GRAND RAPIDS, MI - A downtown building site once planned for an office tower is being sold to a developer who specializes in building affordable housing.

LC Companies, an Ann Arbor-based developer headed by Mike and Bob Jacobson, has placed 12 Weston under contract, according to a news release by Rockford Construction Co.

The site at the southwest corner of Weston Street SW and Division Avenue was purchased two years ago by SIBSCO LLC, a Secchia family holding company, and Mike VanGessel, president and CEO of Rockford Construction.

Two crumbling buildings on the site were demolished in 2014 as SIBSCO and Rockford pursued their plans to build a 12-story office tower on the property.

"By the time we purchased them, the properties were in very ill repair," said Charlie Secchia, partner with SIBSCO LLC, in a press release announcing the sale on Friday, Aug. 5.

"Our immediate concern was to create a safe environment for pedestrian traffic and the neighborhood. We then began evaluating market needs and what the future held for the site."

Selling the vacant property to LC Companies for downtown affordable housing was an ideal use for the site, VanGessel said.

"We explored an office building, and thank the Historic Preservation Commission for their work on that concept," VanGessel said. "We always felt affordable housing could be a great use for the site, and market factors make it a stronger and viable option.

"We look forward to the next steps with the Historic Preservation Commission to consider this project and create an important piece of architecture on a crucial downtown corridor."

The Jacobsons also have developed 170 affordable housing units in the downtown area with their Klingman Lofts and Baker Lofts projects. Residents have incomes of 60 percent or less of the city's area median income, and are charged affordable rents.

"LC Companies is committed to creating beautiful, high-quality multi-family buildings that meet an important need in our community. They have a strong reputation because of their consistent good work," said VanGessel, whose company was the general contractor for Klingman Lofts and Baker Lofts.

"We value their partnership, and look forward to working alongside Bob, Mike and their team in this new development."

LC Companies will apply for Low Income Housing Tax Credits (LITHCs) that allow for subsidized rents in October.

"As downtown Grand Rapids continues to evolve, it's important that we ensure that quality affordable housing is available," said Mike Jacobson. "The development will feature first-floor retail and on-site parking, and we are currently determining the number of residential units."