He keeps up his shopping spree:
Link to Freep Article
1953
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He keeps up his shopping spree:
Link to Freep Article
1953
I am pretty sure that he will own every building downtown except the RenCen soon. Hello Delta City.
The Dime Building needs no work done to it... it was gloriously restored a few years back, and received several preservation awards.
That is what I find so interesting about this purchase. I think it is at or near full occupancy.Quote:
Originally Posted by Gistok
If he's buying occupied and profitable buildings, that should help him pay for renovations or attracting new tenants to his other buildings.
According to Dan Duggan over at Crain's, he has a blurb about the purchase as well, the building is 36% vacant. It is being purchased from Wells Fargo, foreclosed upon a few years ago. But at only $15m, this has to be nearly profitable as it is now, not to mention when Gilbert fills it up. It is obvious he is finding deals on buildings that are in good enough condition to either move into, make a buildout relatively inexpensive [[Madison), or only need minimal work [[First National). It's unfortunate the likes of the United Artists and Book likely don't fit the bill.
36% vacancy is higher than I thought. Thanks for the info.
I don't get the feeling he's in the real estate business to make money either. He is in it for Detroit. As long as he's not losing gobs of cash, i.e. breaking even, look for him to continue this trend. The man is very well connected, and obviously respected. He has that ability to motivate people to move down there. He also has that ability to do what GM has been doing and motivate companies that Quicken does business with to move downtown or risk losing that business. It is getting pretty interesting.Quote:
Originally Posted by Khorasaurus
Foreclosures on these properties has a tendency to alienate and drive away tenants. It is entirely possible that is was a bit more full before being foreclosed upon.Quote:
Originally Posted by bartock
I think for this very reason things are going to get pretty interesting. Who knows what his final plans are for these buildings or who he has been talking with in regards to mobilization of business.Quote:
Originally Posted by esp1986
"When Gilbert fills it up."
How can we assume he can do what any number of smart people have failed to do before him? I want to see him work his magic, but I have trouble seeing how one person can turn around a regional market.
what businesses-- if any-- are in the dime building? anything cool for the general public?
i don't think dan gilbert got where he is today by losing money. he must see a way to make money from these deals. which is a good sign; here is a guy who ran a mortgage company that survived the mortgage meltdown. seems like he's the kind of guy who can see around corners while the rest of us are bumping into walls ...
My biggest fear is that he's biting off more than he can chew...too big, too fast. If his "empire" shall fall, so goes Detroit...I don't like putting so many eggs in one basket.
Don't get me wrong, I love the passion he has..but I do have my concerns.
There is a Pizza Papalis/Rio Wraps restaurant, a small coffee cafe, and a snack store that does it's own pretty decent lunch inside the Dime. They are good excuses to look at the beautiful interior.Quote:
Originally Posted by Hypestyles
I got some junk mail from Quicken yesterday about refinancing my house- but I was very happy to see a Detroit return address!
Good news! Hopefully he can boost occupancy. Im surprised occupancy is around 36%. I thought it was like 20%
Because he is the bank and able to take risks that the bank would not allow others to, worse case scenario its a write off,you can buy an empty building at as is value and put tenants into it and have an instant value increase,cash is king if you have the cash to buy now and hold even if it is break even the way he is doing it he can control the future market long term. Everything has its positives and negatives.Quote:
Originally Posted by Carey
Thanks for the props esp1986. Here's the link to my blog detailing the deal. And, my own analysis, is that Gilbert will be second only to General Motors in terms of non-government landlords in Detroit.Quote:
Originally Posted by esp1986
http://www.crainsdetroit.com/article...other-building
I wouldn't worry too much about Gilbert biting off too much debt.... he's got the sole monopoly on the only Casino in Cleveland and Columbus Ohio.
With all of that Ohio real estate [[including the Cavaliers)... it's nice that he's making downtown Detroit his HQ.
Dear Mr. Gilbert,
As you continue to buy up real estate in Detroit, please consider buying my house.
