Merrill Place II, a $12 million, 27-unit apartment building in Detroit’s Virginia Park/New Center neighborhood, marked its grand opening today, and it is banking on underground energy to keep tenants’ costs in check. The developer says the building is served by a geothermal heating-and-cooling field that cuts residents’ utility costs by eliminating separate heating and cooling charges. The project mixes market-rate and income-restricted housing to keep options close by for working families and hospital workers.
Funding and the building
The building, located near Henry Ford Hospital, includes nine one-bedroom units and 18 two-bedroom units, with 14 of those reserved for households earning up to 60% of area median income, according to the City of Detroit. The $12 million development used low-income housing tax credits, $1 million in HOME funds, nearly $2 million in American Rescue Plan Act allocations from the city's Housing and Revitalization Department, and a $1 million Michigan Economic Development Corporation grant, the city’s release says. The MSHDA pipeline also lists Merrill Place II (1312 Seward) as under construction.
Geothermal system aims to steady bills
As reported by Crain's Detroit Business, Merrill Place II is served by a ground-source geothermal field for heating and cooling, and tenants are not billed separately for those services. The developer told the outlet the geothermal investment is expected to recover its costs within the first several years, helped by renewable-energy tax subsidies and rebates. A guide from the DOE Building America program and PNNL notes that ground-source heat pumps can reduce energy use in multifamily housing by roughly 28–36% compared with air-source alternatives, making geothermal a practical way to lower operating costs over time (PNNL).
Built by a neighborhood developer
Sauda Ahmad-Green, the developer behind S&S Development Group, grew up in the Virginia Park neighborhood and previously developed nearby Merrill Place I, local coverage shows. BridgeDetroit reported Ahmad-Green's long ties to the block and her stated goal of building housing that benefits longtime residents. The city release notes that the first floor includes resident parking and a lobby, and describes the project as the neighborhood’s first new ground-up multifamily construction in more than a decade.
Political attention and what’s next
Mayor Mary Sheffield joined Ahmad-Green at the opening ceremony, and Crain's Detroit Business reported that Vice President Kamala Harris visited the new development last week and spoke with the developer. Officials framed the project as an illustration of how affordable housing and clean-energy incentives can work together to shrink household expenses. Ahmad-Green said in project materials that “green building and affordable housing are powerful partners,” and she has signaled plans for a follow-on phase similar to Merrill Place II.
Why it matters
Planners say combining LIHTC, HOME and ARPA dollars with renewable-energy incentives helped make the geothermal build feasible, and that the approach could reduce long-term costs for small multifamily projects. If the projected savings materialize, Merrill Place II could become a neighborhood-scale template for trimming monthly bills while cutting emissions.
