GRAND RAPIDS, Mich. — (GRBJ) - A DeVos-affiliated company is planning to renovate a building downtown to create a 32-room “high-end” hotel.
Limited liability company 55 Ionia Partners, affiliated with RDV Corporation, plans to renovate the top floors of the 13-story building at 55 Ionia Ave. NW in downtown Grand Rapids, according documents from the Michigan Economic Development Corporation.
“55 Ionia Partners is exploring a boutique hotel concept that would convert three floors of The Morton into a 32-unit high-end hotel catering to extended-stay guests,” RDV Corporation confirmed in a statement. “Completion of the project is targeted for 2020. We believe there is strong demand for this niche offering in the Grand Rapids market.”
The company is seeking a $3.5 million loan from Macatawa Bank for the project, which is meant to “improve marketability of the unleased commercial space and improve the overall project cash flow,” according to the MEDC document.
The $24.3 million building renovation, completed in 2015, created 40,000 square feet of commercial space on the first two floors and 85 residential units, with condos on floors 12 and 13, the MEDC said.
Converting the unsold condos and a portion of the apartments, it is anticipated the new hotel would generate “between $300,000 to $600,000 of additional cash flow” after payment of the new debt, the MEDC said.
The company received a $4.3 million loan from the MEDC’s Michigan Strategic Fund for the previous project, which did not cover the condos on floors 12 and 13; that contract requires the consent of the MSF for any additional debt on the property.
This story originally appeared in the Grand Rapids Business Journal. To find similar content, pick up a copy or find more on their website.
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