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  #2321  
Old Posted Jan 18, 2014, 4:41 AM
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Originally Posted by animatedmartian View Post
Those are only small details in the overall picture. At this point, everyone is at least aware of the benefits of transit and TOD. At worse, it just means a lot of new developments will still have to be accompanied by multistory parking garages or parking lots in farther out suburbs. But in a lot of places mentioned in that article, as well as some not mentioned, have already set up zoning and planning for the possibility of transit.

The new goal for a lot of municipalities around SE Michigan is to become more walkable and appealing for yuppies. Some suburbs will pull this off better than others (the Southfield fiasco seems to be the worse so far) but generally it's in a good direction.

It would actually probably be more problematic if we were in a boom growth stage because then those setbacks would have bigger impacts as there would be a flurry of developments built without any consideration for the eventual transit that'd come. So really, we're lucky to be in a slow growing economy if you look at it that way. Although it is true that transit can't be delayed for too long before the economy continues to pick back up and TOD really starts to become important.
Oh, I have no doubt that the actual projects will be built. That's inevitable given the improving economy. And, Detroit is going to attract much more of the region's housing, office and retail development then in years and decades past. I'm not worried about whether the housing and residential projects will be built.

Really, my only critique is that I'd rather the development be done correctly, this time, and to facilitate that, the leaders in the region need to get really serious about mass transit. You know, in any given week I swing between pessimism, realism, and optimism given the history of the place. For instance, I was really heartened, today, to hear Duggan even mention the word "expansion" when it came to DDOT maybe getting back some of the service capacity it has lost over the years. Of course, he said it in the context that even considering expansion is years off, but it's the first time in years I've heard a mayor even mention adding to DDOT, when the decisions in recent years haven't even been about whether to cut, but how much to cut. I'm also happy that with the announcement of the new director of DDOT finally came some clarification (and expansion) of the role of the office of the director, which will include critical oversight of the PM and the Woodward Streetcar when it's ready to be handed off.

Anyway, my only frustration is with how disorganized and uncoordinated the comeback remains. This is partially because the city proper is under emergency management with different leaders pulling in different directions, sometimes not out of spite of one another or even forethought, but just because they communicate so poorly and it doesn't even cross their minds to coordinate efforts and initiatives. A lot of it is really just the generally sloppy nature of leadership in the region.
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  #2322  
Old Posted Jan 19, 2014, 6:19 PM
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I would hope DDOT doesn't even exist in a few years... Hopefully we'll finally see a true regional bus system.
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  #2323  
Old Posted Jan 19, 2014, 8:23 PM
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Update of WSU's MBRB courtesy of itvdetroit.

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  #2324  
Old Posted Jan 20, 2014, 1:05 AM
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Skyline view of the city from the newly renovated Cobo Ballroom exterior.

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  #2325  
Old Posted Jan 21, 2014, 1:46 PM
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The non-profit Detroit Blight Authority revealed the more recent blight removal project. It's focus is another part of Brightmoor:

Quote:


Plan to rid Detroit of 35 blocks of blight unveiled

By Louis Aguilar | The Detroit News

January 20, 2014

Detroit — The large-scale campaign to destroy all blight in Detroit is taking aim to create a 35 block zone free of derelict structures and junky vacant lots.

...

The 35 blocks are in the northwest neighborhood of Brightmoor and the estimated plan would cost up to $900,000 and clear nearly 70 homes. The plan is a 21-block expansion of a project the nonprofit started last year, which helped clean the trash from vacant lots in a 14-block area of Brightmoor. Another 50 blighted homes in that area also are to be razed. The 35-block area is roughly defined by Outer Drive West on the north and west, I-96 on the south, and Burt Road on the east.

...
It appears all of this experimentation has led to lowering the price of demolition, considerably, and better organization and coordination of all kinds of efforts in the city.
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  #2326  
Old Posted Jan 23, 2014, 1:56 PM
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A Hong Kong investor with hotels next door in Ontario, wants to renovate the Detroit Boat Club on Belle Isle. Sounds like he's serious.

Quote:

John T. Greilick

Hong Kong investor wants to save Belle Isle jewel

By Nolan Finley | The Detroit News Columnist

A Hong Kong investor is offering a rescue plan for the Detroit Boat Club, one of Belle Isle’s most historic and most dilapidated buildings.

