David Whitney Building Renovation [Now Open for Business]

**cman710** · January-13-11, 04:52 PM

I am really excited to see this news, and am hopefully it will come to fruition, even if it takes a long time. It would be great to visit that beautiful atrium.

For now, we can feel fairly confident that the UA building will be renovated, and it looks like the Broderick Tower is on track now, too. If those projects succeed and the Whitney goes ahead, too, that might give impetus to a developer to redevelop the Book Tower/Building, too.

DetroitDad · January-15-11, 02:35 AM

Originally Posted by cman710

I am really excited to see this news, and am hopefully it will come to fruition, even if it takes a long time. It would be great to visit that beautiful atrium.

For now, we can feel fairly confident that the UA building will be renovated, and it looks like the Broderick Tower is on track now, too. If those projects succeed and the Whitney goes ahead, too, that might give impetus to a developer to redevelop the Book Tower/Building, too.

Here is a link to a Critical Detroit article, which mentions tenants being able to move in Summer 2011. It is announcements like that, which either never happen or take years upon years to get started, that make so many skeptical.

Click here for further discussion on the original Book Tower and Book Building residential development.
Click here for further discussion on the 81 story Book Tower, which was never completed.

**BrushStart** · January-15-11, 03:12 AM

Originally Posted by Gsgeorge

A look inside the lobby... I took this during a location scout for a film.

Attachment 8575

Absolutely stunning. That is what a building is supposed to look like. It is fucking unbelievable that this masterpiece of architecture, art, design and skill sits abandoned and neglected while other totally dreadful, uninspiring, unsophisticated pieces of dreary shit are still being built across the region. You want to impress your customers and colleagues? Want to send a message to your competition that you are the ALPHA? Nothing screams power, wealth, success and confidence more than the atrium of this building. Walking into work is like a gladiator walking into the Colosseum. Anything else is a fucking joke.

**rjlj** · January-15-11, 03:19 AM

A Del Taco or Carl's Jr. would fit perfectly in the David Whitney.

**p1acebo** · January-15-11, 12:23 PM

No more Del Tacos! ><, we need a Taco Bell downtown!

**BigD** · February-18-11, 04:54 PM

If Snyder's proposal to eliminate the state historic preservation tax credit and the Brownfield MBT credit [[among others) becomes law, I highly doubt this project ever gets off the ground. Like all other major downtown rehab projects, this will happen only with the layering of multiple such incentives. Pains me to say it.

**esp1986** · February-18-11, 05:34 PM

Originally Posted by BigD

If Snyder's proposal to eliminate the state historic preservation tax credit and the Brownfield MBT credit [[among others) becomes law, I highly doubt this project ever gets off the ground. Like all other major downtown rehab projects, this will happen only with the layering of multiple such incentives. Pains me to say it.

To be honest, this one may have be able to get off the ground without it. The previous owners have kept this building sealed, and it is in immacculate condition, considering it has been empty for 18+ years. That said, no project in Detroit is a slam dunk, but given the condition of this building, the prospects of it being renovated only diminished slightly.

Of all of the buildings that are on my radar for rehab, most of them wouldn't need a significant amount of subsidy, even though most of them would have chased after them anyway. The David Whitney Building, The Free Press Building and the David Stott Building are all in relatively good condition, the latter two have at least been used this decade. The Free Press Building has a renovation on tap and the credits have already been approved. Snyder said his budget would honor previously approved credits. The Stott also has a renovation on deck from the same company doing the Freep Building. The two big buildings downtown most in need of a rehab that would really need these credits would be The United Artists Theatre Building and the Book Building and Tower on Washington. These credits are intended for buildings that are vacant and blighted and have been for years, even decades and the UA and Book certainly qualify.

Fred Beal was interviewed the other day about this and said he was looking into renovating the Leland. This building is currently in use, and even Beal said it wasn't a deal breaker, but he would have to look harder for financing opportunities. Beal did admit, however, that there was no possibility that the Broderick Tower project would have gotten off the ground without it, that building was just too far gone, exactly the type of building that these credits are aimed for.

Fortunately many of the most blighted properties have already been renovated, Book Cadillac, Fort Shelby, now the Broderick Tower. There are still a bunch left, but not in nearly as bad of shape as those three. It is tough to believe that the tax credits will be cut in their entirety. Snyder admitted that he was laying everything out on the table, so many of his plans will be compromised for something else. It will be interesting to see how this all shakes out...

**401don** · February-18-11, 06:42 PM

I posted this question in another thread, i.e. why would the DDA lend one million toward the purchase price when they must have known the Brownfield tax credit may be ending in the budget and there was no guarantee of financing the renovation?

Richard responded,

Originally Posted by Richard

Everything that is already in the pipeline or has been approved will stay,this is his proposal for anything that happens after the finial approval.It is not cut in stone yet.

So do you think this correct? They somehow managed to get this deal "in the pipeline" already?

**Richard** · February-18-11, 07:30 PM

Originally Posted by 401don

I posted this question in another thread, i.e. why would the DDA lend one million toward the purchase price when they must have known the Brownfield tax credit may be ending in the budget and there was no guarantee of financing the renovation?

Richard responded,

So do you think this correct? They somehow managed to get this deal "in the pipeline" already?

It all depends on how far along in the process that they are,if they all ready have been approved for the funds then they would be okay by my understanding of what is out there.

