MIDDLE MARKET HIGHLIGHT, SEPTEMBER 2005

LANSING
Karen Stone, CCIM

Prudden Wheel in Lansing, Michigan.

“This opportunity would never have come to fruition without the power of the partnerships in the Lansing area,” says Patricia Cook, manager of the City of Lansing Economic Development Corporation. “These plants are international news. Employees from all over the world will come to train at these facilities.”

The first plant, the Lansing Grand River Assembly Plant, is barely 2 years old. Built on a brownfield site in downtown, the facility manufactures Cadillacs. It is now being significantly expanded to a total investment in the plant of more than $1 billion. The second facility, the $1.2 billion Lansing Delta Platinum Project, is being built in Delta Township. Ground was broken last March and production is scheduled to begin this summer. The 2.2 million-square-foot facility will employ approximately 2,800 of the area’s auto workers.

“These two facilities are incorporating state-of-the-art technology and will employ highly skilled, white collar workers as well as more traditional auto workers,” says Jim Ruff, director of planning and neighborhood development for the city of Lansing.

Lansing, home to the 44,000-student Michigan State University, has also been experiencing a residential resurgence. “In the past 3 years, we have had 500 new units of lofts and townhomes come on line. Currently, 800 more units are being built,” Ruff says.

Much of the activity is downtown. Karp & Associates is converting the old Arbaugh department store into the Arbaugh Lofts. The five-story, 108,000-square-foot project will have 48 rental units and 20,000 square feet of first floor commercial space. The $8.2 million project is adjacent to the Thomas M. Cooley Law School and will be partially completed by this fall. Also, Lansing-based 208 Partners is converting The Mutual Building, a former state government office building, into 38 residential rental units.

The first new subdivision to be built in the central city area in 40 years is currently under construction. Burton Katzman of Bingham Farms, Michigan, is developing 25 acres on the former site of the state-run Boys Training School (BTS). Now known as East Town Village, the project will include 177 market-rate homes, ranging in price from $130,000 to $220,000.

Near the BTS project, two separate developers are redeveloping the 15-acre former Prudden Motor Wheel manufacturing site. Harry Hepler of Lansing is developing Prudden Wheel, a $7 million, 120-unit loft building. The project, which will be partially completed this fall, is located just north of downtown between Lake Lansing Road and Saginaw Street. Lansing-based Gillespie Group is developing a 120-unit high-end urban multifamily apartment community on another portion of the Prudden site. This project will open in October. 

“Much of the downtown development is being facilitated by aggressive financial incentives offered by the city, county and state. The ability to offer these incentives has really catalyzed the redevelopment trend,” Cook says. Lansing is also taking steps to diversify its economy. The cities of Lansing and East Lansing are sponsoring a “smart zone program” designed to take intellectual property coming out of Michigan State University, commercialize it and incubate it into industry. By taking advantage of its existing assets, Lansing is coming back and its regional partnerships are leading the way. 

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