A division of billionaire Stephen Ross’ real estate company Related Cos. has been selected to co-develop a new mixed-income, high-rise apartment tower in downtown Ann Arbor.
Chicago-based Related Midwest will co-develop with the Ann Arbor Housing Commission a dual-tower project on a site currently used as public parking at 350 S. Fifth Ave., which 20 years ago was the site of the Ann Arbor YMCA, according to a Wednesday news release. Late last year the Ann Arbor Housing Commission issued a request for proposals for the proposed development, as Crain’s reported at the time.
“With a reputation for delivering community-enriching affordable housing and a strong track record in Michigan, Related Midwest is the ideal partner for this highly anticipated project,” Jennifer Hall, executive director of the Ann Arbor Housing Commission, said in the release. “We look forward to leveraging their development and multifamily finance expertise to achieve the highest level of affordability across the greatest number of units, ensuring this site will once again serve the people of Ann Arbor.”
Plans call for 260-300 rental units, with a minimum of 100 units available for those earning up to 60% of the region’s area median income, or less than $52,080 annually for one person, according to figures from the Michigan State Housing Development Authority. The balance of the units will be targeted toward moderate-income households.
A Related spokesperson said additional details, including a construction timeline, will be released as the development progresses.
Related Midwest touts having more than 10,000 units of below-market-rate housing within its portfolio. Related is working with the billionaire Ilitch family on the proposed District Detroit development around Little Caesars Arena in downtown Detroit.
“Collaborative public-private partnerships are vital to addressing our nation’s affordable housing crisis, and we are honored to work alongside the Ann Arbor Housing Commission and other local stakeholders to realize this site’s full potential,” Curt Bailey, president of Related Midwest, said in the release. “As a firm with extensive experience developing, owning and operating affordable and mixed-income housing communities throughout the Midwest, we know how transformative projects like this can be.”
As part of the planned development, the Ann Arbor Area Transportation Authority and the Ann Arbor Downtown Development Authority intend a full reconstruction of Fourth Avenue between William and Liberty streets. Slated to begin in 2026, the public infrastructure project would “include repaved travel lanes, widened sidewalks and enhanced lighting, among other improvements designed to promote the safety and comfort of area residents across multiple modes of transit.”
Ann Arbor Housing Commission officials previously anticipated a development of around $200 million.
The rapidly increasing cost of housing in Ann Arbor — both rental and for-sale homes — has been a cause of concern for many in the community, as Crain’s has previously reported.
