Now that 1983 had the financial model and problems isolated, they began attacking the obstacles and innovating, starting with an old tool that Derek had quite a bit of experience with, the Brownfield TIF tool.

Leveraging this tool helped 1983 reduce the operating expenses, which allowed them to begin lowering the rents needed to have a viable project. That helped but there was still work to be done. After some conversations with the leadership of MSHDA, Isaac and Derek got a verbal commitment for a $1.9 million grant to help lower the rent even more. Still, with those major leaps, 1983 was still short.

What happened at that lunch would ultimately unlock the rent conundrum that had almost forced them to walk away from this entire mission. 1983 took their two bed, 2 full bath two-story townhome design and made a simple but major change. Knowing the market would share a unit and even a bathroom if they could secure rent in the $800s-$900s, we went above that and gave each roommate their own full bathroom as well. Unfortunately, even with this increased density, they still could not reach the rent needed. At lunch, that all changed when they took the main floor formal dining room on the rear of the unit, added a full bathroom and like that we had 3 master suites. With the 33% increase in density, now Isaac and Derek could finally get into the much desired $800s-$900s for rent.

Innovative design finally allowed 1983 to create attainable housing in Northern Michigan. Now, with our 3 bedroom townhome that can be converted and leased to one, two, or three different parties. This built in agility allows Bellaire Lofts to serve a wider range of individuals in need of housing. From families to single adults, our communal housing design will support up to 142 new residents within 50 residential dwelling units in Antrim County.

Now with the income and expenses beginning to line up, it was time for 1983 to confront the construction side of the equation.

First, 1983 turned to a now proven approach to building, offsite construction. For their first northern Michigan development, Isaac and Derek pivoted the construction approach to modular. 1983 was introduced to a sophisticated factory in Liverpool, Pennsylvania that specialized in complicated, commercial applications like Spillway Lodges. After one visit to the factory it became abundantly clear this was the way of the future for not only Spillway but for 1983’s future as well. After one successful modular application, and a healthy amount of learning, it was clear modular would be needed for Bellaire Lofts for a lot of reasons.

“Modular construction offers a lot of predictability which helps derisk construction at a level where you can begin reducing part of your contingency, which essentially drives costs down into a more feasible starting point. Also, the ability to run parallel paths on offsite construction, while onsite construction is happening creates a time compression that results in a large savings. In the case of Bellaire Lofts, we are probably saving close to a million dollars because we can build and deliver units so much faster than traditional construction, which basically saves you in interest and carrying costs which can add up quickly.” - Isaac Oswalt

On December 7, 2023 Antrim County, the Village of Bellaire, and Forest Home Township awarded Bellaire Lofts a Brownfield TIF to lock in affordability for thirty years.

Bellaire Lofts will be breaking ground because of its unique capital stack and incredible support from governing agencies.