Thank you,
Mr. Un Derwater
Well maybe the 15m price tag has something to do with it. He doesnt seem to be overextending.Quote:
Originally Posted by Planner3357
The good thing is that he is generating interest on properties in the downtown. There are bound to be investors from abroad who can take this further. Imagine a Dubai chieftain making a part of the cbd his pet project. A mall in downtown and an amusement park on part of the eastern riverfront past the RenCen.
[QUOTE=. A mall in downtown and an amusement park on part of the eastern riverfront past the RenCen.[/QUOTE]
Although, the greater downtwon is making some progress with people living there especially Midtown; we still need much more measurable and quantifiable
younger, educated dwellers with disposable income before a mall comes in. We need shops with walking accessibility, not an enclosed mall.
The more commercial movement is bound to create the demand for more residential however!!
Is it really this easy to buy Downtown Detroit property? Where have all the other Detroit philantrophists/real estate moguls been?
Eh... as an East Riverfront resident, I am suddenly NIMBY about an amusement park. Family fun center in the Globe Trading Company, sure. But Chene Park generates enough traffic in the area. I can't imagine what living next door to Six Flags Over Detroit would be like.Quote:
Originally Posted by canuck
Asleep at the wheel for decades. At this rate, Gilbert is going to easily surpass them as the dominate player in Metro Detroit.Quote:
Originally Posted by Genesyxx
If Whole Foods decides to locate here, it WILL be the first domino. Mark my words.Quote:
Originally Posted by Bishop
Simply awesome. He's buying buildings. Partnering on mass transit. He's making it happen. I know it's tough to like a business guy, and he is in this to make money, but hell, he's in it for Detroit too.
It takes funding,the Gov diminishes brownfield and tax credits which in turn lowers the values and eliminates the middle man. Why fund others when you can corner the market and keep the profits for yourself and design the future how you choose.Quote:
Originally Posted by Genesyxx
No headlines saying Quicken Loans Approved Funding for XYZ company for the purchase and rehabilitation for [[insert any building here).
It is nice to have a dedicated area for a park like this with good access to transit for city suburban folks. We have one on Ste-Helen's island that is owned by Six Flags called La Ronde and it has grown since 1967. It is on an island almost the size of Belle-Isle in the middle of the river close to downtown. It is reached by the bridge to the southshore and by metro. It is hemmed in, so security wise it is quite OK. It is not as noisy and problematic since it is removed from neighboring residential areas.Quote:
Originally Posted by English
I couldn't agree more, especially with the occupancy rates near 100% in downtown and midtown.Quote:
Originally Posted by English
Well, it is easy for Gilbert. Remember he was slick enough to get $200+ million of taxpayer incentives to move his company from Livonia. So he may not be spending "his" money, but rather the incentives that he got. Frankly paying $40 per square foot sounds a little rich to me.Quote:
Originally Posted by Genesyxx
Not every "real estate mogul" is as polictically connected as he is and can get such a gift. Without the discount from the taxpayers the math [[rate of return) does not work for them. They have to pay retail, while Gilbert get to pay wholesale [[after incentives).
Now if the citizenry want to start throwing around hundreds of millions of dollars you will see a lot more redevelopment. You won't necessarily see more tenants, but you will see more redevelopment.
Now about the philanthropists. By that you must mean the guy [[Waad Nadhir and his bank - Wells Fargo) that paid $40 million for the Dime in 2003 when times were good. Today the building is selling for a rumored $15 million. So Nadhir and Wells Fargo "gifted" about $25 million to Detroit. Now that is a philanthropist.
^^^
I thought those tax incentives were based on Gilbert building a new building, not moving his employees into an existing building? I might be wrong.
Ummm... That was not my impression. I assumed he could use the incentives to BUY or build.Quote:
Originally Posted by stinkytofu
Maybe this is something Dan Duggan from Crain's could follow up on. As a business/real estate reporter he has access to Gilbert, the CoStar database and other resourses to get the right answers. He could also track how much of AND where the $200+ million of incentives is going.
