ITT: Nominate the best buildings in Detroit for developers to rehab

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August-16-11, 01:09 PM
BrushStart

ITT: Nominate the best buildings in Detroit for developers to rehab

Because it comes up so often, please help identify buildings in the city ripe for rehabilitation/renovation. The projects can be large or small, but some important factors would be location, condition, purpose, and scale.

The buildings that I find most interesting are those that could be turned into lofts given the high demand.

Please post a Google street-view link to the property so the rest of us can scope it out. If you don't know the name of the building, that's okay.

Perhaps this thread can help some developers-to-be select a project.
August-16-11, 01:13 PM
BrushStart

My nomination: CPA Building on Michigan Ave in Corktown

http://maps.google.com/maps?q=Detroi...22.7,,0,-22.73

This building is right across the street from Slow's BarBQ and several new businesses. It sits across from a very active Roosevelt Park. Demand for residential space is astronomical in Corktown and this building would fill up in a flash. It could also have retail on the first floor. The size of the project is small-medium, and it doesn't look like it needs to be completely stripped. This is a great project for a new developer.
August-16-11, 01:19 PM
Gsgeorge

IMO it's smaller, historic structures that should be the target for redevelopment. I love that the Broderick is being rehabbed, but I think the market is more for smaller-scale rental units. With that in mind, these buildings are prime:

CPA Building - Michigan Ave & 14th
http://tinyurl.com/4xa3hzp

The El Moore - Alexandrine and 2nd
http://tinyurl.com/3mylo9t

Unknown WSU building - Cass and York
http://tinyurl.com/3ghe9qo

Some bigger buildings that would be great to see rehabbed:

Harvard Square Building - Broadway at E Grand River
http://tinyurl.com/3h3u48c

The Metropolitan Building - John R at Farmer
http://tinyurl.com/3leryml
August-16-11, 01:26 PM
j to the jeremy

the GAR building
http://maps.google.com/maps?q=cass+a...05.06,,0,-9.51
August-16-11, 01:29 PM
3WC

Brushstart: The last thing the real estate world needs are "new developers." Rehabbing is among the riskiest of real estate development undertakings and the least likely to garner financing. Successful rehab projects [[if one can find any) were successful because the developer was very sophisticated, very experienced, had deep pockets, and could obtain financing where most others couldn't.

My guess is that developers who meet the criteria above are well aware of every potential candidate for a profitable rehab project. When I was in Detroit for years I know of half a dozen guys that looked at the CPA Bldg and walked away for one reason or another. Sometimes the best deals are the ones you don't do.
August-16-11, 01:30 PM
Islandman

Second the GAR and the CPA.

It's really upsetting what is happening to the CPA, that is my dream building. The owner wants 1.4 million for it. Every year it's getting a bit more dilapilated.

http://www.oconnordetroit.com/proper...238_mich/1.htm
August-16-11, 01:43 PM
rjlj

The Wurlitzer Building and ASAP.

The Metropolitan Building.

Strathmore Hotel, 70 W. Alexandrine

As long as the El Moore is secure, the owners should be able to make it a success.
August-16-11, 01:49 PM
3WC

I made a run at the GAR in the mid-eighties. Dealing with the City was a nightmare and one of the reasons the City is in the shape it's in today. Anyway, a couple of years ago the City settled a lawsuit by the survivors of the GAR over building and use restrictions and the terms are so onerous that the bldg is now not developable. Ilitch controlled it twice and walked away both times. He's no dummy.
August-16-11, 01:51 PM
j to the jeremy

Quote:

Originally Posted by 3WC

I made a run at the GAR in the mid-eighties. Dealing with the City was a nightmare and one of the reasons the City is in the shape it's in today. Anyway, a couple of years ago the City settled a lawsuit by the survivors of the GAR over building and use restrictions and the terms are so onerous that the bldg is now not developable. Ilitch controlled it twice and walked away both times. He's no dummy.

