I cannot believe more people are not discussing this article. For me I am not enraged or angry, but instead amused. This is actually very funny and entertaining. Only in Detroit!
http://www.crainsdetroit.com/article...r-6-25-million
I cannot believe more people are not discussing this article. For me I am not enraged or angry, but instead amused. This is actually very funny and entertaining. Only in Detroit!
http://www.crainsdetroit.com/article...r-6-25-million
I wonder if he was ever going to use that building? Maybe he's planning on using the flip money to fund the future operations. That is if he actually is able to flip it. There's a reason he was able to buy it for so cheap...no interest in it.
This is sorta hilarious. But kind of sad as well. The same hyper escalating real estate market Galapagos fled in NYC to come to Detroit, is what they are helping to create with this massive jump from 500K in 13' to 6mil+ in 16'. That isn't a modest jump. I guess being victims of a strangling, real estate market isn't enough for this art group to not do their part in perpetuating it.
I am having trouble being upset or amused by this. Galapagos bought a bunch of buildings to create an major art center. They still seem to be planning to do that. One of the buildings they bought is [[apparently--let's see them actually sell it) worth a lot more than they paid, and they want to sell it and redeploy the money into other buildings that are cheaper, cheap buildings being a key aspect of their attraction to the area. This just seems like garden-variety management, lacking both outrageousness and amusement.
I'm just waiting for some art.
I know a little bit but not a lot about the history of this project. Robert Elmes made other unsuccessful bids for properties including the Michigan Building and Theater where DetroitYES 'world headquarters' are. He finally grabbed the Mexicantown site. Later he discovered the old Highland Parks school and jumped on it. For pennies he got the entire block then more properties on adjacent blocks.
The high school is a far more elegant and versatile site with a couple of acres of fenced parking to boot. It is a far more architecturally significant and useful property for his goals. With this HP 'campus' established the Mexicantown site became dispensable, hence the sale. The price? Well there's an old saying, "You don't get it if you don't ask for it," but I would surprised if it flipped for over a million. A tidy profit nonetheless, but in this crazy market, who knows, and I hope he makes more.
I have met Elmes and can assure you that he is a very pleasant and earnest go-getter with highly regarded achievements under his belt and a solid artistic focus. The HP site seems staggering in terms of finance and organization. They have a team, they have a plan http://www.galapagosdetroit.com/team/ and they have my hopes and prayers. This will be a huge plus for Highland Park and the Detroit art scene.
Property values need to go up in order for banks to start offering construction lending.
Property values need to go up in order for individuals to qualify for mortgages.
Property values need to go up in order for current residents who are stuck in loans to sell them.
Property values need to go up in order for investors to become confident in developing property.
Property values need to go up in order for the city to collect more property taxes.
Property values need to go up in order to stop the spiral of upside-down homes in foreclosure.
Property values need to go up. And if this guy can sell it for for what he is listing, that means that all the real estate in the sounding area is going up. That would do far more for the city than building an art gallery. And if he takes the proceeds and uses to more quickly fund the Highland Park project, then it's win-win-win all around.
It's not a Detroit thing; it's a capitalist thing. This guy owned real estate in Brooklyn before, , then claimed he was "priced out". Uh-huh. Kinda hard to be "priced out" when you own the building and when property taxes in NYC are capped for nonprofits.Quote:
Originally Posted by warsaw7
Now he's trying to do the same in Detroit, apparently. He's trying to make money, which is OK by my book, but kinda silly to think that "arts organizations" are necessarily more altuistic just because they're in an industry that provides cultural value.
The claimed asking price, of course, is completely absurd, and he will never get it. Might as well put it for sale for $600 million. If he gets a million he will be incredibly fortunate.
Oh, and still waiting to see "art". His last location in Williamsburg, Brooklyn was basically a bar/lounge that had occasional art exhibitions. If you didn't know better you would just think it's another Brooklyn warehouse hipster lounge.
And now Highland Park is the apparent focus. Sounds like a highly unlikely location for some art center of claimed consequence. We'll see.
First off Galapagos did not own their building in Brooklyn. So much for the real estate snark. Regardless, the assertion that Brooklyn was priced out is certainly true for the up-and-coming artists which was a just as compelling a reason for the Detroit move. Hence the relocation makes sense.Quote:
Originally Posted by Bham1982
As for your 'where is the "art" question', during its time in Brooklyn, Galapagos produced more than 7,500 events that drew a total of more than a million people. Galapagos Brooklyn was highly regarded in the NYC art scene as a quick Google search will reveal.
I find it remarkable but not surprising at the willingness of people to go negative at the first perceived opening, without acquainting themselves with the situation. It reminds me of the early days of this forum in the dark days of Detroit where every announcement of improvement was met with pessimistic derision - even though one shovel had not been turned. Who's laughing now?
UPDATE: Galapagos team keeping building near Corktown after all
Robert Elmes, head of Galapagos Detroit, has reversed his decision to sell 1800 18th Street and now plans to develop it something akin to the Russell Industrial Center.
