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Spectrum Health acquired the Brass Works Building on North Monroe and an adjacent parking lot, shown with the orange border. The building will be incorporated into the health system’s scaled-back plans for the Center for Innovation and Transformation. Spectrum has been buying up a series of properties (bordered in red) in the Monroe North neighborhood over the last year. Spectrum Health acquired the Brass Works Building on North Monroe and an adjacent parking lot, shown with the orange border. The building will be incorporated into the health system’s scaled-back plans for the Center for Innovation and Transformation. Spectrum has been buying up a series of properties (bordered in red) in the Monroe North neighborhood over the last year.

Spectrum Health buys Brass Works Building for $25M, scales back North Monroe development plans

BY Wednesday, January 06, 2021 10:21am

GRAND RAPIDS — Spectrum Health has purchased the Brass Works Building on Monroe Avenue north of downtown and is scaling back plans for the construction of a new office building on adjacent land, MiBiz has learned.

The Grand Rapids health system’s Continuing Care division paid $24.7 million to buy the Brass Works Building from Canal Street Group LLC, according to property records with the City of Grand Rapids. The transaction, which also included a small surface parking lot behind the building, closed Dec. 30, 2020.

In a statement to MiBiz, Spectrum Health said the Brass Works Building at 648 Monroe Ave. will incorporate into plans for what’s known as the Center for Transformation and Innovation (CTI) that will provide a single location for administrative offices, training and meetings. The project originally included a 300,000-square-foot office building on the site of the adjacent former Gill Industries Inc. facility.

Spectrum Health now intends to develop a new office building of 80,000 to 100,000 square feet on Fairbanks Street that will connect to the Brass Works Building. The facility is primarily occupied by Spectrum Health, which plans to renovate the building.

“The CTI was always designed to be multi-phased in its development. The purchase of Brass Works as part of the first phase means the new construction phase is smaller,” Spectrum said in the statement. “Over time we will continue to consolidate administrative, educational and meeting functions at this site.”

Design work continues on the new office. The health system expects construction, including on a parking ramp and surface parking, to begin in the spring with completion in late 2022.

Spectrum Health has been buying property in the neighborhood for the planned Center for Transformation and Innovation. A year ago, the health system acquired the Gill Industries property for $11.05 million, plus two more parcels on Ottawa Avenue in July, as MiBiz reported at the time. 

Spectrum affiliates now own at least nine parcels in the neighborhood, according to an analysis of property records. 

“Spectrum Health has multiple goals in creating the CTI on North Monroe that include consolidating spaces to create efficiencies, creating shared meeting space for remote workers, co-locating functions and departments, establishing a learning destination and lowering costs,” Spectrum said in the statement. “A renovated Brass Works building adjacent and connected to a future new building will allow Spectrum Health to consolidate 26 of its independent leases and lower occupancy costs. Consolidating administrative functions to this location allows Spectrum Health to invest and repurpose space on the Medical Mile for clinical growth and expansion” on nearby Michigan Street.

Canal Street Group LLC is registered to CWD Real Estate Investment LLC Principal Sam Cummings, who declined to comment for this report. Cummings previously sold a nearby 44,000-square-foot commercial building at 648 Bond Ave. NW to Spectrum for $3.45 million in January 2020. 

Read 7649 times Last modified on Wednesday, 06 January 2021 10:35
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