The boat house, built in 1902, has been steadily sliding into the Detroit River, its docks twisted and sinking and its walls and roof deteriorating.

With its red tile roof and location near the foot of the Belle Isle bridge, the boat club is one of the most distinctive buildings on the island park.

That location is what caught the eye of Jimmy Lai, owner of the Vintage Hotel group, which operates seven hotels near Toronto and Niagra-on-the-Lake, Ontario, and Next Media, the largest media company in Hong Kong.

“You don’t hear this said often, but Detroit is really a pretty city,” says Mark Simon, Lai’s representative. “The riverfront is spectacular.”

The vision, Simon says, is to rebuild the boat club to its original appearance as a 100- to 120-room boutique hotel.

The docks would also be restored. The building is home to the Detroit Boat Club, the oldest operating rowing group in the country, with roots dating to 1839, and the rowers would be allowed to stay, Simon promises.

The building would also include several restaurants to cater both to boaters and day visitors to the city-owned island
, which was recently leased by the state of Michigan and is being converted to a state park.

“We think it could become a premiere destination for weddings,” Simon says. “The setting on the riverfront is so unique.”

In all, Simon says, it’s a $40 million project.

To make it happen, Vintage would have to negotiate with the city for a long-term lease. Investors want a 70-year agreement, twice as long as the state’s lease on the island.

Talks with city and state officials are in early stages. Simon is scheduled to be in Detroit this week, and will meet with George Jackson, head of the Detroit Economic Growth Corporation, among others.


Jackson says the city is preparing a request for proposals seeking development ideas for the boat club, which he says will require a considerable investment to rehabilitate.

“It makes sense to get private dollars for a project of this magnitude,” he says.

...
So long as private investors are renovating existing facilities and working with existing tenants, as opposed to grabbing open space, I'm completely for this kind of development on the island.
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  #2327  
Old Posted Jan 23, 2014, 3:04 PM
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I'd rather it be used like the Casino. As a hotel, it's basically in an exclusive location and has pretty much no competition (in fact, being a waterfront hotel makes it a rarity in the metro). If there weren't going to be other hotels on the island, then the prices for this hotel would be pretty high which I don't think too many people would pay for given the lack of amenities other than the restaurants. To me, this is roughly equivalent to if it was open space development and I can't imagine it wouldn't spark some sort of demand for additional development.

Though I'm not entirely against development on Belle Isle if it's done smart; create some strict architectural guidelines, strict zoning rules, and limit developments to specific areas of the island. Namely, the north shore from the boat house to the beach, the former golf course south of Lake Muskoday, and maybe the old zoo. Nothing else would have to be touched. Otherwise, I'd rather just have it used as a banquet hall or another boat club or something.
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  #2328  
Old Posted Jan 24, 2014, 8:14 AM
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It's not being used for anything beyond parts of it for the boat club, and who cares if the prices are high? If the developer thinks there is a market for it, I say let him try. I think the concept is really unique, and directed at folks who may want a quieter stay in the city, which basically mirrors the whole reason for the islands founding in the first place: as a sort of city getaway, but still within the city.

I don't want to see any other hotels on the island. Commercial development should be kept to a bare minimum to keep its general character. But, I think these kind of unique projects are exactly the kind of limited development that will end up helping the island. No, this is not at all like taking the fields or woods of the island - or even the zoo property, for that matter - and building new construction in the middle of the park.
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  #2329  
Old Posted Jan 25, 2014, 8:08 PM
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I'd rather see a boutique hotel on the island than a rundown boat club. I'm sure the hotel would have some kind of shuttle that brings people into the downtown core. Besides the island is a strong enough draw (especially now that it is under state control) to bring people who might want to enjoy the nature outside their doorstep.
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  #2330  
Old Posted Jan 26, 2014, 5:12 PM
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It seems we have ourselves a supply problem downtown.

Quote:
Downtown Detroit apartment rents spiking higher, even pricing out middle class
By JC Reindl and John Gallagher. January 26, 2014

Rental rates in downtown Detroit-area buildings have risen so high, some young professionals who breathed new life into the city core just a few years ago are now being priced out of the market and forced to move — a type of middle-class gentrification that has some developers eager to build new residential projects.

