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Developer plans 5-story building to house apartments and retail near downtown Muskegon

Developer plans 5-story apartments and retail near downtown Muskegon
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MUSKEGON, Mich. — A Grand Rapids developer wants to transform a parking lot near downtown Muskegon into a five-story mixed-use building with dozens of new apartments and retail space.

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Dustin Sommer, founder of The Development Studio, plans to build at West Clay Avenue and Pine Street. Plans call for 40 apartments, retail space on the first floor, and parking behind the building.

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Developer plans 5-story apartments and retail near downtown Muskegon

Sommer bought the property last year for just over $200,000. Before that, it was mainly used as overflow parking for Frontier Communications.

"What I've found is that this street is really connective to the Main Street which is Western, the farmers market and more retail down Clay," Sommer said.

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Sommer says projects like this are exactly the kind of development he wants to bring to communities across West Michigan.

"So I developed a model where I look for short city blocks with a lot of potential, and then I get on the street and meet the people in the neighborhood, the business owners, institutions and city leaders and look for the tell tale signs of change and Muskegon has it," Sommer said.

The project would sit just outside Muskegon's main downtown stretch along Western Avenue — an area city leaders say continues to see growth and investment.

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Jocelyn Hines a Development Analyst with the City of Muskegon said the development fills a clear need.

"It's really exciting. If you look at other downtown areas density is what's always needed in our downtown. So to be able to utilize some of our vacant spaces and create something that is really beneficial to the community by providing housing and retail space, we think that's a great use of that empty space that's been vacant," she said.

This is just one of several housing projects planned around downtown Muskegon, where thousands of new housing units are either proposed or already under construction.

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"So from affordable housing to workforce housing to some of that market rate housing is what's needed in our communities. So this development will also help us accommodate those needs at those price points we need, where you could be a school teacher and be able to live at this development, or you could be a first-year lawyer and be able to afford an apartment at this building," she said.

Sommer hopes the project sparks further development in the Pine Street area.

"So I hope it spawns more residential in this neighborhood because I think the Pine Street area has a lot of capability to be its own district, a block over and a block up from downtown as I like to put it. And I think once we get more people activated on the street front, the retail will continue to grow and some more of the vacant land around here will begin to infill," Sommer said.

Construction could begin in early 2027, with the building expected to open sometime in 2028.

This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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