Mortgage Companies Expecting Leaner Year in 2022

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The year 2022 promises to be a leaner year from mortgage companies. The mortgage industry rebounded in 2020 and 2021, propelled by rock-bottom interest rates and consumer demand. In 2022, things are changing. Mortgage rates increased to a level not seen since December 2018. The average 30-year-loan increased from 4.42 percent last week to 4.67 percent on Thursday. Rates have increased more than a percentage point and a half since the new year.  Fewer consumers in the refinance pool and the limited housing inventory are contributing to the rate increase.

United Artists Theater Building Rehab Begins

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The Bagley Development Group has begun its redevelopment of the Ilitch-owned, 18-story United Artists Theater Building at 150 Bagley St.  The property is being transformed into a 148-unit residential building called Residences @150 Bagley. It is scheduled to open in late 2023. Twenty percent of the new apartments will be offered at below-market rents for qualified tenants. It will also include about 10,000 square feet retail space on the ground floor.

 

 

Downtown Royal Oak Main Art Theatre’s Days May Be Numbered

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The 80-year-old Main Art Theatre in downtown Royal Oak could soon be demolished. An A.F. Jonna Development LLC affiliate has submitted plans to tear down the theater and replace it with a 5-story mixed-use building. The developer will appear before the Planning Commission on April 12 to present plans for a new 71-foot building that would include 9,200 square feet of commercial space. A restaurant and a retailer would split the space. The 2nd floor would accommodate 31,000 square feet of office space. The third through fifth floors would include 54 new residential units.

 

Utility Companies Seek Land For Solar Farms

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Michigan utility companies are securing real estate to expand their solar energy generation capabilities as consumer demand accelerates. DTE Energy Co. needs 20,000 to 35,000 acres of southern-facing flat land to erect solar arrays over the next 10-15 years. Consumers Energy Co. currently generates 40 megawatts of electricity from solar and plans to be at 8,000 megawatts by 2040. That will require between 40,000-56,000 acres of land. Customer demand and land usage is a balancing act that Lansing policymakers haven’t yet addressed. Industry leaders anticipate some community resistance.

 

 

The Mall at Partridge Creek Faces Receivership Sale

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The Mall at Partridge Creek in Clinton Township is facing new ownership. Its current owner, Florida-based Starwood Capital Groups, is struggling to make debt payments. The timeframe for the sale is unknown, and the company has declined comment. Starwood bought both Fairlane and the Mall at Partridge Creek in 2014. They’ve fallen into receivership and under new management in the past several months due to unpaid CMBS loans. The current balance is about $120.7 million as of last month, up from $89 million in August.

Downtown Detroit’s Office Workers Slow To Return

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Although downtown Detroit’s housing market and visitors bounced back from the COVID slump of 2020, Detroit still has a ways to go to reach pre-pandemic activity. According to the Downtown Detroit Partnership, the number of downtown office workers is still drastically reduced as a result of the pandemic.  In 2019, the median number of workers during the week stood at 70,629. In 2021, that number was down 75%.  Some employers are gradually bringing employees back to the office.

 

 

Spring Homebuying Season Accelerates

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The metro Detroit housing market is off and running in the spring homebuying season. Redfin is reporting that almost 3/4 of homes on the market in metro Detroit are receiving multiple offers. Buyers are offering well above list price, free occupancy for sellers who are waiting for their next home purchase, and appraisal guarantees. Some are even paying closing costs. First-time home buyers and those financed with government-backed loans are at a disadvantage.

 

28th Street Mega Mall Site Repurposed as B2 Bargain Bin

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The 28th Street Mega Mall site will once again welcome customers. B2 Outlet stores has transformed the site into a B2 Bargain Bins location. They’ve updated the 76,000-square-foot space to include new walls, restrooms and polished concrete floors. The new store will open on Tuesday.  The concept of B2 Bargain Bins is different than the company’s traditional outlet stores. Prices start at $6 on Tuesday and fall each day until everything sells. The store is closed on Sunday and Monday for restocking.

 

 

Madewell Retailer To Close in Downtown Detroit

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Women’s apparel retailer Madewell is permanently closing its story in downtown Detroit. The 1426 Woodward Avenue location will close on March 27.  Madewell is a brand owned by J. Crew Group, which underwent a Chapter 11 reorganization bankruptcy in May 2020.  After the Detroit store closes, Madeell will still have three locations in Michigan, including one at the Somerset Collection in Troy.

The Detroit Land Bank Authority Expects to Sell Remaining Properties by 2023

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The Detroit Land Bank Authority expects to sell most of its structures by the end of 2023.  The DLBA is responsible for selling vacant homes and lots in the city.  Their focus moving forward will adapt to vacant land sales with the mission to return blighted and vacant properties to productive use.  The Land Bank officials asked the city for $11 million from the general fund for the 2023 fiscal year in order to maintain operations and properties that could be put up for sale.  The DLBA expects to list 5,400 salvageable properties by the end of next year, but needs the money to maintain the properties.