Now that would be a project to follow.
I'm curious as well. Maybe he got a fraction of that to just relocate with no construction. I'd imagine the purpose of the $100+ million would be to help offset construction costs...then again I really don't know.Quote:
Originally Posted by Packman41
Dan Gilbert has earned his new nickname: Ilitch Lite
Buying up downtown, one building at a time.
At least it appears Gilbert will show interest in the buildings he owns...Quote:
Originally Posted by R8RBOB
One would hope that the money was for rehab... and not just giving a [[soon to be?) billionaire tax money to buy up city property.Quote:
Originally Posted by Packman41
One reason I doubt that it's just money to buy up whatever building he wants.... is that it would give all other building owners [[with building mortgages) a distinct disadvantage for setting lease rates... but dumber things have been done in this city... so I wouldn't be surprised...
Will have to wait and see what the specifics are for the city/state largesse....
I'm virtually bible-swearing certain that the money was for rehab and/or MAYBE for new construction as well, but not a blank check to buy property simply because he moved his company downtown. If Gilbert was actually given $200 million just for moving his employees from Livonia to Detroit, there would have been a REAL BIG stink about that, and rightfully so. Also, if such were true, then Gilbert's shopping list for buildings could likely include everything in the CBD, except One Detroit Center and the RenCen. I think he's spent under $30 million so far on acquisitions, the Dime Building being the most expensive to date.
There is no casino here in Columbus yet. Even though they did finally break ground a month or so ago, they are still litigating. It will be another 18 mos. at the least, without the litigation concerns & the idiocy coming from our fine new governor.Quote:
Originally Posted by Gistok
I was reading about the site they finally agreed upon... annexed land from a bordering township to Columbus... gotta love the comments... they wanted to put it into a crummy part of Columbus so that "spin off" will help the area.... LOL.....Quote:
Originally Posted by mikefmich
This is a quote from a link that has expired from another site most of what I am getting is there was no time limit set on the details so in theory he could take the 200 mil ,invest it for 20 years and build from the profits.
http://freep.com/article/20090721/NE...-HQ-in-Detroit
Quicken Loans hopes to begin construction on a new downtown headquarters in mid-2013 and spend $192 million on it, the Michigan Economic Development Corp. said today in an analysis of the project.
And also here
http://www.businessleadersformichigan.com/node/50
The move will make Quicken Loans eligible for as much as $200 million in tax incentives over the next 12-20 years. The move likely will take about four years. To be eligible for the incentives, Quicken has 12 months to select a site in downtown Detroit and 18 more months for due diligence before beginning construction.
I believe the sites were Hudson's and or the Statler .
The only thing that irks me about this whole situation is in the meantime it is a musical chairs situation,the suburb where he is relocating from is going to hurt and it is further locking out new investment from outside investors from bringing new money and opportunities to Detroit.
Is it good that one person that has a personal vision control a city?
Why is it that the ones that have a different vision which does not include everybody with pocket protectors are not welcome ,blue collar need not apply.
Downtown and a section of Woodward are becoming territories to do anything there you will have to be approved and not by any city or state officials.
It is good that things are happening but I agree that what really is going on behind the scenes needs to be given some serious consideration,and decide if the ultimate price is worth it.
http://en.wikipedia.org/wiki/Quicken_Loans
In December 1999, Intuit Inc. [[makers of QuickBooks, TurboTax, and Quicken) purchased Rock Financial for a sum of $532M. The company was renamed Quicken Loans. In June 2002, Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for just $64M.[4]
How would you have liked to have your retirement invested in those companies that took a $400 million bath.
Don't kid yourself he is motivated by money and knows the market better than just about anyone else out there. He has started several mortage companies. He is probably seeing an opportunity no one else is seeing right now and is marketing it.Quote:
Originally Posted by esp1986
Quote:
Originally Posted by Packman41
Excellent points. It's not like this guy rode in on a white horse.
