Investment : Development News

Things are really spiffing up around Lansing's REO Town. And if everything goes as planned for Lansing developer Larry Nakfoor, the neighborhood is about to get even spiffier.

Nakfoor’s Wenco Properties has a plan to develop the former gas station on the corner of Washington and Elm into a commercial site for restaurant, office or retail use.

Though a total estimate of the redevelopment cost won’t be known until the complete buildout plan is made for the future tenant, Wenco Properties intends to invest between $30,000-$40,000 on the exterior improvements to the building.

"This is a very visible corner property in REO Town," says Nakfoor. "Its renovation, along with the Board of Water and Light announcement to invest in a new generation [natural gas power] plant are both evidence that REO Town is worthy of further investment."

The Soup Spoon Cafe on Lansing's Eastside has been churning out breakfast and lunch to their happily dedicated local customers for four and a half years now. Those fans were no doubt pleased with their recent addition of a dinner menu and adult beverages.

Now, Owner and Chef Nick Gavrilides has added more good news to the pot: he recently purchased his building at 1419 East Michigan.

"It’s always been in the plans," says Gavrilides. "We’ve staked our commitment to this location. If you’re going to spend your business career in one place, you might as well own your space."

The timing of the purchase — so close to the restaurant’s other changes — was no coincidence.

Gavrilides explains that they acquired their permit to serve alcohol through a redevelopment liquor license. This type of license requires the owner to invest in the development of their property — something Gavrilides says he and his former landlord were doing even before he purchased the property.

Besides The Soup Spoon, the approximately 6,000 square foot property also hosts Bancroft Flowers and one available storefront.

"Purchasing the real estate is our commitment to Eastside, Lansing," says Gavrilides, "and we intend on staying for very, very, very long time."

Source: Nick Gavrilides, The Soup Spoon Cafe

Writer: Natalie Burg, News Editor 

All Photographs © Dave Trumpie

The personal trainers at Iron Quest Fitness have been helping people grow muscle, confidence and overall health in the Lansing area for seven years. They’ve also been doing some growing of their own.

In July of 2010, owner and director Jason McCammon opened a new 4,500 square foot location at 2510 E Michigan Ave in Lansing. By purchasing the property and building it out to his own specifications, McCammon was able to add much-needed facilities to his business.

"We’re now able to offer full shower facilities and locker rooms. That was a big deal for us," says McCammon.

"We also have a big open area for free weights, a kitchen area for staff, and a separate powerlifting room in the back."

The extra room allows Iron Quest to better serve their clientele.

Unlike most workout facilities, McCammon’s operation is exclusively for one-on-one training.

"We’re well-known for being experts on physiology," McCammon says. "Well set you up with a complete wellness and nutrition plan and then you meet with a trainer who takes you through private training sessions."

In addition to McCammon and his wife, Iron Quest supports up to six employees depending upon seasonal demand. After the $300,000 investment made in the new Michigan Ave building, he was pleased to see that demand rise.

"Really, the response was even greater then we expected," McCammon says. "We were only cautiously optimistic, but we’ve just had our best January yet. We’re really pleased."

Source: Jason McCammon, Iron Quest Fitness

Writer: Natalie Burg, News Editor 

All Photographs © Dave Trumpie

Thanks to a partnership with Dart Development Group and a new 30,000-sq ft facility, the entire Lansing-based Draths Corporation—including ten new employees and more on the way—is now under one big roof in Lansing.

The Draths Corporation is an MSU spin-off formed in 2005 with the idea of using fermentable sugars instead of petroleum-derived materials to produced chemicals used in the manufacturing of nylon, plastic bottles and resins. The Okemos-based company later expanded into a multiple-facility operation, including a Minnesota location, before consolidating at the new Lansing facility.

"Chemical plants usually start in a pilot phase and develop from there," says Draths Corp's operations manager, Roger Cook. Though the growing company is now in the pilot stage, they expect to move quickly into the demonstration and commercial stages over the next two to five years.

"This new facility has our lab size," says Cook. "We recently hired ten new employees and will be hiring more in the upcoming year."

In fact, while the company expects to bring on ten more highly-skilled employees in 2011, that’s just the beginning. Once in operation, the demonstration and production plants have the potential to create over 100 jobs.

Drath’s expansion came about as a partnership with Dart Development Group.

