[DetroitMan]

Developers pitch ambitious 375-unit housing project at former WWII parachute factory

As proposed in documents filed with the city, Factory Yards will consist of 375 apartments, 60,000 square feet of commercial space and 80,000 square feet of self-storage.

Smith said the developers would need a separate zoning variance to accommodate freestanding self-storage, so that part of the plan is tentative until approvals can be secured.

"The building on the south end of the site ... we were kind of scratching our heads about what to do with it," Smith said. "We thought maybe we would just tear it down … but one of us said, 'Hey, what about self-storage?'" Smith said. "We had a market study done, and it turned out there was a great deal of demand for it; it really penciled out very well. And then, beyond that, we kind of looked at it as an amenity for the residents, given we anticipate about 700 people are going to live on this site. We've got a lot of studio apartments and one-bedrooms, so it's something that we hope residents will be able to utilize, as well as the general public." A portion of the commercial space will be designated for a food hall, bar and event space, pending future approval of a special land use permit to sell alcohol. Smith said discussions with a prospective tenant are ongoing, and he declined to disclose the operator's name.


"Everything's obviously still in flux, but the food hall would be in the ground floor of the five-story building, and it would integrate with an outdoor plaza," he said. The balance of the commercial space will be marketed to office, commercial, hospitality and retail tenants.

An additional 100 units of housing are planned for a future phase in a ground-up multifamily building that would be constructed on the south end of the site.

Due to the high cost of construction and rising interest rates, the partners plan to seek brownfield and Obsolete Property Rehabilitation Act tax incentives to assist with financing.

"When we put this thing under contract, interest rates were 4 percent, and now they're at seven," Smith said. "That's a big difference on a $150 million project."

https://www.crainsdetroit.com/real-e...wwii-era-plant