Dan Gilbert: Hello Federal Reserve Building

**Rocko** · July-15-11, 08:31 AM

Looks like he has his eyes on the former Federal Reserve Building downtown at 160 W. Fort, in the same block as the Dime. That 1951 addition is Minoru Yamasaki's first work in Detroit, I believe.
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http://www.freep.com/article/20110715/BUSINESS04/107150320/Is-Federal-Reserve-building-another-Gilbert-deal-?odyssey=tab|topnews|text|FRONTPAGE
Is Federal Reserve building another Gilbert deal?

It appears that Quicken Loans founder and Chairman Dan Gilbert may not be done buying downtown buildings.

Quicken's representatives were inspecting the former Federal Reserve Bank building at 160 W. Fort St. this week with an eye to buying it, according to a business source familiar with the building.

If Quicken moves ahead, this would mark the fifth downtown building that Gilbert has bought or placed under contract in addition to the space he leases in Compuware's building.

Quicken moved 1,700 workers downtown from the suburbs into Compuware space last year, but Gilbert has said he hopes to move an additional 2,000 workers downtown as soon as he can arrange space for them in nearby buildings.

Gilbert already has bought or placed under contract the Chase Tower, the First National Building, the Dime Building and the Madison Theatre Building. Speaking to visiting journalists a couple of weeks ago, Gilbert explained that he wants to control enough real estate to attract other companies to move downtown to turn Detroit into a hub of Internet and digital technology.

A Quicken spokeswoman said she couldn't comment on the report about the Federal Reserve building. Typically, the company says nothing about potential purchases until Gilbert has a site under contract.

Once he buys a building, though, Gilbert tends to move quickly to remake it. Dozens of construction workers were busy this month at both the Chase Tower and the Madison Theatre Building to get them ready for new retail and office tenants.

The Madison Theatre Building is already fully leased for its fall opening, including space Gilbert intends to make available to digital entrepreneurs for shared use.

Contact John Gallagher: 313-222-5173

**Bham1982** · July-15-11, 08:51 AM

Gilbert should just get it over with and buy all of downtown Detroit.

Given the prices downtown, he has the means to basically do this.

**Detroit500** · July-15-11, 09:02 AM

Its great to here the Madison will have full occupancy.

**rjlj** · July-15-11, 09:09 AM

...."hear"......

Originally Posted by Detroit500

Its great to here the Madison will have full occupancy.

**1953** · July-15-11, 09:11 AM

No, no, they meant that "its great to here" as in its really good up to this point...you just couldn't see their hand gestures showing to what point its great up until...

1953

**Hypestyles** · July-15-11, 12:47 PM

what is the history of the federal reserve building..

**Jason** · July-15-11, 03:09 PM

It was actually the Detroit branch of the Federal Reserve of Chicago. The older building is the original, built in the 20s, and the annex was built in the 50s and designed by Minoru Yamasaki. It's one of my favorite building downtown.

**Gistok** · July-15-11, 03:44 PM

Didn't the branch move over to a "campus" on East Warren near the Chrysler Fwy?

**Jason** · July-15-11, 03:57 PM

Yep! The new building is so big it's hard to believe that they were able to get anything done in the old one.

**spiritofdetroit** · July-15-11, 05:14 PM

And I promise you... he's not done yet

**English** · July-15-11, 05:22 PM

Originally Posted by Jason

It was actually the Detroit branch of the Federal Reserve of Chicago. The older building is the original, built in the 20s, and the annex was built in the 50s and designed by Minoru Yamasaki. It's one of my favorite building downtown.

I worked near there during the summer of 1995 as an intern & had to run errands to the Fed building. Loved it; loved that part of downtown.

**English** · July-15-11, 05:23 PM

Originally Posted by Bham1982

Gilbert should just get it over with and buy all of downtown Detroit.

Given the prices downtown, he has the means to basically do this.

Pretty much. My sentiments exactly. I'm wondering what he knows that we don't...

**Red Devil** · July-15-11, 05:35 PM

Originally Posted by English

Pretty much. My sentiments exactly. I'm wondering what he knows that we don't...

I think he knows that commercial real estate in Detroit is really cheap right now lol

**stinkytofu** · July-15-11, 05:35 PM

Originally Posted by Jason

Yep! The new building is so big it's hard to believe that they were able to get anything done in the old one.

The new building on Warren actually has a fairly sizable amount of office space available for rent to the public. That building is really great inside.

**Doma** · July-16-11, 10:46 AM

The best part is we really haven't seen the effect of this recent land grab Gilbert is performing. Once he fully renovates and begins marketing all of these buildings, we are going to see an influx of jobs and residents.

Man i'm happy Dan isn't paying LeBron James anymore, we owe a great deal of our city's revitalization to him "taking his talents to South Beach"

**rencense** · July-16-11, 11:02 AM

ok i officially have a man crush on gilbert now.

He's been very bold with all these purchases but I think he has plans up his sleeves to make everything work out. I think there are [[primarily) two things needed to make a huge difference in this town....

1)The determination and vision [[i know a lot of us have that)

2) absurd amounts of money to throw around. [[not as much)

*#2 isn't absolutely required but it does help speed up the process

I would love to work for this guy and help with his planning. In a few more years I could see him moving his investments further into the city, doing something big, and still making a few bucks from it. Everyone loves a win-win

**mikeg19** · July-16-11, 01:17 PM

It's kinda funny how Mike Illitch was considered to be such a huge proponent of Detroit's redevelopment, and yet here comes Dan GIlbert and has supplanted him as the new "savior of Detroit." I almost wonder how he feels about the shadow cast upon him now that Gilbert has come in here and in a way stolen his thunder. Although I know a lot of people on this board feel differently about Illitch, I've always felt he's had a positive effect and influence on Detroit, even with some of the questionable things he's done in the past [[Madison Lenox anyone?) I hope Illitch has a couple of huge moves up his sleeve to add onto this positive influx by Gilbert.

