ALLENDALE TOWNSHIP, MI – Orion Construction formally broke ground on the first phase of Grand Villages, a $20 million student housing project aimed at sororities and fraternities near Grand Valley State University’s campus on Thursday, Jan. 23.

The first phase of project at 5050 Pierce Street will build five sorority houses and one fraternity house on the site. The buildings, ranging from 9,800 square feet to 12,000 square feet, will house between 14 and 17 bedrooms each.

Construction of the $7.5 million first phase should be completed by August, according to a news release issued by Orion Construction. Work on the second phase will begin after the first phase is completed, the announcement said.

“We’re not only locating sorority and fraternity houses near each other, we’re helping to strategically locate specialized student groups into areas where they will be near their peers and affiliations,” Grand Villages majority partner Alan Hoffman said in the news release.

“This concept offers a variety of benefits to the students, the programs they are engaged in, and to the university,” Hoffman said. “So, to us, indicators of a successful project would be more focus and opportunity, more campus organization and student comfort.”

The 20-acre site was purchased in 2013 by Grand Villages, a partnership formed between Orion partners Gary Postma and John Wheeler, along with majority investor, Alan Hoffman.

Orion Real Estate Solutions is serving as the project developer while Orion Construction is performing all construction services on site. Wolverine Bank is providing additional financing. Johnson/Newhoff is performing all architectural services.

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Jim Harger covers business for MLive/Grand Rapids Press. Email him at jharger@mlive.com or follow him on Twitter or Facebook or Google+.