Large-scale student housing developments are changing the composition of South University Avenue. At its center are The Metropolitan, an upcoming 259-unit high-rise development constructed by Landmark Properties and Manulife Investment Management, and Chapter Ann Arbor, a 183-unit development by CRG.
The developments come at a time of rising housing costs in Ann Arbor driven by a supply shortage. The median home sale price in the city pushed past $500,000 for the first time in early 2024, and the average monthly rent for an apartment now sits at over $2,000.
The Metropolitan, located at 1208 S. University Ave., will take the place of the Galleria Mall site. It will replace now-closed businesses like Pinball Pete’s — which is moving to East Liberty Street — Starbucks and Pancheros. Construction has not yet begun, but is projected to be complete by May 31, 2028.
To make room for Chapter Ann Arbor, four businesses at the northeast corner of South University Avenue and Church Street — Oasis Mediterranean Grill, Sweeting, Jimmy John’s and Motivation — have closed. Construction has already begun on the new development, which will be situated at 1201-1213 S. University Ave. adjacent to University Towers. The high rise will open in fall 2027 with 626 new beds.
In an interview with The Michigan Daily, Engineering junior Ojaswin Kolhatkar said these closures have already begun to change how he and his friends spend their free time. Kolhatkar said he has spent less time on South University Avenue with fewer dining and gathering spaces.
“It’s drastically reduced the amount of time I spend on South U,” Kolhatkar said. “Pancheros was a restaurant that me and one of my friends would frequent, but now that it’s closed, we don’t have much of a reason to go up there anymore.”
In an interview with The Daily, LSA sophomore Victoria Messano said the closure of the South University Starbucks in late October 2025 has increased the popularity of the Starbucks in the Ross School of Business, where she currently works.
“My reaction when I first heard that Starbucks on South U was closing was actually pretty sad because that Starbucks is a great place to study, and a lot of my friends love going there,” Messano said. “My second thought was there was gonna be so many people coming to the Starbucks that I work at now, just because it’s the most accessible besides that. Right off the bat, especially during the holiday season when it first closed, I really saw an impact. I think one of the weeks we hit record sales.”
LSA sophomore Ivy Chen, who worked at the Starbucks on South University Avenue before it closed, wrote in an email to The Daily that the closure saddened her because of the sense of community she built with customers and employees.
“I was definitely disappointed and sad to hear that the South U Starbucks would be closed and torn down because I loved to study there and chat with coworkers on my days off,” Chen said. “Many of my coworkers were upset because they would either have to move to another location or adjust to a new environment. A lot of them had worked there for a long time and loved the regulars and the community.”
In an email to The Daily, Hank Kelley, Ann Arbor deputy planning manager, wrote that these new developments are guided by the city’s recently adopted Comprehensive Land Use Plan, which aims to increase housing density. Under the plan’s recommendations, the area would be classified as “Transition” or “Hub” – encouraging moderate to higher-density housing and mixed residential and commercial uses.
Kelley wrote that the city will continue to support businesses and high-rise developments in the South University Avenue area through the Office of Economic Development and Downtown Development Authority while prioritizing walkability.
“South University will likely continue to attract businesses that cater to the university and students,” said Kelly. “In general we hope that mixed use allows for people to reduce vehicle trips and meet the majority of their needs within the place that they live.
South University Avenue is already home to several high-rises, such as Vic Village andUniversity Towers. Kolhatkar said he believes additional student housing on the street is unnecessary.
“Ann Arbor has a lot of housing already and a lot of students as well,” Kolhatkar said. “The fact that they’re building another apartment unit on South U, with there already being two Vic Village units there — is a bit excessive.”
In addition to The Metropolitan and Chapter Ann Arbor, construction for two other high-rise developments near the intersection of Church Street and Willard Street has begun. Rambler Ann Arbor, a 273-unit development is set to open in fall 2027, and 625 Church St. will soon be home to a 20-story apartment building. In an email to The Daily, Alexis DiLeo, Ann Arbor city planner, wrote that the city does not anticipate further development proposals for the near future after these projects are complete.
“We have had no recent concept or presubmittal meetings for any other sites in the South University Area, however, so we assume that once those four new developments are completed, things on South U might stabilize and remain calm for a little while at least,” Dileo wrote.
Messano, who lives near the South University Avenue area, said she believes the construction has taken away an important gathering place for the community.
“I think that the increase in new residential student department buildings on South U has come at the expense of businesses,” Messano said. “That was a place where a lot of us congregate for community, and I think it’s very important to have community and spaces like that, especially on campus. We lost a place where a lot of people have some great memories.”
Daily News Reporter Isabella Yatooma can be reached at yatoomai@umich.edu.
