The Kresge Building in Downtown Detroit on Woodward Ave. is getting mini mall with upper and lower level of shops along with a new 5 and 10 Bar for its anchor. This is great start for the development of Downtown Detroit.
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The Kresge Building in Downtown Detroit on Woodward Ave. is getting mini mall with upper and lower level of shops along with a new 5 and 10 Bar for its anchor. This is great start for the development of Downtown Detroit.
yes and no. Good to get something in that building. But bad cause it's a Boydell Development project, which means everything will be shoddy and half-ass. Expect the roof to leak, no elevator and trash everywhere. That's just the status quo in every other building they own.
Does anyone have a link to go along with this story?
Agreed. I don't see it on the News or the Freep.Quote:
Originally Posted by tetsua
I have seen the development from the outside, as I walk by it almost every weekday [[and some weekends). This is happening.
I hear from reputable folks that it's going to be some sort of outlet place; I'm just glad to see some activity. It looks, from the lights I see, that it also may be on the second story of the building.
Boydell, quite frankly, keeps a lot of buildings occupied with residents. Are they perfect? Heck no. However, the reality is that not everything in the city is going to be top-notch and nor can all folks afford that. I'd much rather have the buildings he has with tenants than vacant. There is going to have to be room for all levels of development. He walks the evil genius line of spending just enough to make money on what he does... the reality is that the nicest things don't always make money. It's about serving what needs people have, and Dennis does that with relatively inexpensive housing. You're not going to get top-notch service, but you're not paying a ton of money, either, so you can't expect much. It's a trade-off.
If I happen by it I'll take some pictures. You can see more of the inside at night, though, they're keeping it very brightly lit.
I'm glad to hear about this, I'm gonna be sure to swing by to take a look when I'm home for the weekend.
Why Mr. Boydell is bad for Downtown Detroit development?
Oh I remember, yeah I saw this when I was downtown last. I thinking it was a news story they way ya told it. I hope it gets done.
Maybe Dennis Kefallanos [[apparently "Mr. Boydell" to some here) is taking the huge buyout he got from the Ilitch's on that Grand River building that was just demolished and investing it into this project...
Where exactly is the kresge building? Where in Downtown Detroit, that is....
State Street and Woodward.Quote:
Originally Posted by dcmorrison12
Back in the day:
http://i215.photobucket.com/albums/c...s/kresge-1.jpg
I can't complain. There are over 50 vacant storefronts along Lower Woodward.
http://shopkresge.com/
I'm going to throw my abercrombie sweater on and get right down there.
Well at least there is one bright spot for lower Woodward.
After viewing the above webpage for the shops, I think MonCon will be up in arms because most of the people in the pictures don't look like her! :mad:
This sounds like another Russel Bazaar. Anyone need any paper towel and Obama shirts?
It is another Russell Bazaar. The Boydell people told me all about it when I paid my rent 2 weeks ago.
Seriously, how many crappy Obama shirt stalls can there be in that place?Quote:
Originally Posted by Hans57
If this doesn't get some real tenants and not just crappy screen printed Detroit shirts, then it's not going to last.
Well, hopefully one of the daily papers or Crain's or Model D will have an article soon which will give some solid details. It will be nice to have that corner occupied again. While we can all hope for higher scale stores, we know that our city may not be able to support that yet. Hopefully the tenants won't ALL be Russell Bazzare types; if that's the case, I'll have no reason to shop there. Let's hope for the best and see what happens. Anyone have any photos of the site work?
There was another Kresge's at the corner of Woodward and Grand River [[the Red Front Store).
sex toys, beanie babies and shea butter conveniently located on woodward?! hooray!
So I snapped some shots last night on the way home for the large numbers of folks on here who do not pass through the block regularly...
By the way, what I keep hearing from non-forum-ish people who live in the city is that we need more basic stores, like places to get things like bathing suits [[not my words, what was suggested to me) and the things of daily life. And I'd agree.
The reality is that as far as store quality, Detroit's going to have to climb up just like other areas did in the retail sector. The bitch is that everyone has such high expectations because of it's former glory, so no one is going to be satisfied until there's Macy's, Apple and Gap all on Woodward. And sure, that'd be awesome one day, but let's be realistic.
