Michigan Real Estate News

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Ann Arbor Planning Commission To Hold Hearings On New Proposals

The Ann Arbor Planning Commission will hold public hearings on three new development proposals on Wednesday, August 3 at 7:00 p.m. The projects include a four-story residential building with 185 new housing units, the reimagining of The George mixed-use apartment and retail complex, and a special-exception use proposal for a childcare center. The new housing units would redevelop the University Inn site. The reimagining of The George would convert 23,462 square feet of ground floor retail space to 42 residential units. The proposal for the childcare center would repurpose an existing building at 1301 Morningside Drive in northwest Ann Arbor.

 

 

 

The Office Market Continues to Limp Post Pandemic

More than two years after the start of the COVID-19 pandemic, the office market is still reeling. Sublet office space availability is at a 10-year high. Over 2.37 million square feet is available in the five-county area. Office tenants are subletting unused space. If they are unable to sublease, they give back the additional space to landlords, usually in an early lease restructure or relocation to another place. According to the president of the Advocate Commercial Real Estate Advisors LLC brokerage house, the amount of sublease space on the market will increase in the next 3 to 6 months. In addition, leasing activity is slower than usual, and no new construction of office space occurred in the second quarter.

 

 

The Platform Buys Out HFZ

Peter Cummings’ Detroit-based development firm, The Platform LLC, along with New York city-based Rheal Capital Managment LLC, has bought out the majority ownership interests of the  HFZ Capital group of the 28 story high-rise on West Grand Boulevard in Detroit’s New Center area. Terms of the deal have not been disclosed. According to Cummings, they plan to work on the building’s facade, as well as electrical, elevators, doors and upgrades to the parking garage. There were many local and out-of-state buyers who made serious offers, but Cummings was concerned about stewardship of the property, as well a capital. Instead, they ended up taking out HFZ, a move which allows for more flexibility as they move forward with the property.