Investor Trio Tops Off Detroit Mixed-Use Project
Leasing of retail space on the ground floor has already begun.
Perennial Corktown, a mixed-use project in Detroit’s Corktown neighborhood that is owned by three investors, has topped off. The seven-story apartment complex, which will have 188 apartments and seven luxury townhouses, begins preleasing this spring.
Located at 1611 Michigan Ave., the community is being developed by a partnership of Chicago-based Oxford Capital Group and two Michigan firms, Southfield-based The Forbes Co. and Farmington Hills-based Hunter Pasteur.
The apartments will have a mix of studio, one- and two-bedroom floorplans, while the townhomes will have three bedrooms. Amenities for residential tenants will include an outdoor pool and deck area, community coworking space, and a workout room with a yoga studio, as well as a club room with private dining and a demo kitchen.
There is a three-story parking garage at the property, and more than 12,000 square feet of retail space on the ground floor of the building. The project is slated for completion this November. Leasing for the retail space has already begun. The first tenant will be Corktown Market, a 2,033-square-foot, full-service grocery store set to open in the fall. The store will feature a full-service deli and coffee bar with indoor and outdoor seating.
The complex is located across the street from the luxury Godfrey Hotel that Oxford and Hunter Pasteur are developing. The lifestyle hotel will open this summer and will include an indoor and outdoor rooftop lounge with expansive views of downtown Detroit and Corktown, as well as a 6,000-square-foot ballroom able to accommodate more than 350 guests.
Rents slow in Detroit
Multifamily 2022 development activity was on par with the previous year’s performance, as developers brought online more than 1,570 units, according to the Yardi Matrix Detroit December multifamily report. Investment activity totaled $727 million, up 64.5 percent year-over-year. Overall, Detroit’s multifamily fundamentals slowed down after the third quarter of 2022, a pattern seen in most major metros. Rent expansion decreased to 0.3 percent on a trailing three-month basis.
Hunter Pasteur has built and developed more than 2,000 luxury single-family homes and multifamily condominiums throughout Metro Detroit. Hunter Pasteur and The Forbes Co., an owner and developer of regional shopping centers, have more than 2,000 luxury multifamily units under development valued at more than $1 billion. Oxford and its affiliates have been involved in more than $3 billion of real estate and private equity investments with a primary focus on multifamily, senior housing, urban retail, hospitality and hospitality-anchored mixed-use projects.