DETROIT | Development & Construction: Motown Lowdown

[animatedmartian]

Originally Posted by NYC2ATX

On the topic of population loss, it's worth noting that, as of the newly released census borough estimates, the larger Detroit-Warren-Dearborn metropolitan area actually is now listed as having posted a very slight gain in residents. Like +0.01% ...but it's still no longer any more losses, and while this may not have a huge effect on the city itself, it demonstrates that far from everyone in metro Detroit and the state of Michigan have given up hope and fled.

I have a feeling that if gradual rebuilding continues and new jobs and industries can be introduced (and barring another economic crash *knock on wood*), we might see Detroit rev back up to real growth by the 2020s.

That's not really surprising to anyone that lives here. Most of the metropolitan growth is in the outer suburbs which never really stopped growing during the recession. They only slowed down enough to be outweighed by the flight from Detroit and some inner-ring suburbs. The region's always been growing but Detroit is just such a heavy weight.

Wayne County still has a 20,000 a year domestic migration bleed mainly off-set by gradual increases in international migration. If the domestic migration were to balance out, then we'd be in business.

[animatedmartian]

Dan Gilbert buys a new building while simultaneously having a tenant ready to move in who almost made the decision to move to the suburbs because of a lack of space downtown. Sort of a stars in alignment deal.

• Video Link

[Eridony]

Originally Posted by animatedmartian

Dan Gilbert buys a new building while simultaneously having a tenant ready to move in who almost made the decision to move to the suburbs because of a lack of space downtown. Sort of a stars in alignment deal.

Tremendous news for Detroit!

[Busy Bee]

Good news indeed

[skyfan]

Construction on Lafayette Park apartment project DuCharme Place to begin in June



Construction on the $42 million DuCharme Place apartment development near Lafayette Park is scheduled to begin in June, and the development will begin accepting residents in its 185 planned units in the first quarter of next year.

Plans call for 12 studio units, 66 one-bedroom and 107 two-bedrooms apartments. DuCharme Place is being developed by DuCharme Place LLC, the co-managing member of which is Walter Cohen of 21 Century Holdings, who has been behind other city developments like Stroh River Place, University Club, the Park Shelton and the Franklin Wright Village.

A groundbreaking is scheduled for June 11, according to Mark Bennett, managing director of Birmingham-based MJBennett PLLC, which is providing legal and advisory services to Cohen on the development.

Located at 1544 E. Lafayette Blvd., the four-building development will have apartments ranging from 500 to more than 1,000 square feet that will rent from $900 to $1,800 per month.

http://www.crainsdetroit.com/article...harme-place-to

[Docta_Love]

Speaking of starting to see population growth it's seems like theres real momentum now in terms of residential along the east riverfront I'm actually so what surprised that corktown is leading it in terms of being the leading non-downtown/midtown neighborhood but perhaps were starting to see that change, not that corktown doesn't have a lot more untapped potential.

But even more encouraging is seeing "midtown caliber" development in west village, perhaps with the 98% occupancy rate in the core area and the big names finally getting their flagship projects off the ground were going to start to see east Jefferson corridor finally live up to its potential with smaller and later players to the game look for more virgin detroit.

......................

Also the decades long fight to expand the runway at city airport to 6,400 feet in order to accommodate 737s and there by bring back regular passenger service may be nearing an end. Coleman A. Young Internationa Airport has been lacking since pro-air went bankrupt in 2001 but even before then its focus had been mostly shifted to cargo after southwest airlines pulled out in the mid 90s.

Interestingly enough it wasn't that they weren't successful the city wasnt able to follow through with promised improvements such as adding a longer runway to accomadate large modern planes. There's been talk of the very successful authority that runs Metro and Willow Run airports taking over City as well but they don't want to be on the hook for the improvements needed to make it a success.


Here's a link to the update I found
http://www.detroitnews.com/story/new...lift/70523064/

[JonathanGRR]

The Center for Michigan's Bridge Magazine put up a really great (and informative!) article about growth in Milwaukee Junction. I definitely recommend the read when you find the time:

Detroit’s next hot neighborhood is hiding in plain sight
Mill McGraw | April 2, 2015

On East Milwaukee Avenue in central Detroit, Logan Siegel lives in a 126-year-old building with rust-colored brick that has been rehabbed and converted into nine condos owned by a diverse group of professionals. The value of the property has tripled in the past five years.

The surrounding landscape is foreboding, though: Structures that are collapsing upon themselves, wildly overgrown vacant lots, illegal dumping, glass-strewn roads and ubiquitous graffiti. The two-story building across from Siegel’s home is boarded up; to the east is a DTE Energy facility surrounded by an 18-foot cement wall topped with razor wire. It looks like a maximum security prison.

Despite the raw surroundings, Siegel has met many people in the past three years who are impatient to move in.

