$3,500,000

An icon of Saugatuck, Peterson Mill was designed by retired engineer R.E. "Pete" Peterson and opened circa 1965 as a gristmill and gift shop, grinding cornmeal and wheat flour on site. Today, the landmark property pairs the 819-SF, 3-level mill with a 1,564-SF principal residence and attached 2-car garage.

The principal building offers 2 bedrooms, 2.5 baths and laundry on the main level; upstairs, an open kitchen, dining and living level features wood ceilings, exposed beams, fireplace, water views and a long screened porch.

The mill adds a main-level bedroom and bath, upper sleeping/flex space, half bath, eat-in kitchen, living room, laundry, storage and deck. Together: 2,383 SF across 2 buildings, with 2 kitchens and 2 laundry areas. Millponds, channels, the landmark waterwheel, waterside patios and footbridges complete this extraordinary setting near downtown Saugatuck. Peterson chose this site along Moore's Creek, between Holland Street and the Kalamazoo River, after purchasing the land around 1960. A retired U.S. Steel executive and engineer, he personally conceived the clapboard mill and its water-turned wheel. During its commercial years, visitors could purchase cornmeal and wheat flour ground on the premises. Although the business closed in the 1970s, Peterson Mill and its reflection in the millpond continued to become a favorite subject of Saugatuck-area artists and photographers.

The building to the rear incorporates architectural features from Saugatuck's R. C. Brittain house, adding another layer to the property's provenance. Ornamental exterior brackets, substantial turned stair details, paneled doors and beautifully aged millwork carry that collected character throughout the principal building.

Its main level opens through a dedicated foyer adjoining the attached two-car garage. Two bedrooms are arranged on this floor, including a generous primary suite with a window-lined bath featuring a soaking tub and separate shower. The second bedroom is currently well suited to office or studio use. A half bath, laundry room and additional utility space complete the level.

Upstairs, the principal building opens into a warm, expansive gathering floor beneath wood-paneled ceilings and exposed structural beams. The kitchen centers on a large island with seating and flows naturally into the dining and living areas. A fireplace anchors the room, while broad windows frame the lawn, water and surrounding tree canopy. The approximately 27-foot screened porch extends the entertaining space and offers an elevated place to enjoy the setting in changing weather.

The mill unfolds vertically across three intimate levels. The first provides a waterside bedroom, full bath with tiled shower, laundry room and dedicated storage. The second level contains an eat-in kitchen, living room and half bath, surrounded by warm wood walls, ceilings and barn-style doors. At the top, a wood-wrapped sleeping or flex room, with exposed rafters, windows and access toward the elevated deck, creates a memorable private retreat.

Outside, millponds and channels shape nearly every view. Patios sit directly at the water's edge, footbridges cross the spillway and channels, and mature trees frame open lawns and the mill's unmistakable wheel and stone base. The result is part residence, part architectural landmark and entirely Saugatuck, a property whose setting, history and versatility cannot be replicated.