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Monday, 18 November 2013 16:44

CWD acquires Michigan Athletic Club property

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CWD Real Estate Investment announced today the firm has purchased the property that houses the Michigan Athletic Club at 2500 Breton Road, popularly known as the MAC, from a local investment group.

Terms of the deal were not disclosed.

An executive at the company said the property would be a "great fit" with its other investments in the adjoining area and in downtown Grand Rapids.

"When it was announced last year that Mercy Health Saint Mary's was not renewing its lease to continue to operate the Michigan Athletic Club — and would be shutting it down in January 2014 should they not find a new tenant to run the MAC — we contacted the owners of the property to express our interest in acquiring the site," Scott Wierda, co-managing partner of CWD, said in a statement.

CWD owns several properties near the MAC building and last month got approval from the Grand Rapids Planning Commission to demolish an office building and rezone a couple parcels for retail use. The firm plans to build a 12,000-square-foot retail space near the its existing Breton Village development.

CWD Real Estate Investment is also partnering with local investor Brian DeVries on the deal. The main goal is to not have the property sit vacant if Mercy Health Saint Mary's is unable to find a buyer for its business, Wierda said.

"We are patient investors and will be exploring a number of options," Wierda said. "We want to have the best possible plan moving forward."

In July, Mercy Health Saint Mary's announced plans to discontinue the operations of the Michigan Athletic Club (MAC), Orchard Hills Swim and Sport Club (Orchard Hills) and East Hills Athletic Club (East Hills). The decision was made because the clubs were no longer financially viable, the company said. The lease for the three facilities, operated by Saint Mary's Health Management Company — a separate entity owned by the hospital, expires Jan. 31, 2014.

Saint Mary's Health Management Co. does not own the land or buildings, but only the businesses of the health clubs. Because Saint Mary's leases the land and the buildings, the organization hasn't been informed of any plans for the properties, according to a statement.

Saint Mary's said in the statement that it currently has no firm offers for the businesses at any of the clubs. MiBiz previously reported that MVP Sports Clubs LLC, which is owned by Amway co-founder Richard DeVos’ RDV Corp., is in due dilligence to purchase the business and the real estate at East Hills and Orchard Hills.

If no offers come forward for the business, Saint Mary's plans to close the facilities when the lease expires. Saint Mary's Health Management Co. is currently working on a transition plan for current members if no buyer is found, the company stated.

Read 2464 times Last modified on Tuesday, 19 November 2013 09:45

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