Detroit apartment buildings fill; renters' age falls

**begingri** · June-21-11, 11:54 PM

Detroit apartment buildings fill; renters' age falls: Incentives, biz moves drive surge

By Daniel Duggan

The combination of growth in downtown businesses and incentives for people to move to Detroit has many city apartment buildings at or near full occupancy.

From lower Woodward Avenue up to the New Center area, apartment owners cite a boost in the past few months. And in some cases, the buildings have waiting lists.

In the Campus Martius area, the Lofts of Merchants Row are virtually full on a regular basis, said Terry Schwartz, principal with Bingham Farms-based Dover Realty Advisors, asset manager for the 157-unit building.

Schwartz said the latest tenants are young and making more money than past tenants.

Based on the background checks of residents, Schwartz said, the average age of a tenant at the building in 2005, 2006 and 2007 was 41 with an average income of $70,000.

By 2009, the average age dropped to 33 and the average income was $52,000.

"In the last six months, the age hasn't changed but the income has," he said. "We're now seeing an average income back at $70,000 again."

Schwartz said roughly 15 percent of the tenants work at Detroit-based Quicken Loans Inc., and employees from the Detroit office of GalaxE.Solutions Inc. are also leasing space.

Employees from Blue Cross Blue Shield of Michigan, who are being moved to Detroit from Southfield, are now starting to look for apartments.

Typically, with increases in occupancy come new development as well. But even with the growing demand, few new apartment buildings will be available in 2011.

"We're desperate to get these new developments under construction," Mosey said. "There are a few here and there, but overall, we need more product."

Mosey points to more than 200 units that could be under construction this year, largest among the projects being the Auburn, a 58-unit apartment project at Cass and Canfield streets, and Forest Arms, 75 units planned at Second and Forest streets.

Among the problems facing developers is the fact that it takes two to three years for a project to move from idea to completion, and the recession killed everything in the pipeline, said James Van Dyke, vice president of development for the Detroit-based Roxbury Group.

The Roxbury Group is developing the Auburn building in Midtown and the 108 units of apartments in the mixed-use hotel and apartment development for the David Whitney Building in Detroit.

Full story at: http://www.crainsdetroit.com/article...incentives-biz

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**Gistok** · June-21-11, 11:58 PM

Thanks for the info! I wish the Roxbury Group would take up their option on building on top of the Book Cadillac Parking Structure... as originally intended. Sounds like the demand is back up...

**Lowell** · June-22-11, 07:14 AM

You beat me to it. I was going to post this article this morning after reading it yesterday in my print version of Crains.

This is one of the most encouraging items I have read for the future of downtown and the corridor north to New Center. Our progress since the late 90's has been two forward one back, but always forward and this is further vindication that we are well on the road to recovery for this most vital part of Detroit. These quotes from the article say it all.

"The rental market has been scorching hot," Farbman said. "And I think we'll see a hot condo market with financing, since there is so much pent-up demand."
"So, we've replaced a lot of the short-term people with long-term people who are working downtown," Allen said.
Midtown and downtown are the hot spots, property managers say.
"We're desperate to get these new developments under construction," Mosey said. "There are a few here and there, but overall, we need more product."

**Lowell** · June-22-11, 07:17 AM

The Side bar deserves citing to:

The numbers for selected Detroit apartments:

• Millender Center Apartments
Address: 555 Brush St.
Units: 339
Occupancy: Full, with a waiting list
Rental rate: $1,000 to $2,600

• Park Shelton
Address: 15 East Kirby St.
Units: 226 [[74 of which are rentals)
Occupancy: Fully leased
Rental rate: $800 to $1,300

• Harbortown Apartments
Address: 250 E. Harbortown Dr.
Units: 172
Occupancy: Full
Rent: $850 to $1,600

• Lofts of Merchants Row
Address: 1247 Woodward Ave.
Units: 157
Occupancy: 97 percent
Rental rate: $815 to $2,500

• Studio One
Address: 4501 Woodward Ave.
Units: 155
Occupancy: Full, with a waiting list
Rental rate: $795 to $1,295

• Lofts at Woodward Center
Address: 1448 Woodward Ave.
Units: 61
Occupancy: Full
Rental rate: $660 to $1,400

• Fort Shelby Tower Apartments
Address: 527 W. Lafayette Blvd.
Units: 56
Occupancy: 95 percent
Rental rate: $1,629 to $3,500

**DetroitPlanner** · June-22-11, 07:25 AM

Huh full buildings?