It was up to a $200 million package over the course of 20 years made 3 years ago with the then-Mayor and State of Michigan.Quote:
Originally Posted by BrushStart
Glad to help out.Quote:
Originally Posted by Packman41
We reported in July, 2009 that it was a $47.2 million tax credit given to Quicken. At the time, his plans still included the construction of a new headquarters by 2013, but his tax credit was not based building or leasing. At the time, he said he's investing $240 million [[I think that's where the 200+ number came from).
But the tax credit is based on creating/retaining 2,200 jobs in Michigan, though there are several catches to the deal. He needed to move 1,000 people to Detroit from Livonia to get any money, and then he needs to have all 2,200 people in Detroit by 2015, otherwise he only gets a tax break based on the people in Detroit from that point on -- so if he has 1,800, he only gets the retention break based on those people.
The tax breaks are based on what he'll be paying over the course of 12 years, but when it's all said and done, the tax breaks WILL pay for all these deals. By my tally, there's $15M for the Dime, $16M for the Chase, $8M for the First National and $1.4M for the Madison Theatre [[all that's confirmed by CoStar as well). So, that puts him at $40.4 million, with another $7ish to go. But he's going to need to pour a lot of money into some of these buildings to get them up to the standards that Class A tenants demand.
And if anyone has seen his build-out in the Compuware Building, it's not cheap to get a building to the condition that Dan Gilbert wants, so I wouldn't be surprised if he still hits that $240 million figure without doing a new construction HQ.
Don't get me wrong. He won't lose money on these, but by using his vast network of fellow business leaders around the area, he will be able to fill them up, and considering the low cost he is getting them for, the only expense on them [[Chase and Dime, for example) is upkeep. If Dan Duggan is right, then the tax credits will more than pay for the majority of these.Quote:
Originally Posted by DetroitPlanner
With all of the money he is supposedly saving via tax credits, he should have more than enough to spend elsewhere.
With one key difference, he's buying building and trying to get people to move into them; not building a parking lot empire.Quote:
Originally Posted by R8RBOB
Richard... your group of paragraphs come across as excuses as to why we should be wary of Gilbert buying property downtown....Quote:
Originally Posted by Richard
Your first paragraph.... how is what Gilbert doing locking out new investments? Last time I checked there's still 50 empty buildings downtown that investors can take a stab at.... and that "musical chairs" started decades ago when businesses moved OUT of Detroit into the suburbs... C'est la vie.....
Your 2nd paragraph.... how did you come to the conclusion that Gilbert is going to control downtown?? What about Karmanos and Ilitch?? And what about the hundreds of other business and property owners... Gilbert will be hard pressed to own more than 5% of downtown with the hundreds of properties there...
Your 3rd paragraph???... are you saying that Gilbert will come out with his own zoning regulations for everyone else to follow??
Your 4th paragraph... what is better... empty buildings or full buildings?? Do you think having full buildings and a thriving downtown is making a pact with the devil??
Your 5th paragraph.... so we're supposed to feel sorry for all those Intuit folks? Their bosses probably took some nice tax deductions for the company for the losses... but they didn't go bankrupt like GM or Chrysler... and their stockholders didn't lose 100%.
-----------------------------------
It sounds to me like you're trying to come up with reasons why Gilbert shouldn't be investing in Detroit... and so far you've stitched together a group of unrelated issues... I'm not trying to dis you, but really... feeling sorry for Intuit shareholders? Come on now... who's feeling sorry for Detroit?? Intuit is doing OK now... Detroit is not.... let's keep things in perspective...
We also don't know how many companies he's bringing Downtown? Sears Holding is leaving Chicago..? Borders Headquarter moving Downtown from Ann Arbor..? Eprize...? So many others..and hes also bringing in retail and residential projects maybe..? He's doing what many leaders in this city should be doing!
Quote:
Originally Posted by daniel_duggan
Wow. Your comment, “…the tax breaks WILL pay for all these deals” sums it up rather well.