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Ah, it's not the greatest, I will admit. However, it's better than a vacant building.Quote:
Originally Posted by gravitymachine
The important thing - and this remains to be seen - is whether or not they expand to start offering other products and services.
How about MR. K finishing the lofts that have been coming soon on the corner of Gratiot and Broadway first? You know the ones that have been coming soon since at least 2002.Quote:
Originally Posted by Fnemecek
Digitalvision, thanks for posting those photos. It WILL be nice to have that corner occupied and active rather than dormant and empty. And I'm glad they took the Kresge facade covering off the lower floors as seen in the older [[c. early 70's?) view posted above.
Rocko, that vintage pic posted by BuildingsofDetroit of the Kresge Building was taken during Downtown Detroit Days as you can see the red banner on far right side of the frame. DDD was an annual event in Detroit with a Queen and parade and the whole works. A central buisness district shopping event. I think it petered out in the early 1970's.
...
Wasn't it annouced last year that there going to be a loft conversion next door to Kresge's? I think a couple of former Michigan State basketball players were the money guys behind the project. Or do I have the wrong building in mind?
This one ofthe most awsome things I've heard in a while I am very excited about this! I hope it works ot and spurs more development over in that area for stores!
Gnome,
If you look at the first picture posted above [[Ill repost the link here)
http://www.detroityes.com/mb/attachm...6&d=1239721575
The white building on the far right, with only its top floors peeking into the picture is the previously announced loft project you're referring to
http://www.twelve-25.com/ [[project website)
The last Downtown Detroit Days was the early 1980s when Downtown Hudson's closed.
Thanks for the pics. It looks a lot better than I expected it to look. I can remember the Cafe and sports/toys in the basement, household goods, health and beauty on the first floor, and clothes on the second. Does anyone else have any other recollections?
I will try to get out of behind my desk tommorrow and check it out.
I can also recall the Woolworth's counter was on the N wall and there was some kind of lounge area that was above it.
Lowell should open a painting and photography studio and gallery/store within. That would entice me to shop here! :)
So far, the Woodward Corridor from Campus Martius Park to Grand Circus Park has 15 stores. The Shops in Kresge Building would bring whole a sudden retail boom since the Archer days.
Anything that Boydell Development does turns out to be a dump. As someone who has lived in their buildings for longer then I want to admit, they are the worst landlords ever.
I guess on one hand it's good that they are buying buildings and putting in stores and making everything into lofts. But at the same time what's the point of doing that if they end up not being taken care of and maintained.
I wish there was a development company as active as Boydell who did it with more integrity.
I am moving out of their buildings in a month and I cannot wait.
Penelope-
I too live in a crappy Boydell building [[universal lofts). Just out of curiosity, which one do you live in??
Thanx for the clarification.
On the development itself, do I understand that they expect to have a bar on the first floor and dildo, incense and shea butter kiosks upstairs? hmm. Classy.
Maybe something is better than nothing, but jeeze louise can't wait to take mom downtown for all her marital aid needs.
Free Press has a story up:
http://freep.com/article/20090416/BU...+gets+new+life
Any other forumers planning to attend the opening on April 30? If I'm around I might drop in then to see how it looks.
This went up on Crain's website today. I didn't know he also owned Nikki's Pizza in Greektown.
http://www.crainsdetroit.com/article...FREE/904169970Quote:
Detroit’s Kresge Building may become home to retail marketplace
By Daniel Duggan
Real estate investor and restaurant owner Dennis Kefallinos plans to take a big gamble on a new retail project in Detroit.
Kefallinos on April 30 will announce the opening of a 40,000-square-foot retail development called Shops in the Kresge Building. The project will feature 120 small spaces to be leased to retailers for $600-to-$1,200-per-month.
The name for the shops pays homage to its location in the building where the heart of Detroit retail once thrived; the former Kresge store and headquarters on Woodward at State Street.
Kefallinos’ vision for the center is a bustling area where consumers can browse and purchase art, clothing and food from local entrepreneurs. Along with the retail, he hopes the creation of a new bar and restaurant will make the project a destination along Woodward.
“I’ve got a lot of determination and a unique concept,” he said. “And there’s a lot of demand for a destination spot in Detroit right now.”
