New Ann Arbor development aims to set an example for eco-friendly living

A mixed-use housing complex called SouthTown will not only add 216 new apartments to Ann Arbor's housing stock, but will be built and operate in an eco-friendly way.

City council approved the eight-story development at 1601 S. State St., led by Ann Arbor-based 4M, in 2023. It's set to open sometime in 2025. With a ground-floor commercial level, upper-level apartments, and a central courtyard designed by Ann Arbor architecture firm Synecdoche, the development will replace an entire block of apartments and houses, many currently occupied by college students.

Builders will minimize the use of concrete and instead use mostly an engineered wood product called "mass timber" so that "the building itself is sequestering carbon, not creating more," says 4M founder and CEO Marge Poscher. 
Doug Coombe4M founder and CEO Marge Poscher.
Mass timber is stronger than traditional wood beams and has a lower carbon footprint than steel and concrete structures. 4M also sought zoning changes so the development could be powered by a special natural gas fuel cell system, creating what the developer calls "a carbon-efficient continuous electricity microgrid" that's about two-thirds more efficient than DTE Energy's electrical grid.

"We're pretty sure this is completely unique, and the first of its kind," Poscher says. "We've seen mass timber buildings and microgrids used in industrial or commercial properties, but nobody is really combining those with a multi-family building of this kind."

Poscher has been developing property in Ann Arbor for more than a decade. As someone who lives in the community where she works, she is concerned with sustainability and climate change issues. That inspired her to seek ways to make SouthTown greener.

Earlier this year, 4M brought on Margarita Hernandez as its chief ecosystem officer. Hernandez says she's excited to bring her experience in both economic development and cellular biology to leading the SouthTown project.
Doug Coombe4M Chief Ecosystem Officer Margarita Hernandez.
"I enjoy technology and really hard, complex problems, so this was a really great opportunity for me to dive into something that really got to the roots of the things that resonate with me," Hernandez says. She calls her new position a "one-of-a-kind opportunity" not only to oversee the creation of a building but to potentially create lasting impact.

"It has these implications and potential to really impact the community and broader ecosystem and solve some of the more challenging, bigger issues we've been grappling with," she says. "That is, how do we grow these decarbonized, multi-family, large residential buildings? How do we create opportunities for us to grow in the next generation?"

Hernandez notes that air quality is a huge issue for urban centers. Mixed-use developments encourage more walking, biking, and public transport usage, and less reliance on fume-emitting automobiles, so SouthTown will address that issue as well.

She notes that a study recently showed that about 86,000 people were commuting from nearby communities into Ann Arbor every day. 
courtesy Synecdoche DesignA rendering of SouthTown.
"Most of these working people would love to live in Ann Arbor but they can't afford it," she says. "We're also increasing affordability." 

About 80 SouthTown apartments will be workforce housing, priced to be affordable (costing no more than 30% of one's income) for tenants making 60-80% of the area median income. The other SouthTown development apartments will be market-rate, but city officials have said they believe any additional housing stock should help with affordability overall in the community.

Poscher adds that she can only imagine "how much carbon dioxide is added to the atmosphere from the commute alone."
Doug CoombeMarge Poscher and Margarita Hernandez at Venue by 4M.
"There's lots of research about how impactful improving air quality is, especially for children and the elderly," Hernandez says. "This is an opportunity for people to have better wellness the minute we start powering that building."

Hernandez says she hopes other communities will look at SouthTown as a model and that it will have a "ripple effect" across Michigan. Poscher says she hopes the development will "shift behaviors" as well, leading to more environmental gains and more resilient communities.

"We're hoping this is a model for future development, not just with my company, but hopefully other developers will jump on the bandwagon and start thinking like we think, in terms of utilizing all these different processes to create developments that are greener, more affordable, and that help to build the community," Poscher says.

Sarah Rigg is a freelance writer and editor in Ypsilanti Township and the project manager of On the Ground Ypsilanti. She joined Concentrate as a news writer in early 2017 and is an occasional contributor to other Issue Media Group publications. You may reach her at sarahrigg1@gmail.com.

All photos by Doug Coombe.