Sources: Gilbert close to buying Buhl Building, parking deck downtown
http://www.crainsdetroit.com/article...-deck-downtown
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Sources: Gilbert close to buying Buhl Building, parking deck downtown
http://www.crainsdetroit.com/article...-deck-downtown
In the long run, it will be VERY bad to have all downtown real estate tied up with the fortunes of a single entity.
Quicken, will, like all companies, eventually have a protracted period of struggle, and this will be bad news for downtown. Gilbert will eventually pass on, retire, get removed, etc. What then?
Agreed....Quote:
Originally Posted by Bham1982
Considering that Bedrock is a separate entity from Quicken I couldn't see the [[mis)fortunes of of effecting the other in a substantial way. Bedrock will ebb and flow with the value and desirability of the real estate in their portfolio rather then with the other businesses in the Gilbert FOC [[Quicken, Title Source, Fat Head, etc.).Quote:
Originally Posted by Bham1982
I am all for DG's domination of downtown real estate, and here are some reasons:
1) He has not really blocked other people from buying these buildings. Most were readily available for years and years.
2) He is renovating and modernizing Detroit's building stock. Even if all DG companies went kaput tomorrow, he'd leave behind better buildings.
3) All his projects thus far are turning into real, utilized structures. He buys, he renos, then workers and residents move it.
4) The versatility of his corporate portfolio is good insulation against a bursting bubble in any one sector to devastate downtown.
5) None of his projects thus far is pie-in-the-sky. His ventures make sense and the money spent seems to be justified by the business they generate. He is not Henry Ford II deciding unilaterally to build the RenCen, regardless of market conditions.
6) The residents, workers and improved downtown conditions DG's enterprises have brought make it more friendly to non-DG businesses, not less.
Bedrock is the commercial real estate arm of Quicken. It's like Ford Land is to Ford.Quote:
Originally Posted by K-slice
Saying that "you don't see how the fortunes of Quicken affect Bedrock" is pretty far-fetched. Bedrock is Quicken. Their real estate is pretty much Quicken office space.
It's not ideal for Bedrock to own so much. On the other hand, as was stated, the buildings and downtown are far better off than before. If the buildings are occupied, profitable and the tenants are diversified, a Bedrock/Quicken downturn would only lead to selling some of the real estate, which would be quickly gobbled up.
The big problem could be a down turn, but also a case of divorce or similar.Quote:
Originally Posted by 401don
There have been cases, e.g., I believe the L.A. Dodgers, where a divorce caused all kind of havoc [[maybe worse than the unexpected death of owner of a sports team) on the finances and assets of the married couple.
Folks in Detroit need to worry that nothing bad happens with either Gilbert or the Ilitch family. Chris is not an only child and is running things on behalf of his mother and siblings.
Anything which would cause a 'fire sale' among the Gilberts or Ilitches could be bad for downtown or the sports and entertainment district.
Ideally, it would I assume, be nice if Gilbert sold off some properties and either reinvested the proceeds or reduced debt on his balance sheet [[I assume he to uses debt to finance his acquisitions and spending). That way he could continue to invest in downtown and lower his risk if something bad happens.
Gilbert is 'all in' for Detroit.
Agreed on all counts. One company owning so much may not be ideal but the amount of good being done for downtown is well worth any marginal risk.Quote:
Originally Posted by MikeyinBrooklyn
Bedrock is the owner and operator of many residential and commercial buildings which are rented to individuals as well as hundreds of corporations. If Quicken were to lose half it's workforce over the next 12 months there's no doubt Bedrock would be effected, but like any property manager or owner they would find new tenants to fill the space. The companies are fully independent of each other and neither is critical to the existence of the other.Quote:
Originally Posted by Bham1982
I think Detroit needs an insurance policy on Gilbert at this point.
Yes, he's doing good, but no, its not good for the public sector to have one person control so many key structures.