Lansing, MI | Midwest Multifamily | Investment Highlights

Lansing, Michigan is the capital city of the state and is centrally located between Detroit and Grand Rapids. The city is home to numerous government institutions, including the Michigan State Capitol. It is also a hub for business and industry, particularly in the automotive and manufacturing sectors. With a population of approximately 600,000, the Lansing MSA is a known for its abundance of jobs and its proximity to Michigan State University.

Development Incentives and Supportive Policies:

Lansing has a well-developed infrastructure, including excellent transportation networks, healthcare facilities, educational institutions, and recreational amenities. Lansing's local government is has shown a commitment to promoting real estate development by offering a range of incentives and supportive policies. These include tax abatements, grants, and expedited permitting processes, which are designed to encourage developers to invest in multi-family projects. Additionally, the city's comprehensive planning initiatives and zoning regulations provide clarity and guidance for developers, streamlining the development process and mitigating potential obstacles. Read more >>$13M in funding awarded across Michigan to support housing development, rehabilitation

Top 3 Notable Multifamily Developments in Lansing:

#1 Red Cedar Development- 127-room senior living facility, 181 luxury apartments, 792 bed student housing complex, retail and medical office space.

The Red Cedar development in Lansing, Michigan has transformed a former municipal golf course into a major commercial and residential space. The $260M project, includes high-rise buildings with housing, shopping, and dining options.. An amphitheater and two hotels — an AC Mariott and a Hyatt House — are the only unfinished additions. The hotels will include 295 rooms and share some amenities, including Toscana, a 5,000-square foot Italian restaurant. The $260M project is privately funded by developers, who will be eligible to receive up to $38M in reimbursement from the Lansing Brownfield Redevelopment Authority. Read more >>Long-awaited Red Cedar Project reaches completion

#2 New Vision Lansing - 450 residential units, 500 parking spaces, retail, office space, entertainment, and an acre of outdoor amenity and green spaces.

New Vision Lansing is a proposed a $230M development plan that will include a $40M grant from the State of Michigan. The plan includes three projects: the Tower on Grand, a 25-story apartment complex; the renovation of an existing office building at Washington Square into apartments; and the Capitol Tower, a mixed-use building with apartments and office space. The projects would be funded in part by a $40M one-time grant from the state budget and proposed tax credits. Construction is expected to begin in Q2 2024.

Read more >> Downtown Lansing’s ‘New Vision’ costs $230 million

#3 City View Apartments - Office to Multifamily Conversion, 172 units

The Lake Trust Credit Union's former headquarters is has been renovated into multifamily residential apartments and commercial space, with a new performing arts center also planned. The total capital investment for both buildings is expected to be around $49M. This project Lansing received $1.2M in state economic development funding. Read More >> Photos inside new apartments at former Lake Trust Credit Union in downtown Lansing

Economic Growth

Lansing's economy has experienced steady growth in recent years, driven by industries such as automotive manufacturing, healthcare, and technology. The presence of major employers like General Motors, Michigan State University, and Sparrow Health System ensures a stable job market, attracting a steady influx of residents seeking rental housing.

Click here to read about GM's plans to develop a $2.6 billion battery plant and invest an additional $510 million in existing Lansing area facilities.

Affordable Housing Market:

Compared to other major cities in Michigan, Lansing offers relatively affordable housing options, making it an attractive choice for renters. The city's multifamily market provides a range of housing options, from affordable apartments to upscale condominiums, catering to a wide range of tenants.

The Lansing multifamily housing market offers a wide range of properties catering to various levels of investment. Whether investors are looking for smaller, affordable units or larger, high-end properties, there are options available that can align with investment goals and budget.

The Berkadia Investment Sales team has identified multifamily investment opportunities available now in Lansing ranging from $2.5M-$46M. If you're interested in learning more about investment opportunities in Lansing, feel free to reach out to your trusted Berkadia advisor. Let's discuss how you can take advantage of this growing market! Click here to schedule a call with me.

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