DETROIT | Development & Construction: Motown Lowdown

[animatedmartian]

I'm guessing they had to go bland because of financial constraints. Tis a shame it is.

[hudkina]

I was always disappointed to hear about someone wanting to tear the tower down. It seems like it would be a good opportunity for residential development, and the rest of the lot is large enough that they could easily build what they want around it. Seems like a waste to tear it down. The other portion of the site, I'm all for demolition if they replace it with something more substantial.

As far as the Book-Cadillac garage, it seems they learned their lesson with the Book-Cadillac residences. While there is always demand for downtown living, the higher end of the market is probably the weakest. By going more modest, it seems they'll be likely to attract a broader range of residents and fill the units up more quickly. The design is bland, but at least they're coming back to the proposal and adding more residential in a market that sorely needs it.

[animatedmartian]

Town Center owner weighs 4 purchase offers
By Kirk Pinho. November 17, 2013



The owner of the Southfield Town Center is considering offers to buy the landmark office complex, in default on its mortgage with $138 million owed.

New York City-based Blackstone Group LP is considering four offers from local and out-of-state buyers for the 2.2 million-square-foot Class A office complex, north of 10 Mile Road between M-10 and Evergreen Road, according to real estate sources.

Those offers are between $160 million and $170 million, sources say. Blackstone purchased the five-building complex in 1999 for $270 million, according to real estate information service CoStar Group Inc.

....

The complex is 32 percent vacant, according to Bloomberg. The Southfield Class A office market had a 26 percent vacancy rate during the third quarter, according to data provided by the Southfield office of Newmark Grubb Knight Frank.

Matt Farrell, executive principal/partner of Bingham Farms-based Core Partners Associates LLC, said the Southfield Town Center offers good amenities such as the Westin Hotel — which would not be included — and restaurants on site. It also has a campus-like setting.

"Those are all big, big pluses," Farrell said.

But there are some drawbacks.

"The downside, potentially, is that the newer culture, the younger technology-based firms are looking for that warehouse/potentially downtown-like setting that gives them walkability," Farrell said.

According to CoStar, the largest tenants are GlobalHue Inc., with 109,000 square feet; Fifth Third Bank, 106,000 square feet; and AlixPartners LLP, 63,000 square feet.

...

http://www.crainsdetroit.com/article...urchase-offers

Given the recent news of Southfield trying to create a downtown, this probably would be a somewhat indirect result. Makes me wonder if Southfield is going to ever successfully transform its center to attract businesses or possibly lose them to more vacancy.

Apartment complex redevelopment takes its direction from residents
By Kirk Pinho. November 17, 2013



It took a $30 million redevelopment to transform a largely vacant northwest Detroit apartment complex into one that is now fully occupied.

Novi-based Ginosko Development Co. completed an 18-month redevelopment of the low-income Renaissance Village Apartments at Seven Mile and Evergreen roads in May, according to President Amin Irving.

But Ginosko didn't simply swoop in and redevelop the complex, formerly known as Evergreen Estates, the way it wanted.

Instead, Ginosko sought input from the few residents who remained at Renaissance Village after years of disrepair, Irving said. The complex had a 30 percent occupancy rate when Ginosko purchased it from the Michigan State Housing Development Authority in 2011 for $3.95 million after the previous owner defaulted on a MSHDA loan. According to Chris LaGrand, chief housing investment officer for MSHDA, the previous owner was Ron Weaver Sr.

Every six weeks, Ginosko would hold meetings with the residents to learn about their needs and wants.

"The residents that were there knew the property better than I did," Irving said.

The result?

A reduction in the number of units from 305 to 185 through the demolition of buildings containing 60 units, and merging studio and one-bedroom units to create an apartment complex featuring only two- and three-bedroom units ranging in price from $500 to $700 per month. During the redevelopment, residents were moved into vacant apartments while theirs were renovated.

In place of the demolished buildings, a center courtyard was constructed with an amphitheater, fitness equipment, a splash pad and other outdoor amenities.

Another result was 100 percent occupancy.

"It sounds like their reconfiguration strategy was a good idea and appropriate for the marketplace, which is seeing larger family units living together," said Larry Goss, executive vice president of Bingham Farms-based Core Partners Associates LLC, which is trying to develop two low-income housing complexes in Oakland County.

"Generally, I think we still see a strong demand for affordable housing in our market, and in particular, rental housing. This is in line with what the market is looking for and needs."

The complex was built in the 1940s. The new construction began in November 2011.

