Grand Rapids Approved Factory Yards Project

The $146 million mixed-use redevelopment will transform a former industrial site into new housing and commercial space.

Updated on Oct. 11, 2026 in Commercial

Grand Rapids Approved Factory Yards Project

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Should your city use public incentives to convert old industrial sites into new housing?

Developers have announced the $146 million Factory Yards project at 655 Godfrey Ave. SW, a 13.4-acre site in Grand Rapids. The development will feature up to 450 residential units and 100,000 square feet of commercial space once fully completed.

Why it matters

This project aims to rehabilitate a long-standing industrial area into active housing and business space. The city has supported the transition by approving an $8.2 million tax exemption to assist with the substantial redevelopment costs.

The first phase includes 200 housing units and 31,600 square feet of commercial space. Ten percent of these units are earmarked for households earning less than 60% of Area Median Income, with another 10% for those earning less than 80%.

The players

City of Grand Rapids

The local municipal government responsible for managing zoning, approving tax incentives, and overseeing urban development initiatives.

EGLE

The Michigan Department of Environment, Great Lakes, and Energy, which provides grants for environmental assessment and site cleanup.

The details

The development team is utilizing a $1 million EGLE grant to manage site remediation, which includes soil disposal and the installation of a vapor venting system. These funds also facilitate the removal of two underground storage tanks and the installation of a contamination barrier at the former manufacturing site. The project will renovate three existing industrial buildings into a mixed-use complex that will ultimately support 100 full-time and 100 part-time jobs in its initial phase.

1890s: The property began its life as a furniture plant.
World War II: The site operated as a parachute sewing facility.
1990s: The property transitioned into use for storage.

The Home Front

This development follows the pattern set by state brownfield redevelopment programs that incentivize the reuse of former manufacturing sites. By converting historic industrial assets, the project aligns with broader regional trends focused on revitalizing aging urban infrastructure.

Residents should track how this redevelopment impacts Godfrey Avenue traffic patterns and local amenities as site preparation progresses. Prospective renters may want to monitor the development's progress for future updates on the inclusion of affordable housing units.

The takeaway

The transformation of the 13.4-acre Factory Yards site represents a significant shift for the Godfrey Avenue area. Interested neighbors can monitor local planning updates for specific timelines regarding the opening of the residential and commercial phases.