By: Deborah Johnson Wood
Conversion of the former Union High
School on Grand Rapids’ West Side into 183 condominiums began in
2005—to-date only six units are left. The original plans called for 120
condos, but developer Union Square Condos LLC decided to create 63 additional units.
“We took the old auditorium which we
thought would be commercial space and turned it into condos,” says
project developer Jon Rooks. “We took the empty rooftop and built 22
penthouses, and turned an internal courtyard and workshop into condos.
We saved a great old building and we’re really proud of it. It’s the
perfect example of how adaptive reuse and Michigan [financial]
incentives can work.”
Those financial incentives include brownfield redevelopment incentives and TIFA financing.
But the most important incentives to the condo owners are a federal
incentive that reduces the mortgage interest rate by 1.5 percent, and
the nearly-tax-free advantages of living in a Renaissance Zone and a Neighborhood Enterprise Zone (NEZ).
“The discounted interest rate continues
until 2039,” Rooks adds. “The ren zone wraps up on January 1, 2012. A
big portion of the ren zone is property taxes and the NEZ extends that
property tax advantage to 2019.”
With the NEZ, owners of condos on the
first four floors pay only a 10 percent property tax; penthouse owners
pay only 50 percent.
The six units remaining include one
classroom conversion, three penthouses and two condos in the former
gymnasium. Prices range from $139,000 to $391,000.
“About one-third [of the residents] are
in their 20s and 30s,” Rooks says. “Another third are middle-aged
singles and marrieds; the rest are empty nesters in their 50s and 60s.
The interesting thing is the harmony of these diverse people and the
interesting lifestyle that creates.”
Source: Jon Rooks, Parkland Properties
Related Articles
Union High becoming 180 Condos in West Grand
Rooftop pool opens atop west side’s multi-million dollar condos
Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at [email protected].
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.