By charging low rent for a space ranging from 120 to 400 square feet, Kefallinos hopes the project will be a way for local entrepreneurs to get a start. He also hopes it’s a way for Detroit to get a start in retail as well.
“You have to go back to the original ideas,” he said. “This is how [[retailers) got started in the 1900s.”
The leasing and marketing effort will launch with the project’s announcement, but five spaces have been leased, Kefallinos said.
He has attempted this idea with the Russell Bazaar in the Russell Industrial Center, which he also owns. There are currently 110 retail spaces leased in that venture.
Kefallinos plans a different character in the downtown retail project, expecting it to be more family-oriented than the more hipster audience at the Russell Industrial Center.
He would not say how much he spent on the interior space at the Kresge building. He has owned the building for more than 10 years and is fronting his own money for the build-out of the space, complete with slate floors and marble appointments in the individual retail spaces.
Also included with be the 5 & 10 restaurant and bar to be fronting Woodward.
With the Russell Bazaar being the only precedent outside of what he’s seen in Europe and South America, Kefallinos readily admits there is risk in the move.
“It’s a gamble,” he said. “Especially when I see everything closed up on Woodward and everyone leaving the city. But at the end of the day, even if it’s not successful, I’ll be happy to know that I tried.”
Retail consultants say the idea has worked in other markets, but management of the space and selection of the tenants is crucial.
“This has worked all over the world, and especially during a down-cycle of the economy when large spaces are available,” said Stan Eichelbaum, a Detroit native and president of Ft. Lauderdale-based retail developer advisory firm Marketing Developments Inc. “You can wind up with wonderful public marketplaces, a very invigorated form of retailing.”
Ken Nisch, chairman of Southfield-based retail consulting firm JGA Inc. said the difference between a flea market and a specialty market will be contingent on the management.
“Make-it or break-it will be the mix of tenants, how it’s marketed and how interactive it will be, involving food and bars,” he said.
The Kresge project is a relatively big leap for Kefallinos, who has focused on real estate acquisition, restaurants and apartments.
He moved to the United States from Greece at the age of 15. He worked his way up in the restaurant industry from the job as a busboy until he purchased his own restaurant, Nikki’s in Greektown in 1980.
He’s broadened his roster of restaurants to include three, in addition to the development of rental residential projects. Across the city of Detroit, Kefallinos owns 800 rental units combined at all of his properties and has another 200 in the works.
Retail is something that’s missing in Detroit, he said. And owning the historic Kresge building inspired him to make his move.
“I’m looking for tenants with a vision like mine,” he said. “Those who see that this can be a great city again.”
I'm seriously considering opening our clothing store here. It looks like a good deal, and a good way to get our start.
An example of a similar concept that worked to revive the downtown in Northampton, MA.
http://www.thornesmarketplace.com/
Of course, that's a much smaller town . But the vibe in Thornes, when I was there, sounds very much like the "best case" scenario imagined for the Kresge Building.
So, it is a flea market. Oh well, it'll be something positive.
Really excited about these shops!!
I heard that the Kales building is near capacity for residents. . Isn't that a Boydell Devolpment?
How is this different than Trapper's Alley [[which, for the record, I enjoyed...but some days it felt like I was the only visitor)...
The kales is NOT a Boydell property.Quote:
Originally Posted by French777
He is also a flesh peddler - Bozuki Lounge.
Oops my mistake!
The Kales is too nice to be a Boydell property. And kudos to the Kales team for filling up that beautiful building.
If you're interested in a Boydell slumloft, there's 5 people moving out of my building in 2 weeks. Want a leaky roof [[from 2 floors up!), drug dealers downstairs - just to got offered some coke [[and not the liquid kind) on my way up tonight and dead animals in the parking lot to give it that nice nice ambiance?? It's all here.... :cool:
Tekla,
I live in the Iron street/riverpark lofts.
We need a support group for Boydell tenants.
ha ha; viva you sound like you lived in the building i did! [i had a leaky roof unit.]
no kidding penelope; there are plenty of us around...
