Michigan Locations

Renowned Detroit Hotel Sale and Renovations Pending

The Westin Book Cadillac hotel in downtown Detroit is under a pending deal. Chicago-based Oxford Capital Group, the same company that broke ground on a new Godfrey Hotel in Corktown,  is buying the 453-room hotel. Downtown Detroit hotels took a hit during the COVID-19 pandemic, and the Book Cadillac has been delinquent on its mortgage since spring 2020. With the sale, Oxford Capital will assume $77 million in debt to prevent the hotel from going into foreclosure. The company will spend at least $16.5 million on renovations and maintenance. It’s seeking a 12-year Commercial Redevelopment tax break that’s valued at over $26 million.

Corktown Parking Deck Sold for $15.6 Million

The Ford Motor Company sold a 1,250+ space parking deck for an estimated $15.6 million. Howard Luckoff, Jim Ketai and the Rakolta family who make up the Corktown Mobility Hub LLC purchased the property. Devon Industrial Group is currently constructing the deck. It should be finished by the second quarter next year. Ford will hold the master lease for the garage, and Luckoff and Ketai’s Vokal Ventures will operate it. According to Richard Bardelli, Ford’s construction manager in Corktown, the sale is in keeping with Ford’s plan to bring on development partners. The deck includes an autonomous vehicle testing area, e-bike and e-scooter stations, charging stations for electric vehicles and automated payment technology and smart guidance systems.

Detroit’s Revitalization Could Have A New Focus

The global pandemic has turned many things upside down. The office markets around the U.S. are one of those things. Congress may offer developers incentives to repurpose old office buildings into residential, institutional, hotel or mixed-use spaces. While Mayor Mike Duggan has come out in support of the Revitalizing Downtowns Act, area developers do not have active plans to utilize it should the law be passed. The number of Detroit’s residential units lags behind other downtown areas. The legislation isn’t limited to downtown redevelopments but could be used to convert old office properties in the suburban locations into new uses as well.

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Southeast Michigan Housing Market Increases Continue

Low inventory and increased demand caused the upswing of the 2021 Southeast Michigan housing market. Some areas in the city of Detroit saw the biggest increase in sale prices. One area’s prices jumped an incredible 68%. Detroit had more sales than anywhere in the region, with 2021 marking an 11.1% increase over 2020 and a median value increase of 33.6%. One broker’s theory is that the increase in sales in the city comes from landlords who decided they wanted to get out when the Duggan administration enforced certificates of compliance in order to be eligible for full distributions of coronavirus relief funds.

Construction Begins On The Former Joe Louis Arena Site

Construction is due to begin on the former Joe Louis Arena site for a new residential apartment tower. Several pieces of heavy-duty equipment arrived on late Wednesday afternoon. Colasanti Construction Services Inc. prepped for initial work on the 24-story apartment tower, drilling 100-foot deep caissons. Sterling Group applied for a permit for the building, but no information has been released by the city pending the outcome of the permit review. Part of the vision for the site includes an apartment tower called The Louis, with 500 studio and one-bedroom units. Specific plans for the property have not been made public since Sterling Group acquired the property. Previously, the site had been discussed as a mixed use development, potentially with a hotel.

Detroit’s Commercial Property Transactions Lower Than National Average

Nationally, commercial property transaction volume broke records last year. But in metro Detroit, that was not the case. Last year wasn’t a bad year for property deals in Detroit; there were $1.9 billion in sales across 3,678 deals. 2021 was the fourth-highest year since 2006. Low cap rates, inflation hedging helped to fuel the surge in commercial acquisitions. Property buyers are expecting appreciation in the next few years. Rent growth in multifamily apartments and the industrial, warehouse and distribution sectors are also adding to value growth.

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