In other words this building and renovation spree is free to Gilbert. He will not have any of his own money at risk – only OPM or Other Peoples Money.
Dan you said, “At the time [[2009), he said he's investing $240 million [[I think that's where the 200+ number came from)."
Actually, my source for the $200 million was an article from the Detroit News in November 14, 2007 [[3.5 years ago – time flies when you’re having fun) by Louis Aguilar:http://detnews.com/article/20071114/BIZ/711140386/City-pegs-growth-on-Quicken#ixzz1Q2Yvk0Q7
That article cited: Quicken will get local and state tax breaks of:
1. $115 million over 20 years because it will be located in a Renaissance Zone.
2. $45 million Michigan Economic Growth Act tax credit.
3. $40 million from the City of Detroit to subsidize parking, just as it does for offices of Electronic Data Systems in the RenaissanceCenter.
Now, three and one-half years ago is a long time and the subsidies may have gone through several changes, but I believe your comment that the TAX BREAKS will pay for ALL these deals.
Dan I appreciate you looking into this at my request and for explaining to the folks on this forum. Again, thank you.
Probably not a good idea to put it on the east riverfront, but I'd love seeing something happen on the West, right behind the Main Post Office. Maybe more space if USPS still plans to move to Pontiac.Quote:
Originally Posted by English
I can't believe Gilbert would offer $15 million for the Dime. Even with other people's money.
A prior owner walked away from the building with $2 million in unpaid taxes. Nobody bought it at the tax sale and title eventually reverted to the City. The BOSC Group bought it from the City [[in much better economic times) for $7 mil I recall. and put another $30 million plus into it. They bought several big tenants in by making outlandish, money losing deals.
Unless Gilbert is planning on using it as his HQ, which is improbable, it's not worth a fraction of what he's reported to have offered for it. Wells-Fargo would sell for a lot less, I guarantee you.
Folks, there is a lot of misinformation here.
First, a tax break worth potentially $200 million DOES NOT mean Gilbert was handed $200 million in cash to do as he pleases with.
For instance - he has spent $35 million on his renovations to the Compuware Building. Part of the deal includes a personal property tax exemption, meaning he pays no tax on the furniture, fixtures, etc. in the building, saving him a few million over the duration of the 12 year credit. This is not a cash hand out. It will be savings over the course of a very long time, dependent on the amount he spends. If he doesnt invest in furniture, he gets no tax break.
Parking subsidies provided by the city is another part of this $200 million. This, again, is not cash in Gilbert's pocket. Rather, it provides X number of city owned parking spots to Quicken employees over the course of X number of years.
Next, the MEGA agreements that limit his state tax are based on maintaining a certain headcount, and certain minimum wage to qualify. He has to pay these employees a combined ton of money in order to activate credits.
These are just a few of the many breaks, but clearly, it is not cash in his pocket.
3WC. Chase and Dime will be filled with his own employees, plus the remaining tenants. The interesting one will be the First National Building... that's supposed to be all outsiders... And then there will be residential.... there is still more to come, as I stated awhile back, prior to the Dime announcement.
The Dime needs no renovation dollars. It is ready to go. The First National will see some major investment for renovation, and if you look into the Chase Building, there is a ton of work going on on the upper floors - with a main floor renovation coming soon... This renovation will be in the tens of millions.
So are there any renderings of the ground level space of the Chase Towers? Is the Apple Store still considering that location?Quote:
Originally Posted by spiritofdetroit
Gilbert said again today that he is hoping to lure Apple. Have not seen renderings for Chase ground floor changes....
Can't wait to see what this guy got up his sleeves!! Its all good to me...and..to all these doubters, skeptical of his Detroit 2.0 project, go somewhere else and down talk another city. His doing what many of our region leaders never done. He's on a roll and leaving you'll all behind. We finally get a leader who is progressive, straight foward, and willing to change to landscape of downtown Detroit, is it that we're slow and use to failure? He's smart and has a vision that some of you will never have. BE THE CHANGE YOU SEE IN OTHERS...Ase'!Quote:
Originally Posted by spiritofdetroit
Gthomas.... save your breath and stop preaching to the choir.... :eek:Quote:
Originally Posted by gthomas
... and you might get your message across better if you proofread your grammar...