Yep, the Bouzouki is his, and I believe he has the strip joint on Griswold too [[across from D'Mongo's). He also has the Coaches' Corner bar in Harmonie Park, as well as Niki's and Loco's restaurants. He seemingly has an endless list of rental and vacant properties.Quote:
Originally Posted by Toolbox
He sure gets a lot of positive press, in spite of his not-so-squeaky-clean rep.
Maybe they can hold gun and knife shows here for those who can't take the bus to the Gibralter Trade Centers?
He's doing something smart and investing when everyone else is pulling out [[and also investing in yourself in a down economy) - if you have the money to do that, this is really the best time. Cheap prices, lots of availability, and competition that's hurting.
As to why the press - you frankly don't see that many people investing. I hear a lot of bitching about "people should do this" or "people should do that" but when the rubber comes to the road, it's nothing more than a peanut gallery. He's at least doing something.
Could he do better? Unequivocally, yes. Does he sound like just about every other apartment owner in the price range he specializes in I've heard of, in the city and the suburbs? Yep. He fills a market need.
In this age of the internet, people forget that you get what you pay for. I've lived in places ranging across the board in rent over the last decade plus - and the quality of the landlord directly equates [[most times) to how much you pay per square foot.
The places I stayed that were $500-$750 sound just like the complaints I hear about Dennis. The places that were $1000 and up, great landlords, great service, and that would be because they can afford to do that. There are always exceptions to every rule, but if you don't pay much, don't expect to get much.
Quote:
Originally Posted by digitalvision
How about him fixing up 2 of his other derilict buildings before taking on another project?
The reality is that there may be less business prospect in those two derelict buildings than in the new project at this time.
Isn't one or both the buildings you speak of in Capitol Park? I wouldn't spend ANY money in that neighborhood until the buses stop using that as a terminus.
You're going to get way more for rent/lease once the transit center is operational than before... and since the area is also in line for ObamaDollars[[tm) it only makes sense to move on that project in concert with or after those streetscape improvements are made.
It's very hard to raise rents, but easy to drop them; and with those improvements he'd probably get 20% or more than making them available now, setting a needlessly low price on an area that should fetch you much more in a short, well-defined time period. Timing is very important.
It's business, not charity. He's probably holding onto the properties to not let them get away, betting on a much better future for the area. Again, not a great track record for uality, however, he in general does develop his properties eventually - he knows what the actual market is instead of the pie-in-the-sky pipe dreams people want to sell folks on and even better in general doesn't use taxpayer dollars to fund it. It's urban pioneers, hipsters, micro-entrepreneurs, etc.
We're a stage 2 area on the way to a 3, and this forum [[and some of our city leaders) live in a dream world and talk like we're a 4 or 5 like New York City.
Quote:
Originally Posted by digitalvision
Neither building I speak of is in Capitol Park. One is at the corner of Gratiot and Broadway [[benn under construction for at least 5 years) and he also owns the old clinic on the east side of the I-75 by LP that has been rotting since he bought it. Guess he knows the market so well and did his due dilligence on those properties that have invested NOTHING to the surrounding neighborhoods.
Plain and simple he is a derilict building collector just like Higgens.
I know both those buildings...
There's no market for them, yet either right now... the elevator on the Cary needs to get fixed [[but i see photo shoots and the like going on in the building all the time, and he's actively attempting to rent the lower floor retail as well but there's very little market right now) and that's a very expensive proposition. And it's not been empty for five years, it's had tenants upstairs, I've been to their places and ate dinner in their kitchen [[best meal was a mean filet mignon, with a red wine, asparagus, and bacon potatoes).
He spends money as he has it instead of taking out big loans. He's a cash-flow investor, which is all that is really left in this economy.
You may call him a building collector, but he has way more active buildings in number and percentage than Higgins does.
He's not the Ritz, but he DOES develop his buildings eventually and he does fill them with tenants that pay taxes and shop at local stores and all of that good stuff.
It doesn't make any difference to me whether sitting on rotting buildings is motivated by sloth, greed or orders from the Almighty. Blight is blight.
Ask anyone who lives in Lafayette Park what it's like to pass Shapiro Hall every day. What's [[or was) K's plan for that decaying building? Oh, yeah, a hotel right in the middle of a quiet neighborhood [[and the only historic postwar neighborhood Detroit has).
