A $52-million, mixed-used development in the region is underway.

Groundbreaking on the 15-story, 340,000-square-foot development in Kalamazoo called The Exchange will be held on May 12. Grand Rapids-based Orion Construction has already begun work on the project.

The site, at 155 W. Michigan Ave., and development are owned by Portage-based Phoenix Properties and Kalamazoo-based PlazaCorp Realty Advisors.

Orion is the construction manager, and the architect is Kalamazoo-based Byce & Associates.

The project is financed through a mix of private equity and incentives from the Michigan Economic Development Corp.

“This is a complex project, so we must have a deep understanding of the building systems, team dynamics and the external challenges of working on a tight site,” Orion Construction President Roger Rehkopf said.

The mixed-use building is expected to bring 133 residential units, office and retail to downtown Kalamazoo, along with parking, once it’s finished in two years.

There will be several retail spaces, two floors of office space, a two-story banking center, 15th-floor penthouse and seven floors of one-, two- and three-bedroom apartments.

“This project requires a massive collaboration of private and public entities,” Rehkopf said. “The shared vision will steer this project to success, and we know there are many folks to thank for these efforts.”