Former Lake Trust headquarters sold to Lansing developers

LANSING — The former Lake Trust Credit Union headquarters on the south end of downtown Lansing has been sold to a local development group.

The credit union finalized the sale of the building on the southeast corner of Capitol Avenue and Lenawee Street to Urban Systems last week. The building was on the market for a little more than three years.

The sale is part of Urban Systems' bigger plans to transform largely unused space between downtown and REO Town into housing, office and retail space, said Brent Forsberg, an Okemos developer and one of three principals for Urban Systems.

Forsberg sees redeveloping those blocks as an opportunity to re-energize the entire downtown.

"We're good," he said. "We can get to the level of great by making these changes."

Plans call for the Lake Trust building to undergo a 12-month renovation, though major facade work could take longer, Forsberg said.

The seven-story building is assessed at a little more than $1.5 million, according to property records. Urban Systems did not disclose the sale price.

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Lake Trust moved its headquarters in fall 2015 to a new location in Brighton. It still operates a branch location on the first floor. The building was constructed in 1970 and was last renovated in 2003, according to property records.

The city of Lansing previously considered turning the building into a new City Hall.

Urban Systems purchased the entire block the building sits on as a part of the sale and also plans to build a five to eight-story 170-unit apartment building with retail space on the southwest corner of Washington Square and Lenawee Street.

Those plans include outdoor sitting areas, wide sidewalks and balconies, Forsberg said. The space will also likely include restaurants and a small market with high-end wine and spirits, he said.

Those additions will help make the area more walkable, Forsberg said, and will create a friendlier atmosphere for people trying to get from the city's central business district to REO Town.

"When you're walking through there, it just doesn't feel good as a pedestrian," he said. "When you're driving you don't notice it."

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The group plans to bring its proposal to the city in late spring, Forsberg said.

Lansing Mayor Andy Schor said redeveloping the area is an opportunity to fix a missing link between REO Town and the city's center. He said having new buildings crop up in that area sends a positive message about the city's downtown.

“If you come into town and you see empty parking lots, that's a different feeling than if you see a vibrant commercial corridor,” Schor said.

Along with the redevelopment of the Lake Trust block, Urban Systems is also trying to redevelop the 600 block of South Washington Avenue.

The group also plans to build an extended stay hotel with a restaurant at the corner of Washington and Malcolm X Street in REO Town.

Contact reporter Haley Hansen at (517) 267-1344 or hhansen@lsj.com. Follow her on Twitter @halehansen.