Arbor South Mixed-Use Community in Ann Arbor Secures Final State Approval

Mixed Use Development Advances in Ann Arbor
CRE Market Beat Take
State-level brownfield approval and a record-sized tax recapture plan signal ongoing public-sector willingness to support large mixed-use housing projects in Ann Arbor.

Oxford Companies and Crawford Hoying have secured final state approval for Arbor South, a planned 20-acre mixed-use community in Ann Arbor. The Michigan Strategic Fund Board granted the approval, marking a key step forward for the project after an extended entitlement and review process at the state level.

The development site is located at 2845 S. State St., near Eisenhower Parkway, in an area positioned to build on the existing activity and character of Ann Arbor. The project is being framed by its sponsors as a natural extension of the city’s established energy, creativity and sense of community.

Plans for Arbor South call for a substantial residential component, with more than 1,000 apartments and condominiums envisioned across the site. The residential density is designed to be supported by a significant ground-floor commercial program, with approximately 100,000 square feet of space slated for shops, services or other commercial uses. The master plan also includes a hotel, adding a hospitality element to the mix and broadening the project’s use profile beyond housing and commercial space.

In a statement on the approval, Jeff Hauptman, CEO of Oxford Companies, described the state sign-off as an important milestone in advancing a large and complex development. He noted that moving a project of this scale forward has required careful coordination and sustained collaboration with the City of Ann Arbor, underscoring the role of public-sector engagement in reaching this point.

Arbor South’s approval was achieved through what is described as the largest brownfield tax recapture plan in the history of both the city and the surrounding county. That structure is expected to support the project’s feasibility by capturing certain tax revenues tied to the redevelopment, reflecting the site’s brownfield status and the public-private framework underpinning the plan.

The project team brings together several Michigan-based firms in key delivery roles. Sachse Construction, based in Detroit, is serving as general contractor for the development. Detroit-based Lord Aeck Sargent is providing architecture and design services, while Midwestern Consulting, headquartered in Ann Arbor, is leading civil engineering work for the site. With state approval and a defined project team in place, Arbor South is positioned to move into subsequent phases of the development process.

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