“Just about every time that I’m working outside my building, people stop by, sometimes a couple times a day, just asking if units are available to rent or buy,” he said.

“When you tell them there’s nothing available, they get very upset because there is nothing in the area.”

Siegel’s neighborhood is named Milwaukee Junction, once one of the world’s most productive industrial zones, the place where Henry Ford began experimenting with the Model T and the assembly line. It’s a sprawling area around the I-75/I-94 interchange that is old and beat up and exists mostly off the radar of local media and metro area residents.
While its dynamic past is gradually forgotten, Milwaukee Junction’s immediate future seems increasingly clear: It appears to be Detroit’s next hot neighborhood.
...

http://bridgemi.com/2015/04/detroits...n-plain-sight/

[animatedmartian]

Originally Posted by Docta_Love

Also the decades long fight to expand the runway at city airport to 6,400 feet in order to accommodate 737s and there by bring back regular passenger service may be nearing an end. Coleman A. Young Internationa Airport has been lacking since pro-air went bankrupt in 2001 but even before then its focus had been mostly shifted to cargo after southwest airlines pulled out in the mid 90s.

Interestingly enough it wasn't that they weren't successful the city wasnt able to follow through with promised improvements such as adding a longer runway to accomadate large modern planes. There's been talk of the very successful authority that runs Metro and Willow Run airports taking over City as well but they don't want to be on the hook for the improvements needed to make it a success.


Here's a link to the update I found
http://www.detroitnews.com/story/new...lift/70523064/

I personally am very against a busier city airport. No one wants to live next to a noisy airport and I think it would have a negative effect for neighborhoods in line of the takeoff and landing flight paths.

[Rizzo]

Originally Posted by animatedmartian

I personally am very against a busier city airport. No one wants to live next to a noisy airport and I think it would have a negative effect for neighborhoods in line of the takeoff and landing flight paths.

Well that's not the case for MDW but then again I can't say the Detroit city council would willingly vote to sound-proof thousands of homes like Chicago did to keep everyone happy.

[DetroitSky]

A little late, but here's some updates from March 25

Metropolitan Building as it sits now, pre renovation:
Metropolitan Building, Pre Renovation by detcypher urbex, on Flickr

some work going on at the first and second floors of the Cadillac Tower. anyone know whats going on here?
Cadillac Tower Base Work by detcypher urbex, on Flickr

it has been said a Restoration Hardware store is moving in to the old Kresge space on Woodward:
[IMG]Kresge Store Renovation Work 1 by detcypher urbex, on Flickr[/IMG]

[IMG]Kresge Store Renovation Work 2 by detcypher urbex, on Flickr[/IMG]

Pierson Building renovation, a Richman Bros clothing store when it was built:
[IMG]Pierson Building Renovation by detcypher urbex, on Flickr[/IMG]

Cornerstone Barrel House, a restaurant and bar, recently opened at 1456 Woodward, right across the street from John Varvatos:
[IMG]Recently Opened by detcypher urbex, on Flickr[/IMG]

i will hopefully be posting some more photo updates tomorrow

[JonathanGRR]

Originally Posted by animatedmartian

I personally am very against a busier city airport. No one wants to live next to a noisy airport and I think it would have a negative effect for neighborhoods in line of the takeoff and landing flight paths.

I definitely agree with you. Plus, I would think that DTW/YIP could handle any increase in flights. The only advantage of DET would be that it is closer to downtown, but you could add this advantage to DTW by investing in better transit connects versus updating an outdated and redundant DET.

[wpipkins2]

Detroit has a wealth of historic structures in its downtown area. Stagnation saved Pittsburgh's historic structures and gave city officials time to come up with adaptive reuses for these beautiful buildings. Pittsburgh has restored most of its larger historic buildings and very few sit totally abandoned. This was not the case in the 80's. The collapse of the steel industry and terrible economy that followed saved many historic structures from the recking ball. I hope that all of Detroits buildings can be saved and put to good use. I love downtown Detroit!

[subterranean]

Originally Posted by animatedmartian

I personally am very against a busier city airport. No one wants to live next to a noisy airport and I think it would have a negative effect for neighborhoods in line of the takeoff and landing flight paths.

That neighborhood is one of the worst in the city and the city has been trying to buy hundreds of homes in the flight path for decades as money becomes available from the FAA. Of course relocation is a major issue.

[detroit_alive]

Originally Posted by animatedmartian

I personally am very against a busier city airport. No one wants to live next to a noisy airport and I think it would have a negative effect for neighborhoods in line of the takeoff and landing flight paths.

I'm in strongly in favor of the airport investment. That neighborhood is dying quickly and needs investment. A viable airport can provide the city new revenue and employment. I've heard that about half of airport revenue is non-aeronautical related, such as parking, rental cars, retail, food, and other services. Without a commercial line running out of the airport they will miss out on this revenue and the associated jobs.

