As Grand Rapids' local economy continues to rebound, the demand for housing also continues to increase. Many of the new jobs being created by the development downtown are service jobs and entry-level positions, meaning that the income they provide prices most people out of living close to where they work. Rentals downtown, even studios and 1 bedroom spaces, can run $700 or more, depending on the location and amenities included. What's a minimum-wage worker to do?
Thankfully, several businesses have noticed the increasing demand for low-income and income-controlled housing in the downtown area and are rising to meet that demand. Some of the companies include Grand Rapids-based Rockford Construction and LC Companies out of Ann Arbor. They held a ribbon cutting ceremony the last week in October on their most recent affordable housing project.
That project was a massive renovation of the old Klingman Building in downtown Grand Rapids. Located at 400 Ionia Ave. SW., the building is an impressive one hundred and eighteen years old, but now boasts a completely modern look inside. The project, called Klingman Lofts, cost approximately $22 million to complete. This isn't the first furniture building the partnership has renovated; in 2013 they completed an overhaul of the old Baker Furniture Building that turned it into 87 residential units.
Renovations for Klingman Lofts began in spring of 2014. The two companies worked diligently to turn an old furniture factory into an affordable housing complex, complete with retail space on the ground floor. The 112,000 square foot building is now home to 83 housing units spread across four floors of the building. The retail space comprises a total of 15,000 square feet.
The project was made possible in part by tax credit. Some credits were awarded by The Michigan State Housing Development Authority for the renovation of an old building with the intent to provide affordable housing in Heartside. Additional credits were obtained because the building had been registered as a Historic Landmark by the National Register of Historic Places in 2013 but was still deteriorating. Additionally, Klingman Lofts has applied for and hopes to receive LEED certifications for sustainability.
LC Companies will definitely be profiting from this venture. Currently, all the units in the building are already full, and there is a wait list for others interested in living there. The 83 units in Klingman Lofts are all one bedroom or two bedroom units. The one bedroom units range in size from 643 to 753 square feet, while two bedroom units range from 812 to 1,122 square feet. The rental rates vary, running from an incredibly affordable $469 to $815 per month. The price paid is based on the applicant's income, which must be between 40 and 60 percent of the county's median income, and thus varies depending on income. Applicants must make 2.5 times the monthly rent and are required to pass a credit and criminal background check. Full time students do not qualify for this housing.
As with other recent developments in the downtown area, Klingman Lofts are sure to bring additional demand for services, and eventually housing, to the downtown area. If you're looking to buy or sell, you want to work with a realtor who knows what's going on in the city's various neighborhoods and how it will impact property values and housing demand in the near future. To make sure you're getting the best, most well-informed advice possible, make sure you call Pyxis Realty before you list your house or begin the buying process.