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.
###
Renovation of Shed 7 will modernize Detroit’s historic food hub, expand refrigerated space for urban growers, and strengthen regional food system.
FOR IMMEDIATE RELEASE September 30, 2025
LANSING, Mich. – With support from Michigan Community Capital (MCC), the Eastern Market Partnership (EMP), together with its subsidiary Eastern Market Development Corporation (EMDC), is renovating and expanding the outdated Shed 7 building to create an approximately 43,000-square-foot cold chain- and Food Safety Modernization Act-compliant space. MCC has provided $10.75 million in New Markets Tax Credit (NMTC) allocation in addition to a bridge loan.
NMTC proceeds from MCC will fund upgrades to the facility to ensure cold chain compliance, installation of additional refrigeration to support smaller growers, security improvements to protect food safety, and upgrades to mechanical and electrical systems. Magnet Lending Corporation, a subsidiary of MCC, will provide a bridge loan of approximately $5.26 million for a $12-million grant from Michigan Department of Agriculture and Rural Development (MDARD).
“Michigan Community Capital is proud to support the Shed 7 redevelopment with both New Markets Tax Credits and bridge financing,” said Liz Alexandrian, Vice President of Lending at Michigan Community Capital. “This project not only strengthens Detroit’s historic Eastern Market but also expands opportunities for small growers, urban farmers, and food entrepreneurs who are vital to the city’s future. By modernizing this facility, we are helping ensure food safety, preserving critical jobs, and investing in a food system that delivers fresh, healthy produce to communities across the region.”
The Shed 7 project is vital to the Eastern Market area and Detroit’s Eastside. It will retain the building’s primary tenants, including RJR Distribution, LLC (RJR), Frank’s Deli and Grill, and Tocco’s Fresh Produce, while providing affordable refrigerated space to regional farmers and 20+ urban farming organizations. Detroit’s historic Eastern Market is a wholesale food hub where over 54 million pounds of produce were sold in 2023. The organization also operates seasonal markets and partners with groups such as the Detroit Black Farmer Land Fund and Oakland Avenue Urban Farm to expand access to minority- and women-owned growers.
Eastern Market Partnership, acting as the economic development organization for the greater market district under a management agreement with the City of Detroit since 2006, created EMDC as a nonprofit real estate development organization to serve as the direct sponsor of the project.
“Eastern Market is an anchor of Detroit’s economy, a platform for local entrepreneurs, and a catalyst for regional food systems,” said Katy Trudeau, President and CEO of Eastern Market Partnership. “Shed 7 brings our mission to life by creating space that reflects the diversity and talent of our food economy and by removing barriers for growers who’ve long been underserved.”
The project will track produce volume and transportation efficiency, including pallets moved and truck logistics. EMP anticipates the investment will double food volume sold at the market and expand its Mobile Markets program from 15 to over 40 locations across Wayne County, increasing fresh produce accessibility in underserved areas.
Located at 3445 Russell Street, Detroit, the project qualifies for NMTC in a “deeply distressed” census tract with a median family income at 33% of the area median, a 44.8% poverty rate, and 22.8% unemployment (over four times the national average). The project is expected to create 17 construction jobs and retain or create 36 permanent positions through the facility’s tenants.
“For J.P. Morgan, supporting the renovation and expansion of Shed 7 reflects our commitment to Detroit,” said Melissa Pillars, Executive Director of Community Development Banking, J.P. Morgan. “This facility is an investment in Detroit’s food businesses and urban farmers and strengthens Eastern Market as a space where local entrepreneurs, culture, and community come together. We’re proud to partner with Michigan Community Capital and Eastern Market to create new opportunities.”
Project Financing Overview
MCC NMTC allocation: $10.75 million
Invest Detroit NMTC allocation: Approximately $4.65 million
NMTC investor: Chase Community Equity, LLC
Other loan sources include grants from MDARD and the Gilbert Foundation.
“Invest Detroit has been a proud partner of Eastern Market for many years, and we are thrilled to help finance this important project,” said Marcia Ventura, Senior Vice President of Lending at Invest Detroit. “By providing subsidized cold storage space, especially for Detroit’s urban farmers, we’re helping more locally grown produce reach consumers quickly and safely. This investment is expected to triple sales for local growers, strengthening the food system and creating new opportunities for small- and mid-sized producers across the city.”
The Shed 7 renovation represents a significant step in strengthening Detroit’s regional food system, providing modern, scalable infrastructure for urban and minority-owned farmers, ensuring food safety, and catalyzing economic development in a historically underserved community.
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 Financial Institution (CDFI) and a Community Development Entity (CDE). 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.
###
Development to create 32 new residential units in Detroit’s East English Village neighborhood.
