A three-story, 27,000-square-foot development will replace the current Bay Street branch of the TBA Credit Union.

Terry and Amy Harper, owners of The Harper Companies in Traverse City, will develop the nearly half-acre parcel at 537 Bay Street (also its future name) into eight luxury condominiums and more than 4,500 square-feet of Class A office space – all with clear views of West Grand Traverse Bay, little more than a stone’s throw away.

“We know there’s demand for all types of housing in the area … and in the city limits, especially within walking distance of downtown and the bayfront,” says Terry Harper. “This property, with direct, unobstructed views of the bay, lends itself to being luxury.”

Harper adds that demand continues for Class A office space for sale or lease in Traverse City, especially with “readily available parking, good visibility and good views.”

This is the first mixed-use project for Harper under his own company, though he has completed such developments through Harper Contractors. This project is use-by- right and does not require any special city approval. “Our goal is to develop a place that is artful in its mix of uses, and a pedestrian-focused neighborhood home to both residents and office tenants,” Harper says.

Harper completed the purchase with TBA Credit Union (TBACU) in early spring and tells The Ticker the construction timeline is dependent on the credit union branch’s move to East Front Street.

The new building is slated to be ready for move-in on June 1, says CEO Karen Browne, though the credit union has yet to establish a move-out date for the Bay Street branch.

Once they do vacate, construction on the first phase will commence and take 12 months to complete, says Harper, with commercial space on the ground level and two condominiums each on the second and third stories.

Browne says the credit union does have a contract with Harper for a 24/7 ATM at the new development.

Other than the credit union, Harper says he doesn’t have any other commercial tenants secured, “but there’s been a lot of interest.”

Michael Fitzhugh of Michael Fitzhugh Architect in Traverse City is designing the building, which will feature a classic brick exterior with limestone and iron and will capitalize on the property’s triangular shape for corner balconies and bay views at the corner of Bay and Randolph streets.

“We’re really excited,” says Harper. “The city completed the infrastructure improvements along Bay Street this fall which benefit our project.”

Pamela Houtteman of Houtteman Interiors in Glen Arbor is designing the interiors.

Preconstruction prices for the eight condominium units start in the $700,000 range for a 1,723 square-foot, two bedroom, two bath unit. All units will have elevator access and garage parking.