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200 High-End Apartments, Retail Space Coming to Midtown Detroit

26 Mar 2015, 6:10 pm

By Veronica Grecu, Associate Editor

New renderings of a high-end mixed-use complex planned for Midtown Detroit have been unveiled by Broder & Sachse, the real estate investment, development and management firm behind the $8 million redevelopment of The Albert.

The Scott @ Brush Park - Midtown Detroit

The Scott @ Brush Park – Midtown Detroit

Detroit Free Press reported that the project—which will be marketed as The Scott @ Brush Park—will be built on a vacant, 2.6-acre parcel partly owned by the Fraternal Civic Center Group and located at Woodward Avenue and Erskine Street in Midtown’s Brush Park neighborhood, one of the historic areas in the city. Designed to target mid- to higher-end income renters, the five-story apartment building will include 200 market-rate residences ranging from studios to three-bedroom units. According to the same news source, rents at The Scott are expected to be consistent with the area’s rate, starting at below $900 for a studio and reaching $2,900 for a three-bedroom apartment, with a small number of units set aside for low-income residents. The Scott’s commercial component will encompass 15,000 square feet of street-level retail space, a low-grade parking garage with 300 spaces, a swimming pool, as well as a vegetated rooftop terrace.

Construction at the site is scheduled to break ground this summer and wrap up by late 2016. MLive.com said that Woodward and Erskine, LLC, a real estate venture of Broder and Sachse, serves as the project’s developer, while Neumann Smith Architecture designed the building. All leasing operations at The Scott will be handled by Brider & Sachse.

Additionally, in an effort to preserve Midtown’s historic architectural features, the development team also plans to retain the nearby Fraternal Civic Center (FCC) building, a century-old structure that housed the non-profit. The civic center will move into a new, 10,600-square-foot headquarters building that recently gained approval from the Detroit City Council, according to the Press.

Click here for more market data on Detroit.

Rendering credits to Broder & Sachse



Expansion of Michigan’s Only Furniture Showing Progress

18 Mar 2015, 4:36 pm

By Veronica Grecu, Associate Editor

IKEA logo

Back in October 2014 IKEA announced plans to consolidate its presence in the Michigan area by expanding its 311,000-square-foot store in Canton Township, the company’s only furniture store in the state of Michigan.

As previously reported by Commercial Property Executive, the Swedish retailer worked with Lansing-based Clark Construction Company to tear down a 30,145-square-foot building sitting next to the IKEA retail facility on Ford Road just west of I-275. Once demolished, the space was used to expand the store that opened almost nine years ago.

According to recent news from IKEA, the expansion project achieved a significant milestone as the exterior work was completed on the 44,000-square-foot addition, which will house the store’s customer service operations. “It was exciting to see the steel frame and blue panels appear as this IKEA store expansion took shape,” Store Manager Matt Hunsicker said in a prepared statement. “This progress keeps us on track for our larger and enhanced shopping experience to be completed by summer, so we can better meet the home furnishings needs of customers throughout the Detroit-area, Southeastern Michigan and beyond.”

In addition to the expansion project, the Swedish retailer plans to increase the size of the solar farm that was installed atop the IKEA Canton store three years ago. More than 750 new solar panels spanning approximately 40,000 square feet will be installed to create a 241-kW system that is expected to produce 287,500 kWh more of electricity annually for the store. As a result, IKEA Canton’s total solar installation of nearly 5,000 panels will generate almost 1,42 million kWh of clean energy every year—enough to power 135 homes.



Reanimated Townhome Project to Break Ground in Art Center This Spring

11 Mar 2015, 5:36 pm

By Veronica Grecu, Associate Editor

A long-stalled residential project will finally break ground in the Art Center district of Midtown Detroit.

Nailah Commons - Art Center, Midtown Detroit

Nailah Commons – Art Center, Midtown Detroit

Nailah LLC, a local development company managed by Julio Bateau, will redevelop several empty parcels encompassing 1.2 acres on East Ferry Street west of Chrysler Drive, within walking distance from Wayne State University and the College of Creative Studies.  As reported by Crain’s Detroit Business, Nailah is preparing a spring launch of a $10 million townhome development that will serve as a gateway to Midtown and the Cultural Center from the east.

