NILES — Building demolition of the area commonly known as Kelly’s Corner is underway, paving the way for construction to begin on a more than $12 million senior housing development called Berkshire Niles.

The project was initiated by Wisconsin-based General Capital. Once completed, Berkshire Niles will offer 53-unit housing facility for low-income seniors residents at the corner of Third and Broadway streets.

Josh Hafron, the vice president for General Capital Group, said the demolition is expected to take several weeks to complete and will include knocking down four buildings.

Following demolition, an approximate year-long construction phase is anticipated to complete the 55,000-square-foot building which will include 35 one-bedroom units and 18 two-bedroom units. Hafron said General Capitol hopes to have the building in operation by February 2019. 

“Everything is moving just as we expected,” Hafron said. “Now we just need to build the building and fill it.”

Already people have been expressing interest in moving into the new development, which Hafron said he believes shows community members’ excitement for the project.

“We are excited to be constructing the new building in Niles in a great location,” Hafron said. “We have already received interest from 10 individuals who want to live in the building. Niles is a small town and word gets around, but without an actual website or phone number we have received interest from 10 people, which is fantastic.”

By April 15, Hafron said the business anticipates’ having a registration website available where interested residents can begin the application process. A phone line for residents to call and leave their information will also be made available and is expected to be available on the same date.   

“These are affordable apartments, so we are looking for tenants who make less than 50 percent of the area median income or less,” Hafron said.

General Capital first proposed building the facility to the city of Niles in June 2016, due to a need for more affordable senior housing to be available.  Initially, General Capital associates had identified the site of the Cowboy Saloon, 405 N. Second St. as the location for the project. When they could not come to a purchasing agreement with the saloon’s owner, the company decided the corner of Third and Broadway streets would be better suited for the development.

In January 2017, the project was approved for financing from the Michigan State Housing Development Authority, which was one of the stipulations in the purchase agreement for the property. The tax credits are part of a federal program to promote affordable housing.

Hafron said the project has received all needed approval from the city and will focus on construction in the weeks ahead.

“The city has been great to work with,” Hafron said. “[City Administrator] Ric Huff and [Community Development Director] Sanya Vitale have been great to work with. Everything that we need from the city is in place at this point.”

The Niles facility will be the second General Capital Berkshire project in Michigan to open. The Niles project will be the ninth throughout the country. For more information: visit, generalcapitalgroup.com.