"Toto I don't think we are in Kansas anymore"

**Detroitej72** · June-22-11, 07:53 AM

This is great news and proves all the naysayers are full of hot air. Once people who work downtown start to live there, common sense says that retail will follow. At first it will be the drug stores and stores that folks buy their day to day goods, but eventually other retail will follow. You have to crawl before you walk.

**Detromb21** · June-22-11, 07:59 AM

Totally Love It

**JDKeepsmiling** · June-22-11, 08:12 AM

I keep waiting for someone to build a new modern 14-15 story apartment complex downtown. There is a severe lack of "new" product with all modern amenities, and I think new contructrion would fill quickly if someone jumped on the chance to build a true residential tower that was designed as such and outfitted with excellent amenities. These historic renovations are great, but some people want new and exciting. Just my .02.

**Planner3357** · June-22-11, 08:24 AM

Originally Posted by JDKeepsmiling

I keep waiting for someone to build a new modern 14-15 story apartment complex downtown. There is a severe lack of "new" product with all modern amenities, and I think new contructrion would fill quickly if someone jumped on the chance to build a true residential tower that was designed as such and outfitted with excellent amenities. These historic renovations are great, but some people want new and exciting. Just my .02.

What's not exciting about a newly renovated historic building with all the "modern amenities" of a new development?

The last "modern" apartments built were the Millender and Trolley Plaza....and now those seem outdated by these renovated historic buildings.

It is more cost effective to rehab an old building than to construct a whole new one...not to mention the quality of the existing buildings is much better than any new drywall constructed POS.

DetroitPole · June-22-11, 08:24 AM

This is great news, and makes sense, following all the momentum in greater downtown for the past few years.

What about the rest of the city though? It has never looked worse. There really isn't a reason to live in NW Detroit, for example, even if you work downtown, when you could live in a suburb with lower taxes, low crime, and better services with virtually the same commute. How do we fix that? Bing seems fresh out of...everything.

**DetroitPlanner** · June-22-11, 08:46 AM

Originally Posted by Planner3357

What's not exciting about a newly renovated historic building with all the "modern amenities" of a new development?

The last "modern" apartments built were the Millender and Trolley Plaza....and now those seem outdated by these renovated historic buildings.

It is more cost effective to rehab an old building than to construct a whole new one...not to mention the quality of the existing buildings is much better than any new drywall constructed POS.

Totally agree building new is the last thing we need. We need to reuse what we currently have. You can't complain about how old buildings are being replaced by parking lots and support the building of new state of the art buildings that incorporate lots of ameneties [[of which the #1 being parking).

Renovate what we have. We currently have an excess of parking downtown when you look at all the new structures built for the Book, the old Charter One building, etc.....

**JDKeepsmiling** · June-22-11, 09:23 AM

Originally Posted by DetroitPlanner

Totally agree building new is the last thing we need. We need to reuse what we currently have. You can't complain about how old buildings are being replaced by parking lots and support the building of new state of the art buildings that incorporate lots of ameneties [[of which the #1 being parking).

Renovate what we have. We currently have an excess of parking downtown when you look at all the new structures built for the Book, the old Charter One building, etc.....

I think you both misundertood my post. I am all for historic renovation, trust me. I would much rather live somewhere like the Book then some new fangled glass thing. My point was that right now there are no new fangled glass things, and some people are attracted to that type of design. Many of the buildings being turned into apartments/condos were designed as offices, and suffer becasue of that in layout. All I was saying is that I feel a new, modern apartment complex would do well in the market, that is all. This board can be pretty harsh, my main reason for not posting much.

