Historic Building at Risk as Nonprofit Struggles With Lease Payment

A downtown Grand Rapids nonprofit faces eviction after failing to secure a long-term lease for the historic building that houses its arts and community programs. The Lit Grand Rapids, which has operated for less than a year, cannot afford the $30,000 upfront payment now required by the building owners.

"I'm trying as hard as I can every day, all day, trying to raise money and find ways that we can stay there," Penny Hock, president and founder of nonprofit The Lit Grand Rapids, said. "I'm hoping something magical will happen."

Hock made that statement to News 8 on April 6, 2026, as the nonprofit prepares to potentially lose the historic building at 61 Sheldon Blvd SE, a structure that once hosted Susan B. Anthony and U.S. Presidents Teddy Roosevelt and Woodrow Wilson.

A Historic Building With New Challenges

The nearly 7,000-square-foot building, constructed in 1887 for the Ladies Literary Club, was sold in 2018 for $485,000. After serving as a wedding and event venue for several years, the property sat empty when Hock first encountered it in late 2024.

"When I walked through the doors, it was just like the most unbelievably welcoming and warm feeling, just being in the building. And it was the dead of winter," Hock said.

She did not have the funds to purchase the building outright, so she proposed an unusual arrangement to the owners: a free trial period where her organization would operate in the building with the owners covering utility costs. The owners agreed in good faith, giving Hock access to the building for three months while she built community support and secured donor backing.

"It was just an absolute miracle that they even let us in there in the first place," Hock said.

The Penny Loafer, an organization owned by Hock, moved into the building in July 2025, and The Lit opened its doors about a month later. The nonprofit officially secured 501(c)(3) status in October.

What The Lit Does

The Lit positions itself as an arts and humanities home for the community, offering space to nonprofits and community groups at nominal rates. The organization charges nonprofits around $100 per hour to use the facility, which Hock describes as "pennies" compared to market rates.

The building includes a cafe and a boutique, and has hosted:

• The Junior League of Grand Rapids
• The Grand Rapids Original Swing Society
• Opera Grand Rapids
• Weddings and baby showers
• Speakers including U.S. Rep. Hillary Scholten and Grand Rapids Poet Laureate Christine Stephens-Krieger

Lease Negotiations Stall

The nonprofit did not pay the owners of the building a dime until November 2025, when the parties began negotiating a long-term lease agreement. At that time, Hock felt confident about the future based on the progress made during the trial period.

"We had 40 community partners. We were an established 501(c)(3)," she said. "We made tremendous progress, and our building was used and continues to be used regularly."

But negotiations dragged on for several months. Hock explained that the nonprofit's former president made an offer that was not feasible, which required Hock to step into the presidency and retract that offer. She believes that was a turning point in the negotiations.

Now, to sign a lease, the owners are asking for an upfront payment of about $30,000. The nonprofit simply does not have that amount.

"I do not have a money tree in my backyard," Hock said. "I knew that I had to be creative."

Too Young To Qualify For Grants

The Lit is also too young to qualify for many grants because applications often ask for 12 months of financial history or tax documents from the previous year. With only being in the building eight months, the nonprofit has not had the exposure to garner those kinds of funds.

"There's no cushion," Hock said. "We're a nonprofit because it's important to offer a space to people at a nominal cost. That was the intent: to make sure that there was an arts and humanities home available for everybody to use."

The Owners Perspective

In a statement sent to News 8 by co-owner Robert DeVerna, the owners expressed support for Hock's mission. They told News 8 they offered the initial trial period arrangement "in good faith on multiple occasions to provide the organization with additional time to build community support, expand programming, and secure donor backing, with the hope that the organization could ultimately sustain a market-rate lease or potential purchase."

The owners also noted they covered all utility costs during the trial period "with the understanding that the organization would assume financial responsibility and reimburse those expenses when able."

Community Impact

The Lit has welcomed a wide variety of groups and organizations in less than a year of operations. The building has become a gathering place for community nonprofits and groups focused on the arts and humanities.

Hock said she continues to pursue options to keep the organization in the building. She hopes something magical will happen to allow The Lit Grand Rapids to stay at this historic location and continue serving the community.

"Everything that we're doing is for the sake of giving this building back to the community," Hock said.