Development experts say demand far exceeds existing rental units in choice areas, such as Midtown, Corktown and the Detroit riverfront, where influxes of mostly young, well-paid professionals drove rental rates to new heights in new, existing and soon-to-open apartment buildings.

In many cases, landlords are asking $200 to $400 more a month for apartment leases than they were just a year or two ago because of the high demand and almost nonexistent new supply.

...

Rents are inching closer to the magic $2-per-square-foot level, a price developers say could allow new residential projects to get built without reliance on the subsidies, tax credits and nontraditional funding sources that are currently required. Once there is more supply of apartments in the popular neighborhoods, the thinking goes, rent prices would stabilize.

....

A sample of current and soon-to-be available apartments in desirable Midtown and downtown Detroit apartment buildings shows a trend of higher monthly rent costs.



1. Forest Arms
Monthly rent: To be determined
Units: 74 apartments, 5 new penthouses
Status: Renovating and adding to building, could open fall 2015

2. Studio One Apartments
Monthly rent: 1-bedroom units, $1,095-$1,145; 2-bedroom units, $1,249-$1,369
Units: 124 apartments
Status: Opened 2008

3. 9-story mega development
Monthly rent: To be determined
Units: 248 apartments planned
Status: Scheduled to open 2016

4. The Auburn
Monthly rent: Averages $1.55 per square foot. Studios, $780-$830; 1-bedroom units, $920-$995
Units: 58 apartments, 20% for low- and moderate-income tenants
Status: Opened fall 2012

5. Strathmore Apartments
Monthly rent: To be determined
Units: 129 apartments
Status: Rehab of former Strathmore Hotel to begin this spring

6. 3909 Woodward Avenue Apartments
Monthly rent: 1-bedroom units, $900s- $1,100s; 2-bedroom units, $1,500s-$1,700
Units: 61 apartments
Status: Opening in March

7. Kales Building
Monthly rent: 1-bedroom units, $977- $1,550; 2-bedroom units, $1,550-$2,100
Units: 117 apartments
Status: Open

8. David Whitney Building
Monthly rent: To be determined Estimated to start at $2.75 per square foot and higher
Units: 105 residential units
Status: Under construction, will probably open mid- to late 2014

9. The Broderick Tower
Monthly rent: Rents increased 5% to 10% this year. Studios, $900s; 1-bedroom units, $1,100s-$1,700s; 2-bedroom units, $1,375-$2,150; top penthouses, $5,000
Units: 124 apartments
Status: Opened in fall 2012. There is currently a vacant apartment – 17th floor one-bedroom for $1,625 a month

10. Detroit City Apartments
Monthly rent: 1-bedroom units, $960- $1,295; 2-bedroom units, $1,290s-$2,080
Units: 351 apartments
Status: Open

11. Lofts of Merchants Row
Monthly rent: Studios, $800-$1,050; 1-bedroom units, low $1,000s-$1,800; 2-bedroom units, $1,625-$2,100
Units: 157 apartments
Status: Opened 2004, 99% full

12. The Westin Book Cadillac
Monthly rent: Up to $2.20 per square foot
Units: 64 condos and apartments
Status: Open

13. Renaissance City Apartments at Millender Center
Monthly rent: $1,140-$2,860
Units: 338 apartments
Status: Currently open and renovating the apartments and amenity spaces
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  #2331  
Old Posted Jan 27, 2014, 1:00 AM
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Funny I'm writing this on the Detroit thread, but there are worse problems to have, no?
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  #2332  
Old Posted Jan 27, 2014, 2:44 AM
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Wow, some of those rents are steep. Although I pay just shy of $3 / square foot, the cost is justified. But on a recent visit to Detroit, I can't imagine paying near what I pay on a downtown apartment. There's just not much shopping and restaurants. Lack of supply indeed. Glad there's someone willing to pay those prices, but this isn't healthy. The door needs to open for more residential or the trend of sluggish commercial growth will continue.

