Studio Park building out fifth-tallest tower in city

‘World-class’ structure set to bring more residential space to catalytic development.
Studio Park building out fifth-tallest tower in city
<strong> Rendering courtesy Studio C </strong>

Once the residential tower expansion of Studio Park is completed, J.D. Loeks just might find himself living in the “world-class” units.

Construction is well underway on the residential tower phase of the Studio Park development at 123 Ionia Ave. SW, which is a $62 million, 16-floor residential tower with apartments and condominiums. Once completed, likely in late 2024, the catalytic downtown project will be well north of $200 million in investments, said Loeks, partner in Olsen Loeks Development and president of Studio C, owner of project.

The first $130 million phase opened in 2019 and includes a nine-screen movie theater, outdoor piazza, 200-seat concert venue and multiple dining and retail options, as well as a 900-space parking garage. Phase 2 opened in 2020, including a seven-story, 100,000-square-foot office building that brought Acrisure downtown and the 155-room Canopy by Hilton Hotel. The complex also has 106 existing apartments.

As the world continues to wade through turbulent economic times with rising interest rates, increasing construction costs and tight labor markets, it might seem like a curious time to embark on a massive project. For the Studio Park development team, however, it was perfect timing.

“Now was always the timing,” Loeks said. “It became a more challenging project, but we’re feeling pretty good with what we have with the downtown market for apartments being generally fully saturated.”

Loeks said they also are hedging the investment by adding condos to the mix.

Courtesy Studio C

The new residential tower is set to have 165 apartments and up to 30 condos. Loeks said there already is a list of potential buyers for the condos and the apartments in the earlier phases of the development also have a wait list.

The market-rate apartments are expected to rent between $1,500 and $2,900 for a mix of studio, one- and two-bedroom units, according to city documents. Loeks said the condos will be brought to market in March, likely starting at $500,000.

The complex will include a competition-length pool, full gym, a sundeck with a pickleball court, co-working space, dog-wash area, commercial laundry equipment and a community kitchen.

“We are really bullish on the design of the building, it’s a world-class facility,” Loeks said. “It’s just going to be a great place to be.”

Studio Park has proven to be an exciting addition to downtown and will continue to act as a catalyst for downtown development for some time, said Scott Nurski, senior multifamily investment specialist at NAI Wisinski Great Lakes.

“It has a lot of great things going for it, so adding more housing in that context makes sense,” Nurski said, noting historically high occupancy in downtown Grand Rapids. “There are too many people looking for not enough options and that drives prices up.

“That growth is starting to recede slowly, but I think for Studio Park and the new tower, they’re in a pretty good position for need and desire and the right location for a new project. I feel positive and optimistic that they’ll do well.”

As the residential tower is on top of the six-deck parking garage, once completed the building will stand 22-stories high. That will put it on par with the JW Marriott and likely the fifth-tallest building in the Grand Rapids skyline, Loeks said.

“I keep hearing a lot of the construction crew on site say how proud they feel about building a new piece of the Grand Rapids skyline, and we feel the same way being able to have an impact on the town we live in and call home,” he said. “It means it also creates additional development around town. That’s part of why we do it.”

A pair of out-of-state developers recently proposed a multi-story apartment project south of Studio Park.

There also could be more projects from the Studio Park team moving forward. The developers own a surface lot across the street from the site that could be home to an expansion of the Acrisure headquarters. For now, Loeks said that is a discussion the insurance brokerage is having internally.

“Acrisure knew before they built a building that they would run out of space pretty fast, but we were effectively able to create an opportunity to expand should they choose to right across the street,” Loeks said. “Whether they build there is up to them, but we’re poised and ready to help them expand if they need to.”

This story can be found in the Oct. 31 issue of the Grand Rapids Business Journal. To get more stories like this delivered to your mailbox, subscribe here.