Construction is underway on a mixed-use development at the former Lake Trust Credit Union headquarters.
Crews broke ground last month at City View apartments, which will bring 172 units and a gym to 501 and 503 S. Capitol Ave. in downtown Lansing.
California-based developer Westpac Communities tapped Wieland construction to renovate the existing building and build another in a nearby lot, CEO Patrick Smith said Monday.
The former Lake Trust building will house 55 apartments ranging from studios to two-bedrooms. The new, second building at 503 E. Capitol Ave. will have 117 more units, said Kevin Shaw, vice president of marketing at Wieland.
Both buildings are expected to be completed by the end of 2022. They will contain both market-rate and affordable units, Smith said.
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Lake Trust relocated to Brighton in 2015, but operated a branch out of the Lansing headquarters for years afterward. The site had been considered as a location for a new Lansing City Hall, but was instead sold to developers in 2018.
The pandemic delayed construction at the site and changed what the complex will look like. The apartments have been reimagined to accommodate increased work from home, with some studios being swapped for one- and two-bedroom units.
“We’re also adding in air filtration systems that protect against COVID in the buildings,” Smith said. “There’s biological micro-filters that will clean the air in apartments.”
The most notable addition is a gym and yoga studio, the Training Factory, in the retail space. Paid memberships are open to both residents of the complex and the general public.
It will be the first public gym in downtown Lansing since the YMCA closed in October.
“There’s approximately 18,000 square feet of commercial-retail, and 5,000 of that is committed to a gym and yoga studio called the Training Factory.” The gym specializes in personal training and fitness classes, and already has a 24-hour location at another Westpac complex in Okemos.
The product of a public-private partnership, the Lake Trust redevelopment is intended to connect downtown Lansing with REO Town a half mile south, two areas currently bisected by I-496. The city will give Westpac more than $9 million in brownfield reimbursements for environmental remediation at the site linked to lead paint and a nearby gas station.
Renovations at the Lake Trust building will cost $8.6 million, and new construction of the second building will cost $22.6, said Karl Dorshimer, vice present of economic development at Lansing Economic Area Partnership.
“The city and the Lansing Brown Redevelopment Authority (LBRA) has worked for several years, including through the pandemic, to make this project become a reality,” he said in an email. “With the use of the brownfield financing tools the LBRA attracted $32 million in private investment to add more housing options and also bring a large vacant office building back to life.”
Westpac has several complexes in Greater Lansing, including the Elevation Apartments in Okemos and the NoCa Lofts in East Lansing. Work continues on the Village of Okemos, a mixed-use site at the corner of Hamilton and Okemos roads that includes 205 apartments and commercial space.
Smith declined to disclose specifics on who will occupy the remaining commercial spaces, but said a shared office space company is looking at the property to accommodate Lansing’s telecommuters.
“I think that this property is a transition between REO Town and downtown, and it creates walkability because it adds a shelter,” Smith said. “I’m hoping for a huge success and that it will rejuvenate downtown. Downtown is changing and people would love to be in the vibrancy.”
Reporter Natallie St. Onge contributed to this story.
Contact reporter Krystal Nurse at (517) 267-1344 or email@example.com. Follow her on Twitter @KrystalRNurse.