Family Church acquired the former Huntington Bank headquarters in Holland Township, Michigan, with plans to remake the office building as a church and education center, setting up the market's latest adaptive reuse as the dwindling demand for office space makes these properties ripe for conversion. In recognition of this trend, this deal earned the 2023 CoStar Impact Award for sale/acquisition of the year in West Michigan, as judged by real estate professionals familiar with the market.
Family Church paid $7 million to Arrowpoint Capital in August for the former Huntington Bank building at 10717 Adams St. Set to be its third location, the church said at the time it would use the main floor for both fellowship and sanctuary worship space, while the upper floor would be utilized as educational space. The church said it plans to open the doors of its new church in 2023.
Adaptive reuse continues a growing trend in the national office sector where vacant or underutilized buildings are being repurposed as hotels, churches or apartment complexes, as extended work-from-home policies have stunted the demand for office space. That is especially true in older buildings that are missing the modern amenities that have become integral in attracting and retaining talent.
About the project: One of the larger commercial buildings in the area, the 132,127-square-foot, three-story 10717 Adams St. building was on the market for over a year with an initial asking price of $10 million before Family Church bought the property last summer. Originally built in 1992, the building was shuttered as part of Huntington's merger with FirstMerit Corp. in 2017. The property is located off Interstate 196 just outside of downtown Holland and features such amenities as a gym, cafeteria and conference rooms.
What the judges said: "10717 Adams Street was a difficult transaction in the tough office leasing market," said Stanley Samuel, vice president of construction and development at Wolverine Development Corp. "It required innovating thinking to find a suitable buyer who in all likelihood would need to invest significantly to adapt to their use, yet delivering a competitive price for the sellers."
"The city may not like the tax revenue loss, but it is a flagship property that will positively impact the culture of the area," said Paul Cleary, president and chief operating officer of Red Oak Capital Group. "Better than a vacant building for years."
They made it happen: Jeff Karger of JLL represented Arrowpoint Capital in the sale, while Steve Sterken of Coldwell Banker Woodland Schmidt represented Family Church.