As it turned out, just when Drath needed a much larger facility and the capability of growing, Dart stepped forward with a building and a keen interest in their green technology.

"The building was really a shell when we first started talking to Draft," says Steve Mills, real estate manager with Dart. "We were able to build exactly to their specification, and we made a substantial investment—several million dollars—into the facility.

"We look at our tenants as a partnership," Mills says. "We want them to succeed."

Source: Roger Cook, Draths Corporation

Writer: Natalie Burg, Interim News Editor

Peckham, Inc. has been providing job training and employment opportunities for people with disabilities since 1976. After more then three decades of growth, the non-profit is now expanding their capabilities with a new 250,000 square foot warehouse.

Like their new Old Town headquarters, opened in March of 2009, the new warehouse facility at 5408 W. Grand River in Lansing will be LEED certified. The purpose of the building will be to make their operations more efficient.

"Peckham is excited about creating a sustainable warehouse which has the capacity to consolidate our warehousing needs in a more efficient space," says Jo Sinha, Peckham corporate vice president.

Construction on the new facility began in Oct. 2010 and is scheduled to be complete in May 2011. Peckham expects to invest $7.8 million in the project.

Other firms involved in the build are the Michigan companies, Pioneer Construction, Integrated Architecture and the civil engineering firm, Bergmann Associates, Inc..

When Andrew Abood was considering what to do about the extra office space in his 9,200-square foot building near the corner of Abbot Road and Saginaw Street in East Lansing, he noticed something missing in his neighborhood.

"There isn’t really a restaurant or bar on Saginaw in East Lansing," he says. "You have to go the McDonalds near Frandor before you can find something to eat or drink."

That notion got him thinking that perhaps the vacancy in his building, near Big Apple Bagel, had a greater purpose than just more office space.

On January 12, the East Lansing Planning Commission approved a special use permit to allow Abood to get creative with his property. His proposal included retaining his current space occupied by Abood Law Firm as office space while converting 2,200-sq ft of the building into a restaurant and bar and the final 1,700 sq-ft into a residential unit.

"The residential part is almost done,” says Abood. "It’s going one of the nicest places in East Lansing to live."

Abood anticipates he’ll invest approximately $200,000 in the project, and he’s eager to get work underway so that the search for the right restaurateur can be found for his space.

"It’s available to anybody who wants to come," he says. "The place will sit about 70 people. A restaurant like The Tap Room would work well in the space."

One of Abood’s goals with his upcoming project was to find a great use for the property while avoiding the long process of waiting for the right office tenant to come to him.

"I didn’t want to go another 18 months just to see what would happen," he says. With his residential unit close to completion and a great dining spot soon to be available to prospective businesses, it looks like he won’t have to.

Source: Andrew Abood, Abood Law Firm

Writer: Natalie Burg, Interim News Editor

After the Gillespie Group’s December announcement of the $6.7 million local and school tax capture granted by the Michigan Economic Growth Authority (MEGA) Board, just one piece of the financial incentive puzzle remained for the Marketplace project: a Michigan Business Tax Credit of a 20 percent.

After a December 22 meeting to consider the credit returned an approval, the firm can now move forward with their plan for the proposed $25 million project.

"We’re very excited about the approval," says Jason Kildea with the Gillespie Group. "That 20 percent credit is crucial. We needed it to make the numbers make sense."

According to Kildea, the 20 percent tax credit will allow the project to proceed on a scale that will maximize the use of the site.

While the necessary incentives have now been assembled, a good deal of work is still ahead for the Gillespie group before construction begins near East Shiawassee Street and North Cedar Street.

"During this first six to eight months, we'll be working to put the plans together and get the budget and financing in place," Kildea says. "There will be a lot of moving parts."

If all goes well, construction on the multi-phase Marketplace development could commence by the end of 2011. The first phase is slated to include 80-85 residential units and is expected to total a $6.5-$8.5 million.

The Gillespie Group is optimistic the investment will prove worthwhile — for the firm and for Downtown Lansing.

"It’s pretty easy to see there’s a residential demand Downtown," Kildea says. "The adage of these Midwestern cities in midst of a revitalization is that only way to get that shopping, dining and retail centered around downtown is to have a residential base. This will be one more step toward having more people living and supporting Downtown."

