1590 Plainfield

Vacant Single-Floor Retail Opportunity.

Project Passed On

Neighborhood resident offered full asking price that was well above what the market should have commanded and would have produced little to no return in our model.

The Pitch

Creston Heights is somewhere in the middle of its revitalization with a lot of starting and stoping over the years. It is one of the highest transaction volume markets that we look as people are trading in and out of assets. A significant 100+ unit project attracted a flush of new businesses however, it stalled out when the developer imploded a few years back, but is now breaking ground.

Traffic study shows a 25 increase in morning traffic compared with the publicly available 2015 count data which is indicating strengthen for retail as the Plainfield corridor connects more traffic to downtown from the North where many first time home buyers are heading as the neighborhoods become a haven for younger families.

The building is a bookend in a line of various retail and next to City High, a prestigious high preforming public school.

The Numbers

This project is a return at TBD% target. The outcome depends strategy of renovate or rebuild.

  • 7.25% 5 Year Average Annual Return Cash-on-Cash.

  • Renovate and Hold Long Term.

  • 15.49% Projected IRR in Event of Sale at 7% Exit Cap in the Event of Advantageous Sale.

  • $25,000 Minimum

The Building.

2,400 SF vacant nearly condemned retail space on market for $189,000. Its condition includes collapsed roof and floor into a basement yet it has good bones to work with in terms of character. The other idea is to tear it down and build a 4 story luxury product.

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The Neighborhood.

A long sweeping corridor featuring a lot of unique elements such as a high-end country club, prestigious high school, and proximity to large swaths of neighborhoods and river access just minutes north of downtown and the bustling medical mile.

The City.

Grand Rapids, MI is undergoing tremendous and continued growth as the fastest growing metropolitan area in Michigan and is presently experiencing a significant housing shortage.

Butterworth Corridor.

Retail below will be built out as residential until commerce comes back to the street. Two 2BR apartments upstairs need to be finished.

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GRR 934 Butterworth