RELEVANT NEWS ON THE REAL ESTATE SECTOR IN DETROIT – OCTOBER 2018

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Selection of relevant news on the real estate sector in Detroit

We are pleased to provide you with information published in different media about topics related to real estate investments in Detroit. We hope this information is of your interest. We are here to help you analyze how this information can generate new opportunities for your next investment.

Detroit is building a “city inside a city” worth 1 billion dollars

Developers have now started to construct an 800 sq. ft. high building with 1 million sq. ft. for commercial use, offices, residential and public, in the location of an old store. Because of the variety of uses of the project, it is considered a “city inside a city” development by the architects involved and they calculate the approximate amount of $1billion.

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Why Invest in Detroit Real Estate this 2018

Recent reports show that Detroit’s median home value has increased significantly by 40% since 2017.  Both Zillow and Trulia, on the other hand, revealed a 12% increase in home value over the past year. Zillow predicted a 5.4% increase for the next year. Detroit real estate market is booming.

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Toronto´s developer explores the real estate market in Detroit

A well-known developer in Toronto which is building the highest skyscraper in Canada has also been looking for properties for construction purposes in Detroit. It would be the most recent international investor in the Detroit market, after David Grasso developer, located in Philadelphia, which is working on a project (potentially high-rise) in the corner of Woodward Avenue and West Grand Boulevard and New Yorker Mario Procida (Midtown West), ASH NYC (The Siren and Eastern Market project) and Ron Castellano (owned by Herman Kiefer), among others.

At international level, Fernando Palazuelo, a developer in Peru, has been working for years on the Packard Plant project. The Mexican telecommunications tycoon, Carlos Slim Helú, ranked as one of the richest men in the world, who made millions when he bought and almost two years later sold an office building in the center of the city which was almost empty to ADIENT PLC for new headquarters location plans.

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Ford Motor Co. will invest $740 million in Corktown campus

This is the first public communication about the amount that will be invested by Ford in this big project involving 1.2 million sq. ft. distributed in five buildings, including the Central Michigan Station which is empty and deteriorated, which is expected be used as an anchor for the campus centered in autonomous and local areas. By the time Ford has completed this project, an approximate number of 2500 workers are expected to be hired at Ford and another 2500 workers for other “associated” companies.

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Detroit launches an ambitious strategic transportation plan

The city has launched a wide plan to deal with many of the challenges faced by the transportation system in Detroit. In association with Blomberg Associates, the city currently has many strategies and priorities for the next four years aimed to help Detroit’s people connect with everything the city has to offer. The general plan has five main goals: economic opportunity, security, vitality, community outreach and city functionality, to be developed in one and four years. Some initiatives have already started.

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Mapping Detroit’s construction boom

Detroit is seeing a resurgence in development that it hasn’t seen in decades. For this iteration of this construction map, are including larger projects that are either currently underway or expected to break ground in the near future.

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Atwater Beach officially breaks ground along Detroit’s East Riverfront

A portion of the East Riverfront formerly used to store buoys will convert into a family-friendly urban beach in the next year. Construction on the 3.2-acres site between Chene Park and the Stroh’s complex will start immediately. The foundations for the shed and playscape are first, and in the winter, underground utility work should be completed.

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Three New Projects Totaling $102 Million to Add 367 Residential Units, 34% Affordable Units to Brush Park

The three new projects add to the hundreds of new units under construction or in design in the Brush Park neighborhood, which has seen significant growth over the last five years with developments like City Modern and The Scott. The developments totaling $102 million are planned for the Brush Park neighborhood, bringing 367 new residential units to the area, with 34% of those units at a wide-range of affordability for residents making as low as 30 percent of the Area Median Income, which is about $16,000 a year.  

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Details emerge for Dan Gilbert’s expansive Brewster-Douglass redevelopment

Dan Gilbert’s new development at the Brewster-Douglass site will have over 900 residential units, and come in at a cost of over $300 million, one of the major developments that’s been in the works for years. The development will include 648 apartments, 265 for-sale units, 3.2 acres of public space, 19,000 square feet of retail, 60,000 square feet of “early childhood education space,” and a possible 80-room hotel.

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Chemical Bank moves to downtown Detroit and will construct a 20-storey building

Chemical Bank, the largest central bank in Michigan, is excited and pleased with its participation in the dynamic growth and success of Detroit; it announced the transfer of its headquarters to Downtown Detroit and that a new 20-storey building will be constructed in the corners of Woodward Avenue and Elizabeth Street. About 500 employees will be working in such building.

The tower will include retail stores, several parking lots, offices for the Chemical Bank and, probably, some condominiums at the highest floors. It is estimated that the building would cost more than $70 million, plus any costs prior to the construction for demolishing the existing structures, and similar ones.

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New 20-story building to rise across from Comerica Park

The bank announced that it would build a new headquarters in downtown Detroit. The build is expected to take about two-and-a-half years and when completed, over 500 new employees would work from here. The bank’s headquarters have been located in Midland, Michigan since 1917, and the bank states that the labor force there will not be reduced. Midland will continue to house its corporate operations center.

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12 developments set to transform Detroit

There are development projects and then there are transformational projects—those that change how we live, work, play, and get around our city. We’ve mapped out 12 specific projects that we think will be transformational to their neighborhoods at least, and possibly the city as a whole. At the District Detroit we found the Little Caesars Arena opened last September, bringing all four major sports teams within a few blocks of each other. The entire area around is being built up (or out, for surface parking lots), including residential, parking, retail, the Mike Ilitch School of Business, the Little Caesars Headquarters, and a Medical Center.

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Howes: Five years after bankruptcy, Detroit shows real gains

Five years to the day after the city’s lawyers filed for Chapter 9 bankruptcy, Detroit’s reinvention is tracing a decidedly upward arc. It’s produced four balanced budgets, received three credit upgrades, improved delivery of basic city services, imposed fiscal discipline and attracted billions in private-sector investment.

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New U.S. Employment Data for May Show Largest Number of Employed Detroiters Since 2009

According to BLS numbers for May 2018, 227,894 Detroiters were employed, up 1,690 from April and up 21,326 since January 2014, when Mayor Mike Duggan took office. Detroit’s labor force also grew by nearly 3,000 residents in May, which is another key indicator of the city’s improving economic health. The unemployment rate for May was 7.9%, down from nearly 18% in January 2014.

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Report: Detroit lands in top 20 of the hottest real estate markets in the U.S.

Detroit and Columbus, Ohio were the only Midwestern cities to crack the top 20.

This is the second month in a row for Detroit-Warren-Dearborn at the #19 spot. The median age of inventory—or how long the homes last on the market—came in at 68 days for Detroit.

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