Developer plans second Walker industrial building

Parcel would house Specialty Tooling, new tenant

By Kate Carlson

A West Michigan industrial property developer seeks to tack on a 45,000-square-foot building to an ongoing construction project in Walker as regional industrial vacancy rates remain low.

Ada-based Honeycrisp Ventures e Walker Planning Commission on April 19 approved the site plan for the additional building, which would include a truck dock and 12-space parking lot on the 32-acre property. e initial build-out on the larger building was quasi-speculative, and Specialty Tooling Systems — which will occupy the entire 198,000-square-foot building — sought to scale up quickly, said Honeycrisp owner Ben Sietsema.

LLC plans to build the additional facility next to a 198,000-squarefoot industrial project that’s under construction at 3101 Fruit Ridge Ave. NW. e extra space would accommodate growth plans for an as-yet-undisclosed tenant. e larger structure, which should be completed in July, will support an expansion by automation systems manufacturer Specialty Tooling Systems Inc.

Honeycrisp originally planned for trailer parking spaces on the property, though Specialty Tooling Systems didn’t need the space, leading to plans for an additional building, Sietsema said. Sietsema is in discussions with a potential tenant for the second structure, which he said “would not be a speculative build.”

“ is would meet a tenant’s needs. In order for us to really continue and solidify those conversations, we need to be assured that we can get this site plan approval,” Sietsema said. “We now have a little extra land so we decided to try to maximize the site.”

Wolverine Building Group is constructing the main building and will be the general contractor for the additional structure following site plan approval, Sietsema said.

Honeycrisp is making full use of the Fruit Ridge property as the West Michigan industrial real estate vacancy rate sits at 2.9 percent, slightly higher than the 2.6 percent average vacancy rate for industrial property in northwest Grand Rapids, according to the JLL West Michigan Q1 Industrial Insight report.

“ e West Michigan market remains tight, and demand for Class A warehouse (space) is strong,” ac-

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cording to the industry report.

Sietsema said he is sensing “less velocity” and perhaps fewer executives pursuing industrial space than in the recent past because of economic pressures such as high interest rates. However, the companies now seeking out properties are more serious, he said.

“What’s driving companies looking for space right now are factors that are serious enough that they need to get deals done,” Sietsema said. “People aren’t just looking for space right now to kick the tires — there is real demand behind companies looking for more industrial space.” e company last year completed a similar industrial project nearby at 3501 Fruit Ridge Ave. NW. e company also received site plan approval on Feb. 14 to construct a 150,000-square-foot industrial building at 1070 North Gateway Blvd. in Norton Shores. Honeycrisp has since received interest from “another active prospect” seeking to be a tenant at the Norton Shores space, Sietsema said.

Honeycrisp is among the West Michigan developers chipping away at the region’s high demand for industrial space.

As well, Honeycrisp closed on a 45-acre agricultural site in Zeeland that will be converted into nearly 1 million square feet of industrial space. e company has “two active proposals” that would help launch the Zeeland project, Sietsema said.

CopperRock

Construction is a Grand Rapids-based company focused on providing clients with the latest construction innovations with a deep history of working for developers in multiple sectors across the West Michigan construction landscape.

Whether it be multi-family, industrial, medical, or office builds, we provide high-level services to all clients. We currently have a wide variety of projects in the works at various stages of development and construction.

CARSON GRAY Director of Development and Real Estate

“It is a privilege to help our clients through the phases of a development project from initial site acquisition through construction and stabilization,” said Carson Gray, director of development and real estate at CopperRock. “When working for developers, our focus is to assist in bringing innovative designs to meet the desired budget and deliver robust, high-quality builds, and a lasting investment for the owners and quality projects for the end users.”

CopperRock enjoys working with developers from various sectors.

Currently, CopperRock is working on over 1,000 units of multi-family apartments in multiple locations across the Midwest for developers, with many taking place in the greater Grand Rapids area. Among these developments, we recently broke ground on the Savannah at Waterford project in Walker, which will provide 250 units of living space in a highly sought-after area.

This development will feature singlestory buildings comprising of four to eight units per building and will provide attached garages and luxury finishes for residents. Additionally, we are working on two six-unit high-end condo projects, a workforce housing apartment project with over 300 units and a five-story steel structure apartment complex. Despite the changing interest rates everyone is experiencing, we have many clients creating opportunities in the multifamily market.

While the need for additional housing opportunities has been a focus of West Michigan real estate developers, so too is the need for industrial and commercial spaces. Assisting in the development of industrial projects is another area that CopperRock is passionate about, as there are individuals on our team with decades of experience in the design and construction of pre-engineered structures, and conventional steel manufacturing plants and warehouses.

We enjoy designing these to the needs of developers and manufacturers and look to assist in the maximization of both financial value as well as long-term usability. Currently, we have manufacturing/warehouse building projects ranging from 10,000 to 150,000-square-feet under construction for developers.

Our team seeks to asks the right questions, listens to our clients’ answers and executes at a high level. We provide the best experience as our clients navigate all the phases needed for their success.