About seven years ago, Bob Trezise stood on top of what was then the dormant Ottawa Power Plant with Mayor Virg Bernero and looked across the Grand River. They were thinking development. They were thinking revitalization. They were thinking Lansing.
"We realized that the whole area needed massive improvement," says the President and CEO of the Lansing Economic Area Partnership Inc. (LEAP Inc.). "I'm very pleased to say that we're putting another piece in place for that ultimate vision."
In late October, Trezise joined civic and business leaders in welcoming the newest addition to Lansing's riverfront as the Gillespie Group unveiled renderings of Marketplace—a development of upscale, urban lofts slated for occupancy in fall 2014.
"It's a great day," tweeted the Gillespie Group as they posted a twit pic of the 80-unit apartment building's striking exterior
of steel, stone and color.
"It will be a high-energy building from the moment you drive up and walk in to your unit," says Pat Gillespie, CEO of the Gillespie Group. "It's hip and urban and definitely techie in feel."
Calling you home
Word spread quickly through social media about the new development. So quick, in fact, that the Gillespie Group logged several calls within minutes of the first tweet.
Megan Hall was among the curious. After talking with the Gillespie Group, she asked to be put on the list of potential tenants for the first phase of the complex that will sit on the corner of North Cedar and East Shiawassee streets.
"I've always wanted to live in a loft," says Hall who reached out to the Gillespie Group after a friend forwarded the Marketplace tweet. "I'm looking for something new, and I'm into sports. It's really cool that it's right across from the Lugnuts' stadium."
Hall is a recent graduate of Michigan State University where she now works, and has lived in Greater Lansing since 2007. She says developments like Marketplace make downtown more attractive and made her think twice about leaving for employment opportunities in other cities.
"I like the idea of a different environment and more modern living," says Hall who currently calls home a studio apartment in the midst of East Lansing student housing. "Being in downtown Lansing would mean being around restaurants, the farmer's market, nightlight, and all the public events they hold."
Hall is among the growing group of "echo boomers"—people currently 13 to 31—who will significantly affect real estate markets and developments in the coming decades.
While many college-educated echo boomers grew up in the suburbs, more younger people are choosing urban lifestyles. Rental housing in urbanized areas is on the rise, with the U.S. Census Bureau reporting a steady increase in multifamily construction from 109,000 units in 2009 to 245,000 units in 2012.
Recent constructions like Marketplace reflect that trend.
"We're seeing a dramatic shift in people wanting to live urban," says Gillespie. "We knew we needed more product downtown right away when we started having a hard time accommodating people two months out in our other downtown developments."
Gillespie's firm has been fueling residential development in urban areas for more than a decade.
Between markets in Lansing and other parts of Michigan, Gillespie's recent developments comprise about 1,500 residential rental units, 388,000 square feet of commercial and retail space, and several for-sale condo communities. Lansing's share of those numbers constitutes more than 450 rental units with five properties, including the high profile Stadium District and Prudden Place.
Marketplace will add to the mix with urban lofts. Some will have one bedroom and one bath, others two bedrooms and two baths. Dynamic color schemes will coordinate with granite countertops, hardwood floors and high ceilings. Patios, decks, and skyline, river and stadium views will add to the 'wow effect' of the luxury units with projected average rents of about $925 a month.
"The downtown market is very strong for housing right now," says Gillespie. "In fact, most of our projects are 100 percent occupied. Lots of people call and say 'I'd love to live in Lansing.' It's a product that people want and it's hot. We're excited about that."
It takes a village
The Marketplace development, says LEAP and other city officials, is a key piece in revitalizing the downtown riverfront.
Facing the Grand River to the west and the ball stadium to the east, the complex will join other first movers down to the river, including the $150 million national corporate headquarters of the Accident Fund, the $3.1 million River Trail, a $250,000 international art piece donated by the Lansing Rotary, and the brand new Lansing City Market with a popular waterfront restaurant.
"Lansing is far overdue for development on our riverfront," says Trezise. "And it's not just about building a specific building. It's about developing a village where people live, shop and work. It's about building a product that invites talent and encourages talent to stay here. Marketplace will be one of the most magnificent places in Lansing to live."
The Gillespie Group agrees, and committed to the $8.5 million development about six years ago. While the economic downturn and environmental remediation threatened to get in the way, Gillespie worked diligently with city, state, and local commerce groups to keep the project moving.
"We're very thankful to Pat Gillespie for taking the risk," says Trezise of the development that may include several phases. "He's a real champion for our city."
Gillespie reflects that it's a great feeling to do something positive for his hometown. Born and raised in Lansing, he grew up on the Foster Street, went to Resurrection and Lansing Catholic, and attended Michigan State University. He founded
Gillespie Group in 1994 and set out to motivate and energize Mid-Michigan communities through development and property management.
For the first 10 years of his business, Gillespie says he was mostly developing greenfield sites in the suburbs.
"It was rewarding, but I didn't feel like we were making a dramatic impact on our community," he says. "That's when we decided to spend the next 10 years focusing on urban projects."
Gillespie says his team is on board with Marketplace as well as with three or four more projects they would like to do in the next 36 months. In fact, just two weeks after unveiling Marketplace, Gillespie broke ground on Midtown: a mixed-used development on the site of the old Silver Dollar Saloon on Michigan Ave. that includes a 1,800-square foot bank branch and 66 high-end flats.
"At one point, we all just looked at each other and decided to make a difference in Lansing," Gillespie says of his 68-member team. "We realized we all want to be able to say to our kids when they grow up, 'why not stay here instead of leaving for other cities? Look what Lansing has to offer.'"
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Ann Kammerer is a freelance writer for Capital Gains.
Photos ©
Dave Trumpie
Dave Trumpie is the managing photographer for Capital Gains. He is a freelance photographer and owner of
Trumpie Photography.