Downtown bank tower going condo

August 26, 2007
By Dave Alexander
Muskegon Chronicle Business Editor

A highly successful condominium developer -- who began in Montague and more recently has been active in downtown Grand Rapids -- has set his sights on downtown Muskegon and the former Comerica Bank tower.

Jonathan Rooks and his Parkland Properties of West Michigan have a purchase agreement to buy the 10-story former bank building and two vacant lots in the heart of downtown Muskegon's redeveloping "city center."

Rooks told The Muskegon Chronicle he has plans for 36 condominium units and associated commercial space in the bank tower, which includes new construction planned east along West Western Avenue. Rooks said he anticipates completing the property purchase in the coming weeks with construction planned for 2008 and occupancy in 2009.

Parkland's purchase of the Comerica Bank tower will complete the sale of the five buildings that remained after demolition of the former Muskegon Mall.

It also brings one of West Michigan's hottest developers back to Muskegon County. Rooks has developed 460 residential condo units in downtown Grand Rapids over the past four years, saving four buildings of Comerica's vintage.

Rooks now turns his attention back to Muskegon County, where as a young developer in the 1990s he created the Ellenwood/Weathervane development that has defined Montague's White Lake waterfront.

"We hope this project will have a snowball effect for Muskegon," Rooks said. "I think we are at a tipping point in Muskegon like we were in Grand Rapids 10 years ago. We hope this one success story will create others."

Plans are for the Comerica Bank building -- built in 1919 for the former Hackley National Bank -- to be converted into approximately 24 residential condominiums on the upper floors. The lower floors would be retained for commercial space. Rooks said he wants to attract a high-end restaurant among other retail or office users.

The two lots east of the Comerica tower are also part of the Parkland deal.

Rooks said his company plans to have three-story buildings along West Western Avenue to Jefferson Street. The lower floor would be commercial and the two upper floors another 12 residential condominiums. All of the condos should be priced under $200,000.

Plans are for a pool and deck on the top of the newly constructed buildings and garage parking for all of the residential units behind the new buildings, Rooks said.

"The units will all be really cool and of great value," Rooks said. The buildings will be in the city of Muskegon's Renaissance Zone, which brings significant tax savings to the condo owners. "We got the building for a great price so we will be able to pass that on to buyers at a great bargain."

Rooks and Downtown Muskegon Development officials have not disclosed a sales price for the Comerica building. The two lots to the east of the Comerica tower have been listed for a combined $202,500.

"We now have five buildings on the way to renovation," said Dan Rinsema-Sybenga, Muskegon Main Street manager. "I guess it was the right decision on what to save and not save of the former mall."

Besides the Comerica tower, the city and Downtown Muskegon Development had agreed to save the former Daniel's office supply, Century Club, Muskegon Savings Bank and National City Bank buildings. Of those, the Century Club has been redeveloped into Hegg's Gallery of Furniture, while the other three buildings have been sold to developers with renovation plans.

"The Comerica project is one of the most exciting for downtown Muskegon," said Chuck Johnson, the retired SPX executive who chairs Downtown Muskegon Development. "I can see the building as a beautiful high-rise condominium with wonderful water views. I think there will be a great deal of interest in living downtown."

Rooks and Parkland Development began in Grand Rapids in 1988, eventually creating the Ellenwood Landing Marina and Estates, an upscale condominium/dockominium project on White Lake in Montague. The 23-unit Weathervane Inn was added.

In 1993, the then 29-year-old Rooks was named the U.S. Small Business Administration's Young Entrepreneur of the Year for the state of Michigan.

Through his Montague development years of the 1990s, Rooks fought a vocal minority in the community. He tired of the development game by the end of the 1990s and took a four-year "sabbatical," in which he traveled the world, visiting Europe, Asia and South America.

The purchase of a downtown Grand Rapids condominium in the Monroe Terrace project led to Rooks re-entering condo development in a big way. The 600 Monroe building was 50 percent sold and the sales program had hit a wall, Rooks said.

In 2003, Rooks purchased the building, redesigned the remaining unsold units and put together a marketing plan that sold out the project in two months. He said he liked urban redevelopment.

Part of the success was the proper marketing of the Renaissance Zone tax advantages of Monroe Terrace project -- the same advantages as found in downtown Muskegon.

"Unlike waterfront development in Montague, I got a whole new feeling when helping save an old building," Rooks said. "No one fights you."

Rooks went on to the People's Building in downtown Grand Rapids, where he completed 25 residential condos in a 13-story office building, another Renaissance Zone project. Rooks said the People's Building is similar to the situation he faces with the Comerica tower in Muskegon.

By late 2004, Rooks was in the process of purchasing the old Union High School, which he is now nearly complete in converting into 180 residential units. With 173 units sold, the unique development is right along U.S. 131 in downtown Grand Rapids.

In completing Union Square Condos, the units priced less than $200,000 went quickly. That led to The Boardwalk, the redevelopment of the former Burke-Gay furniture building along the Grand River.

north of downtown from a struggling apartment complex into a condominium project. Parkland has 200 of the 230 Boardwalk units priced at less than $200,000.

Besides downtown Grand Rapids condominiums -- which were sold during a huge growth phase for the city spurred by health, bio-science and educational developments -- Parkland has also continued in lakeshore projects.

It owns or is developing The Wharf Marina in Grand Haven, Bayou Meadows in Spring Lake, Highbrook Town homes in Hudsonville, Harbor Hill on White Lake and Maple Cove on the Grand River. Whispering Dunes is Parkland's rental lodge in the dunes of Norton Shores.

© 2007 Muskegon Chronicle. Used with permission