DETROIT | Development & Construction: Motown Lowdown

[M. Brown]

Is the Hudson site and this new development just proposals, or are they actually getting built?

[LMich]

As it's been reported and posted here a few times, the groundbreaking for Hudson's is scheduled for December and the one for the Monroe Block in January or the first quarter of next year.

[Docta_Love]

Lot of news today first off and perhaps the most interesting because it mentions a major player in Downtown/New Center is planning developments in several neighborhoods across the city.

Albert Kahn Building in New Center put up for sale

By KIRK PINHO
Crain's Detroit Business
August 22, 2017



Two years after it was purchased as part of a $12.2 million auction deal, the Albert Kahn Building on Second Avenue in the New Center area has been put up for sale for an unlisted price.

The 290,000-square-foot building is currently owned by a joint venture between The Platform LLC, New York City-based HFZ Capital Partners and New York City-based Rheal Capital Management, which is owned by Detroit native John Rhea. The Platform is run by Peter Cummings and Dietrich Knoer.

AJ Weiner, managing director of JLL (formerly Jones Lang LaSalle), which is listing the building for sale, said he and The Platform have received "many inquiries" about it since the Detroit-based company took part ownership two years ago.

"The decision was made to undertake a marketing effort to explore the sale of the property," Weiner said. "There is a lot of activity around New Center and Detroit, and The Platform is driving a lot of that. With so much interest expressed in the asset, it's appropriate to take this step."

"We want to see how the market responds, but we think responses will be strong."

....

"We are dipping our toes in the water," said Weiss, whose company is building new apartments with the Third and Grand project, as well as rehabbing old buildings, like the Baltimore Station and Cass and York redevelopments, among others.

It is also planning neighborhood redevelopments in Islandview, the University District and at Lahser Road and Grand River Avenue in northwest Detroit.

Southfield-based Redico LLC had been part of the ownership group for both the Fisher and Kahn buildings but sold its interest in the properties. It remains property manager for both.

The joint venture purchased the properties along with the iconic 635,000-square-foot Fisher Building in 2015 and had planned a large-scale redevelopment of the property.

Plans called for turning the Albert Kahn Building, which is about 20 percent occupied, into 162 apartments on the third through 11th floors, keeping office space on the second floor and using the first floor and concourse area as retail space.

http://www.crainsdetroit.com/article...ut-up-for-sale

Lions seeking future Super Bowls at Ford Field, and to host the NFL Draft

By BILL SHEA
Crain's Detroit Business
August 22, 2017

Detroit Lions President Rod Wood is spending his Tuesday showing off the $100 million worth of renovations at Ford Field to NFL Commissioner Roger Goodell.

The end game is to goose Detroit's chances of hosting future Super Bowls and the annual three-day NFL Draft.

"We're going to try to bring one or both to the city," Wood said while speaking by phone on WJR 760 AM 's "Paul W. Smith Show" on Tuesday morning.

The Lions have sent plans to the NFL seeking to host the 2020 and/or 2021 drafts, he said.

"We've actually submitted renderings of what the draft may look like if we hosted it in Detroit," Wood said. "I know a number of other cities have done the same thing, and we're going to hear back from the NFL soon on that, and next steps."

The Lions want to host the Super Bowl in 2023 or after at Ford Field, which is probably a longer shot than getting the draft.

"We're just waiting to hear back from the NFL on how our expression of interest was received," Wood said.

The league awarded Super Bowls last year to Atlanta in 2019, Miami in 2020 and Los Angeles in 2021. All three cities will have new stadiums, and it's tradition that the championship game goes to new venues or warm-weather cities. The league's 32 owners vote on Super Bowl sites. It's unclear when the next round of cities will be awarded.

