David Stott Bldg downtown asking $1,8 Million

[staticstate]

she must be in pretty rough shape to have an asking price that low. unless the price tag on the book is excessively high. most of the interior shots of the book tower show it's quite a mess. I like the idea of someone buying it as a single residence, but I don't know how you'd go about keeping people out of the other 33 floors.

[esp1986]

she must be in pretty rough shape to have an asking price that low. unless the price tag on the book is excessively high. most of the interior shots of the book tower show it's quite a mess. I like the idea of someone buying it as a single residence, but I don't know how you'd go about keeping people out of the other 33 floors.

I have a feeling that the price on the Book is absorbitantly high. $1.8M actually seems to be on par for buildings downtown, especially one that hasn't been ravaged by twenty years of abandonment.

[Packman41]

This article in today's Crain's Detroit Business may put the value of commercial real estate in perspective:
http://www.crainsdetroit.com/article...FREE/100829958#

The Hyatt was built in 1976, has 14 floors and has 772 rooms.

Replacement cost is estimated to be $150 million
Purchase in 2007 was $40 million -- equity of $8 million and a [[now defaulted0 loan of $32 million
Now under contract for $12.5 million

But the broker explains: "Chicago-based hotel broker Richard George, who listed the hotel, said the building is under contract as a $20 million sale, but the final price will be $12.5 due to a concession because of a structural issue with the hotel. He would not disclose the structural issue."

So let's call the value of an operating Hyatt hotel to be $20 million after repairs. As a sale comparable, that means hotels of this caliber are worth about $26,000 per room.

[fryar]

I like the idea of someone buying it as a single residence, but I don't know how you'd go about keeping people out of the other 33 floors.

In my mind, that's why you continue to rent out the existing office space, which is presumably in a decent enough state, and use that income to pay the operating expenses associated with a ground floor concierge and doorman, elevator maintenance, and so on. Because what are you going to do if the elevator breaks, take 35 flights of stairs for the rest of your life?

[esp1986]

In my mind, that's why you continue to rent out the existing office space, which is presumably in a decent enough state, and use that income to pay the operating expenses associated with a ground floor concierge and doorman, elevator maintenance, and so on. Because what are you going to do if the elevator breaks, take 35 flights of stairs for the rest of your life?

If they are single floor units, you walk out of the elevator, and there is one door... been in a couple in New York and Chicago. Single floors in such buildings are 3,000 square feet and are set up to be a single family residence in the city.