....

http://www.crainsdetroit.com/article...from-residents

I was never a big fan of garden apartments, but this redevelopment looks pretty decent.


http://ginosko.com/recent-projects.php


http://www.apartmentguide.com/apartm...illage/181598/


http://www.apartmentguide.com/apartm...illage/181598/

[LMich]

Of Southeast Michigan's three largest office centers (Southfield, Downtown Detroit, and Troy in that order), all three had improving vacancy rates for 2012. Someone can find some more recnt numbers if they'd like. I don't want to get into the thing that happened in City Discussions, but Southfield will be fine. Unlike Troy, it's had to put up with downtown Detroit (which has the lowest overall vacancy of the three, BTW) as a direct competitor these past few years, so it's going to take a bit more time to fill back in.

[hudkina]

There will always be a market for those particular towers. The major problems with Southfield are the smaller, older buildings that run along the mile roads.

[north 42]

Originally Posted by hudkina

I was always disappointed to hear about someone wanting to tear the tower down. It seems like it would be a good opportunity for residential development, and the rest of the lot is large enough that they could easily build what they want around it. Seems like a waste to tear it down. The other portion of the site, I'm all for demolition if they replace it with something more substantial.

As far as the Book-Cadillac garage, it seems they learned their lesson with the Book-Cadillac residences. While there is always demand for downtown living, the higher end of the market is probably the weakest. By going more modest, it seems they'll be likely to attract a broader range of residents and fill the units up more quickly. The design is bland, but at least they're coming back to the proposal and adding more residential in a market that sorely needs it.

Are the Book-Cadillac residences having trouble being filled?

[animatedmartian]

Originally Posted by north 42

Are the Book-Cadillac residences having trouble being filled?

According to a July Crain's article, 32 of the 67 luxury condos had been sold.

So far they've only repaid $600,000 of the $6 million dollar loan that they took out from the Michigan State Housing Development Authority in 2006.

The building had opened in 2008, at the height of the recession, so all around it wasn't the best circumstances. They've only really just now started to see revenue generated but that will only mostly cover the principal loan. They still have all that interest that will have to be covered.

http://www.crainsdetroit.com/article...EWS/307289989/

[hudkina]

The loan isn't an issue. That's the type of loan that you pay off with rainy day money. The issue is that the demand for the higher end of the market was relatively weak at that time. Maybe things have changed a bit in the post-recession era, but I'd say the mid-market is a better option for the new units. The people looking to move downtown aren't necessarily upper management. They're sticking to the Pointes for now.

[LMich]

I've always wanted to see more middle-income housing in and around downtown, but a lot of developers almost always just want to make a quick buck, and, well, some of them miscalculated. It'd be nice if we had some more folks with a longer-term vision.

That said, I'm actually surprised that they even sold about half of them, to be honest. And, had these been rental, there wouldn't be an empty room in the place. I mean, I imagine that the Fort Shelby Apartments in the Doubletree hotel, nearby, are probably full.

[subterranean]

There certainly is a major lack of middle income housing. I've been keeping my eye on the market for awhile and there really isn't any decent inventory left. There are a few lofts for $150-200k, but that is about it.

There's nothing downtown, Midtown is filled up, the Villages are generally too expensive, there's nothing available in Corktown or Woodbridge, and not much in Boston Edison East of the Lodge.

Sort of wishing I would have purchased a few years ago because this market is looking tough.

[animatedmartian]

Packard plant bidder Hults buys Cadillac stamping plant
By Kirk Pinho. November 18, 2013.



Bill Hults, the former would-be buyer of the Packard plant, has purchased the 954,000-square-foot former Cadillac stamping plant on Detroit's east side.

Meanwhile, Hults blamed the failed Packard plant deal on "greedy" investors.

Alan Holt, an associate with Detroit-based Summit Commercial LLC, said Hults purchased the plant from Detroit-based Ivan Doverspike Co.

According to Washington, D.C.-based real estate information service CoStar Group Inc., Summit Commercial listed the property, at 9501 Connor, for $2.75 million. Hults would not disclose the purchase price.

He said he plans a $35 million to $40 million investment at the site, located at Gratiot Avenue and Connor Street. The Cadillac plant was built in 1928, according to CoStar.

"We are turning it back into a functioning manufacturing facility," Hults said. "We are going to put a pre-cast panel company in there and a modular pre-cast company in there, and we are going to use that to build urban, multifamily in-fill housing."

He said work on the plant has already begun.

"We are essentially stripping everything out of the building," he said. "It hasn't been a stamping plant for 35-40 years, so we are doing everything you can imagine."

....

"I had the financing," Hults said when asked to explain how the deal fell through last week. "It's only when I told them what I was going to do (with the Packard plant) that they (the investors) told me they wanted 10 times the amount of return they asked for. I call that greedy investing."