Detroit's Ford Field opened in 2002 and hosted Super Bowl XL on Feb. 5, 2006. The Lions' hope is that the renovations completed this year will be enough to convinced the league's Super Bowl host city committee to recommend Detroit another title game. Metro Detroit also hosted Super Bowl XVI on Jan. 24, 1982, at the Pontiac Silverdome.

http://www.crainsdetroit.com/article...o-host-the-nfl

Penske Logistics to invest $98.6 million, create 403 jobs in Romulus

By KURT NAGL
Crain's Detroit Business
August 22, 2017

Penske Logistics LLC is planning to invest $98.6 million in the City of Romulus for a distribution center that would create 403 qualified new jobs.

The 606,000-square-foot refrigerated and frozen food warehousing distribution center will service primarily the Midwest, said Randy Ryerson, director of corporate communications for Penske. It will be located at 15520 Wayne Road.

The warehouse plans point to a diversification of business in Michigan for the logistics company known primarily for its work in the automotive industry.

“Penske Logistics is a major provider of automotive logistics but we also serve a diverse portfolio of logistics clients in other industries including food, industrial manufacturing, consumer products, electronics, appliances and others around the globe," Ryerson said.

He declined to say how much of its business is related to the auto industry.

The new project will be boosted by a $2.5 million performance-based grant from the Michigan Strategic Fund, which cited the project's job creation and net positive return to the state as reasons for the award. Penske Logistics has not received incentives from the MSF in the past.

“We’re pleased to be making this investment and bringing new jobs to Michigan,” Marc Althen, president of Penske Logistics, said in a written statement. “The location of the facility was ideal for the needs of our business and we look forward to breaking ground on the project this fall with InSite Real Estate, who is building the warehouse on our behalf.”

http://www.crainsdetroit.com/article...obs-in-romulus

Not sure Sears - K-Mart can be saved but interesting none the less.

Sears, Icahn target Detroit area with re-branding, renovations

By Bruce Davis
Crain's Detroit Business
August 22, 2017

Sears Holdings Corp. and Icahn Automotive Group L.L.C. are targeting the Detroit area for growth with new and remodeled auto service locations, the companies disclosed recently.

Sears, based in Illinois, recently converted a pair of suburban Detroit-area Sears Auto Centers to the company’s new DieHard Auto Centers format, while Southfield-based Icahn Automotive is planning a multi-million-dollar investment in its Pep Boys-, Precision Tune- and AutoPlus-branded stores in the Detroit area.

The Sears openings --- in Troy (Oakland Mall) and Roseveille (Macomb Mall) --- are just the second and third converted DieHard-branded stores to open. Sears opened the first DieHard Auto Center in the San Antonio, Texas, area in February.

Sears did not say how much the conversions cost, nor how soon or how many more conversions are in the planning.

The DieHard shop concept, which offers a contemporary setting with interactive in-store displays, plays off the company’s DieHard brand, which Sears has used for 50 years for batteries and for the past two years for tires.

"The new DieHard Auto Center Driven by Sears is another example of how we are unleashing the power of the DieHard brand," said Jon Otterberg, president of Sears Automotive.

"The goal is to continue to improve how we serve our members and to help today's drivers make the right choices for their vehicle's needs with our state-of-the-art technology and services," a Sears spokesperson said earlier about the San Antonio store.

There are more than 500 Sears Auto Center across the U.S. offering passenger and light truck tires and a range of maintenance and repair services and parts.

http://www.crainsdetroit.com/article...ng-renovations

[Docta_Love]

Really is a lot of good news out today i missed this one completely, it really isn't just downtown that has seen improvement over these past several years.

Local report details Detroit’s population trends, jobs, housing stock

BY ROBIN RUNYAN
AUG 23, 2017
Curbed Detroit



A new report by Detroit Future City called 139 Square Miles, funded through the Knight Foundation, compiles a slew of Detroit data points to help understand where Detroit has been and where we might be headed. The report has data in four areas: population, economy, people, and place. This includes population trends in terms of age and race, where jobs are located and how much they pay, how people get to work, and how housing stock has changed.

