DDA Announces Sale of Long-Held Evergreen Properties

The East Lansing Downtown Development Authority announced the sale of its long-held properties at 314-344 Evergreen Avenue to Landmark Properties and Consulting, LLC.

The DDA owned the properties since 2009 and has struggled to find developers to turn the area into something constructive, at times partnering with developers that considered retail space and student housing.

The DDA approved a purchase agreement at its Sept. 11 meeting. City Manager Robert Belleman told ELi that the sale price depends on what Landmark intends to build: if they construct owner-occupied condominiums, they will pay $3.4 million. If the project consists of rental units, the sale price is $4.1 million.

The press release announcing the sale says the buyer, Landmark Properties and Consulting, specializes in housing.

“Landmark began as a leader in off-campus housing community development and
management,” the release reads. “More recently, the company has expanded to provide a variety of housing types for the single-family and traditional multifamily housing market.”

The Evergreen properties have been a significant financial challenge for the DDA

The DDA acquired $5.6 million in debt when it purchased the Evergreen properties in 2009. Since then, the interest and principal payments on the properties have been a significant expense, with the DDA spending millions of dollars on interest and fee payments alone over the subsequent years.

The DDA struggled to offload the land as it searched for a buyer that would help pay off its debt on the properties, while also bringing a project that the community wanted.

In early 2020, the city entered into an exclusive development agreement with River Caddis Development. At first, River Caddis proposed a large office building, but after developers altered their initial plans, the COVID-19 pandemic shifted the demand for office space and River Caddis was given multiple extensions on its exclusive agreement, developers proposed student housing at the site in 2023. That proposal was turned down.

Last year, the DDA relisted the properties and paid an internationally operating marketing firm to help sell the land. The DDA initially listed the properties for sale at $4.435 million.

The Evergreen properties being one of the last large plots of mostly-vacant land in the downtown gives the parcel plenty of development potential.

At the same time, past attempts at developing the area have revealed it has challenges, like the odd shape of the parcel, soil contamination and a lack of space for parking. The property also lies between other businesses, meaning there isn’t any leeway with space for a project.

ELi will continue to report on the sale fo the Evergreen properties as more information becomes available.