GRAYLING — Construction has begun on Sawmill Lofts, an $18.3-million redevelopment project downtown that will convert contaminated and blighted parcels into a five-story, mixed-use building with 40 apartments and 4,000 square feet of commercial space.
According to a Dec. 19 news release, the project at 102 Michigan Ave. is located on a .76-acre site and has been over six years in the making, including a pause in 2020 due to the pandemic. Despite construction costs increasing by 50% since the COVID-19 pandemic began, MCC has persevered to bring this vision to life. Construction finances closed earlier this month.
The project is the result of collaboration between local and state partners, including the City of Grayling, Crawford County Brownfield Redevelopment Authority, and Crawford County Board of Commissioners. The organizations approved a 30-year brownfield plan to support middle-income housing, laying the groundwork for revitalization.
“Although projects like these are becoming increasingly more difficult, we are seeing the state and local governments really stepping up to try to support housing and downtown development,” vice president of development at MCC Marilyn Chrumka said.
Michigan Department of Environment, Great Lakes, and Energy approved a $1 million grant to address contamination from previous uses such as garages and a dry cleaner.
The Michigan State Housing Development Authority provided a $3.5 million Missing Middle Housing Program grant to create housing for individuals and families earning 60–120% of the area median income.
“With the addition of this new five-story, 40-unit apartment complex, we’re taking a significant step toward revitalizing our downtown while addressing the growing need for modern, affordable housing,” Grayling City Manager Erich Podjaske said. “This project not only increases our housing capacity but also brings new energy and vibrancy to the heart of the city, making it an even more attractive place to live, work, and visit.”
Michigan Economic Development Corporation approved a $6.5 million Revitalization and Placemaking Grant to support the project’s construction and community impact. West Shore Bank has facilitated construction financing.
When complete in early 2026, Sawmill Lofts will feature a mix of studio, one-bedroom, and two-bedroom apartments, with monthly rents starting at $885. Each unit will include stainless steel kitchen appliances, large windows, and in-unit washers and dryers. The building is designed to achieve Energy Star certification, ensuring lower utility costs for residents.
“This is an exciting time for the community of Grayling. This project has been years in the making and once complete will provide much-needed housing in the area,” Chief Place Officer at the Michigan Economic Development Corporation Michele Wildman said. “We applaud the collective Team Michigan effort and perseverance to bring this project to fruition to ensure more families can Make it in Michigan and call Grayling home.”
The project team includes Integrated Architecture of Grand Rapids as the building designer, Triterra of Lansing overseeing environmental remediation and Pioneer Construction as the construction manager.
“Sawmill Lofts demonstrates how innovative partnerships can create much-needed housing in Michigan communities,” MSHDA CEO and executive director Amy Hovey said. “This redevelopment will not only breathe new life into downtown Grayling but also provide quality, affordable housing for middle-income individuals and families.”