Housing proposed for old Catholic Charities building in Muskegon.
MUSKEGON, MI – Redevelopment is moving forward for a key piece of property in Muskegon’s Midtown district adjacent to downtown.
A purchase agreement for the former Catholic Charities property at 1095 Third Street was approved Tuesday, Aug. 23, by the Muskegon City Commission.
The purchaser, Suburban Property of Ada, earlier this year submitted a plan to develop the existing building into apartments and construct new townhomes on Houston Avenue as well as a new mixed-use building at the corner of Third Street and Muskegon Avenue.
The property takes up the block of Third Street between Muskegon and Houston avenues, about half of which is occupied by the existing 30,000 square foot building.
The site bridges downtown and the Midtown business district along Third Street and is a key piece in the city’s attempts to build a “walkable” downtown by connecting various commercial areas.
The city took ownership of the property when it traded a lot on Seventh Street with Catholic Charities. That’s where the nonprofit built its current administrative offices and a new substance abuse detox center that opened last year.
Suburban Property has a 90-day due diligence period prior to closing during which a development agreement and timeline – with consequences for missing it — will be finalized.
The purchase price is $100,000, and Suburban Property will pay a refundable $10,000 deposit for the due diligence period.
During the due diligence, the purchaser will conduct investigations into utilities, physical condition of the property, soil tests and other evaluations.
The purchase agreement also obligates Suburban Property to complete the proposed development. That development includes the construction of eight to 12 townhomes on the 1095 Third Street property between March 2023 and March 2024.
Following completion of the townhomes, the existing building will be turned into an apartment building by around April 2025, according to the agreement. The development plan calls for 33 one-bedroom and two studio apartments and up to another 12 basement-level units in that building.
And by around May 2026, a 3- or 4-story mixed-used building with retail/restaurant space and apartments will be constructed on property at 301 W. Muskegon Avenue.
In addition to Suburban Property, the project team includes Integrated Architecture and Erhardt Construction.
The city sought proposals for redevelopment of the former Catholic Charities about a year ago. Three development teams toured the property but only one submitted a proposal.
The building previously was known as the Midtown Building, where Catholic Charities – at the time Catholic Social Services – had been a tenant since 1984. Catholic Charities purchased the building in 2002.
The Midtown district is home to several small businesses, including Third Coast Vinyl, The Griffin’s Rest, Hamburger Mikey, The Curry Kitchen and Naan Pizza, Only Cannoli and Muskegon Family Foods as well as the Muskegon YMCA.
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