Can you elaborate on what the restrictions are?
August-16-11, 01:58 PM
BrushStart

Quote:

Originally Posted by 3WC

Brushstart: The last thing the real estate world needs are "new developers." Rehabbing is among the riskiest of real estate development undertakings and the least likely to garner financing. Successful rehab projects [[if one can find any) were successful because the developer was very sophisticated, very experienced, had deep pockets, and could obtain financing where most others couldn't.

My guess is that developers who meet the criteria above are well aware of every potential candidate for a profitable rehab project. When I was in Detroit for years I know of half a dozen guys that looked at the CPA Bldg and walked away for one reason or another. Sometimes the best deals are the ones you don't do.

But there's no harm in putting the information out there and letting people decide for themselves. I'm not suggesting anything like "Flip This House," where some naive couple buys a dilapidated home and has a budget of 30k.

There are people out there with money that might make a move and invest in Detroit if they knew where the best properties were. I doubt rich folks make a habit of driving around the city, identifying derelict buildings. However, that is literally the bread and butter of this Detroit Yes website.
August-16-11, 02:10 PM
agrahlma

Quote:

Originally Posted by 3WC

Brushstart: The last thing the real estate world needs are "new developers." Rehabbing is among the riskiest of real estate development undertakings and the least likely to garner financing. Successful rehab projects [[if one can find any) were successful because the developer was very sophisticated, very experienced, had deep pockets, and could obtain financing where most others couldn't.

My guess is that developers who meet the criteria above are well aware of every potential candidate for a profitable rehab project. When I was in Detroit for years I know of half a dozen guys that looked at the CPA Bldg and walked away for one reason or another. Sometimes the best deals are the ones you don't do.

Rain, rain, go away -- come again another day!
August-16-11, 02:30 PM
MSUguy

Quote:

Originally Posted by BrushStart

There are people out there with money that might make a move and invest in Detroit if they knew where the best properties were. I doubt rich folks make a habit of driving around the city, identifying derelict buildings. However, that is literally the bread and butter of this Detroit Yes website.

I doubt they drive around too. I also doubt that some random rich person is going to one day google "detroit buildings to renovate". If some is going to do this there going put in time and effort in to do some real research.

That said I would nominate anything along lower Woodward
August-16-11, 02:38 PM
BrushStart

Quote:

Originally Posted by MSUguy

I doubt they drive around too. I also doubt that some random rich person is going to one day google "detroit buildings to renovate". If some is going to do this there going put in time and effort in to do some real research.

Of course they will, but you'd be surprised who reads this forum. It is bar-none the best, most expansive resource on the the City of Detroit. I'm sure journalists from around the world have researched its archives when writing a piece on the city.

Also, out-of-state developers are probably catching wind of the revitalization efforts that are taking place here. A thread like this might give them a good starting point to begin their research. It would at least inform them of the kinds of buildings that are available. Everyone uses Google by the way, even sophisticated billionaires, or at least their assistants do.
August-16-11, 03:04 PM
Cooper

Quote:

Originally Posted by Gsgeorge

The El Moore - Alexandrine and 2nd
http://tinyurl.com/3mylo9t

I'm happy to report that the El Moore is already slated for redevelopment. It has been purchased by the same folks who've been rehabbing The Green Garage:

http://www.modeldmedia.com/devnews/elmoore011811.aspx
August-16-11, 05:55 PM
canuck

Quote:

Originally Posted by Cooper

I'm happy to report that the El Moore is already slated for redevelopment. It has been purchased by the same folks who've been rehabbing The Green Garage:

http://www.modeldmedia.com/devnews/elmoore011811.aspx

Great building. Very nice brownstone and elaborate. It looks like it was pretty well maintained. The Springfield lofts across the stret is anice rehab with a beautiful garden. It definitely needs the El Moore to keep it company.

Is there an adopt-a-favorite building that could promote these gems to potential developers. In the sense that if people truly get involved in a contest type situation, it draws attention to overlooked bldgs.