Overall, the report shows that Detroit is finally moving toward growth for the first time in 60 years. Although the population itself hasn’t grown yet, it is stabilizing after decades of decline. In this graphic, we can see where housing and population is stabilizing in the city. The darker the blue, the greater the growth.



Although signs point toward growth, the number of families with children has declined significantly in Detroit; since 2000, the number has decreased by 43%.

The report also highlights how rent-burdened many residents are (as we’ve discussed before). While rents in Detroit are still less than other cities, the median income is also a lot lower. 58% of renters are cost-burdened, while 37% of renters spend more than 50% of their income on housing.

In terms of jobs, the report shows that Detroit has shown a large increase in jobs that pay more than $40,000 a year. Most are located in the downtown/Midtown corridor. The report shows a high number of residents who live in the city and commute out of the city for work (especially those with lower incomes). Unemployment is still high among African American and Hispanic residents, who make up a majority of the city’s population.

Detroit’s poverty rate sits at 40%.

https://detroit.curbed.com/2017/8/23...-report-trends

[rlw777]

Originally Posted by LMich

As it's been reported and posted here a few times, the groundbreaking for Hudson's is scheduled for December and the one for the Monroe Block in January or the first quarter of next year.

I expect Hudson's will actually break ground in December but I assume at least the office portion of the Monroe block is contingent upon landing an anchor tenant. A Q1 start would be awesome. Let's hope they are able to land an anchor.

[LMich]

Originally Posted by rlw777

I expect Hudson's will actually break ground in December but I assume at least the office portion of the Monroe block is contingent upon landing an anchor tenant. A Q1 start would be awesome. Let's hope they are able to land an anchor.

I guess we'll just have to wait and see. I'm sure Gilbert would love to land an anchor tenant for the Monroe Block. Bedrock says as much in their release the other day of the expansion of the project, that they are looking for national tenants, though they've designed the building to have floorplates for all kinds of office tenants.

That said, he could just as easily keep on the current schedule without landing an anchor. Class A vacancy is below 10%, which is why you're seeing Bedrock proposed a ridiculous 810,000 square feet at the Monroe site along, up about 200,000 square feet from the original proposal last December.

I honestly have no reason to doubt Gilbert in particular. When he says he's going to do something, it usually gets done and fairly close to the schedule he announces. I guess you can reasonably doubt how quickly he'll get started with heavy construction. But I don't really doubt him holding a groundbreaking for each project when he says he will, particularly since he got the tax incentives he wanted for both sites from the state, which was the major hurdle from his perspective.

[skyscraperpage17]

Originally Posted by LMich

I guess we'll just have to wait and see. I'm sure Gilbert would love to land an anchor tenant for the Monroe Block. Bedrock says as much in their release the other day of the expansion of the project, that they are looking for national tenants, though they've designed the building to have floorplates for all kinds of office tenants.

That said, he could just as easily keep on the current schedule without landing an anchor. Class A vacancy is below 10%, which is why you're seeing Bedrock proposed a ridiculous 810,000 square feet at the Monroe site along, up about 200,000 square feet from the original proposal last December.

I honestly have no reason to doubt Gilbert in particular. When he says he's going to do something, it usually gets done and fairly close to the schedule he announces. I guess you can reasonably doubt how quickly he'll get started with heavy construction. But I don't really doubt him holding a groundbreaking for each project when he says he will, particularly since he got the tax incentives he wanted for both sites from the state, which was the major hurdle from his perspective.

To add to your points, Gilbert has already said he's running out of space for his own employees at Bedrock. So he can easily move them into this new office tower

Furthermore, I understand he's going to be paying for this project entirely out of pocket, so it's not like he has to meet any lending standards before he can start the project.

In any event, since we're discussing potential tenants, what's up with Flagstar? Are they leasing their building in Troy? It would be awesome if we can get them to move downtown (and thus land a Bank HQ).