As for the Highland Park High School which he also owns and is said to be the future site of the new Galapagos Detroit plans remain unannounced.Quote:
The owner of Galapagos Detroit arts project has decided not to sell a large industrial building near Corktown and Mexicantown and instead says he'll develop it into an artists' colony with tenants eventually sharing in future property appreciation.
...
Galapagos was formerly based in Brooklyn, N.Y. but sold its property there and is now planning new facilities in Detroit and Highland Park.
Founder Robert Elmes said the old industrial structure at 1800 18th Street will be known as CommonWealth or NestEgg. Artists and other tenants who rent space in the building will be eligible to receive a distribution of the increase in the building's value in 10 years, he told the Free Press on Tuesday.
At that time, he’ll refinance and distribute 20% of the expected increase in property values to artists residing in the building, he said. In addition to artist work space, about 10 retail spaces are also planned. He also plans a cafe and a day-care center known as Galapagos Kids! as well as a merchandise display space where artists and craft workers can sell their wares.
http://www.freep.com/story/money/bus...lmes/84484464/
I like this move. I am looking forward to touring the space Saturday at the open house.
Fresh from Crain's...Gilbert snags vacant warehouse near Michigan Central Station from Galapagos Art Space
Dan Gilbert has added a large vacant warehouse across the train tracks from Ford Motor Co.'s Michigan Central Station to his Detroit real estate portfolio.
The billionaire mortgage and real estate mogul's Bedrock LLC confirmed the December purchase of the property at 1800 18th St. that had been owned by Robert Elmes, the founder of Galapagos Art Space.
Bedrock did not disclose the purchase price, although the previous owner raised eyebrows exactly three years ago when it listed it for $6.25 million, more than 12 times the $500,000 that was paid for it in 2013."
I ran into Elmes at Ford's opening bash for the Michigan Central station and quipped, "This has to be making you smile". He replied that the potential payday could provide the funds to kick start his Highland Park High School property for the new Galapagos Detroit.
I can't imagine he got $6Mil+ but it had to be considerable. I know of someone who turned $3M for a 28K foot building on Michigan. It will be interesting to see where this goes. Hopefully it will succeed.
Below: Robert Elmes [dark suit] at his Highland Park HS property in Oct. 2014.
Attachment 37305
He was ranting on curbed early last year about how they're working on Highland Park.
Yeah, the guy is so disingenuous - like okay if you're trying to flip properties just do it, don't dress it up like you're going to create some important art institution. Unless of course you're a scam artist and this is your art.Quote:
Originally Posted by Worldsgreatest
The guy is a slumlord and a scammer. Until he renovates anything he can go fuck himself
Whoa Sparky, aren't we being a bit presumptuous?Quote:
Originally Posted by Seven&wyo
30+ years ago Chuck Forbes bought over a dozen parcels of land in the theatre district in Detroit for PENNIES ON THE DOLLAR [[$3000 for the Gem Theatre alone). He didn't have a lot of money to fix them up... but he did secure all the buildings. Eventually he got $14 million for some of his properties when the Stadia came in. Did he take the money and run? No, he used the funds to restore the remainder of his buildings... and thanks in great part to him... we have a theatre district today.
Lets wait and see what this new guy on the block does before we start jumping the gun with expletives.... :[[
It doesn't make sense that he would shut down his successful art space in new york to be a slum lord in Detroit. I imagine he wants to do something now he's got some cash so let's see what happens.Quote:
Originally Posted by casscorridor
A post hasn’t had the facts so perfectly straight on a subject since this one was written two and a half years ago and it still rings true today. Close the new construction gap and fantastic things will happen. Put people to work making good money by the thousands.Quote:
Originally Posted by corktownyuppie
Come on back corktownyuppie it’s been a while.
Fuck this guy.
https://www.freep.com/story/money/bu...rk/2656154002/
For all of his criticisms I'll take a dozen Dan Gilbert's over these out-of-town & foreign conmen.
Not one of these New York or Chinese or Peruvian or German "saviors" have accomplished shit besides being slumlords and making off of Gilbert's real estate portfolio.
Not that people from elsewhere or even here don't do it, but New Yorkers tend to be the biggest scumfucks when it comes to these grandiose ieas that "fall through" I hope this piece of shit loses everything he made off that Corktown deal.
This is the space in Highland Park that he was going to develop his art center. While the former school building is very attractive... it is also in an urban wasteland. It's not even on a major street, and is surrounded by an urban prairie and abandonment... not exactly where a bank would want to lend $40-$70 million... let alone where Artsy-Fartsy people would want to go off the beaten path to... especially at night.
Check it out for yourself with this 360 panorama... or take a look around the neighborhood.
https://www.google.com/maps/@42.3975...7i16384!8i8192
This former school building reminds me of the Lee Plaza former residence... a wonderful building built in the wrong spot... :eek:
Wasn't Herman Keiffer also purchased by a New Yorker?Quote:
Originally Posted by Seven&wyo
That's another fairytale where half a decade later jackshit has been done.
The Herman Keiffer was bought buy a NYer and a lot of land around it. And it's just writing away
My opinion is take your 6 million dollars and go back to NYC we don’t want or need you , don’t bother “saving” Detroit ...
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