It's the units of government and business community you should save your lectures for...
I'm pretty sure your so called "Government and Business community" should hear my lecture, but I'm responding to your comments and others. I'm not making up this, you all is writing this and I'm responding. I will not be quiet and stop preaching just cause you feel a certain way. You're probably the person I'm talking about...leave me be, you not doing me a favor, GISTOK.Quote:
Originally Posted by Gistok
When/Where did he say this today?Quote:
Originally Posted by spiritofdetroit
Not sure if this is the story or not, but this was published yesterday: http://www.mlive.com/news/detroit/in..._gilberts.htmlQuote:
Originally Posted by rbdetsport
I know it re-hashes a lot of what we already know, but it's a good read.
Gthomas, you're not doing yourself any favor by telling everyone else on this forum what is already obvious to all of us who ARE historic preservation minded downtown boosters. "Preaching to the choir" is telling us "what we already know and already agree with".....Quote:
Originally Posted by gthomas
So save you lectures for the folks that need them, NOT most DYESers. Otherwise you come off as naiive and uninformed.
Lecturing the entire DYES group gets you nowhere....
"Gilbert Buying the Dime"
I hope he doesn't get short-changed.
ba dump.
Gilbert is doing great things, but he needs to leave the rail to the government and the engineers. Center-running rail is needed almost everywhere on Woodward except for around his office towers. The M1 people need to let the Midtown portions run down the middle, if they want ANYONE AT ALL to ride the train to their offices downtown. Otherwise it will be slower than a bus. This is Light Rail, not a Streetcar. Denver and Minneapolis have both. Let's not get too horny over a glorified employee shuttle before we have a legitimate base for a regional transit systemQuote:
Originally Posted by begingri
Quote:
Originally Posted by Gistok
How do you know I'm not reaching out to those politicians and community leaders? I'm very aware of the issues here and is doing my part as a concern citizen. I'm responding to who's talking too much, I say put your money where your mouth is. I understand what you are saying, but I'm frustrated that all we do is complain on here. I'm going to meetings/forums throughout the city fighting for what we need. I'm involve in many local organization and committees, traveling across states seeking economic improvement for Detroit. I'm very young, in my late 20's who loves my city...I left and came back to make a change. I see other cities doing what I'm trying to do here, but it's not easy convincing politicians and community leaders here. Its a power thing here and some need to get over themselves. Its not about you, more less for the citizens who lives through it everyday. I apologize if I come off like a preacher, but being nice isn't going to get far either?
I'm sorry Gthomas...I'm with Gistok. I liken the way you write to that of a 5 year old. Your ideas are ridiculous and far-fetched. You are, if anything, a huge dreamer with no sense of reality. I think you live in Lala Land.
Every time I read one of your ridiculous posts I am embarrassed for you.
Have a great weekend!
I'm sorry you feel that way, its not about you. Trust, I'm not embarrassed for your constructive criticism or hate towards me..I love suggesting it to you otherwise. I'm not trying to impress non of you on here, neither press to prove my point to you idiots. You and many others need to focus on the solution and not others. The reality, is that I have proven issues that are not far-fetched and can be done as I have already done as a leader in this city. I'm sorry you had a bad day, mines always great. You made it better! Is there anything else you will like to say to me? Keep it coming so called smart-ass..WHAT HAVE YOU'VE DONE LATELY...probably nothing but run your mouth.Quote:
Originally Posted by Planner3357
How can I be a dreamer or a guy that has no sense of reality when I'm living in it everyday? I just pinched myself, OH I'm not dreaming. Is it that hard or far-fetched that I attend meetings with investors, community leaders, politicians, and business leaders whos moving this city foward? Maybe you need to get off your ass and do something beside point the finger at people who want to make a change. Grow up...its not that difficult. I breath, taste, live, sleep, and work hard on this and its working. Next..
you guys should just use the "ignore" option for each other...