Source: Jason Kildea, Gillespie Group

Writer: Natalie Burg, Interim News Editor 

All Photographs © Dave Trumpie

As if the hip new businesses of Harem Urban Lounge, the Tin Can and The Loft on the 400-block of E. Michigan in Downtown Lansing—all in the last couple of years—weren’t enough, enter The Media Advantage.

"We’re younger than some of the other companies," says The Media Advantage owner, Jerome Michael White, 34, "and the focus for us is digital. We’re looking to evolve on a daily basis, not on a yearly basis." White, who lives in DeWitt and is also part owner of The Loft, worked for other companies in the media world for years, but also maintained a freelance graphic design business on the side.

"It got to the point where my freelance work was 50 percent of my income but 20 percent of my time," he says. "That’s when I decided to make the jump and brought on a trusted team."

That team includes four full-time and one part-time position, all new jobs created by The Media Advantage since its opening in May 2010.

That is in addition to the approximately $50,000 White invested in the start up. What makes his operation different than the 30 or so local marketing businesses White considers his closest competitors is offering comprehensive services with an extra emphasis on digital — and beyond.

"We handle the entire marketing platform for a number of clients which includes traditional media, but we’ve been concentrating on digital media," says White. "A year from now, I see us doing work for our clients that barely resembles what we’re doing right now. It’s a daily evolution."

Source: Jerome Michael White, The Media Advantage

Writer: Natalie Burg, Interim News Editor

Six months into the $3.5 million renovation of 104 S. Washington Square, officials at the MSU Federal Credit Union expect work on their new Downtown Lansing facility to be completed mid-March. An official opening event will take place in April.

“This branch will be full service,” says April M. Clobes, MSUFCU executive vice-president. “You can open a new account, apply for loans, [and] conduct transactions. We also have business account services and loans.”

During the July 2010 ground-breaking event, officials announced the new branch would employ 15-20 new employees.

According to Clobes, the hiring has already begun.

“We have hired several of the staff and expect the remaining positions to be filled in the next few weeks,” she says. “We hired ahead to focus the new staff on training and our service philosophy. This allows us to open the branch with a fully trained and knowledgeable staff.”

The Downtown Lansing Branch will be the MSUFCU’s ninth location. In September 2010, MSUFCU announced the beginning of construction on an additional branch on the corner of Farm Lane and Mt. Hope. This branch will take replace the current Crescent Branch location.

Source: April M. Clobes, MSU Federal Credit Union

Writer: Natalie Burg, Interim News Editor 

All Photographs © Dave Trumpie

The Sparrow Michigan Athletic Club (MAC), ranked sixth among the top 100 single-location health clubs in the country, has recently completed extensive renovations and enhancements including a new NBA-quality basketball court

It's also the only mid-Michigan club affiliated with a hospital.

"These investments, combined with the MAC's ability to integrate with Sparrow's wide range of clinical programs and services, advance our commitment to serve you as the region's most sought after fitness facility," says Sabarras George, executive director of the MAC, a division of Sparrow.

During the course of the last six months, the Michigan Athletic Club has now changed its logo, color and name to incorporate its long-standing relationship with Sparrow Hospital. 

Aside from the basketball court donning its new Sparrow-centric logo, the MAC also remodeled all four of its locker rooms, repainted the club and redesigned and resurfaced its gym floors.

The MAC has also launched an all-new website with an emphasis on user-friendliness in its design, including easy access to health-related information, programs and services available through Sparrow.

Source: Nicole Brillantes, Sparrow Michigan Athletic Club

Writer: Suban Nur Cooley

Tucked neatly and unexpectedly in the heart of the Moores Park Neighborhood in South Lansing is a 1,200 square-foot salon, Swank, offering everything from a haircut and highlight, to manicures.

At 711 West Barnes Avenue in Lansing, Swank is next door to the Moores Park Neighborhood Community Gardens.

“I’m the heirloom tomato guy,” laughs Brian Kohls, co-owner of Swank. Kohls lives in the Moores Park neighborhood and owns the business with his partner, Jeremy James.

“I had owned salons in the past and really had no intentions of doing it again,” says Kohls. “But we lived in the neighborhood, and Jeremy bugged me to look at this building for a couple of months until he finally wore me down. It looked like a good project.”