Quote:
Originally Posted by digitalvision
From this week's Model D:
I drove down Woodward late last week and there's an external 5 and 10 Bar sign on the face of the building facing Woodward now.Quote:
Detroit Development News
April 21, 2009
Shops at Kresge planned for Woodward storefront
The historic Kresge Building on Woodward at State St. will soon debut as the Shops at Kresge, an urban mini-mall of specialty retailers. The 40,000-square-foot building will be home to 100 retail spaces, a restaurant, Woodward South, and a bar, 5 and 10 Bar, when all is said and done.
The first floor is targeted for specialty retailers -- imagine collectible memorabilia or a chocolatier -- and the second floor will cluster clothing boutiques. Eric Novack, leasing director for the Shops at Kresge, says the marketing strategy of the property owner, Dennis Kefallinos, includes reaching out to suburban boutiques that might be interested in entering the Downtown Detroit market. "We want to reduce everyone's overhead, reduce their square footage, inventory, shrinkage," he says. "We want to make this financially bearable and convenient for retailers."
Novack has four retailers already committed. He plans to open with 15 on the first floor to start. The retail spaces are sized from 120 to 400 square feet, although larger ones are possible, says Novack. Once the first and second floors are full, the Shops at Kresge will expand into the basement.
Woodward South and 5 and 10 were open temporarily for the Final Four. Once permanent licenses are in place, they will reopen for good.
Shops at Kresge is located at 1201 Woodward. It is owned by the Boydell Group, that also owns Russell Industrial Center and numerous loft buildings around town.
The public is invited to preview Shops at Kresge on April 30 from 4 to 9 p.m. No R.S.V.P. is required.
Source: Eric Novack, Shops at Kresge
Writer: Kelli B. Kavanaugh
I don't see why this project would draw haters. I'm all for charming, local retail in the heart of downtown. Chicago can keep their Banana Republics'. Puke.
Give me a break! There would be nothing wrong with a Banana Republic or a Gap on Woodward. Such stores would be evidence of a vital downtown.Quote:
Originally Posted by oneway
I guess you'd rather "keep it real" with wig shops and vacant storefronts?
As for the project, I don't think it's drawing haters; some are simply questioning Keffalinos' integrity as a property owner and developer.
Hell yeah I keep it real.
But I wouldn't wish to keep it real with vacant storefronts, which is why anything like a Gap or Banana Republic would be a terrible idea - they couldn't be sustained in Detroit [[currently). Perhaps this new shopping center [[which will occupy a former vacant storefront) can survive by its selection and affordability, something that accurately reflects Detroit's economical demographics.
I concede to your point regarding the owner.
All investment in Detroit is good, I have a feeling that this will be successful and hopefully lead to more retail investment in the city.
Count me in as a customer!
Finally, the Detroit News reports on it! [[4/24/09):
http://www.detroitnews.com/article/2...40353/1001/BIZQuote:
Friday, April 24, 2009
Kresge landmark may get mix of shops
His goal is to lure retailers to downtown Detroit site
Jaclyn Trop / The Detroit News
For decades, downtown shoppers could walk into the Kresge Building at Woodward Avenue and State Street and buy a variety of goods, from hats and window shades to bath brushes and hair nets.
That one-stop shopping experience has long disappeared from downtown Detroit, except for a few national drug stores. But a Detroit developer hopes to return the historic building to some of its former retail glory: this time as a mini-mall with a mix of national retailers and local boutiques to be called the Shops at Kresge.
"The odds for me to be successful are probably 10 percent," said Dennis Kefallinos, who also is the developer behind Russell Industrial Bazaar, an Albert Kahn-designed former factory complex turned into a small business incubator and marketplace.
"But I'm committed to Detroit. I think Detroit has a lot of potential."
Kefallinos envisions 120 retailers in 40,000 square feet of space that once housed the original S.S. Kresge 5 & 10, the forerunner of Kmart Corp. Plans call for specialty retailers on the first floor and clothing boutiques one level up. There is space in the basement for a grocer or other large retailer, according to Eric Novack, leasing manager.
The mall will open when 15 retailers commit to the project -- with a June target date. Most retail space measures between 120 and 400 square feet and will rent from about $600 to $1,000 a month, he said.
