GRAND RAPIDS, MI — The investment arms of two Native American tribes have teamed up to buy McKay Tower, an 18-story landmark office building located in the heart of downtown Grand Rapids.

The two investment firms — Gun Lake Investments, part of the Gun Lake Tribe, and the Waseybek Development Company, part of the Nottawaseppi Huron Band of the Potawatomi — on Wednesday announced they had purchased the century-old building at 146 Monroe Center NW for $17.5 million.

“We are excited to invest in such an iconic and visible property in downtown Grand Rapids,” Deidra Mitchell, president and CEO of Waséyabek Development Company, said in a statement. “It’s a great building with a great legacy. It has many new enhancements, and it serves as a beacon of commerce in the downtown area.”

The building was sold to the two tribes by Steadfast Property Holdings. Steadfast Property Holdings is a limited liability company connected to the Borisch family. Jonathan L. Borisch, principal with Steadfast Holdings, founded Borisch Manufacturing Corp. of Kentwood in 1994.

Steadfast Property purchased McKay Tower in 2012 for $10.5 million, property records show.

“When McKay Tower came on the market, we believed it represented an attractive acquisition opportunity and we were excited about the opportunity to continue its historic legacy in downtown Grand Rapids,” Kurtis Trevan, CEO of Gun Lake Investments, said in a statement “As we continued to explore the opportunity, we thought it could be a great opportunity for us to partner with Waséyabek Development Company.”

In a news release, the two investment firms said McKay Tower was constructed in 1914, when Grand Rapids National Bank built a four-story bank on the site. An additional 12-floors were added onto the building in 1926, and two more floors were added in 1940. The building was renamed McKay Tower in 1942 after it was purchased by Frank McKay.

“As a Native American tribal community with deep ancestral roots in the region, we have a historical bond with the land around Grand Rapids,” Bob Peters, Tribal Council Chair for the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians, said in a statement. "We are proud of Gun Lake Investments to have invested in such an important property on behalf of our citizens”

The building, which consists of office, retail and residential space, is 98 percent occupied, Mitchell said.

The two tribes split the price of the building equally.