What concerns me most, is the lack of supply of new places then prices out the young professionals just starting jobs in the Detroit area. While in other big cities, you have to pay the $2.50 + / sqft rent, I can't imagine recent grads are going to throw down that kind of money on a new place in Detroit.
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  #2333  
Old Posted Jan 27, 2014, 3:40 AM
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Originally Posted by Hayward View Post
Wow, some of those rents are steep. Although I pay just shy of $3 / square foot, the cost is justified. But on a recent visit to Detroit, I can't imagine paying near what I pay on a downtown apartment. There's just not much shopping and restaurants. Lack of supply indeed. Glad there's someone willing to pay those prices, but this isn't healthy. The door needs to open for more residential or the trend of sluggish commercial growth will continue.

What concerns me most, is the lack of supply of new places then prices out the young professionals just starting jobs in the Detroit area. While in other big cities, you have to pay the $2.50 + / sqft rent, I can't imagine recent grads are going to throw down that kind of money on a new place in Detroit.
We won't. A lot of my friends actually just posted that article with variations on "I thought they wanted us to move down there?"
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  #2334  
Old Posted Jan 27, 2014, 4:38 AM
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This really shouldn't be all that surprising. If people start to move into an area, prices go up.

In the case of Detroit, it's misleading because there's still a lot of vacant and untouched properties that no rational person would move into unless they were to renovate the property themselves.

Until more property is either demolished or renovated (I'm assuming property within a mile or so of downtown), rents are still going to be pretty high save for a glut of projects with subsidies and tax incentives.
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  #2335  
Old Posted Jan 27, 2014, 5:05 AM
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^ "Water water everywhere, nor any drop to drink"

Lot's of property with potential, but too expensive to rehab and rent.
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  #2336  
Old Posted Jan 27, 2014, 8:38 AM
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This problem is a windfall for the landlords already in the market, but inner-city Detroit needs A LOT more quality affordable/mid-scale product. I'm surprised it's taken the media this long. Occupancy in greater downtown has been at 95%+ for, what? Going on two years, now? Who ever takes the chance to build a lot of cheaper units, right now, is going to reap a helluva profit in the long-run.

I was talking about this here a few months ago. What you have in the greater downtown area is either borderline luxury product or public (subsidized) housing. There is little in the way of a "normal" market in between since the profit reward isn't as immediate as doing a project where you're ROI is being paid by a steady stream from the government or your well-to-do new tenants.

This seems like such a huge opportunity. I wonder who's going to be the first to take a crack at this level of the market?
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Last edited by LMich; Jan 27, 2014 at 2:07 PM.
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  #2337  
Old Posted Jan 27, 2014, 1:42 PM
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I think whoever takes up the final redevelopment of Brush Park will be able to satisfy a huge chunk of the demand.
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  #2338  
Old Posted Jan 27, 2014, 1:52 PM
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Finally, an article telling it how it is. My girlfriend and I have been looking to move to Detroit for awhile now but we just haven't found anything affordable that entices us to make the leap. The decent neighborhoods are all leased up and even $1.75/sq ft. seems out of control for Detroit unless you're talking luxury lofts. I've even considered buying in a few select neighborhoods, but the houses move too quick or need too much work, very little in between.
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  #2339  
Old Posted Jan 27, 2014, 3:14 PM
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Quote:
Originally Posted by LMich View Post
Occupancy in greater downtown has been at 95%+ for, what? Going on two years, now?
Actually, no. Since 2010. So really, more like 3-4 years. It's only just now that demand has outpaced supply though it was slowly coming. (Plus people still generally have a hard time believe anyone wants to live in Detroit.)

Here's a market analysis of greater downtown in 2010.

The most expensive rates at the time were the Fort Shelby apartments at $1.80/sq ft. Most everything else stays below $1.20/sq ft despite still having 90%+ occupancy rates.
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  #2340  
Old Posted Jan 28, 2014, 1:47 AM
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Difficult thing about renovations are they are so incredibly expensive. Even projects here in Chicago gets tons of subsidies to make the financials work for residential in large vintage buildings. As a result, lots of developer driven construction to build tall buildings at a low cost and charge almost near what rents are starting to reach in Detroit.

Kind of frustrating because you know big projects are perfectly capable of happening. Same story sub t mentions is common.
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