New housing arrives in Grand Marais as tenants move into The Heights
Kalli Hawkins
Local

New housing arrives in Grand Marais as tenants move into The Heights

This weekend marks a significant milestone for The Heights, a 36-unit modular apartment building in Grand Marais.

Beginning Saturday and continuing through Monday, the first round of tenants will move their furniture and belongings into their new homes within the three-story building.

As of March 9, The Heights Project Manager Gary Latz said of the 36 units, over 50% are leased. The majority of those tenants are scheduled to move in this weekend.

Latz said the move-in schedule for this weekend is “highly organized,” with allocated time slots for tenants to reduce congestion and long elevator wait times.

The Heights Project Manager Gary Latz in one of the new units | Photo by Kalli Hawkins

The Heights apartment units are priced in three product and pricing brackets. The 36-unit apartment building consists of 18 market-rate units and 18 income-restricted units. The units range from studios to one-bedrooms and two-bedrooms.

The income-restricted units are based on Area Median Income (AMI), which the Minnesota Housing Finance Agency determines by county to establish reduced rent parameters. The agency uses wage surveys to determine the maximum annual gross income for an individual and sets housing costs at no more than 30% of that income.

The 18 units in the apartment building, designated for income restrictions, will fall within the 60% to 80% AMI range. In Cook County, the maximum gross income for a single individual applying for a studio apartment at 80% AMI is $53,360.

For a single individual applying for a studio apartment at 60% AMI, the maximum gross income is $40,020.

Latz said, The Heights has leased units in each of the three pricing brackets. The units with the most interest as of March 9 are the two-bedroom floor plans.

“But all of them are leasing, every single type, every single price point,” Latz said.

Latz said the investors expected the income-restricted units would rent first. However, he said, that hasn’t been the case. “Which kind of surprised us, because we thought all the AMI would lease first. And that hasn’t been the case; the market rate units have been right there with them.”

Interior of two bedroom unit | Photo by Kalli Hawkins

While The Heights has hired Bachand Property Management to oversee the property on a larger scale, the apartment building will also have an on-site manager. Grand Marais resident Jodi Overman was recently hired and will serve as the on-site manager. She will live in the building and be available 20 hours per week for office hours for The Heights residents.

“We think this is a huge advantage for residents,” Latz said.

This month marks a second significant milestone for the housing project and the investors and stakeholders involved in the multi-year effort. The Heights project is a collaborative investment initiative led by the Cook County Real Estate Fund (CCREF). The group purchased the property along Highway 61 four years ago this month, on March 28, 2022.

Building a large housing development in Grand Marais is not an easy feat. While the development process has been “linear,” it’s been slow, said Latz.

For CCREF and many others involved in the project, seeing tenants move in this weekend will be a rewarding moment, Latz said.

WTIP’s Kalli Hawkins spoke with The Heights Project Manager, Gary Latz, about tenants moving in this weekend, an overall project update, reflecting on milestones, and future property plans. The audio is below.