Page 17 - 2019 Colliers Forecast Book
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Colliers International | West Michigan  17

          Sales Volume                                          Sale Price (Average Per Unit)
          Source: Yardi Matrix MarketPoint (Data Through November)  Source: Yardi Matrix MarketPoint (Data Through November)

            $300                                        25       $200,000
                          Properties  Dollar Value ($MM)
                                                                 $150,000                             National
           Dollar Volume ($MM)  $150                    10  Number of Properties  Sale Price  $100,000


            $50                                          5       $50,000          Grand Rapids

            $0 00
            $0                                           0
               2009  2010  2011  2012  2013  2014  2015  2016  2017  2018  $0  2010           2012           2014           2016           2018*

          development brings 86 units of apartments to the downtown  According to the U.S. Census Bureau, the population of Grand
          area. 601 Bond is also nearing completion as a 16-story,  Rapids grew by 1.3 percent between 2016 and 2017. The
          202-unit building in the North Monroe neighborhood. On-site  demand for apartment development is due in part to this rapid
          amenities will include the Skyview Club with a rooftop deck,  population growth. Downtown is becoming “the” trendy place
          fi tness center and lounge, and 220 parking spaces.   to live with its growing number of amenities. A strengthening
                                                               economy and the development of nicer, newer apartment units
          West Michigan’s multi-family market has been quite active in  is the source of rising rental rates. The average monthly rental
          2018, with more than 1,500 units completed throughout the  rate in Grand Rapids at the end of 2018 was around $940
          year. More than 2,500 units are planned or currently under  and has been showing an average escalation of 4.1 percent
          construction.                                        annually over the last three years.

          Six low-income housing projects scattered throughout Grand  Living downtown means close proximity to businesses and
          Rapids are planned to break ground in 2019 after the state  entertainment. Accessible parking is an especially valuable
          of Michigan approved $5.9 million in state tax credits. The  amenity downtown that many developers are incorporating
          tax credits will help fi nance the projects and allow developers  into their projects. We are seeing more mixed-use projects
          to offer qualifying tenants below-market rental rates. The six  assembling downtown as developers seek a competitive
          projects are: Franklin Apartments and Grandville Apartments,  edge to draw occupancy. One example of this is the much-
          part of the Plaza Roosevelt project, being built by Dwelling  anticipated Studio Park development, scheduled to open
          Place; Edge Flats on Seward, being built by Wisconsin-based  this fall on the city block between Oakes Street SW, Ionia
          Common Wealth Development Corporation; Tapestry Square  Avenue SW, and Cherry Street SW. The $140-million project
          Senior Living Center being built by the Inner City Christian  will feature a nine-screen movie theatre, 138-room hotel,
          Federation on South Division; West Garfi eld Apartments, being  230 residential units, 40,000 square feet of retail and offi ce
          developed by LINC UP; and Ferguson Apartments, a restoration  space, and a 750-space parking ramp. On the Westside, The
          and renovation project being done by Dwelling Place.   Hendrik is now leasing 116 market-rate apartments above the
                                                               Bridge Street Market. At the same development, ICCF is also
          Along with these new apartment developments comes a new  partnering with Rockford Construction to provide 64 additional
          residential rental application ordinance in the City of Grand  apartments, 51 of which will be affordable-rate. Despite all the
          Rapids. The new ordinance intends to improve application  new supply coming online downtown, we still feel like there is
          affordability for residents and deter predatory collection of  room to grow.
          application fees. Any property owners with units in Grand
          Rapids who charge an application fee, should familiarize  The downtown hotel market is one potential bubble we could
          themselves with this new ordinance, if they haven’t already.  see forming in 2019, with many being built at the same time.
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