A proposal for an additional mixed-use, residential redevelopment along Wealthy Street in Grand Rapids took a step forward today.
The board of the Michigan Strategic Fund this morning approved the request of a subsidiary of 616 Lofts to move ahead with its proposal to redevelop the vacant 70,000-square-foot building — often known as the “Kregel Building” — at 733 Wealthy St. SE, in between Eastern and Charles Avenues.
“This project will be an anchor in an already active corridor that doesn’t have a lot of market housing,” Jeff Olsen, 616 Loft’s director of development, told MiBiz following the MSF’s approval.
Additionally, Olsen said the Lofts on Wealthy project will “supply the greatest amount of diversity” from a price perspective, with micro-studio units starting at about $750.
“There’s a good supply of affordable units in the building,” Olsen said.
The MSF Board approved the Grand Rapids development and property management company to capture $970,250 in school and local taxes in order to aid the estimated $14 million project.
Plans call for the project to include about 75 market-rate, residential units and approximately 15,000 square feet of ground-floor retail space, along with community space for tenants and on-site parking.
Olsen noted that the community space will be built in the building’s existing truck dock and offer indoor and outdoor space.
The 616 Lofts executive said the company is still finalizing Letters of Intent from potential retail tenants and hopes to begin construction in the late summer, estimating a 12-month build-out period.
County records show that a 616 Lofts subsidiary acquired the Kregel Building in August of last year for $2.18 million.