Michigan Real Estate News

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Apartment Construction Gets A Boost Due To Mortgage Rates

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New construction of multifamily properties jumped 28 percent in August. bringing the market’s multifamily segment to its highest level since 1986. The jump is due to rising mortgage rates. Single-family home construction also increased slightly in August after a two-year low. Borrowing costs have doubled since late 2020 due to interest-rate hikes designed to tame high inflation. Last week, the average rate on a 30-year fixed mortgage surpassed 6 percent. The continued low apartment vacancy rates and low single-family inventory have given multifamily construction a boost.

 

Ilitch and Ross Propose Hotel Development Near Little Caesars Arena

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The Downtown Development Authority board signed off on a proposal for a new $190.5 million hotel south of Little Caesars Arena. Plans for the hotel have been in the works for a while. The hotel would be 14 stories tall with 290 rooms. The Ilitch family and developer Stephen Ross submitted the development plan. Together, they would ground-lease the land from an Olympia-owned entity. The hotel, food, beverage and other amenities will create a variety of jobs and attract people to the region. The project would cost $137.3 million. Ilitch and Ross have partnered on projects in the Ilitch family’s District Detroit area in the last year.

 

 

Bed Bath & Beyond To Close 5 Michigan Stores

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Bed Bath & Beyond Inc. is closing five Michigan locations, as part of a 150-store closing and liquidation plan. Many of the closings are occurring in the upper MIdwest, New York and New Jersey. The changes, along with job cuts for 20% of its workforce, will slash costs. The company has a new $500 million line of credit to get back on good terms with its suppliers. Complicating its turnaround plan, the company’s Chief Financial Officer Gustavo Arnal committed suicide. The rise of Amazon.com Inc. and other online retailers contributed to Bed Bath & Beyond’s struggles. The five affected Michigan locations are Chesterfield, Farmington Hills, Northville, Walker and White Lake.