Alexander Alusheff

Lansing State Journal

LANSING – A Grand Rapids developer is considering building a four-story hotel on the corner of South Washington Avenue and Malcolm X Street where the REO Town gateway sign sits.

“We like the fact that it’s off Interstate 496 and it’s close to downtown,” said Brian Winkelmann, a partner at M2B2 LLC. “With the number of cars going by there, we thought it would be a nice spot. Lansing doesn’t have many hotels.”

M2B2 signed a $20,000 purchase option agreement with the Ingham County Land Bank, which owns the two-acre property at 112 E. Malcolm X St., on Feb. 4.

The $4 million extended-stay hotel would have 125 rooms, Winkelmann said. He would not announce what franchise chain would be involved.

“We still have a lot of work to do before we come forward with more information,” he said. “When you see a grassy lot, you got to wonder what’s beneath.”

READ: Preservationists oppose REO Town substation plan

As part of the agreement, M2B2 would have to build a mixed-use property along South Washington Avenue because of the overlay district, which requires developments to construct buildings along the street with parking behind.

"I'd love to see more on that site," said Eric Schertzing, Ingham County Treasurer and land bank chair. "It's a key corner as a lot of folks come out of the Capitol complex and come right through there. This will be a good development. But there are a lot of steps ahead of us."

Winkelmann said this is the first development M2B2 has considered in Lansing. M2B2 has built a few student housing development in Big Rapids in the past, he said. Also an architect, Winkelmann said he worked on the 34-story River House Condominiums in Grand Rapids. He is a principal at the architecture firm DTS + Winkelmann.

The corner lot has been vacant since 2010. Prior to that it was the site of the two-story Deluxe Inn motel. The land bank acquired the property in 2009 for $400,000, according to property records.

The purchase option expires in 180 days. The land can be purchased by M2B2 for $425,000, according to the agreement.

Contact Alexander Alusheff at (517) 388-5973 or aalusheff@lsj.com. Follow him on Twitter @alexalusheff.