News Summary
The historic Ledyard Building in Grand Rapids is set for transformation into 36 affordable apartments, with a project cost of $11.4 million. This initiative, led by CWD Real Estate Investment, is a response to the urgent housing demands in the area. The Grand Rapids Downtown Development Authority has approved $4.6 million in tax incentives to support the project, which aims to revitalize the building and meet the growing need for affordable living options downtown.
Grand Rapids is poised to see significant changes with plans to convert the historic Ledyard Building into 36 affordable apartments, with an estimated project cost of $11.4 million. This conversion marks a pivotal development in response to the growing need for housing in the downtown area.
The Ledyard Building, located at 125 Ottawa Ave. NW, was constructed in 1874 and is recognized as the second-oldest commercial building still in operation in Grand Rapids. The project is spearheaded by CWD Real Estate Investment, which aims to revitalize three floors of the building. The converted space will feature a mix of one- and two-bedroom apartments, catering not only to residents looking for affordable living options but also to meet the city’s urgent housing demands.
To facilitate this ambitious project, the Grand Rapids Downtown Development Authority (DDA) has approved a request for $4.6 million in tax incentives. These incentives will play a critical role in financing the conversion and include a designating of the site as a Neighborhood Enterprise Zone, aimed at reducing property taxes associated with the redevelopment.
Background Context
The occupancy rate of the Ledyard Building has experienced a notable decline, dropping from 90% in 2018 and 2019 to approximately 50% currently. This decrease has been attributed to “occupancy trauma” resulting from shifts in work environments following the COVID-19 pandemic. The building offers around 100,000 square feet of office and retail space, which has contributed to the urgency for adaptation to residential units.
The conversion project plans to reserve eight of the new apartments for tenants earning up to 60% of Kent County’s area median income (AMI). For a two-person household, this translates to an annual income of approximately $51,120. The remaining apartments will be targeted towards individuals earning up to 120% of AMI, which is about $102,240 according to state figures.
Support for the project has been emphasized by Grand Rapids Mayor David LaGrand, who highlighted the need for more housing in a walkable downtown environment. A housing study has indicated that by 2029, Kent County will require approximately 33,914 new housing units, with nearly 39% of that need located in Grand Rapids.
Future Steps and Impact
The DDA’s approval of the tax incentives is just the first step, as the proposal now awaits further consideration from both the Grand Rapids Brownfield Redevelopment Authority and the City Commission. If all necessary approvals are secured, construction is projected to commence by the end of 2025 or early 2026, with an anticipated completion timeline of about one year.
In addition to the DDA’s financial support, CWD Real Estate Investment plans to apply for a “Missing Middle” grant from the Michigan State Housing Development Authority to secure further funding for the project. This project reflects a broader trend in downtown Grand Rapids, focusing on the conversion of underutilized office spaces into much-needed housing options in light of changing workplace dynamics.
CWD’s commitment to residential development includes their current project at the Fifth Third Building, which involves the creation of 140 new apartments, also set for completion by 2026. This trend of converting office spaces to residential areas aims to activate the Central Business District and address the pressing issue of diminishing office occupancies while catering to the rising demand for affordable housing in the city.
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Additional Resources
- MLive: Grand Rapids Board OKs $4.6M Incentives for Office to Housing Conversion
- Crain’s Grand Rapids: Investor Plans Second Office to Residential Conversion
- Fox17: First-of-Its-Kind Redevelopment of Office Building into Residential Space
- Wikipedia: Residential Development
- WoodTV: From Offices to Housing: Construction to Begin on Fifth Third Building Project
- Encyclopedia Britannica: Housing
Author: STAFF HERE GRANDRAPIDS WRITER
GRAND RAPIDS STAFF WRITER The GRAND RAPIDS STAFF WRITER represents the experienced team at HEREGrandRapids.com, your go-to source for actionable local news and information in Grand Rapids, Kent County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as ArtPrize, Festival of the Arts, and World of Winter. Our coverage extends to key organizations like the Grand Rapids Chamber of Commerce and Grand Rapids Community Foundation, plus leading businesses in furniture, healthcare, and technology that power the local economy such as Steelcase, Spectrum Health, and Meijer. As part of the broader HERE network, including HEREDetroitMI.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
