Renovation of a long-vacant building will create new apartments, short-term rentals in a commercial zone, and flexible space for local nonprofits in Muskegon’s Midtown district.
FOR IMMEDIATE RELEASE
December 16, 2025
LANSING, Mich.– Michigan Community Capital (MCC) is supporting the transformation of a long-vacant roughly 26,500-square-foot building at 1095 3rd Street into the Muskegon Midtown Center, a 63,000-square-foot mixed-use development that will bring new housing, tourism-focused lodging, and community-serving space to a deeply distressed commercial corridor. MCC is providing $12 million in federal New Markets Tax Credit (NMTC) allocation as well as a source loan through its lending subsidiary, Magnet Lending Corporation.
“This project is more than bricks and mortar for us – it’s an opportunity to create new housing options, support small businesses, and make space for organizations that serve our neighbors every day,” said Frank Peterson, Operating Partner at WheelFish Group, LLC. “Muskegon Midtown Center represents the kind of layered, community-driven investment that can expand opportunity for people who live and work in this district.”
WheelFish Group, LLC will renovate the existing structure and construct a sizable addition to create 56 residential units, 17 of which (30%) will be affordable at or below 80% of area median income (AMI). In addition to apartments, the project will include commercial space for a short-term vacation rental business that is intentionally located in a commercial district, flexible meeting and classroom space for local nonprofits and grassroots groups, and back-of-house space that will support operations at the nearby Hackley Castle Inn and Suites boutique hotel.
“Muskegon Midtown Center is exactly the type of catalytic, mixed-use investment that New Markets Tax Credits were designed to support,” said Eric Hanna, president and CEO at Michigan Community Capital. “By pairing our NMTC allocation with a loan from our subsidiary Magnet Lending Corporation, we are able to help bring new homes, responsibly located short-term rental services, and community-centered nonprofit space to a corridor that has experienced disinvestment for decades.”
The project is located in a census tract which qualifies for NMTC as a “deeply distressed” tract with a poverty rate of 33.7%, median family income at 36% of the area median, and an unemployment rate more than twice the national average. The site is also in an Opportunity Zone and a CDFI Investment Area, underscoring the need for reinvestment and accessible opportunities for residents.
Dudley Ventures / Valley National Bank is serving as the NMTC investor.
“We are proud to be the NMTC investor in the Muskegon Midtown Center. This mixed-use development will create needed quality housing and nonprofit space, as well as support long-term community revitalization,” said Troy McClelland, Vice President of Tax Credit Services at Dudley Ventures. “Our commitment reflects a belief in Muskegon’s future and the power of strategic partnerships to create lasting economic and social impact.”
Muskegon Midtown Vacation Rentals, LLC will lease space for 11 short-term vacation rental units within the mixed-use building. This model aligns with the City of Muskegon’s approach of treating vacation rentals as commercial enterprises and locating them in appropriate commercial zones. Concentrating short-term rentals in the Midtown commercial district helps direct tourism spending toward local businesses and restaurants while preserving the peace and character of residential neighborhoods.
Reset Ventures, a local nonprofit that has deployed more than $3 million to support community organizations since 2021, plans to lease space for community-oriented meeting and classroom facilities. The space will be available to smaller nonprofits and grassroots groups that often lack access to affordable, professional venues for their work. Planned uses include neighborhood organizing meetings, skills-building classes, nonprofit retreats, and community forums that strengthen local networks and civic engagement.
Hackley Castle Inn and Suites, a boutique hotel under construction in a former 1890s school building across the street, is expected to lease lower-level space in Muskegon Midtown Center for storage, staff training, and other operational needs. This arrangement will help preserve guest-facing areas in the historic hotel while supporting efficient day-to-day operations.
Michigan Community Capital
Michigan Community Capital is a 501(c)(3) nonprofit that exists to promote community and economic development, the creation of wealth and job opportunities; and to facilitate investment of private and public capital in Michigan. MCC is focused on driving economic mobility of low- and moderate-income Michigan residents and drives community development impacts in three key areas: Real Estate Development, CDFI lending, and New Markets Tax Credits. MCC is a U.S. Treasury certified Community Development Entity (CDE) and through its affiliate, Magnet Lending Corporation, a certified Community Development Financial Institution (CDFI). Since 2005, MCC has supported over $1.4 billion in project financing, successfully attracted $510 million in federal New Markets Tax Credits, and helped to create over 1,500 housing units and facilitated the creation and/or retention of over 5,000 high-quality, accessible jobs. Michigancommunitycapital.org.
###