The neighborhood will not rebound because of a lack of air traffic. It will only rebound if there are jobs.

[animatedmartian]

Originally Posted by subterranean

That neighborhood is one of the worst in the city and the city has been trying to buy hundreds of homes in the flight path for decades as money becomes available from the FAA. Of course relocation is a major issue.

Originally Posted by detroit_alive

I'm in strongly in favor of the airport investment. That neighborhood is dying quickly and needs investment. A viable airport can provide the city new revenue and employment. I've heard that about half of airport revenue is non-aeronautical related, such as parking, rental cars, retail, food, and other services. Without a commercial line running out of the airport they will miss out on this revenue and the associated jobs.

The neighborhood will not rebound because of a lack of air traffic. It will only rebound if there are jobs.

I'm more specifically talking about neighborhoods south of the airport like Indian Village. The approach to DET from the south more or less goes over the eastern tip of Belle Isle and I'd imagine making a larger runway west of the current one would move the approach path similarly farther west. I'm not sure how loud 737s are in person (not that I could really tell planes apart anyway), but I remember living on Detroit's west side on and even then the airplanes on approach to Metro Airport could get pretty bad sometimes. I'm sure east side residents wouldn't enjoy the added noise no matter how much revenue it brought the city.

[Docta_Love]

Originally Posted by animatedmartian

I'm more specifically talking about neighborhoods south of the airport like Indian Village. The approach to DET from the south more or less goes over the eastern tip of Belle Isle and I'd imagine making a larger runway west of the current one would move the approach path similarly farther west. I'm not sure how loud 737s are in person (not that I could really tell planes apart anyway), but I remember living on Detroit's west side on and even then the airplanes on approach to Metro Airport could get pretty bad sometimes. I'm sure east side residents wouldn't enjoy the added noise no matter how much revenue it brought the city.

Good point I didn't think about that approach path, I know that the Points and south warren residents had been resisting the expansion back in the day because of increased noise potential. I have family in Dearborn and when those big 747s and 777s would come in you know it, but the railroad crossing a couple miles away was much more annoying I thought. But going back to the Gold Coast/Indian village area, Windsor international airport isn't much further away than DET and I've never heard it mentioned as a reason to avoid living in the area.

N it's hard to say wether the east side as a whole would benefit more from a vibrant City Airport with say ansulary retail, hotels and perhaps drone manufacturers or other industries which could or have been rumored to be a potential part of a revived sourounding area. Although reviving the area without reviveing DET would seem to be a long shot it's perhaps one of the least desirable areas of the city.

DTW can certainly handle an increase in air traffic with all the recent improvements but it's more of a question of if DTE was a secondary option for the east side like Flint Bishop is for Oakland and Livingston counties would financially viable? N if you look at the recent success that Bishop has had attracting passengers who don't want to drive an hr to DTW only to spend another couple hrs dealing with the crowds at a busy main hub airport, I think there's a strong case to be made.

[animatedmartian]

Here's a flurry of good news about Metro Detroit growth.

More office lease deals top 100,000 square feet; Detroit locations in demand

By KIRK PINHO

Last week, downtown Detroit's big office leasing news came in the form of Ally Financial Inc. signing on to a mammoth lease — 13 full floors — at One Detroit Center.

The 320,000-square-foot lease and headquarters relocation just as Dan Gilbert closed on his purchase of the landmark building is the latest example of an upward trend in the number of large local leases totaling more than 100,000 square feet.

The Ally lease will also put the squeeze on office tenants looking for prime, Class A space downtown, where large blocks totaling 100,000 square feet are becoming few and far between, real estate brokers said.

Those include 210,000 square feet available at the 500,000-square-foot Stroh River Place and virtually all of the 100,000-square-foot Madison Office Building on St. Antoine Street. With the Ally deal, there will be about 250,000 square feet freeing up at the Renaissance Center, as well.

....

Of the office space in the region, 14 million square feet is in the greater downtown Detroit area, which had a 20.7 percent vacancy rate in the first quarter, while 58.4 million square feet is in the suburbs, which also had a 20.7 percent vacancy rate, according to Newmark Grubb.

Yet for major, 100,000-square-foot-plus users in metro Detroit, only a handful of contiguous blocks of quality office space are readily available, said Ron Gantner, partner in the Southfield office of Plante Moran Cresa.

"The challenge is if there is available space in the market," he said. "We may get to a point where we see some build-to-suit projects or spec buildings. If you're a 100,000-square-foot user, what is really the availability that's out there?"

In the suburbs, large blocks of space are available the 2.2 million-square-foot Southfield Town Center and the 1 million-square-foot Galleria Officentre in Southfield, for example.

