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New apartment building underway in Grand Rapids' Tapestry Square

New apartment building underway in Grand Rapids' Tapestry Square

Built World Grand Rapids, MI local

Business owners on South Division hope new residents revive the corridor

Today: Business owners express optimism about new housing

Overview

Updated 1 hour ago

A three-story, 26-unit apartment building is rising at 443 Sheldon SE in Grand Rapids' Tapestry Square, just off South Division Avenue. Local business owners say they're hoping the new neighbors bring foot traffic and sales back to a corridor that's seen slowed growth since the pandemic.

The project is backed by a $3.84 million tax reimbursement over 25 years, with six units set aside for residents earning 60% of the area's median income. The Brownfield Redevelopment Authority is expected to approve the incentive agreement on Wednesday, redirecting tax increment revenue from the Downtown Development Authority to reimburse the developer.

Why it matters

If the corridor's housing growth doesn't bring new customers, South Division's retail vacancies may keep mounting despite new residents.

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Key Indicators

26
Apartment units under construction
Three-story building at 443 Sheldon SE in Tapestry Square
$3.84M
Tax reimbursement incentive over 25 years
Anticipated total from Brownfield tax increment financing
6
Affordable units reserved
Rents set for residents earning 60% of area median income ($44,700/yr)
200
New housing units in corridor since 2010
Approximate count near South Division and Wealthy, per FOX17

Voices

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People Involved

Organizations Involved

Timeline

2 events Latest: Today
  1. Business owners express optimism about new housing

    Today News

    FOX17 reports on the construction and interviews local businesses; BRA meeting with DDA scheduled for next day.

  2. Construction breaks ground on Sheldon SE

    Construction

    Site work begins for a 26-unit apartment building at 443 Sheldon SE in Tapestry Square.

Scenarios

1

Building opens on schedule, corridor sees retail boost

Possible Resolves by Q1 2028

Discussed by: Local business owners interviewed by FOX17

The BRA approves the interlocal agreement, construction finishes by Fall 2027, and the building's 26 units fill quickly. The influx of residents supports at least one new retail opening on South Division near Wealthy, reversing the corridor's slow recovery.

2

Construction delays and slow leasing dampen expectations

Unlikely Resolves by Q2 2028

Discussed by: Stephanie Howard's cautious comments

The building faces supply chain or financing hiccups, pushing opening into 2028. Even after opening, leasing lags due to high rents relative to local incomes, and businesses see little change in foot traffic.

3

Incentive dispute stalls project

Unlikely Resolves by Oct 15, 2026

Discussed by: Not currently a public discussion

The BRA rejects the interlocal agreement, voiding the $3.84 million incentive. The developer pauses construction while seeking alternative financing, leaving an unfinished shell on Sheldon Avenue.

Historical Context

One moment from history that rhymes with this story — and how it unfolded.

2009–2013

Herkimer Hotel Renovation (2009–2013)

Dwelling Place converted the historic Herkimer Hotel at 323 S. Division into 122 affordable apartments and built two adjacent buildings with 67 more units, a $29 million project. Pine Rest Christian Mental Health Services moved into 14,000 square feet of ground-floor space.

Then

The block gained 189 housing units and supportive services, stabilizing a formerly decaying stretch of South Division.

Now

Demonstrated that large affordable-housing projects can succeed on the corridor, but adjacent retail businesses remained sparse for years.

Why this matters now

Shows that housing alone does not guarantee retail revival; South Division businesses still waited over a decade for new retail entrants.

Sources

(3)

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