Ann Arbor Nine-Story Development Breaks Ground

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The construction of The Glen, a mixed-use development on the corner of Glen Avenue and Ann Street has finally broken ground after several years of delays. It was approved in 2017 and was scheduled to open in 2018. Technical changes were made in 2019, and construction was to begin in 2020 when the pandemic delayed it further. It’s now expected to open in 2024. The building will house 164 hotel rooms and suites and 24 apartment suites. It will also include a fine dining restaurant, meeting and event spaces, retail shops and 241 parking spots.

Detroit Home Buyers More Practical As Home Prices Increase

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According to Jeanette Schneider, RE/MAX of Southeastern Michigan president, homebuyers are becoming realistic. They’re less likely to waste time looking at homes that do not address their needs. This shift is in contrast to last year when buyers were willing to take what was available out of fear of not getting a house.  Inventory is still limited and prices continue to rise. March’s median sales price was up 10.7 percent from last year. However, the increase is lower than the previous year. The number of sales fell in March by 8.7 percent, but pending sales were up 2.3 percent.

 

 

Rehabbed & Ready Program Restores and Refurbishes Detroit Properties

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Detroit Land Bank Authority’s Rehabbed & Ready program has refurbished residential properties across Detroit neighborhoods. They typically gut the homes, put thousands of dollars worth of work into them (including new electrical, plumbing, windows and landscaping) and sell them to new buyers. The Land Bank took a loss on some of the homes that had fire damage or asbestos issues, but the home sales lifted the neighborhoods’ home prices. The Land Bank’s goal is to restore existing value into homes. The program has sold nearly 100 homes since 2015 and is expanding over the next three years to restore an additional 200 houses. The goal will continue to be adding residences and raising property values.

 

 

Judge Orders Packard Plant Demolition

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A Wayne County Circuit Judge has ordered the Packard Plant owner Fernando Palazuelo to immediately demolish the deteriorating industrial site and foot the cost of the demolition after missing a trial date. The Peruvian developer and his attorney missed a March 24 trial date. The structures that sit on two 2-acre sites are dangerous and threaten the public’s welfare. The demolition could cost millions of dollars and has been ordered to begin by early June. It’s required to be completed by the end of June. Palazuelo has until April 21 to pull permits for demolition of his portions of the plant.

 

Ann Arbor Rezones Briarwood Mall Area

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The Ann Arbor City Council recently voted to permit reclassifying over 200 acres around Briarwood Mall under the city’s new TC1 transit-corridor zoning category. The rezoning of 68 properties in the State Street and Eisenhower Parkway commercial area makes way for downtown-style development on the city’s south side. According to the mayor, the council’s steps will create a substantial amount of housing units in the city.  The goal is to encourage high-density, mixed-use development. Building height limits range from 550-300 feet and depend on how close sites are to residential areas.

Rocket Promises a “Fast 15 Guarantee”

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Rocket Pro TPO launched a program that guarantees financing to close in 15 days. The move is meant to convince brokers to choose them over the rival United Wholesale Mortgage. Called the “Fast 15 Guarantee,” Rocket Pro TPO plans to run the promotion until the end of the month and promises to award a $2,500 lender credit to borrowers whose loan does not close on its promised due date. Government, FHA and VA loads do not apply, and the program isn’t available in 16 states, including New York, Massachusetts and Rhode Island.

Former Rock Venue Listed For Sale

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Detroit’s former leading rock hall is for sale. The Grande Ballroom at 8952 Grand River has been listed for $5 million. It’s currently owned by Chapel Hill Missionary Baptist Church. In its glory days, the building hosted touring guests like Led Zeppelin, Pink Floyd and the Who, along with Michigan acts like the Frost, and MC5. The Grande is listed on the National Register of Historic Places, and that status may offer a financial windfall to its developer due to the State Historic Tax Credit Program.

 

U.S. Pending Home Sales Decline

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Limited home inventory is restricting the real estate market, causing U.S. pending home sales to fall 4.1 percent in February for a fourth straight month. With a limited number of properties for sale, home price tags remain elevated. When combined with 30-year fixed mortgage rates at a three-year high, homes are less affordable. The increase in home prices and rising mortgage rates can add up to another $200 to $300 in mortgage payments per month.  According to the NAR,  these factors have pushed up mortgage payments by 28 percent from February of last year.

 

Skilled Labor Shortage Complicates Construction Projects

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Prior to the COVID-19 pandemic, there was not enough skilled labor to meet construction demands. That’s even more true now that development has almost returned to pre-pandemic levels in metro Detroit.  According to metro Detroit’s largest general contractors, that means less skill on job sites.  That, along with continuing supply chain and inflation issues, is causing project managers to scramble to meet demands. The number of Michigan construction workers has rebounded to pre-pandemic levels, but it’s still down almost 20% from 20 years ago. The number is not growing fast enough to meet the increasing demand. It’s anticipated that skill trades will account for 47,000 annual job openings through 2026.

 

 

 

First Merchants Corp. Closes On Level One Bank Acquisition

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The Indiana-based lender First Merchants Bank acquired Level One Bank in November. The acquisition has cleared its legal hurdles, and First Merchants Corp.  closed on the $323.5 million purchase. The full integration of Level One into First Merchants is expected later this year. The combined bank is one of the 10 largest banks operating in Michigan. Patrick Fehring, Level One CEO, is expected to retire after the completion of the merger, but will join First Merchants’ board of directors next month. The combined bank will have 126 banking offices in Michigan, Indiana, Ohio and Illinois.