[skyscraperpage17]

Originally Posted by Docta_Love

Lot of news today first off and perhaps the most interesting because it mentions a major player in Downtown/New Center is planning developments in several neighborhoods across the city.




http://www.crainsdetroit.com/article...ut-up-for-sale




http://www.crainsdetroit.com/article...o-host-the-nfl




http://www.crainsdetroit.com/article...obs-in-romulus

Not sure Sears - K-Mart can be saved but interesting none the less.



http://www.crainsdetroit.com/article...ng-renovations

Why would they pour so much money into the Roseville store when they're closing it and selling the land to At Home?

[Docta_Love]

Big sale of Bank of America building in Troy may trigger out-of-town cash rush
Deal may spur more interest from flippers

By KIRK PINHO
Crain's Detroit Business
August 20, 2017



One of the region's largest office building sales in recent memory to a New York City buyer may trigger fresh interest from large institutional real estate investors looking for a quick payday.

Coming off Sol Gutman's $74 million purchase of the Bank of America building in Troy last week, experts say the approximately $175-per-square-foot purchase price is enough to make out-of-state buyers that concentrate on what are known as value-add properties take a serious look at the Detroit market.

Such properties are generally those struggling to attract or retain tenants or in need of capital expenditures to make them more attractive to potential tenants.

Two years ago, the Bank of America building at 2600 W. Big Beaver Road was a prime example: Only about 60 percent leased, with its namesake and largest tenant shrinking its footprint in the 422,000-square-foot property.

Then New York City-based Sovereign Partners LLC purchased it from the bank, which was consolidating its office space, for just $35 million and, earlier this month, sold it to Gutman for more than twice that.

Put simply: A textbook flip, with a gross profit of 111 percent, although that doesn't include costs Sovereign incurred to lease up and improve the property, or carrying costs like taxes, maintenance and insurance.

....

Dennis Bernard, president of Southfield-based Bernard Financial Group, said the deal will help attract money from the coasts and internationally to the market.

"You're gonna see New York money and, a lot of times, that New York money is representing international money," he said. "It bodes well not just for Troy, but other areas, whether it's the Detroit CBD, Southfield or the I-275 corridor."

One of the reasons out-of-state investors are looking in Detroit and in other "interior" markets is because of declining capitalization rates, a measure of investment return, in other major cities along the coasts, said Barry Swatsenbarg, senior vice president of investment and loan sale advisory in the Southfield office of Colliers International Inc.

http://www.crainsdetroit.com/article...er-out-of-town


Looks like the apartments on Cass aren't safe according to a video taken by building hugger and posted on detroityes a worker claims that "in a week will be gone".

Are these Cass Corridor buildings still facing demo?

BY ROBIN RUNYAN
AUG 23, 2017
Curbed Detroit



Swift tells Curbed that the historic designation was never fully implemented and that city council rescinded it, instead keeping a gentleman’s agreement that Olympia wouldn’t demo the building. City Council is not in session this week.

Earlier this summer, two apartment buildings in Cass Corridor, near the new Little Caesars Arena, were threatened with demolition. Preservationists rallied and fought for an interim Historic Designation, meaning the Historic Designation Advisory Board would begin a study of the buildings and if the owner (Olympia) wants to do anything to the buildings over the next year, they’ll have to go through the Historic District Committee.

Yesterday, Homrich trucks were spotted outside the buildings, spurring speculation and fear of demolition. Amy Swift of Building Hugger confirms that demolition permits were pulled before the designation on June 17 and the permits should be frozen due to the interim Historic Designation. But no permit has been pulled to authorize abatement work.

“I think it is concerning enough that they’re doing abatement activity without a permit,” says Swift. An event is being organized tomorrow in order to organize a mounting online concern around these buildings. There was a large outcry in June when the buildings were threatened and although there are protections in place with the designation, Swift says there is concern based Olympia’s track record with demolition.

https://detroit.curbed.com/2017/8/23...s-demo-protest

[skyscraperpage17]

Has anyone here heard any rumblings about Marriott / Ritz Carlton working on a Hotel tower near Little Caesars arena?

