KALAMAZOO — A $44 million hotel development in downtown Kalamazoo has secured project funding from the state of Michigan.
The Michigan Strategic Fund board of directors on Tuesday voted to award Kzoo Hotel Partners LLC local and school tax capture totaling more than $3.4 million. The MSF also awarded a performance-based Michigan Community Revitalization Program loan for more than $7.4 million to the development partners.
The project will redevelop Kalamazoo’s historic Rose Street Market building at 303 N. Rose St. and an adjacent surface parking lot into a hotel and commercial space. The “sister” buildings will include a 113-room Hilton Garden Inn, 107-room Home2 Suites extended-stay facility and about 15,000 square feet of office/commercial space spread over 181,925 square feet.
The project is expected to create about 75 full-time jobs, according to MSF documents.
“This project is located in the northwest quadrant of downtown Kalamazoo. It is the first project to happen in this area and will prompt additional development in this area,” said Andy Wenzel, executive vice president and director of acquisitions/development at PlazaCorp Realty Advisors Inc., a Kalamazoo-based developer on the project.
Kzoo Hotel Partners purchased the building in December for $2.75 million, according to property records. It is is being developed by PlazaCorp and Fishers, Ind.-based Dora Hotel Co.
According to Wenzel, the partners expect in March to begin construction, which will be complete in 2021.
MiBiz real estate and development news coverage is sponsored by Rockford Construction Co. Rockford is a nationally recognized construction, real estate development and property management provider, serving West Michigan and beyond for more than 30 years. Licensed in 45 states and ranked by Engineering News-Record as one of the top-200 contractors in the nation, Rockford brings together diverse people and ideas to tackle challenges, changing the creativity, productivity and functionality of built spaces. Visit rockfordconstruction.com for information. This sponsorship is advertising. It has no effect on editorial consideration in MiBiz.