GRAND RAPIDS — Third Coast Development LLC has bolstered its holdings in the hospitality business.
The developer of multifamily apartment has acquired Kuzzin’s Lounge on Grand Rapids’ northwest side and Drake’s Pub on South Division in Wyoming, adding to its existing bar and restaurant portfolio.
The company acquired the two establishments from the Farrah family after the father and son operators were sentenced to prison for tax evasion.
Max Benedict, principal with Third Coast Development, quickly downplayed the notion that the transactions for the businesses and the real estate were acts of desperation.
“It wasn’t a fire sale,” Benedict told MiBiz on Tuesday morning. “We’ve been working on (the acquisitions) for a couple months. We just happened to be at the right place at the right time.”
Terms of the deals were not disclosed.
Third Coast Development hired hospitality industry veteran Tony Knight to manage the two bars, in addition to Garage Bar & Grill, an Ottawa Avenue bar and restaurant owned by the firm north of downtown Grand Rapids.
Principals at the development firm say they have no immediate plans to make significant changes to Kuzzin’s or Drake’s. Benedict added that neither parcel is large enough for any kind of significant redevelopment activity.
“We respect the history and character of these establishments,” Knight said in a statement. “Our intent is to apply new systems to enhance the current operations and assist staff, next we’ll enhance the food and service capabilities.”
The Kuzzin’s Lounge acquisition could serve to complement a proposed Third Coast apartment project across Leonard Street, where it plans to build 28 affordable housing units.
Benedict said he expects construction on the housing project to begin next month.