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GVSU to purchase Consumers Energy building for $9.7M, sell Detroit Center for $6.2M

Posted By: mlive on July 10, 2026.  For more information, please click here to read the source article.

Grand Valley State University’s Board of Trustees approved a multi-million-dollar purchase of one downtown Grand Rapids building as it signed off on the sale of another university facility in Detroit. On Friday, July 10, the board voted during its quarterly meeting to move forward with the purchase of the John G. Russell Leadership Center from Consumers Energy for nearly $10 million. Minutes later, board members greenlit the sale of GVSU’s Detroit Center for just over $6 million to the Detroit Athletic Club.

The university will pay $9.735 million for the three-story, 31,000-square-foot meeting and events space at 120 Front Ave. SW. It’s located on GVSU’s downtown campus, immediately south of the L. William Seidman Center. The building, while owned by Consumers, sits on land leased by the company from GVSU, according to a 2017 Consumers Energy press release highlighting the center’s opening.

Former GVSU President Thomas J. Haas described it at the time as a “classic win-win,” allowing the space to be shared by both institutions. Chris Knape, assistant vice president of university communications, said in a statement following the vote that the sale is consistent with the shared plan that the building would “ultimately become part of GVSU’s campus.” A spokesperson for Consumers Energy said GVSU “will continue to utilize the space for its FutureEdLab, special events and other functions that will bring increased vibrancy and economic impact” to the downtown campus.

The center was originally named after John Russell, Consumers Energy’s former president and CEO, who also served on the GVSU Board.

The building’s name will not change much following purchase, with a slight amendment to the “John G. Russell Building.”

The building was described in the 2017 press release as an $11 million center, built by Grand Rapids-based Rockford Construction, to train the next generation of leaders for the energy provider.

Now, GVSU leaders said purchasing the building will allow the university to accelerate its master plan and account for future downtown expansion, describing it as the “front door” and an “anchor” for the Grand Rapids campus.

The purchase price includes about $700,000 in conversion costs, necessary to make the building compatible with others on GVSU’s campus. That accounts for updates to security systems and signage, along with building operating costs in the first year.

The process will likely take around six months to complete, though GVSU has had a presence in the building for several years now, board members said.

The purchase will be funded by undistributed interest income, which is generated from returns on operating cash investments. GVSU leaders underscored that the money would not be pulled from the university’s general fund budget.

GVSU approves $6.2M sale of Detroit Center

A GVSU website describes its Detroit Center as the “central hub for university activity in the heart of Michigan’s largest city.” But on Friday, board members voted to sell the facility at 163 Madison St.

The center is located across the street from Comerica Park and next to the Detroit Athletic Club, the latter of which will purchase the building for $6.225 million, according to GVSU’s vice president for finance and administration Gregory Sanial.

Sanial described the sale as supporting the university’s long-term real estate strategy. He emphasized that Detroit is still an important part of GVSU’s future.

Knape said GVSU “remains firmly committed to serving learners in Detroit and Southeastern Michigan.”

“GVSU is confident the Detroit Athletic Club is committed to keeping this historic building as part of the fabric of downtown Detroit,” he said.

The Detroit Athletic Club confirmed the purchase agreement, subject to customary due diligence and closing conditions. A spokesperson said the club has leased space in the building for more than a decade for administrative and storage purposes, which will continue. They said acquiring the building supports the club’s long-term strategic plan “by allowing additional opportunities to enhance the member experience within our historic club and facility.” Any future plans will be evaluated through the club’s established governance process, led by member input.

“Every investment we make in the club is also an investment in the city we have proudly called home since 1887,” the spokesperson wrote to MLive. “A strong DAC enables us to continue employing hundreds of people, welcoming thousands of guests to downtown each year, and expanding our work in the broader community.”

The Detroit Center was designed in 1907 by the Detroit architectural firm of Stratton & Baldwin, with multiple tenants including telephone engineers, a life insurance company and the Jewish Welfare Federation of Detroit. The center – by that time known as the Barden building – was purchased by GVSU in 2012.

The university describes it as available to host workshops, seminars and professional development gatherings, also marketing the facility as available for Detroit-area students to write a paper, study for tests or read in a “quiet, academic setting.”

But when speaking about the need to sell the building, board members explained that GVSU’s presence is now “very limited,” with many offices rented out to third parties. They also pointed to the lack of adjacent parking, with a paid parking lot not owned by GVSU costing student visitors a minimum of $17.

GVSU leaders said the sale of the building will instead allow the university to spread its reach into multiple neighborhoods via existing partnerships with Wayne County Community College District and Detroit’s historic Michigan Central, a recently revamped technology and cultural hub. They described it as bringing GVSU into places where people already gather, freeing the university from the “constraints of one building.”

Knape added that the university’s reach in the region also extends into more than two dozen GVSU-authorized charter schools in Southeastern Michigan. When asked where the sale positions the university financially, board members said GVSU is coming out slightly ahead, after purchasing the building for about $3 million in 2011 and funding renovations of several million dollars more. Sanial said proceeds from the sale will be placed in a strategic capital reserve fund for future needs.