Schostak Bros. plans $111M 16-story office building downtown Detroit office tower

**mikeg19** · March-28-14, 07:03 AM

I find it very strange to hold a press conference announcing a large investment and construction project, then tabling it. The backlash against Meridian would be pretty harsh if true, although I doubt it would effect them financially. I wonder how their PR department is gonna spin it if this is in fact true.

**jt1** · March-28-14, 12:51 PM

Seems to be the best way to get free press. I don't know if this fails if it is on Meridian. I believe the developer announced it with the plan that Meridian with be the tenant/primary tenant.

Schostak may have jumped the gun in making the announcement, I don't believe [[and may be wrong - I didn't re-read past posts) that Meridian announced they were moving downtown.

Between this and his politics, I really dislike Bobby Schostak now

**downtownguy** · March-28-14, 01:18 PM

Meridian wasn't moving downtown -- their main office is currently in the 777 Woodward Building [[Ernst and Young) across Campus Martius from the Schostak site. The reason given for the new building was to consolidate several Detroit offices into one, as well as accommodate an anticipated increase in employees. Molina is a competitor to Meridian. They are currently located in Troy. It was rumored last December that they were looking to relocate and Detroit and Southfield were possible locations.

The Molina rumor was discussed in this thread:
http://www.detroityes.com/mb/showthr...wntown-Detroit

**BankruptcyGuy** · March-28-14, 01:46 PM

The building is basically pre-leased.

http://headsupdetroit.com/blog/?p=670

**MikeyinBrooklyn** · March-28-14, 02:00 PM

For lack of any specific information, it may be a little premature to declare this project kaput. But it should be noted that the Crain's article BG linked to states that there was a letter of intent signed, which is not a lease and is non-binding. Further, it states they were applying for various tax credits. That is a big variable in their financing. Should the project not move forward, failing to get all those breaks might be a reason. In fact, a cynic might argue that plans, including renderings, were made public to enhance the likelihood of getting the tax breaks. Regardless of the speculation, including my own, I really like the proposal and hope it moves forward.

**Gistok** · March-28-14, 03:06 PM

Looking again at this rendering... why is it that architects keep mimic'ing each other? This one has the big "mail slot" feature at the 2nd/3rd level... the "Z Builing" also has several of these. Why do architects copy each other like that? A few years back it was the "carport" on top of the buildings... now these mail slots. I cannot fathom a tenant demanding "give me one of those that all the other new buildings have"...

**Mackinaw** · May-30-14, 08:54 AM

When the flurry of press accounts of this project came out, the construction was said to begin early 2015. Obviously, we still have time and should not expect digging yet. But does anyone have knowledge to confirm that it will start on time?

It would be GREAT to get news of a large ground floor retailer, such that this building's large footprint isn't broken into small chunks, paving the way for more coffee and sandwich shops.

**stinkytofu** · May-30-14, 09:10 AM

Originally Posted by Mackinaw

When the flurry of press accounts of this project came out, the construction was said to begin early 2015. Obviously, we still have time and should not expect digging yet. But does anyone have knowledge to confirm that it will start on time?

It would be GREAT to get news of a large ground floor retailer, such that this building's large footprint isn't broken into small chunks, paving the way for more coffee and sandwich shops.

Nothing concrete except for the rumors above about the project being "postponed"...which would suck if it never comes to be.

**Mackinaw** · May-30-14, 09:50 AM

It would really suck. Honestly, Meridian could back off and decide they aren't expanding, and the market could probably justify something TWICE the size of what's been proposed, so long as it is part-residential. I truly hope that the developers are flexible and ambitious. I am not saying they should build something speculative, but I am saying that the residential market can absolutely justify a tall building on that parcel at this moment.

Obviously, though, we have no knowledge re: Meridian and hopefully they are still on the growth path.

**bailey** · May-30-14, 10:19 AM

Originally Posted by Mackinaw

Obviously, though, we have no knowledge re: Meridian and hopefully they are still on the growth path.

From the informed gossip I've heard, it's not about Meridian's growth plan, but about whether or not Compuware is going to be down one very large tenant in the very near future .... obviating the need to build new [[and make a very long term commitment) to consolidate their people under one roof. That and an already identified building that suits both current needs and growth in the burbs... again with out the long term commitment....allegedly.

**DetroitPlanner** · May-30-14, 10:23 AM

Originally Posted by Mackinaw

When the flurry of press accounts of this project came out, the construction was said to begin early 2015. Obviously, we still have time and should not expect digging yet. But does anyone have knowledge to confirm that it will start on time?

It would be GREAT to get news of a large ground floor retailer, such that this building's large footprint isn't broken into small chunks, paving the way for more coffee and sandwich shops.

