GRAND RAPIDS — The developers of a mixed-use project being built on the southwest side of downtown just completed an $8.7 million capital raise to finalize a construction loan.
With the loan in place from Chemical Bank, Grand Rapids - Market Avenue Place LLC, a subsidiary of East Lansing-based Maplegrove Property Management LLC, will continue moving forward with the $56.5 million project at 234 Market Ave. SW.
A total of 34 investors participated in the equity raise, according to a filing with federal securities regulators.
Market Avenue Place will offer 235 new market-rate apartments and 30,000 square feet of commercial space plus parking in a largely industrial section of the city’s urban core.
Maplegrove COO David Emdin told MiBiz that the developers hope to receive their occupancy permit by July 2018.
The project sits on a 2-acre parcel due west of Founders Brewing Co. and immediately northeast of the city-owned 201 Market Ave. site where requests for proposals are currently being evaluated and where future large-scale developments are anticipated.
The developers contributed 21 percent of the equity in the 234 Market project along with undisclosed debt, according to public documents. Last August, the Michigan Strategic Fund approved $10.9 million in local and school tax capture to close the funding gap, as MiBiz reported at the time.
Emdin said the retail and office space has received some interest, but the developer has yet to sign any leases at this time. He expects the firm will receive considerable interest because of the lack of large office spaces in the downtown area.
Additionally, while some developers have started to become concerned about the market’s ability to absorb the large number of apartments coming online in the next 12-15 months, Emdin said Maplegrove remains bullish.
“All the trends show that this market will continue to grow,” Emdin said. “It’s possible there could be a bubble, but it won’t be long-lived. We’re feeling pretty good.”