A New York developer whose Detroit plans came under scrutiny has made progress in rehabbing dilapidated houses, although he is still struggling to find uses for the massive and deserted Herman Kiefer Hospital campus.

Developer Ron Castellano struck a deal with the city in 2015 to redevelop the old Herman Kiefer campus and rehab about 115 nearby Detroit Land Bank houses in the Virginia Park neighborhood. The campus is north of Henry Ford Hospital and visible from the Lodge freeway.



Castellano has until February 2025 to rehab all the houses, and to 2029 to find occupants for the old hospital campus. If he misses those deadlines, he potentially may have to give properties up. Two years ago, Castellano narrowly made a deadline for rehabbing an initial batch of 15 houses. At the time, some in the neighborhood criticized the city's deal with him and pushed for a chance for residents buy some of the houses under his control. [[The city had given Castellano the right to buy the houses for $500 to $1,000 apiece, plus $925,000 for the Herman Kiefer campus.)


In a recent Free Press interview, Castellano said he is now working with local partners and community groups to finish the remaining rehabs and get the completed houses sold or rented out. Between his own operation and those of the new partners, more than 40 houses are now done, undergoing rehab or are slated for rehab, he said.


He and a business partner, Darius Smith, plan to showcase one of their rehabs on Pingree Street this fall in an episode of the "In With The Old" streaming series on HBO Max and the Magnolia Network. Castellano, who also has a Detroit residence, said he is on track for one of the deal's midway deadlines to rehab 20 houses by Nov. 30 — not counting the initial batch of 15.


As for the massive Herman Kiefer campus and its 11 buildings, Castellano said he has fielded a lot of inquiries, but has yet to score many commitments from prospective occupants. The 38-acre hospital campus also includes two nearby former Detroit public schools: Hutchins and Crosman schools. The campus has been vacant since Detroit's Health Department moved out in 2013. Castellano tried marketing the overall site as the Creative Commerce Campus Detroit, or C3D, but Detroit's post-pandemic market for office space has been challenging.
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