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Urban Systems to Build Hilton Hotel in REO Town

Developers seek to connect Lansing’s downtown commercial district and REO Town

Lansing’s REO Town eclectic, vibrantly colored welcome sign could get a new home. Urban Systems, a collaborative development coalition focused on revitalizing Lansing’s urban core, has entered into a contract with the Ingham County Land Bank Board to purchase the vacant property at the corner of South Washington Avenue and Malcolm X Street in REO Town, where the neighborhood’s welcome sign currently resides. The group plans to build a Hilton extended stay hotel, which would include a restaurant and public green space by the riverfront.

On Monday, Sept. 18, the Ingham County Land Bank board, which owns the vacant property, approved entering a contract for the sale of the site to Urban Systems, one of three developers to pitch plans for hotels on the site. The hotel will have between 120 and 130 rooms, and the project will cost between $10 and $15 million.

Over the next several years the group — comprised of T.A. Forsberg Inc., WestPac Communities and Dymaxion Development— plan to fundamentally shift the city’s developmental landscape to prioritize placemaking, community cohesion, quality of life and most importantly economic stability.

“This property plays an important role in connecting the downtown commercial district and REO Town,” said Patrick Smith, owner of Westpac Communities. “While this new hotel will surely offer the region the benefit of much-needed rooms downtown, it is a key piece of accomplishing our goal of creating a 24/7, 365-day walkable and bikeable urban core while ultimately attracting more activity and people to the area.” 

The REO Town property is the previous site of the Deluxe Inn motel. The Land Bank bought the property in 2009 for $400,000, according to property records. The organization demolished the site shortly after. It’s been vacant since. The Land Bank approved the sale of the property for no less than $450,000. 

“The team at Urban Systems takes pride in its vision for Lansing and the commitment it makes to ensure that this venture produces a positive outcome for not just regional business, but all members of the community as a whole,” said Brent Forsberg, president of T.A. Forsberg, Inc. “This is an amazing city already, but we want to make this an attractive destination that’s reflective of our culture yet shows our willingness to embrace progress. We’re about investing in the people, the environment and the future, not just in new structures.”

About Urban Systems: Urban Systems is a collaboration of four companies and strategic partners who have come together for the specific purpose of revitalizing Lansing’s city core. With more than 100 years of collective real estate development experience, their mission is to create a connected and walkable-built environment in Lansing. For more information, visit urbansystemsmi.com.

517.349.9330 (phone) | 517.349.7131 (fax)
2422 Jolly Road, Suite 200, Okemos, MI, 48864

517.349.9330 (phone) | 517.349.7131 (fax)
2422 Jolly Road, Suite 200, Okemos, MI, 48864