an increase in population following a huge development boom. Recent job growth significantly outpaced the national average with the unemployment rate at 4.5%. In the upcoming few years alone, Lansing will undergo multiple business expansions equaling upwards of $397 million dollars, creating hundreds, maybe even thousands of new jobs. Sparrow Health Systems is also in the process of developing a $64 million five story cancer center and a $20 million three story health center to open in November.

Builders have taken notice of these positive trends, and development has returned to the metro. More than 700 housing units have been completed during this cycle with multiple projects are underway. In 2016, after The Outfield, a 4 Star 84-unit apartment in the Stadium District of the Central/Northside Submarket was built, it was fully occupied four months later. Another example is Prestwick Village Apartments, a 66-unit complex built in April of last year which has already reached stabilization. Following new employment and housing opportunities in the area, a $276 million redevelopment project, the largest in the area in recent history, will be creating spaces with retail, restaurants, breweries, and multiple hotels.

Additionally, $2.2 billion in private investment in Lansing over the past 10 years is being used for projects negotiated or spearheaded by regional business

development organization Lansing Economic Area Partnership Inc.

According to data from the Lansing Economic Development Corp., the city’s economic development arm that contracts with LEAP, there has been more than $2.2 billion in private investment in the city of Lansing alone over the past 10 years. A bulk of that — nearly $1.1 billion — came in the past three years and was mainly the result of GM spending roughly $1 billion on its Lansing Delta Township assembly plant, along with adding a stamping plant, logistics operation and hundreds of workers as it retooled its Lansing Grand River assembly plant. Regionally, there has been an additional $199.5 million in private investment outside the city since 2013, according to LEAP.

Michigan State University is an economic driver with more than 50,000 students, high-profile projects such as the $730 million Facility for Rare Isotope Beams for nuclear science and the basic construction and employment that come with being a Big Ten university.

General Motors is adding a stamping plant and a logistics operation to its Lansing Grand River plant to support moving production of the Camaro from Canada to Lansing. It’s part of a long-term strategy to operate its plants at full capacity and adhere to terms of its labor contract with the United Auto Workers.

SOURCE: CRAINSDETROIT.COM

LANSING DEVELOPMENT BOOM EMPLOYMENT & JOB GROWTH

1.5% Projected Annual Job Growth

4.5% Unemployment

$51,386 Median Household Income

1.7% Household Income Growth

1.3% High-Tech Employment



Address Description

01SPARROW HEALTH SYSTEMS


Sparrow Health System is developing a $64 Million five story Herbert-Herman cancer center. The glass-fronted 132,000 square foot building will house all of the health system’s cancer treatments under one roof for the first time. Complimenting the hospital will be a new dining area, called the Gathering Place featuring a full service Starbucks.

02 SPARROW HEALTH SYSTEM HEALTH CENTER & LABORATORY

1210 W Saginaw StLansing, MI

Also in development is the $20 Million, three-story health center which is set to partially open in November for primary care services. Sparrow Health System is nearing completion of a $10 million Sparrow Reference labora-tory. The 35,000 sf facility will house labs located within the St. Lawrence campus.

03LOC PERFORMANCE PRODUCTS

1600 N. Larch St Lansing, MI

LOC Performance Products announced a $96.5 million expansion to the 1600 N. Larch St property. The expan-sion will provide 700 new jobs and is expected to create a huge economic boost in the area.

04 SCHOOL FOR THE BLIND PROJECT

656 W Maple StLansing, MI

Indianapolis-Based TWG Development will redevelop the former Michigan School for the Blind to low-income senior housing. At $24.4 million the plan includes creating 72 multi-family units and 60 senior units between 3 buildings.

05 REO TOWN INVESTMENT - THE VENUE AT EAST TOWN

2010 – 2020 East, Michigan AveLansing, MI

REO town has seen a $500,000 investment that will allow for development of a brewery and pottery studio.Lansings East Side is the site of “The Venue at East Town”, a $5 million 4 story development that will have 39 apartments atop retail space on the first floor. The Gillespie Co. Strange Matter Coffee and Rajje’s Taphouse have been named as tenants.

06 500 SOUTH WASHINGTON AVENUE

500 South Washington Avenue Lansing, MI

Urban Systems purchased the 500 South Washington Avenue block in the beginning of 2018. The development plans for the property include building a five-to eight-story 170-unit apartment building. The building will also have retail space on the SW corner of Washington Avenue and Lenawee Street.



Address Description

07ARCADIA ALES & SMOKEHOUSE


Lansing developer Kris Elliot of Urban Feast obtained the licensing from Arcadia Brewing Co. to build a brew-pub and restaurant at 2101 E. Michigan Ave. The 10,000-square-foot brewpub will serve Arcadia brands and will also brew six Lansing-only beers on site. The project will also include an outdoor patio to accommodate 150 people.

08CENTER CITY DISTRICT

Albert Ave and Grand River AveLansing, MI

Ballein Management of East Lansing has partnered with a Chicago developer to build two 12-story buildings in downtown East Lansing. The first building would be located on the 100 block of East Grand River Avenue and would include apartments with a grocery store on the first floor. The second would be built in City Lot 1 off Albert Avenue. It would include retail space on the first floor, a parking deck on the next five levels and housing for people 55 and older in the top six floors.

09HILTON HOMEWOOD SUITES

2201 Showtime DrLansing, MI

Hilton Homewood Suites will be the third hotel built since 2015 at the Heights in Eastwood in Lansing Township. Hyatt Place and Fairfield Inn both opened within the last two years at the heights. The 7 story hotel, located next to Walmart, will have 139 rooms.

10 SPRINGHILL SUITES BY MARRIOTT

1100 Trowbridge RoadLansing, MI

A $10-million Spring Hill Suites hotel will be built at the former Howard Johnson motel at 1100 Trowbridge Road in East Lansing. The four-story hotel will have 88 rooms, a swimming pool and a fitness center. A one-story retail building will also be constructed on the site, which will accommodate four tenants, anchored by a restaurant and a drive-thru coffee shop.

11COSTCO

5800 Park Lake RdLansing, MI

A 157,000-square-foot retail warehouse is being built at 5800 Park Lake Road, the site of the former Four Winds Golf Course. When it opens, Costco will employ 150 people. The $30-million project includes a tire center and a standalone gas station that will have 24 pumps.

12MARKETPLACE APARTMENTS

313 N Cedar StLansing, MI

Developer Pat Gillespie is building more riverfront apartments in downtown Lansing. The expansion of Mar-ketplace apartments will add 79 rental units to the area, half of which overlook the Grand River while the rest overlook the Cooley law School Stadium. The apartment complex will have a rooftop patio and amenities that take advantage of the riverfront, though specifics have not yet been announced.

This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

For leasing information contact

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JENNIFER D. STEIN, CO-BROKER



CHRIS ARMES, PRIMARY BROKER


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