Grand Rapids Approved $146 Million Redevelopment
The Factory Yards project at 655 Godfrey Ave. SW will provide new housing and commercial space.
Updated on Oct. 11, 2026 in Commercial
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Developers have launched a $146 million plan to transform a 13.4-acre industrial site into a mixed-use complex in Grand Rapids. The project, known as Factory Yards, includes city-approved tax incentives and environmental grants to support rehabilitation.
Why it matters
The development will provide up to 450 new residential units and 100,000 square feet of commercial space, helping to revitalize a historically industrial area. A portion of the new housing is designated for lower-income households, ensuring some units are reserved for those earning 60% to 80% of the Area Median Income.
The city approved an $8.2 million tax exemption to support the $146 million development, which will ultimately house 450 units. Ten percent of these rentals are earmarked for tenants earning below 60% of Area Median Income, with another 10% for those earning below 80%.
The players
Grand Rapids
The city government responsible for approving local development incentives and land-use policies.
EGLE
The state agency overseeing environmental assessments and grants for rehabilitating industrial sites.
The details
The project at 655 Godfrey Ave. SW aims to remediate a former furniture plant and parachute sewing facility through a $1 million EGLE grant. Funds will cover soil disposal, vapor venting system installation, and the removal of underground storage tanks. The first phase alone plans to deliver 200 housing units, 31,600 square feet of commercial space, and 100 full-time jobs.
Timeline
The property began as a furniture plant in the 1890s.
The site served as a parachute sewing facility during World War II.
The site began use for storage in the 1990s.
Money Landscape
This project follows the established pattern of using state and local incentives to fund the cleanup of legacy industrial land for modern mixed-use needs. It mirrors other brownfield redevelopments that prioritize bringing defunct factories back into the active tax base.
Local residents may find new housing opportunities and job openings as the first phase of 200 units and 100 full-time roles comes online. Those interested in income-restricted housing should monitor upcoming leasing announcements to see if they meet the 60% to 80% Area Median Income thresholds.
The takeaway
The Factory Yards development signals a significant expansion of both housing and commercial activity on the Godfrey Avenue corridor. Residents should keep an eye on project updates regarding unit availability and the hiring timeline for the newly created commercial spaces.
Further reading
Learn more about local business and property trends at Grand Rapids Commercial.
Source note: This article includes information reported by WYBR-FM.
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Should your city use public incentives to convert old industrial sites into new housing?
