BARRON'S Cover Article: "How to Fix Detroit"

Four years ago, Dan Gilbert moved his highly successful online mortgage lender, Quicken Loans, from suburban Troy, Mich., to the new Compuware Building in downtown Detroit. The billionaire, 52, has since invested some $1.5 billion to buy and rehab more than 40 buildings in downtown and nearby Greektown. The buildings, many of which sat half-empty for more than a decade, now house 12,000 of his employees, as well as a growing number of retailers, hip restaurants, and tech outfits, some of which have been incubated by a unit of his holding company, Rock Ventures.

In a wide-ranging interview with Barron's, the executive acknowledged that his efforts were guided by more than just altruism or boosterism. "I expect to do well by doing good," he said, adding in tech lingo, "Detroit has the hardware [infrastructure, landmark buildings, and location] to attract young, entrepreneurial people and thrive if we just get the software [buzz and ambience] right."

In a hopeful sign, Gilbert was recently outbid by a Chinese developer for two properties in the area. "It at first irritated me," says Gilbert, "but after thinking about it, I started giving high-fives around the office." Clearly, a real market had developed in the downtown real estate market, and others were beginning to share his vision.

Quicken Loans, which originated $80 billion in mortgage loans last year, is a bright spot in a city plagued by five decades of decline, which culminated in last summer's filing for Chapter 9 bankruptcy protection. While it's too soon to call a bottom for the world's former automotive capital, there are other reasons for hope. For example, last November, Warren Buffett attended a press conference to announce the rollout of a Goldman Sachs grant of $20 million to promote entrepreneurship in the Motor City, proclaiming, "the resources are here to have a great, great city."

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