Historic Detroit Hotel Sold

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Hotel developer Oxford Capital Group LLC and hedge fund Taconic Capital Advisors LP purchased the Westin Book Cadillac hotel in downtown Detroit. They assumed the $77 million in commercial mortgage-backed securities debt owed by the Ferchill Group. They’ll complete the $16.5 million tower renovations over the next two years. The property will remain open throughout the renovation. According to the Detroit Economic Growth Corp., the PA 255 tax abatement is critical the project. It freezes the property taxes at pre-improvement levels after the building has been renovated. Without it, the project would not have gone through.

 

 

 

The Mid Project Faces Another Delay

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The Mid project, a four-acre development in Midtown, was scheduled to begin in the third quarter this year. The project is now expected to begin in the second quarter of 2022. A spokesperson for the project said that the delays are due to the impact of the pandemic on the industries and components that support the project. The proposal aims to bring two high-rise buildings and other mixed-use development to the north of Detroit’s Whole Foods Inc. store. The project’s two planned phases will both begin in the second quarter. They will include about 300 co-living units, multifamily residential housing, retail space, and a hotel.

 

Detroit’s Former American Motors Corporation Slated For Redevelopment

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The Kansas City, Missouri-based NorthPoint Development LLC will redevelop the former American Motors Corporation headquarters to the tune of $66 million. An automotive supplier will likely occupy the site. Construction of a 728,000-square-foot industrial facility is planned, pending City Council and other approvals. A specific tenant hasn’t been disclosed, but it’s estimated that the site could employ 300 of more people. Officials expect 150-200 construction workers. NorthPoint’s deal with the city means that the developer would buy 56 acres of land for $5.9 million, including 26 residential parcels owned by the Detroit Land Bank Authority and a Detroit Brownfield Redevelopment Authority-owned property totally 8.5 acres. The $66 million price tag includes the cost to demolish the buildings.

The Detroit Center for Innovation New Location to be Announced

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Stephen Ross, Chris Illitch, Mayor Mike Duggan and U of M President Mark Schlissel will reveal the Detroit Center for Innovation’s new site this Monday. Wayne County’s aborted jail site was the originally planned site for the center. The announcement invitation says details about a national tech company coming to Detroit will be shared. The original plans co-developed by Related Cos. and Bedrock real estate firm, but that partnership was dissolved last summer.

 

Long-Term Solutions Address Needs of Detroit’s Homeless

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The Pope Francis Center broke ground on a Bridge Housing Campus that will provide 40 studio apartments as temporary shelter to people for 90-120 days. During that time, the project will offer social and job-preparation services and comprehensive medical care that addresses physical, psychological and addiction needs. The project is part of a long-term plan to  solve the root causes of  chronic homelessness in Detroit by 2030.  People who stay in the studio apartments will transition to permanent supportive housing. The facility is scheduled to open mid-2023. Construction will begin in early 2022. Mayor Duggan sees this project as a potential national model.

 

 

Asphalt Facility Proposed for Detroit’s Former Farmer Jack Headquarters

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The old Farmer Jack Headquarters in northwest Detroit may soon be the new home of an asphalt mixing facility. The Pontiac-based company, Asphalt Specialists, is proposing the $1.5 million plant. The company currently employees more than 100 employees, including truck drivers and maintenance. The plant would add 40-50 jobs. The plant would include an office and scale house for measuring 3,000-4,000 square feet of product. A dust collection system would collect 98-99% of the odors.

 

 

 

Corktown Apartment Tenants Have Water and Heat Restored

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Tenants of Corktown’s Victor Attar Court apartments have had their water and heat restored over the weekend. They were previously told they would have to relocate because of health and safety concerns. The building’s owner received 22 tickets amounting to $13,142, according to the city’s Buildings, Safety, Engineering and Environmental Department. The apartment residents were notified last week that if the landlord did not restore heat and water and bring the building up to code, they would have to vacate the building. Real Estate developer Emre Uralli is listed as the trustee of 1324 Porter Street Trust, the entity that bought the property when it was in foreclosure. Uralli claims he was unaware of the heating issues and the tickets. They’ve since met with inspectors and cooperating with them.

Jefferson-Chalmers Neighborhood Now Part of FEMA Flood Plain

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The Jefferson-Chalmers neighborhood has been prone to flooding for years. The neighborhood is bordered by Clairpointe Street, Jefferson Avenue, Grosse Pointe Park, and the Detroit River. Due to climate change, rising water levels in Lake St. Clair are spilling over into the Detroit River causing residents to experience regular flooding with no permanent infrastructure fix in sight. Raising the seawall in Jefferson Chalmers by almost 2 feet would solve the problem, but the multi-million dollar cost and the private property ownership along the Detroit side of the river complicate matters. While FEMA does not look at a community’s infrastructure to determine its flood hazard status, it may change that practice, according to the regional flood insurance liaison for FEMA’s Region 5 in the Midwest.

 

 

Director of Planning and Development Engages Neighborhoods in Revitalization Efforts

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The director of Detroit Planning and Development, Antoine Bryant, thinks of Detroit as a “city of neighborhoods.” He has reached out to residents to talk about blight, flight and a lack of investment in neighborhoods that have felt left behind while Detroit’s downtown and community corridors have gained attention. Bryant has intentions to grow Detroit with projects that preserver architectural history and value the input of neighbors. In an effort to avoid building up downtown commercial sectors first, Bryant intends to engage neighborhoods as part of the revitalization process. His primary goal is to connect with residents in all of Detroit’s 200 neighborhoods while working through challenges with food deserts, vacant land and safety. 

 

 

Slow Pace Continues for Hudson Site Project

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Dan Gilbert’s Hudson site project broke ground in December 2017. The original plan intended the tower to be taller than the RenCen, but even after the downsizing of its planned tower, it’s a long way from being complete. According to experts, it takes about four to five years to build big skyscrapers in the U.S., yet the Hudson site development is moving slower than recent projects in Chicago with higher towers. The pandemic’s negative impact on the demand for office space, more hotel rooms and more luxury apartments may be factors in the slow pace of construction. According to Mayor Mike Duggan, people who have office buildings are rethinking the amount of office space they’re using. Convention business has also been impacted. Downtown hotel occupancy was 36% in September, 34% drop from the previous year. The $900 million-plus project had an original completion date of summer 2022.