The Michaels Organization, Kyuden Urban Development America Break Ground on $88 Million Mixed-Use Development in Downtown Davis

The Michaels Organization, alongside development partners Kyuden Urban Development America and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, marked the start of construction Sept. 1, 2026, on The Lumberyard, an $88 million mixed-use multifamily development in the heart of downtown Davis, California.

The groundbreaking ceremony took place at the former Hibbert's Lumberyard & Hardware Store site at the intersection of G Street and 5th Street — a parcel the City of Davis identifies as 500 G Street, spanning associated addresses at 500, 506, and 512 G Street. Davis Mayor Donna Neville joined speakers including Michael Flanagan, Chief Investment Officer of The Michaels Organization, along with representatives from the project's Japanese capital partners.

Project Overview: Scale, Design, and Affordability

The Lumberyard will rise five stories as a Type III wood-frame mid-rise, delivering 239 apartments across a mix of studios through four-bedroom configurations. The project encompasses approximately 225,000 square feet and is designed to serve both traditional multifamily renters and the off-campus student housing market. Brown Construction's project documentation describes the development as comprising 239 units and 316 beds, reflecting the prevalence of larger-bedroom layouts suited to shared households.

Ground-floor programming includes approximately 1,500 square feet of street-level retail space, along with lobby, leasing, fitness, co-working, and mailroom uses. A dedicated public paseo running along the railroad tracks will provide pedestrian connectivity through the site. Upper-floor amenities include a state-of-the-art fitness center, co-working space, clubhouse, pool and spa, and a landscaped roof deck and sky-lounge on the fifth floor.

The project includes an affordability component: five percent of apartments — roughly 12 units — will be set aside for households earning 50 percent or less of the Area Median Income. The Lumberyard is also planned to achieve LEED certification. Reflecting Davis's bike-centric planning culture and the site's downtown location, the development will provide storage for more than 300 bicycles, with zero or very limited vehicle parking.

Development Team and Capital Partners

The Michaels Organization is serving as developer, property manager, and asset manager on the project. Kyuden Urban Development America — the U.S. real estate arm of Kyushu Electric Power — and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, a Japanese government-backed platform that co-invests in overseas urban and transport-linked infrastructure and real estate, round out the ownership group. BDE Architects designed the building, and Brown Construction is serving as general contractor. Financial closing on the project was announced Aug. 18, 2026.

Site History and Entitlement Context

The Lumberyard site has a lengthy entitlement history. Earlier City of Davis planning documents described a project of 227 apartments in a four- and five-story mixed-use building, with a preliminary application referencing 11 units reserved for low-income residents and six live/work units. The unit count and design were revised upward during the entitlement and financing process, arriving at the current 239-unit program. The City subsequently issued a revised affordable housing plan for the G Street parcels as the project evolved.

Earlier preliminary plans for the site also referenced approximately 8,586 square feet of non-residential uses, including retail, a public fitness center, public co-working space, and a public passageway — a commercial program that was rationalized to the current approximately 1,500-square-foot retail footprint in the final design.

Downtown Davis Context

The Lumberyard represents an urban infill development on a prominent downtown parcel that had been occupied by a legacy hardware and lumber operation. Construction activity will close the north side of Fifth Street's sidewalk and portions of Sixth Street near the railroad tracks during the build period. The project's mix of unit types and bicycle infrastructure emphasis reflect the site's downtown location and proximity to the UC Davis campus.

Apartments will feature open layouts, high-end finishes, and energy-efficient appliances and lighting, according to The Michaels Organization.

Sources

The Michaels Organization — City of Davis to Celebrate Groundbreaking for The Lumberyard