934 Butterworth
A former grocery store with a lot of character potential on a small up and coming corridor.
Terminated Purchase Agreement
Heartbreaking, but we passed on the deal after due diligence revealed costly building conditions paired with environmental discoveries and a seller not willing to negotiate price.
The Pitch
Butterworth corridor is an undervalued well located pocket that hasn’t taken off because its corridor doesn’t connect to anything really. It is a space that just needs to be grown into and it will given its proximity to downtown and lack of any further development out past it.
It is proximate to the city but also miles of paved trail and river access. This would be a great place for either a student living scenario being as close to the university it is, or a luxury loft with private garaged parking.
The Numbers
Multiple strategies and models could not overcome the total cost issue of construction and acquisition as they all returned sub 6% with a fair amount of risk.
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The risk-reward ratio was out of balance and could not overcome 6% given todays construction costs.
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Renovate and hold long term, this smaller corridor is in the right position but might take more time to revitalize than some others.
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$25,000 Minimum
$1.5M Fund Raise
The Building.
Retail below will be built out as residential until commerce comes back to the street. Two 2BR apartments upstairs need to be finished. Visioned either going luxury with the parking amenities and potential roof deck, or student focused with the university nearby.
The Neighborhood.
A quiet up and coming area with other character buildings.
The City.
Grand Rapids, MI is undergoing tremendous and continued growth as the fastest growing metropolitan area in Michigan and is presently experiencing a significant housing shortage.
Butterworth Corridor.
Retail below will be built out as residential until commerce comes back to the street. Two 2BR apartments upstairs need to be finished.