Traverse City is Vibrant & Growing
Welcome to the height of summer in Traverse City! This is normally the time of year when the weather is perfect, the bay is finally warm and tourism is at full throttle. I was going to say that if the weather was like this all year long our population would probably be 100 times larger than it is, however after last night’s storm that knocked out power and tore trees out of the ground, today might not seem like the day you want to move here. That said, the festivals, outdoor events, culinary experiences and summer homes have brought many tourists up north to visit our area. In addition to the transient summer traffic increase, we have seeing more long term, year-round growth than we have in a decade.
Driving around town it is impossible to miss all of the new construction underway. The Hotel Indigo is nearing its final stages of completion, Carmike Cinema’s new 14 screen theater and Imax is going up quickly, Munson Hospital is completing its new Cancer Center and East Bay Plaza is getting ready for the opening of a new building that will house Bigby Coffee, Domino’s Pizza & a Sprint cellphone store.
There is a strong demand for residences in the heart of downtown and multiple condo developments are underway as well. These include the condos that Socks Construction completed at Old Towne Corner on Cass Street with more on the way on Randolph Street by Bay Bread, Tom McIntyre’s development, Washington Place, on Cass Street and Burdco’s Uptown development on the Boardman River at State & Pine Street. The latter are complete with green roof tops to maximize the building footprint as well as encompassing other benefits of green building.
There are developers proposing condos at Front Street and Pine Street that could be as tall as 100’. Across the street, Federated has begun marketing modern loft style condos on the river side of Front Street by J&S Hamburg with 47 residential units with retail and restaurant space on the ground floor. Developers for the Park Place Hotel have asked to build a $50 million development in 4 phases on multiple properties around the hotel.
There are so many construction projects occurring it is very encouraging for our local economy. Villa Mari Vineyard and Winery will be a showcase winery on Old Mission Peninsula complete with an underground wine cave. Meijer in Acme is finally nearing completion after a long struggle to get approval from the township. The Moorings in Greilickville will have 97 single family home sites. Plans have been submitted for large apartment complexes in Garfield Township, Traverse City and Acme Township among others. It’s been a long time since there was this much construction activity and it is getting difficult to find a builder in town with time to work on new projects.
Want to own a piece of all this action? Carmike is listed for sale for $17,195,000 which is a 7.5% cap rate with a new 20 year lease in place. Sherwin Williams is building a new contractor paint store on Trade Center Dr & Industry Road. The 6,300 SF building is listed for sale at a 6.25% cap rate with a new 10 year corporate lease with Sherwin Williams. Or you can get into the development action by purchasing the largest piece of development property downtown. The almost 2 acre site is not on the market, but ownership tells me they’ll look at offers.
-Dan Stiebel, CCIM