Dubbed Nailah Commons, the project will feature eight, three-story buildings and will be constructed with funds coming from the U.S. Department of Housing and Urban Development (HUD), Invest Detroit and Capital Impact Partners, Crain’s noted. Once fully completed by the end of 2015, Nailah Commons will have 58 units ranging from 708 square feet to 941 square feet—46 one-bedroom and 12 two-bedroom units—of which twenty percent will be offered as affordable housing units.

Designed to combine Detroit’s art and history with a vintage-feel upscale living experience, the reanimated Nailah Commons project is a concept that was first advanced in 2007, right before the economic downturn hit the city. According to Crain’s, the original version called for a similar condo project with 35 for-sale units priced between $125,000 and $200,000.

Rendering via Nailah LLC



Auto Parts Supplier Announces Plans for New HQs in Suburban Detroit, Continues Growth in Saginaw

4 Mar 2015, 4:51 pm

By Veronica Grecu, Associate Editor

Nexteer Automotive - Saginaw Headquarters

Nexteer Automotive – Saginaw Headquarters

Nexteer Automotive, a global auto supplier, announced plans to establish its headquarters to suburban Detroit in an effort to grow its brand recognition. The company, which is currently based in Saginaw County’s Buena Vista Township, was created by two Chinese companies—state-owned parts maker AVIC Automobile Industry Holding Co. and the Beijing Economic and Technological Development Area, or Beijing E-town—in 2010, when the joint venture acquired the former Delphi Global Steering Division at auction for $465 million. Three years later Nexteer was listed on the Hong Kong Stock Exchange and the value of all its stock is currently valued at $2.5 billion, according to the Detroit Free Press.

Nexteer has around 11,000 employees worldwide, 5,000 of which are in Michigan. “Establishing a stand-alone global headquarters in the greater Detroit area demonstrates our commitment to the state of Michigan and provides us with a strong platform for long term success,” said Laurent Bresson, president and global COO. “Having our top leadership, global management and functional staff closer to customers, industry leadership and decision makers will be an asset as we continue to grow both in North America and in our operations around the globe.”

Though it hasn’t named a specific site for the new headquarters, the auto parts supplier announced that business assessment is currently underway for its new home in Oakland County. Nexteer’s will move into the home in 2016 and, according to the company, a mix of 150 current employees and new recruits will be employed there.

Nexteer’s Global Engineering Center and Saginaw Division will continue to operate at the Saginaw site, which now employs nearly 90 engineers. According to an official press release, the company plans to hire at least 65 new employees at the existing location throughout 2015.

Image via Nexteer’s Facebook Page



Rainer Court Apartments Shine Bright after $6 Million Makeover

3 Mar 2015, 4:31 pm

By Veronica Grecu, Associate Editor

A formerly neglected apartment community that’s part of the redevelopment boom in Midtown Detroit is just months away from reopening as market-rate housing for students and young professionals.

Rainer Court Apartments Detroit

Rainer Court Apartments Detroit

Located at 711 W. Alexandrine St. and within walking distance from Wayne University, Rainer Court is a four-story building that originally opened in 1923, according to information found on real estate website PropertyShark.

In spring 2014 the 36,555-square-foot property was purchased for $535,000 by PK Housing & Management, a family-owned development company based in Okemos, MI. O’Connor Real Estate represented both the seller and the buyer in the transaction. At the time of closing, the property consisted of 56 units ranging in size from 250 to 500 square feet and was 40 percent occupied, Detroit Free Press reported.

Immediately after taking over the asset, PK Housing & Management embarked on a $6 million renovation of the Rainer Court apartments with financial help coming from a $100 million commitment to Detroit backed by JP Morgan Chase in 2014. According to the news source, the Chase commitment included $40 million to two community development financial institutions (CDFIs), which lend capital to developers at a much better interest rate in order to help revitalization projects in distressed cities and communities. As such, Rainier Court was the first renovation project to use money provided by Chase.

Expected to reopen in mid-2015, the new Rainer Court Apartments will include 36 market-rate units with rents varying from $750 to $1,300 per month. The building will also have around 1,800 square feet of ground floor retail space.

Click here for more apartment market data on Detroit.

 

Rendering via Rainer Court website

 







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