**mwilbert** · July-16-11, 04:23 PM

Once he fully renovates and begins marketing all of these buildings, we are going to see an influx of jobs and residents.

This seems wrong to me. I don't think that what has been preventing businesses from moving into Detroit was a lack of office space--usually demand for space is what causes people to produce space, not the other way around. I'm glad Gilbert is doing what he is doing, but his moving employees into town and his plans to provide support to new businesses is probably more important than his buying buildings and marketing them. As it seems as if existing downtown rentals are filling, we could use someone to renovate some buildings into residential space rather than office, but he doesn't seem to be doing that.

**313rd** · July-16-11, 04:26 PM

How does the new building have space available to the public?

When I was there, I was chaperoned by an armed guard the entire time.

agrahlma · July-16-11, 04:42 PM

Originally Posted by mikeg19

It's kinda funny how Mike Illitch was considered to be such a huge proponent of Detroit's redevelopment, and yet here comes Dan GIlbert and has supplanted him as the new "savior of Detroit." I almost wonder how he feels about the shadow cast upon him now that Gilbert has come in here and in a way stolen his thunder. Although I know a lot of people on this board feel differently about Illitch, I've always felt he's had a positive effect and influence on Detroit, even with some of the questionable things he's done in the past [[Madison Lenox anyone?) I hope Illitch has a couple of huge moves up his sleeve to add onto this positive influx by Gilbert.

Agee - All in Illitch has done some great things for the city. I'd love to see Illitch and Gilbert go "Tit for tat" with downtown redevelopment. Come on Mike...Danny G. is showing you up!!

**corktownyuppie** · July-16-11, 05:01 PM

As it seems as if existing downtown rentals are filling, we could use someone to renovate some buildings into residential space rather than office, but he doesn't seem to be doing that.

Easier said than done. The up-front cost to rehabilitate a building for residential vs. commercial use are pretty staggering. For one, just think about the effort to fill the space with rent-paying tenants. Managing a building with 200 apartments means you need 200 different people to sign leases. Managing a building with 200 offices you can rent by with one stroke of the pen.

Residential will come. Especially with the success of the recent developments.

**mwilbert** · July-16-11, 10:06 PM

Easier said than done. The up-front cost to rehabilitate a building for residential vs. commercial use are pretty staggering. For one, just think about the effort to fill the space with rent-paying tenants. Managing a building with 200 apartments means you need 200 different people to sign leases. Managing a building with 200 offices you can rent by with one stroke of the pen.

I really don't think that much of the cost or difficulty in doing a residential conversion is running a rental office, but whatever the issues, you aren't going to have "an influx of [...] residents" without someplace for them to live. It is much clearer that there is demand for more rental residences downtown than that more office space is needed, which is why the fact the Gilbert is moving jobs downtown and encouraging others to do the same is more important [[in my view) than the fact that he is renovating office buildings.

Residential will come. Especially with the success of the recent developments.

I expect so, but as you say, residential conversions are expensive. Hopefully the rent levels are high enough to justify doing them, at least after tax credits.

**Gistok** · July-17-11, 02:39 AM

Originally Posted by corktownyuppie

Easier said than done. The up-front cost to rehabilitate a building for residential vs. commercial use are pretty staggering. For one, just think about the effort to fill the space with rent-paying tenants. Managing a building with 200 apartments means you need 200 different people to sign leases. Managing a building with 200 offices you can rent by with one stroke of the pen.

Um... I don't think that besides the BCBS and DTE campuses [[and the Fox Building)... that many downtown office buildings have "1 tenant". And if they did have a single leasing tenant... that is often much riskier than getting 200 apartments.... if the tenant leaves... the buildings empty... with residential, there's always coming and going with little change in the percentage once it's full.

This happened to 211 W. Fort when Compuware moved to the Comerica Tower, 211 was literally empty.

I agree that converting to lofts may not be easy [[plumbing, etc.)... but I doubt it would cost that much more than office space renovations. It's more dependent on how bad the building is and how much gutting has to be done. Gutting down to the bare walls or supports makes residential conversion easier, while renovating existing office space that's in good shape would be easier for offices.

That may be Gilbert's strategy... buildings like First National, Chase, Madison, Dime and Federal Reserve buildings [[which are in decent shape) into commercial space... and maybe get buildings like the United Artists [[where the floors have been gutted) for residential space.

**artds** · July-17-11, 06:16 PM

Originally Posted by rencense

ok i officially have a man crush on gilbert now.

I understand the excitement over him moving employees downtown, but I'm not sure I get the excitement over him just buying buildings. People buy these buildings all the time. They're constantly changing hands. At any give time SOMEONE owns them.

You'd almost think the First National building didnt exist or have any tenants before Gilbert bought it the way people were reacting.

And everyone was so excited when news came out that he was buying the Dime, but I don't recall any excitement for the former owners of the Dime...you know, the ones who actually updated it.

**detroiter79** · July-17-11, 07:25 PM

Originally Posted by artds

I understand the excitement over him moving employees downtown, but I'm not sure I get the excitement over him just buying buildings. People buy these buildings all the time.

He's not just buying the buildings - he's transforming the buildings and spending a considerable amount of money with the renovations. The restoration work at the Dime is impressive - but I believe the owners at that time were out of the state and not invested in the city like Gilbert and his companies.