It is not 2015 yet. Digging is construction. http://en.wikipedia.org/wiki/Meridia...n_Headquarters
http://www.crainsdetroit.com/article...roit-building#

Don't be running around chicken little the sky is not falling.

**DetroitPlanner** · May-30-14, 10:25 AM

Originally Posted by bailey

From the informed gossip I've heard, it's not about Meridian's growth plan, but about whether or not Compuware is going to be down one very large tenant in the very near future....

I just got an e-mail. My dividend from CPWR will be coming in June. It is paying a 5 percent return. Not too shabby for a company that is going under. http://finance.yahoo.com/q?s=cpwr

**bailey** · May-30-14, 10:32 AM

Originally Posted by DetroitPlanner

I just got an e-mail. My dividend from CPWR will be coming in June. It is paying a 5 percent return. Not too shabby for a company that is going under. http://finance.yahoo.com/q?s=cpwr

has nothing to do with anyone "going under".

**313WX** · May-30-14, 10:49 AM

Originally Posted by bailey

From the informed gossip I've heard, it's not about Meridian's growth plan, but about whether or not Compuware is going to be down one very large tenant in the very near future .... obviating the need to build new [[and make a very long term commitment) to consolidate their people under one roof. That and an already identified building that suits both current needs and growth in the burbs... again with out the long term commitment....allegedly.

Do you mean the Compuware building?

[[because I'm assuming you're referring to the fact that Compuware was recently sold to a NY venture capital firm, and they're the huge tenant that will be lost).

**southen** · May-30-14, 10:57 AM

i wouldnt be surprised if quicken and gilbert are making a move on the location. the meridian plan seemed like a slow one and we know how quickly dan likes to get things going. i do hope whatever goes there includes a residential component. it would be a good thing for campus martius to have some residents located at the park.

**bailey** · May-30-14, 11:08 AM

Originally Posted by 313WX

Do you mean the Compuware building?

[[because I'm assuming you're referring to the fact that Compuware was recently sold to a NY venture capital firm, and they're the huge tenant that will be lost).

Yes.

Also, CW wasn't sold. There was an attempted takeover... the takeover didn't happen because CW conceded to the fund's demands for specific changes to management and more aggressive cost cutting.

However, by this time next year, Compuware is going to split into two separate companies....

**313WX** · May-30-14, 11:11 AM

Originally Posted by bailey

Yes.

Also, CW wasn't sold. There was an attempted takeover... the takeover didn't happen because CW conceded to the fund's demands for specific changes to management and more aggressive cost cutting.

However, by this time next year, Compuware is going to split into two separate companies....

Interesting.

Assuming that's all true [[not that I'm doubting you), it is bittersweet knowing that we may not get a new high rise after all for some time to come.

**Mackinaw** · May-30-14, 03:01 PM

Planner, I hear ya, that it why I disclaimed any notion that they should be digging by now in my bump post. I was just trying to squeeze any insider information out of the forum to make sure that the timing is still good to go. Information dried up [[understandably) after the September release of renderings.

As it stands, we have nothing but conjecture on the naysayers side.

As to Compuware, I recalled the recent drama and just read up: http://www.crainsdetroit.com/article...split-in-fy-15
Looks like no threat of a marriage with another company [[as once proposed... which could have taken them who-knows-where). Looks like they'll create a spinoff with their cloud operations, but it also appears that CPWR has reassumed the driver's seat. I'd like to see the press follow-up regarding the locus of the spinoff. Couldn't it be right there in the Compuware Building? Is there any reason it would not be in Detroit?

**DetroitPlanner** · May-30-14, 03:59 PM

Originally Posted by bailey

has nothing to do with anyone "going under".

CPWR are aggressively fighting the venture capitalists who want to merge them and BMC.

http://www.businessweek.com/news/201...e-equity-firms

**rb336** · May-30-14, 04:15 PM

I went to google maps to look at that plot of land, went to the "earth" view and zoomed WAY in - got this:

https://www.google.com/maps/@42.3319.../data=!3m1!1e3

some sort of aerial?

**animatedmartian** · May-30-14, 04:23 PM

You mean the 45 degree angle? Ya, Google has 45 degree aerial views for major metropolitan areas.

**DetroitPlanner** · May-30-14, 05:24 PM

Originally Posted by bailey

Yes.

Also, CW wasn't sold. There was an attempted takeover... the takeover didn't happen because CW conceded to the fund's demands for specific changes to management and more aggressive cost cutting.

However, by this time next year, Compuware is going to split into two separate companies....

Never going to happen because if it does my investment will finally be worthwhile! I am too much of a schleprock!