So far, Novack said, six tenants have signed: a chocolatier, shoe store, clothing boutique, sports memorabilia shop, purse store and Mediterranean café. Kefallinos' company, Dionysia Properties, has opened two ground-floor eateries, Woodward South restaurant and 5 and 10 bar, across from where Kresge's original cafeteria stood.
"People are looking for a destination spot," Kefallinos said. "Everybody knows Kresge's."
Kefallinos has owned the building, where S.S. Kresge launched his business in 1899, for about 10 years.
Local retail experts doubt the project could attract national chains.
"The market for a vibrant downtown shopping district is just not there," said Ed Nakfoor, a Birmingham-based retail consultant. "I just don't really see it becoming this thriving marketplace."
Jim Bieri, president of Bieri Co., a Detroit-based retail brokerage and consulting firm, said the project is better suited to artists and smaller boutique retailers trying to enter the Detroit market. With low rents and a straightforward setup, the Shops at Kresge could be a good starting point for aspiring entrepreneurs, he said.
A Web site advertising the downtown project, shopkresge.com, says the center will "offer stunning and countless boutiques that stock only the finest of gifts and other products or services."
Kefallinos said the mini-mall will be open daily and feature more upscale shopping than the Russell Industrial Bazaar, which opened in October and houses boutiques, eateries and artist space off I-75. He said he did not know the cost of the Kresge project. Tiffany Lake is moving her designer footwear boutique from the Russell Bazaar to the Kresge Building because she likes the idea of bringing a "higher-end mall to the city." Her shoes range in price from $85 to $500.
She said she hopes the Woodward Avenue storefront draws a strong weekday work crowd and downtown passersby.
jtrop@detnews.com [[313) 222-2300
There are some photos, sketches, and maps at the hyperlink.
rsa, did you live in the Grand Lofts in SW Detroit? From what I hear from people who transfer from other Boydell properties to this one, the leaky roof is a perk in all Boydell buildings. Except for the Greektown Lofts, which are the nicest ones he's got. Lived there for a year and loved it. Had a great unit, no problems, except for the lack of a working elevator and having to climb up 6 flights of stairs!
Interestingly enough, they're working like crazy to finish the building. Rumor has it that he might sell this building....
I just took a look at the Greektown Lofts. If those are the best of the group then I believe he nearly aor does fit the definition of a slum lord. That property was not well maintained.
viva; i lived in the lafayette lofts. i think it's really luck of the draw. i have a friend that lives in the greektown lofts, on the second floor, and there's leaky pipes in his unit. the big issue is that things never get fixed properly. [in lafayette, they would just keep dumping tar on the roof thinking that would fix it, but it only lasted a few months.]
I heard there was a preview of this place. . . . . Did anyone go?
http://shopkresge.com/
They updated their web site complete with floor plans. I also noticed that they took the lease rates off the site, which leads me to believe they possibly lowered them.
I could have sworn they mentioned a optimistic June 30th opening. Has anyone heard any other updates yet? It doesn't appear that any additional work has been done from the outside, but I guess that might not mean that much.
Is anything in this building actually open? If so, what? And, what are their hours/days of operation so I can go down there and take a look inside? I was there a couple weeks ago during the week and the lights were off and I saw no activity inside. No bars, no rental agent on duty, nothing, nadda.
I believe it was said that they would open by June 30th if they had enough tenants sign leases. It was hopping at the preview event, but has since gone silent.Quote:
Originally Posted by davewindsor
What about the new bar next door? Anybody been in there?
Stromberg2
Is it still planned to Open Summer 2009? It looks the same as 3 months ago
Dave Bing probably has stopped it
Quote:
Originally Posted by French777
It looks like it's done, but I don't think he can get it rented. I've seen couples walking around inside through the bay windows. It looks like a salesperson showing it to potential clients. Maybe he's testing too high of a price.
I drove by this morning and it looked like they were doing interior construction.
Good...Because I didn't want this project to fall through the cracks
Whenever you see "Open in summer of 2009" posted in detroit; it really means "Open in 2010 or whenever" Detroit is notorious in getting hopes up high then letting you down.