New York Company Steps Up for Dearborn Hotel

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An unidentified New York-based company is under contract to buy the former Dearborn Hyatt Regency hotel from the U.S. Marshals Service. Previously, the property was under a $27 million deal that envisioned top-floor condominiums and a hotel on the bottom floors. That deal fell through with the buyer backing out at the end of the inspection period. The current deal is for $17 million. A broker for the sale disputes that figure. The company intends to redevelop the hotel into a mix of 375 market-rate apartments and a small hotel.

Affordable Housing Demand Fills Downtown Muskegon Building

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A new TEN21 apartment building in downtown Muskegon is providing affordable housing. Residents began filling the new apartment building last week. The 73-unit building has 60 people waitlisted. The building will be fully occupied by the end of the month. Residents must meet income eligibility rules. One-bedroom rent ranges from $269 to $815 a month, and two bedrooms range from $460 to $950 a month. Each unit is equipped with a washing machine, dryer and kitchen appliances. Community common spaces are included in the development.

 

 

Detroit Area Hotel Business Travel Takes a Hit

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Detroit area hotels’ business travel revenue is taking a hit. It’s expected to be 2/3 lower than pre-pandemic levels. According to the American Hotel & Lodging Association, the region’s hotels are expected to generate $187 million this year. That’s a 67.4% drop. Michigan hotels are expected to lose 59.8% of their business travel revenue this year. Nationally, hotels could be down by more than $59 billion by the end of the year in business travel. A rebound isn’t projected until 2024.

Reusing Old Mall Sites Takes a Creative Turn

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Redeveloping dead shopping mall sites in the metro Detroit area isn’t about attracting the big box stores. The hottest concepts for reusing old mall sites include warehouses, distribution centers, storage units and middle-income housing. For example, Livonia and Wonderland mall sites have become Livonia Marketplace and Wonderland Village. Experts say that retail-focused approaches are less effective now due to the prevalence of online shopping.

 

 

Headquarters Property Slated For New Ownership

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The former Art Van headquarters property in Warren is soon to be under new ownership. Montreal company Groupe Quint is expected to close on the purchase of more than 1 million square feet of space in the next couple of weeks. Most recently occupied by Loves Furniture, Inc., it had been listed for $65 million this winter. The current price is undisclosed. The property is located at 6500 E. 14 Mile Rd. in Warren.

The Lake Lifestyle Carries a Price Tag

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A recent report from LakeHomes.com is based on real estate property for sale and listing data collected in August of 2021. It includes list price and the volume of listings. Any lake with fewer of 10 home listings for sale was eliminated from the report. Michigan has $2.7 billion in lake homes and lots for sale, with the number of listings totaling 5,508. Lake Michigan makes up for half of the top 10 most expensive lakefront areas. It is also number 5 on the top most expensive lake home markets, nationally. Smaller inland lakes also landed on the state list and include Torch Lake, Lake Leelanau and Lake Charlevoix.

COVID Emergency Rental Assistance Staves Off An Eviction Tsunami

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With the ending of the federal eviction moratorium on August 26, local legal aid funds are still being sorted out. Since the initial eviction moratorium, the U.S. Treasury has paid $25 billion to states and local governments for COVID Emergency Rental Assistance. From May to August, a total of $181,821,906 has been paid out to Michigan residents. The pace of the disbursements will continue to accelerate into September, according to the MSHDA communications director. The Director of Litigation at the Legal Aid of Western Michigan estimates that applicants are waiting 1 to 2 months before receiving a check. The processing rate varies by county and ranges from 26-72%.

 

 

Detroit’s Roosevelt Park Plans Affect Vernor Highway

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Detroit has plans for improvements to Roosevelt Park that involve permanently closing a section of Vernor Highway. The plans will make the park safer and uninterrupted by vehicle traffic. Currently, the highway cuts through the park and a section of 15th Street in the Corktown neighborhood.  A temporary closure of the highway at 17th and Newark streets will begin Tuesday. Construction will be completed in 2 phases and is expected to be complete in February 2022. Resident input is welcomed by the city, via a survey that closes on October 31.

Vacancy Increases in Detroit’s Prime Office Buildings

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There’s an increase in vacancy rates in Detroit’s prime office buildings in 2021. According to a new report from the Chicago-based brokerage house JLL, there’s a 10.2% vacancy rate totaling more than 10.9 million square feet. That’s an increase from a 7.7% vacancy rate in 2019 and just under 9% in 2020. Rent also dropped 0.4%. Although 21 downtown prime office buildings comprise the vacant real estate, the Renaissance Center accounts for almost 45% of all the vacant space.

Ann Arbor Land Trust Plays Matchmaker

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Ann Arbor’s affordable housing crisis has prompted the city to look at creative ways to address the shortage. A retiring U of M real estate professor has started a nonprofit called the Equitable Ann Arbor Land Trust with a goal of creating 1,000-5,000 affordable and market-rate housing units in the next 5-10 years. It’s job would be to match the developer to the project. The land trust would get advance zoning change approvals, site planning, utility taps and other public approvals and negotiate the land sale or lease terms so the site would be “shovel ready.” The advance legwork would help eliminate some of the risk of real estate development. The land trust would earn a fee based on the developed land value from the land owner and possibly earn a long-term partnership interest in the development. The land trust’s revenue would be reinvested in further deals to improve Ann Arbor’s sustainability and affordability concerns. It benefits the city and the developer, too. The city increases its tax revenue, and the developer lowers its risk.