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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.

 

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.

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.

 

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.

Abandoned Fisher Body Plant To Be Redeveloped

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The Fisher Body Plant No. 21 in Detroit will be repurposed into more than 400 apartments and will include retail space.  Fisher 21 Lofts is a $134 million project that will be up for site approvals later this spring. Redevelopment could start late next year and be completed by 2025. The project would include 433 for-rent apartments. Twenty percent of those would be set aside for below-market rents. It would also include 28,000 square feet of commercial and retail space and 15,000 square feet of co-working space.  The former auto body factory has been abandoned for 30 years.

 

Ann Arbor City Council Approves Rezoning Efforts

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In an 8-3 vote, the Ann Arbor City Council has given initial approval for the rezoning of over 200 acres around Briarwood Mall. The city-initiated rezoning will need final council approval next month. Its intent is to encourage high-density, mixed-use development with limited building heights determined by the proximity of residential areas. City officials are hopeful that it will lead to a mix of housing and commercial spaces.  The three council members who voted against the proposal view the rezoning as a giveaway to developers and landowners.

 

Downtown Birmingham Office Building Sells for $14 Million

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Farmington Hills-based Bacall Companies LLC has purchased a downtown Birmingham office building and parking deck at 380 N. Old Woodward Ave for $14 million. The company plans to invest $1 million in renovations that will include tenant improvements. Renovations will begin in the next 45 days. The 42,000-square-foot building is 100% leased and is the second key downtown Birmingham office building sold this year.

 

Fairlane Town Center Sale Expected Soon

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New York city-based company is expected to close next month on the Fairlane Town Center shopping mall in Dearborn. Should the sale fall through with the undisclosed buyer, a back-up buyer is ready to sign a contract and move forward. Fairlane Town Center was built in 1976 and has had financial struggles in recent years. The current ownership is behind on its debts.

 

 

Bedrock LLC Snags The Largest CMBS Loan In Detroit’s History

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Bedrock LLC has refinanced 14 properties with a $430 million CMBS loan. It is the largest-ever commercial mortgage securities loan in Detroit’s history. The new seven-year loan will mature in January 2029. The portfolio has seven office buildings totaling 2.5 million square feet, five parking decks with over 5,000 spaces and two multifamily properties. The fact that the loan was issued during a global pandemic when workers are continuing to work from home speaks to the confidence of the lenders. The portfolio’s office stock and parking deck revenue are both impacted by the work-from-home trend.