About his purchase and plans on the Cadillac site Hults said, "I'm doing what I'm doing, and I can only tell you that we are in the middle of a pretty large project."

http://www.crainsdetroit.com/article...stamping-plant

I would think he would have told them pretty early on having spent a lot of time trying to get Packard. But it's whatever at this point. He's moved on to another vacant factory that'll actually probably be a lot more manageable than Packard would have ever been.

[animatedmartian]

Construction to begin on [Wayne State] Student Center
Tim Carroll . November 5, 2013.



Bye, bye paper airplanes -- the Student Center is being renovated this upcoming spring and many updates, including new ceilings, are planned.
The lower level and first three floors are the parts being renovated, with the upper floors remaining untouched.

According to an announcement from the Division Of Finance and Business Operations, the architectural firm of Neurmann + WTW Architects was chosen for design services in the renovation project.

Conceptual art for the renovation was posted outside of the building on Friday, Oct. 18 before being taken to a meeting regarding the project. Many students and staff stopped by to see the new plan, approving of the proposal.

The current Student Center was built in 1963, before Wayne State had dorms and was primarily a commuter school. Students would drive downtown, go to class, then drive back home, never stopping by the lounges and study areas of the center.

As more and more students began to live on campus, the need for an improved Student Center was recognized by the administration.

“Planning for a major renovation or replacement of the Student Center has been under way since 2006 to create the modern, central campus meeting and activity space Wayne State needs and deserves today,” said Tim Michael, chief housing operator.

“I believe the best part of the renovation is going to be the overall look and feel that the new Student Center will bring to campus,” Michael said. “It will be the campus crossroads and ‘living room’ where the entire campus community can find services and activities.”

...

http://www.thesouthend.wayne.edu/new...a4bcf6878.html

I really need to walk around Wayne State one of these days. There's a lot of architectural goodies that seem mostly under the radar.

[hudkina]

There's a lot of Minoru Yamasaki around the campus.

[jward145]

http://www.deadlinedetroit.com/artic...n#.Uo_NU8SsjvY Detroit is on a role! It will be apartments, a hotel, and conference center(with retail) all wrapped up in a sleek, modern design.

[uaarkson]

Awesome!

[animatedmartian]

Probably the best looking design in Detroit in at least a decade if not more. Here's more renderings via Curbed.

http://detroit.curbed.com/archives/2...t-revealed.php

[hudkina]

I'm a bit surprised they're putting it here. It always seemed that their goal was to put this at the corner of Woodward and Warren. I guess they're just sick of waiting around for that Subway lease to end. It makes sense to put the hotel about halfway between the two campuses. Now that they're putting this here, I wonder what their plans are for the Woodward/Warren site.

[animatedmartian]

I'm not sure if I had heard anything about Woodward and Warren but I do know a RFP was put out for Canfield and Cass back in April. Originally, the request called for a 4-7 story building. The expected price tag was at most $25 Million.

http://www.huffingtonpost.com/2013/0...n_3062367.html

The now recently reveled proposal goes way past expectations.

A $60 million mixed-use development by Wayne State University at the northeast corner of Cass and Canfield streets in Midtown is expected to open by 2016.

The WSU board of governors on Friday afternoon approved entering into a memorandum of understanding with Birmingham-based Broder & Sachse Real Estate Services Inc. to develop the 1.5-acre site that the university owns.

The 410,000-square-foot development is expected to include 248 apartments, 19,000 square feet of retail space, a hotel with up to 120 rooms and a conference center that can accommodate 300 people, according to a news release.

Construction is expected to begin by the first quarter of 2015.

http://www.crainsdetroit.com/article...etail-building

[hudkina]

The Woodward/Warren hotel/conference center was never an official proposal, but I remember hearing years and years ago they wanted to put something prominent there to go with the Welcome Center across the street. The idea was to have a hotel and conference center. They tore down a huge chunk of the block except that Subway. The Subway lease was for several years. I'm not sure how much longer the lease has, but I wouldn't be surprised that once they raze that particular building they'll announce something major for that site.

[LMich]

I know I should be happier, but when I see 248 apartments, 120 hotel rooms, 19,000 square feet of retail space in over 400,000 square feet, and then see they got it up to nine stories in the rendering, the skyscraper fan in me can't help wish they'd have at least stacked the hotel and apartments and got this thing up to 18 stories. lol I mean, 410,000 square feet of space is a significant amount of space, and while 18 floors would be tall for Midtown, I do not think it'd be too tall.

That said, I'm just happy that it's a more-than-decent design, and that it's taking out surface parking lot. I do realize that blocks are relatively large in inner-city Detroit (and particularly in Midtown) and land values are low, so when given the option, for the forseeable future, developers are always going to stretch horizontal rather than vertical. I should just temper my expections, and hope that we'll see something above 20 stories, downtown, before the decades out. lol