Magnus Capital completed a 114-unit apartment project in Holland, Michigan, last spring, the second of three developments for the local firm as it works to address the shortage of high-quality affordable workforce housing in the area. In recognition of the project, the apartment complex earned a 2023 CoStar Impact Award for multifamily development of the year in West Michigan, as judged by a panel of local industry professionals.
Wyoming, Michigan-based Magnus wrapped up work last March on the HōM Flats at Felch Street, a property that combines both market-rate and affordable units minutes from The Shops at Westshore mall and Town Center Holland. The project is part of the company's HōM Flats line of developments that aim to fill a gap in affordable workforce housing — a term generally understood to mean affordable housing for middle-income workers that don't make enough to afford market-rate rents in reasonable proximity to their workplace. It is most often associated with public service workers such as teachers, police officers and firefighters who earn wages that cannot keep pace with the rising cost of housing in the area.
“Our HōM Flats properties are addressing the nationwide housing crisis,” Magnus CEO Vishal Arora said in a statement in December, when it broke ground on its third HōM Flats project, the 240-unit HōM Flats at Maynard. “Wage growth is not keeping pace with the rise in housing prices, and there’s simply not enough housing to keep up with the demand."
In Ottawa County, where HōM Flats at Felch Street is located, Magnus estimates that more than 22,700 households are cost-burdened, meaning they spend more than 30% of their income on housing costs, including mortgage, rent, taxes and insurance.
About the project: The $22 million mid-rise multifamily complex consists of one- to three-bedroom apartments and includes such amenities as a gym with fitness classes, a pickleball court, a resident cafe, a game room, a package delivery room and indoor dog washing stations. The property is located near U.S. Highway 31 and within 10 miles of Holland State Park at 12181 Felch St. Of the 114 units, 77 have been set aside as affordable.
What the judges said: "One of the long-term effects of raising interest rates will be the inability of affordability to multiple generations," said Brian Holland, chief financial officer of DTN Management Co. "This development is addressing this issue."
"The development demonstrates high-quality design, overcoming zoning challenges and providing affordable housing," said Stanley Samuel, vice president of construction and development at Wolverine Development Corp. "It is truly the highest and best use for the location."
They made it happen: Magnus Capital Partners owns the property. Rohde Construction was the developer. Hooker DeJong was the architect and Exxel Engineering was the engineer. Magnus Services handles leasing and property management.
