Related Midwest and Ann Arbor Housing Commission Break Ground on 330-Unit Affordable Tower The Adeline

Related Midwest and the Ann Arbor Housing Commission broke ground Sept. 28 on The Adeline, a 20-story, 330-unit affordable housing tower at 350 S. Fifth Ave. in downtown Ann Arbor, Michigan. The public-private partnership — which also involves the City of Ann Arbor, the Downtown Development Authority and the Ann Arbor Area Transportation Authority — is expected to deliver one of the largest affordable housing communities in Michigan when it opens in 2028.

Project Overview and Affordability Structure

The Adeline will comprise 221 one-bedroom and 109 two-bedroom apartments, all reserved for households earning between 30% and 80% of the Ann Arbor-area median income. Approximately one-third of the units will serve households earning below 30% of AMI, with project-based vouchers supporting a substantial portion of those deeply affordable homes. A manager's unit is the sole exception to the income restrictions.

The building's ground floor will include two storefronts offering more than 6,000 square feet of retail space, along with a resident lobby, mailroom and package room. Second-floor amenities include a resident lounge with a kitchenette, a multipurpose classroom for social programming and resident services, an indoor children's playroom, a fitness center and resident storage. Apartment finishes include light oak plank flooring and cabinetry, satin chrome fixtures, tile backsplash, stainless steel appliances and in-home laundry.

Designed by SmithGroup, the tower sits atop a two-story podium and incorporates brick masonry and metal framing with large modern windows. Corridors feature recessed doorways with warm sconce lighting, and common areas carry a bold color palette that transitions to warmer tones within individual residences.

Capital Stack and Public Financing

The project is being assembled through a multilayered affordable-housing capital stack with total financing of approximately $225 million — implying a development cost of roughly $682,000 per residential unit, a figure that reflects high labor, material and financing costs as well as substantial infrastructure and nonresidential components.

Reported funding sources include a permanent mortgage of approximately $56 million issued through the Michigan State Housing Development Authority, a $46 million Ann Arbor Housing Development Corp. note, approximately $91.5 million in tax-credit equity, approximately $5.4 million in investment-tax-credit equity, an $8 million HOME loan, approximately $19.4 million in deferred developer fee, and approximately $675,907 in Transformation Brownfield Plan construction-period income. Additional support comes from city-backed bonds, DDA participation, DTE Energy rebates and geothermal-related tax credits.

Ann Arbor City Council authorized up to $35 million in bonds in March 2026, with repayment expected through the city's affordable-housing millage at an interest-rate ceiling of 6.5%. Michigan also approved a Transformation Brownfield Plan incentive package totaling approximately $29.98 million, to be reimbursed over 30 years. The state has estimated the project will generate approximately $209.4 million in total capital investment.

Sustainability and Transit Orientation

The Adeline will be an all-electric building using a geothermal system as its primary heating and cooling source. Related Midwest describes it as the firm's first building nationally — and one of the largest affordable housing communities in Michigan — to use geothermal energy as a primary system. A large ground-floor window facing William Street will display the building's manifold room, giving pedestrians a view of the geothermal infrastructure. Energy-related incentives and DTE rebates are included in the financing to help offset the higher upfront costs associated with the geothermal installation.

The site is located steps from the Blake Transit Center and the William Street bikeway. A ground-floor bike room with 100 spaces allows residents to ride directly from the adjacent bike lane into the building. The project is planned alongside public infrastructure improvements including a new mid-block bus lane, bike lane upgrades and streetscape enhancements in the downtown core.

Fulfilling a Long-Standing Community Commitment

The Ann Arbor Housing Commission has described The Adeline as fulfilling a commitment made more than 20 years ago to replace 100 affordable single-room-occupancy units lost when the former YMCA was demolished. The city-owned site sits within a walkable urban district surrounded by residential, commercial and institutional uses, including the University of Michigan, and is proximate to employment centers and downtown amenities.

"Over 20 years ago, the City of Ann Arbor made a commitment to the community to replace 100 affordable SRO units that were lost when the former YMCA was demolished," said Jennifer Hall, Executive Director of the Ann Arbor Housing Commission. "I am proud to partner with the City, DDA, AAATA, and Related Midwest to develop 330 high-quality affordable apartments on this site while expanding our transit capacity adjacent to the Blake Transit Center."

Curt Bailey, President of Related Midwest, said the project demonstrates what public-private partnership can produce. "The Adeline reflects what is possible through public-private partnership, and we're honored to partner with the Ann Arbor Housing Commission to bring much-needed housing to a site that will once again serve the Ann Arbor community," Bailey said. "The design reflects a thoughtful approach to affordable housing, one that gives residents a building they can be proud to call home. We look forward to welcoming residents in 2028."

The building takes its name from Adeline Thompson, who with her husband Robert opened DeLong's Bar-B-Q Pit in 1964 in a converted gas station at 314 Detroit St., across from Ann Arbor's Farmers' Market. The restaurant, one of the city's historic Black-owned businesses, operated for 37 years and drew visits from blues musician B.B. King and boxing champion Joe Frazier. Angela Davis, granddaughter of Adeline Thompson, offered remarks at the groundbreaking. "My grandmother taught us that when you empower people and give them a chance to dream, you change lives," Davis said. "The Adeline isn't just a project — it's a living continuation of the legacy my grandparents built on Detroit Street: a place where no matter who you are or where you come from, you are welcomed, respected, and heard."

Ann Arbor Housing Commission Context

Founded by the City of Ann Arbor in 1965, the Ann Arbor Housing Commission owns and manages 21 properties totaling 745 apartments and administers more than $25 million annually in rental subsidies across Washtenaw and Monroe counties. Through its nonprofit affiliate, the Ann Arbor Housing Development Corp., the commission has supported development of more than 1,200 affordable apartments since 2020. The Adeline's 330 units represent an addition equivalent to roughly 44% of the commission's current owned portfolio.

Related Midwest, the Chicago office of Related Companies, describes itself as the largest developer of affordable housing in the Midwest, with more than 10,000 units. The firm states it has never converted an affordable unit to market-rate. Related Affordable has also recently acquired and renovated four affordable housing communities across Michigan totaling 524 units, representing a combined investment of $94 million, all completed in partnership with the Michigan State Housing Development Authority.

Sources

Related Midwest Press Release — The Adeline Groundbreaking, Sept. 28, 2026