...

Space crunch prompts speculative projects for local developers (referring to industrial space)

By KIRK PINHO

The rebound of the automotive industry since the recession is one of the triggers driving local developers to begin construction on -- or start planning -- several new speculative industrial projects in metro Detroit.

Facing a dearth of modern space, companies like General Development Co., Novi-based Amson Dembs Development Inc. and Troy-based Stuart Frankel Development Co. all have new speculative industrial projects -- which are projects constructed without a tenant lined up -- in the pipeline.

The reason? The existing supply is nearly full.

Areas like southeast Oakland County and Macomb County have industrial vacancy below 5 percent, according to the Southfield office of Newmark Grubb Knight Frank.

"Of the existing inventory that remains now, that 5 percent, it almost should be taken out of the pool" because the space is so antiquated, said Mark Woods, agent/broker in the Southfield office of Signature Associates Inc.

Overall, the vacancy rate for the region was 7.7 percent in the first quarter and 2.9 million square feet was absorbed. In 2014, 6.1 million square feet was leased, up from 5.7 million square feet in 2013, according to Newmark Grubb.

.....

Why everyone has started building a Detroit hotel

By JC Reindl and John Gallagher

Spurred by a rebounding auto industry and convention business, as well as growth in entertainment options, downtown Detroit hotels saw their best performance in years in 2014, hitting an average occupancy rate of about 66%, according to local hospitality officials. The average nightly rate was $115 to $120.

"That is one of the highest I've ever seen, and I've been tracking this since 1980," hotel consultant Chuck Skelton, president of Ann Arbor-based Hospitality Advisors, said of the latest occupancy figures.

The improved performance reflects Michigan's economic recovery, with the state's unemployment rate less than half of what it was six years ago and auto sales currently revving at pre-recession levels. And there are signs that Detroit hotels have overcome a psychological barrier — visitors no longer presume they'll do business downtown during the day and flee the city at night for suburban hotels.
....

Downtown Detroit hotels reported a low 47% occupancy rate in late 2008, when they were struggling to fill all of the rooms then flooding the market with the reopened 453-room Book Cadillac, the 203-room Fort Shelby and the three new 400-room hotels attached to each Detroit casino.

Much of that inventory was absorbed as the recession lifted and some older hotels finally closed. Now there is a push to open midsize boutique hotels in and around downtown.

[animatedmartian]

The 2nd richest man in the world seems to have a taste for Detroit. If confirmed to be true, that is.

Mexican mogul tied to Marquette Building deal
By KIRK PINHO


An entity with ties to Carlos Slim Helú, the Mexican business mogul with a net worth Forbes magazine pegs as $77.1 billion, has purchased a downtown Detroit office building.

Real estate brokers are watching the deal closely and speculating that the purchase marks the beginning of an effort by Helú to scoop up other Detroit properties.

The 164,000-square-foot Marquette Building at West Congress Street and Washington Boulevard was sold to 243 Congress LLC, which is linked to Helú, late last year for $5.8 million.

December's purchase, documented in county records, of the 115-year-old vacant office building gives Helú an entry to a Detroit real estate landscape dominated by another billionaire, Dan Gilbert.

"It's unlikely he would stop at one, isn't it?" asked Paul Choukourian, managing director of the Southfield office of Colliers International Inc. "If they show some success with it, the floodgates could open. With that much ability, what might be a small investment for him could be huge in the city of Detroit. A fraction of his net worth could be a monster investment."

....

A warranty deed filed in Wayne County dated Dec. 10 lists an address for 243 Congress LLC in Mexico that is the same as Impulsora del Desarrollo y el Empleo en America Latina SAB de CV (Driving Development and Employment in Latin America), or IDEAL, of which Helú is the chairman of the board. A listing by New York City-based property research firm Real Capital Analytics Inc. names Carlos Facha Lara, director of legal affairs and nonmember assistant secretary of the IDEAL board, as the buyer.

The Mexico address is also listed in U.S. Securities and Exchange Commission documents as being for Grupo Financiero Inbursa SA de CV, a group of financial companies controlled by Helú, and some of its subsidiaries. The address also appears for Helú in this year's proxy statement for The New York Times, of which he became the largest shareholder in January with an ownership of 27.8 million shares.

...

[JonathanGRR]

Well that was unexpected...very good news if it is confirmed. Maybe he could pair up with Palazuelo on some of his bigger ideas.

On another note, is there any news about how the David Stott Building is doing post-flood?

[animatedmartian]

Originally Posted by jonathan.jam

On another note, is there any news about how the David Stott Building is doing post-flood?

The handful of tenants that were inside the building have to relocate as the building is still without power and the Chinese company that owns the building is facing legal troubles. It's pretty much become another vacant high rise at this point.