Commongrounds Cooperative

What Commongrounds Cooperative does

Commongrounds Cooperative, founded in 2018 and headquartered at 414 E. Eighth Street in Traverse City, Michigan, is a member-owned real estate cooperative operating Northern Michigan's first mixed-use community center of its kind. The $17.5M, multi-story building integrates 18 income-based workforce housing units, 5 short-term vacation rentals ("Tree Houses"), three event venues (The Hive, The Crow's Nest, The Bird's Eye Lounge), a 150-capacity performance venue (The Alluvion), the Esperance Community Teaching Kitchen, and the Greenhouse Wellness Gym, alongside seven tenant-owner businesses spanning food and beverage (Colibri Wine Bar, The Folded Leaf, Higher Grounds Coffee Learning Lab), coworking (Grove Community Incubator), early education (Northern Blooms Montessori), and food systems programming (Groundwork Center for Resilient Communities).

The cooperative operates on a one-member, one-vote democratic governance model with over 1,000 community owners who each purchased a $50 lifetime equity share and pay optional annual dues (suggested $48 minimum). Revenue is generated across five streams: short-term vacation rentals (booked via Hostaway), event space rentals (booked via PerfectVenue), coworking memberships through Grove, annual owner dues, and lease income from tenant businesses. Workforce housing is priced on MSHDA Area Median Income tiers (60%–100% AMI plus market rate) and short-term rental revenue is explicitly used to subsidize affordable housing. The cooperative has not yet achieved annual operating profit as of 2025, supplemented by $1.4M in community equity investments (2019, 2021, 2023), a $1.5M state grant (2020), and a $1.2M Community Center Coalition grant (2024). A sister 501(c)(3), Commongrounds Foundation, accepts tax-deductible donations supporting accessible programming and affordable housing.

Name

Commongrounds Cooperative

Legal name

Commongrounds Cooperative

Website

https://commongrounds.coop

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

1–10 employees

Ownership category

akta.pro rank

Product category

Community Real Estate Cooperative

NAICS

Assisted Living Facilities for the Elderly (623312), Continuing Care Retirement Communities and Assisted Living Facilities for the Elderly (62331), Other Residential Care Facilities (623990)

SIC

Services-To Dwellings & Other Buildings (7340), Services-Membership Sports & Recreation Clubs (7997), Services-Facilities Support Management Services (8744)

akta.pro primary industry

Mixed-Use Community Association Management (BPAJAHAF)

akta.pro secondary industries

Cooperative (Co-op) Housing Association Management (BPAJAHAC), Active Adult / Senior Community Association Management (BPAJAHAJ), Community Centers & Neighborhood Support Services (BPAGAEAL)

Keywords

• Community real estate cooperative
• Workforce housing services
• Mixed-use community center
• Short-term vacation rentals
• Event space rentals

Headquarters

HQ city

Traverse City

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D

Revenue model

1. Short-term Guest Stays: Revenue from vacation rental apartments (Oak Tree House, Birch-Maple Tree House, Pine Tree House, Cedar Tree House, Fir Tree House) that also subsidize workforce housing. Booked through Hostaway platform.
2. Event Space Rentals: Rental income from venues including The Hive, Esperance Community Teaching Kitchen, The Crow's Nest, The Bird's Eye, plus tenant venues (The Alluvion, Colibri Wine Bar, Grove). Discounts offered to active owners.
3. Coworking Memberships: Grove Community Incubator provides coworking space (private office, dedicated desk, drop-in) with 15% discount for Commongrounds owners.
4. Community Owner Dues: Annual dues from community owners for active membership status, with suggested minimum of $48/year. Provides access to governance and owner benefits.
5. Community Investment Returns: Raised $1.4 million from 500+ community investors through 2019, 2021, and 2023 campaigns. Returns up to 6% annually accrue and are paid when cooperative earns cash profit or upon investor exit.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Commongrounds Cooperative operates a mixed-use community center at 414 E. Eighth Street in Traverse City, Michigan. It directly offers affordable workforce housing (18-20 income-based apartments), five short-term vacation rentals (Tree Houses), and event space rentals (The Hive, Crow's Nest, Bird's Eye Lounge). The cooperative also runs a community ownership program ($50 lifetime equity share plus annual dues) and a community investment program (up to 6% annual returns). Tenant-operated businesses within the building provide food, family/childcare, arts, and wellness services.