I agree! I'm only on here to give what I know, not entertain doubters. So therefore, lets get back on topic and stay focus on what we can do better rather critcise something that doesn't pertain to the subject. Did I make that clear enough for you to understand my message as a 5 yr old. I have records of my work in this community and whom I have affiliated with, do you? I'm done entertaining you Detyes'r...Have a good evening.Quote:
Originally Posted by j to the jeremy
It's like Danny and Detroit Dad mated.
I just checked the building's stats in Costar and it looks like it's currently 63.9% leased, but it could definitely be empty - there could very well be some shadow inventory in the building that is leased out but unoccupied. The largest tenant in the building is H&R Block with 101,000 SF. The Social Security Administration and Office of the Chapter 13 Standing Trust have another 30,000SF. The 12th-17th floors are currently vacant and that's a good 85,000 SF, so there's definitely room for a beg tenant.Quote:
Originally Posted by wolverine
The Dime will be filled with Gilber related entities.
The one to wonder about it the First National...
?Sears Holding? Just kidding..Oh, he mention major renovation to both the Dime building & First National building. The ground floor level of the Chase buiding will be expanded 20 ft. out towards Woodward with possible retailers Apple or Microsoft. Also, he's working with a design firm to redesign the First National ground level into something funky and cool.Quote:
Originally Posted by spiritofdetroit
Has Gilbert indicated whether he's going to relocate any out-of-state firms [[Quicken, etc)?
Sammy the Barber is still going strong at his shop in the Dime Building. He still has a customer who drives in from Chelsea for his hair cut. And several lawyers both in Detroit and the suburbs remain on his client list. Sammy is the best!
Dan Glibert is actually buying all of Downtown Detroit He might as well buy the Penobscot Building, too.
WORD FROM THE STREET PROPHET
Welcome to Glibertown, pop. 75,000.
NEDA, I MISS YOU SO.
As I was reading the latest post to the Whitney Building thread, I wondered, with all the demand for housing downtown now thanks in great part to Dan Gilbert, why isn't he buying up buildings for residential? Does anybody familiar with the economics of residential or the real estate scene have any insight into this? Does he have less risk with commercial? Seems to me it would be all part of a vertical business strategy.
The way I see it, he is trying to make a big splash. He is bringing the workers and potential future residents down first and getting the younger people to see the potential. Then comes the residential when the demand seems to become endless. There may be a demand now, but when the downtown office market hits a boom time, so will residential demand.Quote:
Originally Posted by downtownguy
I like rbdetsport's view.
Bring the jobs down first. Moving to Detroit won't be for everyone, but young folks and couples that are looking to work before they have kids will move here. And then who knows from there, maybe someone of them will stay once they have kids.
I've heard that they're looking at purchasing/creating housing for their employees, but the real concern is schools and daycare - I've heard chatter that they're looking at tackling those issues as well...Quote:
Originally Posted by downtownguy
Yes, I get that. He's already bringing the jobs down personally and he can be bullish just based on the demand for office space he's creating. But there's more supply of office space even after accounting for his employees. Sure, he's also recruiting other businesses, but until they sign a lease, he's taking some risk on filling the buildings he's buying. On the other hand, it appears that demand for downtown residential is at, or exceeding, supply. Just seems a better bet to put your money on residential now.Quote:
Originally Posted by 48091
he will be getting into residential...
think of a residential building available surrounding the buildings he's just purchased... think...
Dont be surprised if you hear another major development from Gilbert... one that is similar to the original plan he had... involving a certain property he had an option on
Ok, I'll bite. What are you talking about? What building do he have an option on that is residential in that area of downtown?Quote:
Originally Posted by spiritofdetroit
Hope is that he build residential on the Hudson and Statler site and he build his headquarters on the Monroe site in 2013?
Quote:
Originally Posted by stinkytofu