A Mishawaka hotel on the corner of Lincolnway East and Capital Avenue on the St. Joseph River could be redeveloped into apartments after city council unanimously approved a needed zoning change on Tuesday.
Developers plan to convert the existing Mishawaka Inn building into 60 studio apartments and construct a new building closer to the river, which will contain 46 one and two bedroom apartments.
The Barak Group, which also built the River Rock Apartments in Mishawaka, plans to purchase the hotel from Balaji Hospitality Group to build the project.
“I get to page two, and I just say, ‘How soon can I vote yes?'” Council member Matt Mammolenti said. “I really like the concept.”
“This is a property that has been in need of tender care for many, many years,” council member Gregg Hixenbaugh said. “I am happy to see that there is a chance that an improvement can be made in the area that will benefit the whole community.”
John Piraccini is with Coldwell Banker Commercial Real Estate. Speaking on behalf of the developers, he said the hotel is currently around 30% occupied by long-term tenants.
The rehabilitation will be done in sections, so tenants can stay while it happens, and they could be offered a first chance to rent the new units.
“They pay a daily rate there,” Piraccini said. “When that is done, it will probably look like a monthly fee in the rehabilitated place.”
Piraccini said the units will be rented at market rates, potentially $800 to $1,200 per month.
The rehabilitation of the first building could start in 2023 and end in 2024. The new building could be completed by 2025.
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