**daniel_duggan** · June-22-11, 09:32 AM

To your point, JD, when I spoke with the developer of the Studio One apartments, he told me that his project was the first new construction, market-rate apartment building put up in Detroit for last 25 years. I haven't been able to verify that, but it's hard to think of something else that's new construction and was built as apartments rather than being built as condos and converted to apartments.

**Hypestyles** · June-22-11, 09:34 AM

any newer apartment renovations in the wayne state area?

**JDKeepsmiling** · June-22-11, 09:41 AM

Originally Posted by daniel_duggan

To your point, JD, when I spoke with the developer of the Studio One apartments, he told me that his project was the first new construction, market-rate apartment building put up in Detroit for last 25 years. I haven't been able to verify that, but it's hard to think of something else that's new construction and was built as apartments rather than being built as condos and converted to apartments.

When were the Riverfront Towers built? I imagine that this would be the last major project of its kind in Downtown. Excellent point about Studio One, and I see that they actually have a waiting list. I guess when I see waiting list, I smell an opportunity for someone smart.

**401don** · June-22-11, 09:45 AM

Originally Posted by JDKeepsmiling

I keep waiting for someone to build a new modern 14-15 story apartment complex downtown. There is a severe lack of "new" product with all modern amenities, and I think new contructrion would fill quickly if someone jumped on the chance to build a true residential tower that was designed as such and outfitted with excellent amenities. These historic renovations are great, but some people want new and exciting. Just my .02.

Maybe the Medthodist Church by Comerica Park will revive their plans for a 15 story apartment building.

**Autoracks** · June-22-11, 09:46 AM

didn't riverfront tower have a bedbug issue? im asking and not making a statement. Just thought I heard that somewhere

**Autoracks** · June-22-11, 09:49 AM

oh brother the Central Meth Dist of America. I noticed it from my seats at Comerica Park a couple weeks back. An unfortunate letter is missing from the sign
I guess meth has to be distributed from somewhere

**Hypestyles** · June-22-11, 10:13 AM

anyone know about new apt. renovations/developments in the broader neighborhoods, non-midtown, non-downtown?

**p1acebo** · June-22-11, 10:20 AM

Originally Posted by Autoracks

didn't riverfront tower have a bedbug issue? im asking and not making a statement. Just thought I heard that somewhere

Yes they did, I don't know if they still do though.

**midtown1982** · June-22-11, 10:42 AM

http://www.freep.com/article/2011062...text|FRONTPAGE

**NorthofNormal** · June-22-11, 10:59 AM

How's the progress coming on those apartments being renovated at Woodward and Seven near Palmer Park? Sooner or later my landlord's gonna read one of these articles and start raising my rent...

**Hypestyles** · June-22-11, 11:01 AM

...what about those abandoned buildings in highland park on woodward? looks like they held some apartments at one time..

**detroittrader** · June-22-11, 11:03 AM

Originally Posted by Autoracks

didn't riverfront tower have a bedbug issue? im asking and not making a statement. Just thought I heard that somewhere

There is an old thread about bedbugs on the board somewhere. Anyhoot, there are properties all over the metropolis with bedbug issues. Each property can only solve the issues as they arise, best not mention Riverfront Towers only, if they solved the problem yesterday it could be a whole new problem tommorrow. My company sells supplies for bedbug removal, this week we have sold items to Waterford zip 48239, Centerline 48015 and Rochestor 48307. It's not just the "ghettohoods".

**EL Jimbo** · June-22-11, 11:11 AM

Originally Posted by detroittrader

There is an old thread about bedbugs on the board somewhere. Anyhoot, there are properties all over the metropolis with bedbug issues. Each property can only solve the issues as they arise, best not mention Riverfront Towers only, if they solved the problem yesterday it could be a whole new problem tommorrow. My company sells supplies for bedbug removal, this week we have sold items to Waterford zip 48239, Centerline 48015 and Rochestor 48307. It's not just the "ghettohoods".

True. They are frigging everywhere. I found some in our apartment in East Lansing Recently. Either one hopped in our suitcase on the way back from Mexico or they ventured over from a neighboring apartment. Fortunately, we are moving out in a month and we were replacing all our furniture anyway. Sometimes a fresh start is the best way to get away from those critter.