Someone on another forum mentioned it in passing, but hasn't shared any additional details.

[Docta_Love]

Originally Posted by skyscraperpage17

Why would they pour so much money into the Roseville store when they're closing it and selling the land to At Home?

I think its just the auto-repair centers at sears that are getting the upgrades perhaps its the only money maker they have left, maybe in Roseville the auto-repair center will still operate as a stand alone. Very strange but perhaps not considering were talking about one that looks like it may going under.

[animatedmartian]

Originally Posted by skyscraperpage17

Has anyone here heard any rumblings about Marriott / Ritz Carlton working on a Hotel tower near Little Caesars arena?

Someone on another forum mentioned it in passing, but hasn't shared any additional details.

The only information ever officially reported was that Olympia was going to build a hotel with 350 to 400 rooms and it would be high-end.

Ritz Carlton wouldn't be surprising if it was one of the names attached to the hotel though it'd be pretty big for Detroit.

[Docta_Love]

I remember hearing details about a hotel tower not the brand but i believe its to be near Woodward and 75 where the construction equipment that's finishing up the entrance and pedestrian walkway is. Not 100% on that it could be the other end of the block by the mixed use parking garage but its planned in one of the first few phases 3 or something.

[animatedmartian]

Originally Posted by Docta_Love

Looks like the apartments on Cass aren't safe according to a video taken by building hugger and posted on detroityes a worker claims that "in a week will be gone".

I'd be entirely less upset if I actually knew something good was going to be built in their place. But 99% of me feels that they're going to be parking lots for quite a while.

[Docta_Love]

Originally Posted by animatedmartian

I'd be entirely less upset if I actually knew something good was going to be built in their place. But 99% of me feels that they're going to be parking lots for quite a while.

Exactly there is the vision of the "5 neighborhoods" but i wouldn't be surprised if the only plan for right now is to use the lot as more parking.

[detroit_alive]

Originally Posted by skyscraperpage17

Has anyone here heard any rumblings about Marriott / Ritz Carlton working on a Hotel tower near Little Caesars arena?

Someone on another forum mentioned it in passing, but hasn't shared any additional details.

A birdie tells me that the Ritz is going in Book Tower/Building...

[skyscraperpage17]

Originally Posted by animatedmartian

The only information ever officially reported was that Olympia was going to build a hotel with 350 to 400 rooms and it would be high-end.

Ritz Carlton wouldn't be surprising if it was one of the names attached to the hotel though it'd be pretty big for Detroit.

The individual said this supposed Marriott / Ritz Carlton hotel tower would be somewhere in "Wildcat Corner," which suggests it's a separate development from the 5 story 385 room hotel on the other side of Woodward and I-75.

[The North One]

lol how many times have we been told a historical building is "unsafe"?

David Stott was "unsafe" with a damaged basement, Ransom Gillis was "unsafe" with a crumbling facade, Book Tower was "unsafe". It's the go to garbage excuse.

The Ilitches went and weazled their demolition plans when they thought people were reassured and weren't looking. City council fucked up big time and essentially lied to constituents about the designation status. This is exactly the slimy opportunistic ways the Ilitches are known for, fuck them.

Nobody is even forcing them to renovate the buildings, they can easily be sold for large profit considering the land is much more valuable now.

[LMich]

Originally Posted by detroit_alive

A birdie tells me that the Ritz is going in Book Tower/Building...

Yes, please! I suspect because you could best maximize profits this way, that the tower will be apartments (maybe some penthouse condos), and the building would be the hotel. The complex is practically made for mixed usage.

[animatedmartian]

Originally Posted by skyscraperpage17

The individual said this supposed Marriott / Ritz Carlton hotel tower would be somewhere in "Wildcat Corner," which suggests it's a separate development from the 5 story 385 room hotel on the other side of Woodward and I-75.

The only spot that fits that information is the triangular parking lot south of Comerica Park.