Pinnacle Construction plans $13M historic renovation for riverside apartment, office development
Pinnacle Construction Group Inc. plans to renovate historic buildings next to its Grand Rapids headquarters along the Grand River to create a 12-unit affordable apartment building with office space.
The approximately $13 million project at 974 Front Ave. NW on the west side of the Grand River would be LEED-certified with apartment units that achieve 60 to 80 percent affordability for the area median income. Pinnacle Construction Group is applying for project incentives, including historic tax credits and a revitalization and placemaking grant through the Michigan Economic Development Corp. Grand Rapids city commissioners approved a 12-year Obsolete Property Rehabilitation Exempt Certificate for the project on Tuesday.
Pinnacle affiliate 8970 Byron Commerce LLC purchased the historic buildings for nearly $2.73 million on Feb. 23 from 974 Front LLC, which is registered to corporate attorney Jason Schnelker, a partner at Schnelker, Rassi & McConnell PLC.
The three-building complex contains 41,240 square feet across one- and two-story buildings that were originally constructed between 1912 and 1917 for the Clipper Belt Lacer Co.
“The buildings are adjacent to our corporate headquarters and we saw potential in them as a long-term investment in this location in the neighborhood here, so we decided to purchase them,” said James Lewis, Pinnacle Construction Group development director. “As the river gets returned to its natural state, that will enhance the location, which also has good parking and access to the highway.”
Pinnacle plans to redevelop the three-building complex into eight studios and four one-bedroom units that will range from 380 to 720 square feet. The goal is to lease up the building starting in the first or second quarter of 2024, said Lewis, who called it a “catalytic” project amid other nearby projects.
The 974 Front Ave. project also calls for 35,550 square feet of office space, which would be a hybrid co-working and business incubator space.
“What we’ve been told, and what we’re hearing in the market, is that a lot of companies are changing their working patterns,” Lewis said. “They’re not necessarily downsizing and there is a large demand for high-quality office space in the downtown area that is designed with a lot of amenities. While companies might have employees in (the office) three days a week, they still need desks for them when they’re there and the quality of the space is much more important for them.”
The building space is flexible and could work in a variety of office configurations with potentially one anchor tenant and multiple smaller tenants, Lewis explained. Prospective tenants have not yet been identified.
Historic tax credits would support restoring the original industrial steel windows to bring in more natural light in the nearly 110-year-old building.
“The buildings have high ceilings and natural light, it’s going to be a really beautiful space,” Lewis said. “We have a lot of support from the neighborhood and businesses in the community.”
Posted By: MiBiz on May 24, 2022. For more information, please click here to read the source article.
To receive the In The Know from Signature Associates, please click here to be added to our mailing list.
« Back to Insights