1590 Plainfield
Vacant Single-Floor Two Suite Retail Opportunity.
Sold to Over-Paying Bidder
Neighborhood resident offered full asking price that was well above what the market should have commanded and would have produced little to no return in our model.
The Pitch
Creston Heights is somewhere in the middle of its revitalization with a lot of starting and stoping over the years. It is one of the highest transaction volume markets that we look as people are trading in and out of assets. A significant 100+ unit project attracted a flush of new businesses however, it stalled out when the developer imploded a few years back, but is now breaking ground.
Traffic study shows a 25% increase in morning traffic compared with the publicly available 2015 count data which is indicating strengthen for retail as the Plainfield corridor connects more traffic to downtown from the North where many first time home buyers are heading as the neighborhoods become a haven for younger families.
The building is a bookend in a line of various retail and next to City High, a prestigious high preforming public school.
The Numbers
This project did not make it far enough to have a solid IRR projection as renovation cost was TBD and redevelopment was still being conceptualized.
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Would have targeted 5-7% on renovation and 12%+ on redevelopment.
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In either scenario, it would have been a mid to long term hold, but open to the potential of a very opportunistic sale.
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$25,000 Minimum
Preferred Rate TBD
The Building.
2,400 SF vacant nearly condemned retail space on market for $189,000. Its condition includes collapsed roof and floor into a basement yet it has good bones to work with in terms of character. The other idea is to tear it down and build a 4 story luxury product.
3D animation of the existing building showing how it is built into a hillside.
Conceptual luxury low-rise redevelopment for the site offering stunning architecture.
The Neighborhood.
A long sweeping corridor featuring a lot of unique elements such as a high-end country club, prestigious high school, and proximity to large swaths of neighborhoods and river access just minutes north of downtown and the bustling medical mile.
The City.
Grand Rapids, MI economy is undergoing sustained tremendous expansion outpacing the US economy by 2x. Given our regional economic strength, it is anticipated that if there is a recession nationally, we might not see it here.
Talent remains the #1 issue for businesses and our area boasts amazing amenities of Lake Michigan, over 80 breweries, dozens of coffee shops, and new restaurants all the time. This is the result of over 20 years of revitalization and billions of new investment in the city which has transformed the city into a vibrant destination for all age demographics from college graduates to young families and beyond.
The big question I get is ask, why are we growing?
We now have a diverse and vibrant business community and a cultural amazing place to live. The result is an attractive destination for young people to bring their time and talents to. That is the driver behind Grand Rapids having a population growth while the rest of Michigan and much of the midwest to be declining in population.
The key statistic that explains that is that we have more people in their 30’s than we do over 65, which is a pretty amazing statistic that not the case for other metro areas like Detroit and the US as a whole. That means we have a stable working population which attracts more businesses and ultimately a net migration in, more amenities and culture, all in a positive feedback loop.
All of those moving in and starting families in that demographic needs housing, which we are desperately short on. By 2027 it is projected that we will be 35,000 houses short of what we need, meaning significant continued value appreciation and new construction is on the horizon, but so also is the lateral spread away from the city center driving more traffic through this corridor.
Plainfield Corridor.
A high-traffic corridor with a lot of commercial along connecting northern suburbs to downtown, its a traditional neighborhood center that is emerging as a destination for young families.