FOR IMMEDIATE RELEASE April 24, 2025
LANSING, Mich. – An approximately $15.4-million project has been supported with $12 million in New Markets Tax Credits (NMTC) allocation from Michigan Community Capital. The Arthur Murray project encompasses the renovation and expansion of one of the largest vacant and abandoned commercial sites in Detroit’s East English Village neighborhood. Known locally as the Arthur Murray building, the historic structure was previously home to the Arthur Murray Dance Studio.
Project developer, Real Estate Interests, LLC (REI), will transform an existing 25,000-square-foot vacant and historic property at 16621-16653 E. Warren, Detroit, Michigan. The existing two-story building will be expanded by adding a third story resulting in a nearly 36,000-square-foot mixed-use property offering residential units and office space.
“As someone born and raised in Detroit, this project is personal. The Arthur Murray building is more than bricks and mortar — it’s part of the fabric of a neighborhood that has endured, adapted, and held on with quiet strength,” said W. Emery Matthews, Real Estate Interests, LLC. “Our vision is to honor that resilience by creating a space that offers both affordable and market-rate options, acting as an anchor and a spark for future growth. We hope this redevelopment rewards the faith of longtime residents while extending a hand to those just discovering the promise of this community. In doing so, we aim to build something that’s not just new, but meaningful — a future rooted in respect for the past.”
The top two floors will offer 32 mixed-income residential apartments, all of which will be affordable at or below 100% of the area median income (AMI); 19 units will be specifically affordable at or below 80% of AMI. The ground floor will boast nearly 8,000 square feet of office space. Additionally, the building will include roughly 1,000 square feet of residential amenities, such as a community gathering space and outdoor amenity area.
The project is an integral part of Detroit’s Strategic Neighborhood Initiative to transform the East Warren Avenue corridor – a once vibrant neighborhood-serving commercial corridor that has suffered from population decline and disinvestment – and stabilize its surrounding neighborhoods through new commercial and mixed-use development. The retention of 9 full-time jobs are expected with ground floor tenant Activate Detroit.
Activate Detroit is a strategic advocacy and consulting firm that specializes in facilitating connections and fostering productive relationships between businesses, organizations, and key decision-makers. The firm supports clients by identifying challenges and opportunities within their operating environment, introducing them to influential stakeholders, and streamlining decision-making processes. While not a lobbying firm, Activate Detroit provides hands-on strategic guidance to help clients navigate complex systems, improve engagement, and advance their initiatives.
In addition to the $12 million in New Markets Tax Credit allocation, Magnet Lending Corporation (MLC) – a subsidiary of Michigan Community Capital – is also providing a bridge loan in excess of $2.1 million to the Revitalization and Placemaking grant (RAP) proceeds provided to the project from Michigan Economic Development Corporation (MEDC).
“MCC is thrilled to be a part of Detroit residents accessing capital and taking control of the destiny of their city,” said Eric Hanna, president and CEO at Michigan Community Capital. “We commend Emery Mathews and the REI team for their dedication and commitment to improving the lives of residents of the East Warren Avenue corridor and look forward to this and future developments for Detroit by Detroiters.”
Capital One, National Association is serving as the NMTC investor on this deal.
“As a bank on a mission to Change Banking for Good, we’re proud to serve as the New Markets Tax Credit investor for such a catalytic project,” said Mark Preston, Senior Vice President at Capital One. “We’re excited to see Arthur Murray spur economic growth and transformation along the East Warren Avenue corridor.”
Additional funding sources include:
Michigan Economic Development Corporation (MEDC)/ Michigan Strategic Fund (MSF) is providing a nearly $2.5-million loan to the project.
Invest Detroit Foundation is providing a source loan to the project in the amount of $3.5 million and will participate 50% of the MLC bridge loan.
Local Initiatives Support Corporation (LISC) is serving as a senior lender in the deal and providing $3 million in a loan to the project.
Detroit Economic Growth Corporation (DEGC) has provided a Supporting Equitable Economic Development (SEED) grant in the amount of roughly $950,000 to the project.
New Markets Tax Credits are a federal subsidy tool administered by the U.S Department of Treasury and designed to attract capital to projects that support low- and moderate-income households and communities. Michigan Community Capital is the only Community Development Entity (CDE) that deploys this resource entirely in Michigan. Since the organization’s formation in 2005, MCC has secured $570 million in NMTC allocation through competitive rounds to support Michigan businesses and communities. MCC uses NMTC’s to support job creation, access to healthy food, and mixed-use projects that include mixed-income housing and commercial businesses that benefit low-income households.
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 Financial Institution (CDFI) and a Community Development Entity (CDE). 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
Real Estate Interests, LLC Real Estate Interests, LLC (REI) is a Detroit-based, full-service commercial real estate development and advisory firm. Known for its strategic approach and commitment to impact, REI specializes in shaping sustainable developments in dynamic urban markets across the country. With a focus on simplicity, execution, and long-term value, REI partners with clients to deliver projects that not only perform, but also strengthen the communities they serve.
