InvestUP reports 200 more units in the pipeline
UPPER PENINSULA, Mich., April 2, 2024 – InvestUP CEO and Build U.P. President, Marty Fittante is pleased to announce the start of two new housing projects in the Upper Peninsula.
“Both projects add critical housing and create new vibrancy to two of our core communities,” said Fittante. “We congratulate the development teams, the banks involved, and the communities affected.”
The first project called The Annex is in Sault Ste Marie and developed by Community Housing Network (CHN), a Michigan nonprofit committed to creating attainable housing. The project converts the former Chippewa County Courthouse Annex into seven one-bedroom and four two-bedroom apartments targeting middle income renters. The project is expected to be completed by fall of this year.
“Build U.P. was a critical piece of the puzzle in making this project happen,” said C.J. Felton, Director Real Estate Development at Community Housing Network. “We are fortunate to have a permanent loan from Central Savings Bank, but it didn’t completely cover our appraisal gap. The collateral from Build U.P. helped us close that gap and move forward.”
Build U.P.’s program supports loans to housing developers by partnering with local lenders when the loan has some risk related to appraisal shortfalls and loan-to-value concerns—a problem common to financing housing projects in many parts of the Upper Peninsula. Build U.P. provides a collateral deposit to the lender so the loan can be made. The collateral deposit comes back to Build U.P. as the loan is repaid, revolving the funds to other projects.
The second project is the conversion of the former MBank headquarters building in downtown Manistique into a mixed-use of office and three long-term apartment buildings. Kristina Behrens and Antonio Adan are the developers and have had a vision to redevelop the structure for some time. The project will be completed this fall.
“Our goal is to add to the visibility of downtown Manistique as a destination to live, work, and play. We are tremendously grateful to the community partners who have supported us to implement our vision,” said Behrens.
Peoples State Bank of Munising is the local bank leading the financing for the project. Greg Schuetter, Vice President, said, “The Build U.P. program provides straightforward solutions to overcome financing challenges that arise when lending in our small communities.”
Adding quality housing stock to the community is a goal of Manistique and the project stands as an example of what more can be added to the city when local partners work together with Build U.P.
“Kristina’s decision will enrich our community and foster additional growth,” said Victoria George, Executive Director of Schoolcraft County Tourism and Commerce. “We are grateful for her example and dedication to making a difference here.”
______________________________________________________________________________________________________
Fittante stated that housing availability of all types continues to be the most important issue facing residents of the Upper Peninsula.
“Through InvestUP, we poll residents of the Upper Peninsula on critical issues affecting the economic well-being of the region. For the second straight year, housing availability continues to lead all categories of concern by a wide margin,” Fittante said.
While high interest rates and construction cost inflation have slowed housing development over the last few years, Fittante noted that optimism for project starts is increasing and that Build U.P. has a pipeline of projects of nearly 200 new housing units representing all geographic areas of the Upper Peninsula.
“We are excited about assisting these two projects as this can be repeated elsewhere in all our Upper Peninsula committees.” Fittante said. “This is exactly what we envisioned when we created Build U.P. and we encourage all with housing project ideas to contact us”
For more information, visit the Build U.P. website at www.buildupmi.com.