After two years of solid renovations and bringing the two-story building up to code, the salon and the two apartments above it were finally open.

Aside from Kohls loyal clientele who have followed him over his 25 years as a stylist, Swank also sees many of the Moore's Park residents “popping in” for services.

“It’s such a romantic idea, to be able walk from your home to get a manicure or a haircut . . . so I’m glad Swank is able to provide that.”

Source: Brian, Swank Salon

Writer: Suban Nur Cooley 

All Photographs © Dave Trumpie

When Tallulah’s Folly moved into Old Town, owner, David Gregware had no idea he’d not only become a destination for flowers and local, Michigan-made gifts; but also . . . macarons.

With Mama Bears Café as the main source for Old Town’s coffee and pastries, Gregware felt as though he had to do something when the café closed in November.

“I wanted to continue to offer people visiting the Old Town community a place to enjoy coffee and locally made sweet treats.”

That’s where Kelly Kobus, owner of A Piece O’ Cake and Le Bon Macaron, was able to step in and provide her expertise. Kobus has partnered with Gregware to sell her “uniquely-crafted” macarons at Tallulah’s Folly.

“For the moment we are selling just the macarons, but we hope to have A Piece O’ Cake cupcakes served at Tallulah’s soon, too,” says Gregware.

“I want people to come in, enjoy my space and then head back into Old Town equipped with delicious, one-of-a-kind treats and hot coffee.”

Source: David Gregware, Tallulah's Folly

Writer: Suban Nur Cooley 

All Photographs © Dave Trumpie

The Lansing Art Gallery will be relocating from its 113 South Washington Square location to a larger, more accessible space at 119 N. Washington Square, after its Board of Directors voted unanimously for this next step in the 45-year-old organization’s evolution.

The new space will be the lower level of 119 N. Washington and has elevator access for the public as well as a freight elevator for artists. The Lansing Art Gallery’s new home will also have a classroom space to support additional arts education, which was also viewed as an important reason for the relocation.

“I am excited about the new location. Lansing Art Gallery provides exceptional programs to the community, introducing the visual arts to thousands each year,” says executive director, Catherine Babcock. “Its mission — to provide public awareness, education and enjoyment of the visual arts by promoting the works of Michigan artists — depends on ease of access for all.”

The Lansing Art Gallery will relocate to its new space in Jan. 2011.

Source: Catherine Babcock, Lansing Art Gallery

Writer: Suban Nur Cooley

Janine Flitton has been dealing in antiques and collectibles for more than a decade in booths at antique malls. She eventually started itching to get her own space.

Now, she is the proud owner of the Country Hen House, an antiques, gifts and collectibles store at 106 W. River Street in downtown Grand Ledge, behind the Ledge Craft Lane gallery.

“It’s really nice to come into the store everyday and know that this place is my own,” says Flitton. “After a while, you get tired of paying someone else for booth space. I told myself that if I found the right place I would open my own store, so I did.”

If you visit the Country Hen House looking for certain collectibles and don’t find what you’re looking for, be sure to ask Flitton. After her years of collecting, not all of her inventory is currently on display at the store.

“Whatever you’re looking for might be stored away somewhere, so don’t be shy, and ask if you don’t find it. And even if we don’t have it, we [likely] know where to find it,” adds Flitton.

Source: Janine Flitton, Country Hen House

Writer: Suban Nur Cooley

Lansing-based Arialink — one of the largest fiber optic service providers in Michigan — is celebrating the connection of its 400th mile of fiber optic internet cable in the Capital region.

As the service anchor for the City of Lansing, Arialink fiber also supports the national corporate headquarters for Jackson National Life Insurance, TechSmith Corporation, Accident Fund, Delta Dental Insurance and Liquid Web Inc.

"We're out there every day, stringing up lines and micro-trenching fiber to completely overhaul the telecommunication infrastructure in Lansing," says Jason Schreiber, CEO of Arialink. "We want to bring world-class technology to every school and business in the Greater Lansing area. We need to stay competitive in the global economy — for today and for the future."

Currently in the process of adding more than 100 miles of fiber optic network, Arialink is rapidly expanding its coverage area in the Lansing region. Construction is underway to bring new fiber optic service to both Williamston and Webberville.

Source: Amber Shinn, Arialink

Writer: Suban Nur Cooley