Product overview

Commongrounds Cooperative is Northern Michigan's first real estate cooperative operating as a mixed-use community center at 414 E. Eighth Street, Traverse City. The portfolio includes the Alluvion (150-capacity performance venue), Colibri Wine Bar, Higher Grounds Coffee Learning Lab, Northern Blooms Montessori childcare, Grove Community Incubator coworking space, Groundwork Center programming, and the Esperance Community Teaching Kitchen. Housing offerings comprise 18-20 workforce housing units and 5 Tree Houses short-term rentals. Event spaces include The Hive, Crow's Nest, Bird's Eye Lounge, and teaching kitchen. The cooperative also offers community ownership memberships ($50 lifetime share) and investment opportunities (up to 6% annual returns). The building is open to all with tenant businesses serving food, family, arts, and wellness through the cooperative model.

Differentiator

Problem solved

Functional benefit

Products and services

• Workforce Housing Units
• Tree Houses Short-Term Rentals
• Event Space Rentals (The Hive, Crow's Nest, Bird's Eye Lounge, Esperance Teaching Kitchen)
• Community Owner Membership
• Community Investment Program
• Grove Community Incubator Coworking Space

Quantifiable outcome

• 1000+ community owners achieved by 2023
• +4 more outcomes

Named customers7 records

Segments6 records

Ideal customer profiles6 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Partnerships

Five partnerships are on record, tiered core and minor.

• USDA Partners (16 Counties)coreStrategic or Co-development Partner · 8 July 2024Groundwork Center's Teaching Kitchen hosted mini-workshop for USDA-funded project to expand local food economies along Michigan's west coast. Part of broader effort to strengthen regional food systems.
• Rotary CharitiesminorStrategic or Co-development Partner · 29 April 2024Quarterly 'Connecting with Changemakers' events hosted in partnership with Rotary Charities' quarterly programming, fostering collaboration between socially-minded community professionals.
• Commonplace CoworkingminorStrategic or Co-development Partner · 29 April 2024Monthly 'Waffle Wednesday' events co-hosted with Commonplace Coworking, mash-up events fostering cross-pollination and collaboration.
• BDAI (Before, During & After Incarceration)minorStrategic or Co-development Partner · 1 July 2021Community reentry education partnership. Commongrounds staff participated in jail release simulation organized by BDAI to gain understanding of obstacles faced by individuals returning from incarceration.
• Commongrounds FoundationcoreStrategic or Co-development PartnerSister 501(c)(3) organization that accepts tax-deductible donations to support Commongrounds' community mission. Donations directed to Accessible Community Programming and Affordable Housing Development.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Regional players

• Commonplace Coworking: Traverse City coworking space co-founded by Commongrounds co-founder Kate Redman; now operates as the Grove Community Incubator tenant inside Commongrounds. Comparable mission-aligned coworking/community incubator model in the same geography.

Direct peers

• Cooper Square Mutual Housing Association: NYC limited-equity housing cooperative providing permanently affordable housing through cooperative ownership. Comparable in the use of a member-owned cooperative structure to deliver workforce-affordable housing in a high-demand market.
• ROC USA: National network that helps manufactured-home communities convert to resident-owned cooperatives. Directly comparable cooperative-ownership real estate model targeting community stewardship of property assets.
• Shared Capital Cooperative: National loan fund and consulting cooperative providing financing and development support to housing and community-based cooperatives. Directly comparable cooperative-development financing model with similar member-investor return structure.
• Champlain Housing Trust: Burlington, VT-based community land trust operating permanently affordable mixed-income housing and mixed-use properties. Closest direct peer to Commongrounds as another community-owned real estate model combining affordable housing with broader community assets.

Broad incumbents

• Grounded Solutions Network: National membership organization supporting community land trusts and shared-equity housing programs. Comparable as the broader ecosystem in which Commongrounds' community-ownership real estate model operates.
• The Community Builders: Large nonprofit developer of affordable housing combined with community facilities and mixed-use developments. Comparable as a scaled operator of mixed-income, mixed-use community real estate projects, though structured as a traditional nonprofit rather than a cooperative.
• Capital Impact Partners: Community development financial institution (CDFI) financing cooperatives, affordable housing, and community-owned real estate. Comparable as a financing partner for cooperative real estate and community-ownership models at scale.
• Mercy Housing: One of the largest US nonprofit affordable housing developers, operating mixed-income and supportive housing across the country. Comparable as a scaled, mission-driven affordable housing operator; differs as a centrally-managed nonprofit rather than a member cooperative.

Emerging players

• Neighborly: Online platform enabling municipalities and nonprofits to issue community investment bonds for local projects. Comparable as an emerging capital-market channel for mission-aligned community development financing similar to Commongrounds' Honeycomb Credit investment program.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Subsidiaries7 records

Funding overview

Funding rounds3 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Commongrounds Cooperative