The Gov presentation so far is a draft it will not become finial until the signing of it which may or may not take some time,it needs to be worked out yet.

I really do not believe that anybody knew in advance what was going to be proposed yet speculation maybe.

**dover627** · February-19-11, 10:35 AM

The real issue is that even if a project is already awarded the Brownfield credits, the developer won't be able to sell them once the project is complete. The credits are used against the MBT, which is being eliminated as part of this budget, so why would anyone buy the credits? I'm all for Snyder's reforms, but he claims to be placing a priority on revitalizing the state's urban areas. This seems to be in conflict with eliminating programs like BF credits. That said, the MEDC is an utterly useless waste of taxpayer $, and the people who work there are absolute drones who are incapable of using independent thought to actually HELP someone who is looking to invest in the state. I'm glad their influence will be reduced.

gdogslim · February-19-11, 11:35 AM

Originally Posted by rjlj

A Del Taco or Carl's Jr. would fit perfectly in the David Whitney.

Carl's Jr??? What state do you live in rjlj Calif.? In Michigan it is Hardee's. No Cjr.s East of the Miss R.

**esp1986** · February-19-11, 01:14 PM

Originally Posted by dover627

The real issue is that even if a project is already awarded the Brownfield credits, the developer won't be able to sell them once the project is complete. The credits are used against the MBT, which is being eliminated as part of this budget, so why would anyone buy the credits? I'm all for Snyder's reforms, but he claims to be placing a priority on revitalizing the state's urban areas. This seems to be in conflict with eliminating programs like BF credits. That said, the MEDC is an utterly useless waste of taxpayer $, and the people who work there are absolute drones who are incapable of using independent thought to actually HELP someone who is looking to invest in the state. I'm glad their influence will be reduced.

The tax credits will be passed on to the new taxing system, and in nearly all cases when the entity is not a "C-Corporation," the tax credits will be used by the individual owners to capture the credit.

**Richard** · February-19-11, 03:14 PM

I agree with the consensus on MEDC in my experience their attitude was to send me some links that were already readily available online and quit bothering us,the city and county said welcome how can we help you and what does it take to make this happen. But MEDC control has been changed so maybe it will change.

**EL Jimbo** · February-20-11, 04:38 PM

I am good friends with two people that work at MEDC and they both say that the new leadership there has been a breath of fresh air. They say that changes are being made to the structure, function,a nd mission of the organization that should improve how it functions.

MEDC is going to have MORE influence with this administration, not less. Lets' not forget that Snyder was the first head of the MEDC when it was created under Engler in the 1990s.

**dover627** · February-20-11, 10:35 PM

MEDC will not be allowed to continue business as usual under Snyder's administration. The way they are currently run is wrought with inefficiencies, entitlement mentality, and gross incompetence. Yes, he was the first head of MEDC, and given his appointment of Mike Finney to assume that role now, he is looking to reverse some of the changes that have occured since he was in charge.

I do a LOT of business with MEDC, and quite frankly the aura they project is that they are a group of smug, self righteous bureaucrats who are less interested in working with businesses than they are appearing all-knowing and smarter-than-thou to anyone who will pay attention. I have had clients specifically tell me that they will never do business in Michigan again because of all the BS they had to deal with at MEDC. As far as I'm concerned, the entire organization should be disbanded, re-tooled, and re-staffed, save one or two individuals.

**Hypestyles** · February-20-11, 10:38 PM

when will the renovations be done...?

**dover627** · February-20-11, 11:21 PM

Fall, 2087

**dover627** · February-20-11, 11:27 PM

Edit to above - obviously thats sarcastic.

The real answer is that the developer has only received a loan for part of the acquisition cost. That leaves a lot of work to be done, namely the layering and acquisition of construction financing, which includes a combination of equity, leveraged finance, incentive $, and other. I'm not a betting man, but I'd say best case scenario they have this thing financed a year from now, and it starts construction in May 2012.

Roxbury Group [[the developer) is definitely a capable firm, so if there is a way to get it done, they have the ability to pull it off. The question is whether or not there is a way to pull it off.

For what its worth, I give them a 62% chance of success.

agrahlma · August-18-11, 01:04 PM

Anything new on the David Whitney building? Are they still in the process of getting funding sources together?

**buckster1986** · August-18-11, 01:48 PM

New hotel plan emerges for the David Whitney building

By Daniel Duggan

A new downtown hotel is planned as part of a mixed-use development for the historic David Whitney building.

The 19-story building will be split between apartments and hotel rooms.

It was purchased in March by Whitney Partners LLC, an evenly-split joint venture between Detroit-based developer The Roxbury Group and Farmington Hills-based hotel investment firm Trans Inns Management Inc.

Trans Inns executives say that despite the negative image of Detroit hotels, there is demand for a boutique hotel.

“In the first quarter, the revenue performance is up 25 percent in the city,” said Mike Damitio, senior vice president of acquisitions for Trans Inns. “A unique offering, aimed at Gen-X, Gen-Y people in a true, historic, downtown building, would do well.”

http://www.crainsdetroit.com/article...tney-building#

**surenowinlife** · August-18-11, 04:21 PM

Sweet I would like a 2 bedroom corner up as high as it can be!

**buckster1986** · August-25-11, 10:57 AM

We attempted to get some information from the development group. Seems to be keeping it on the DL still.

http://woodwardspine.com/2011/08/25/...s-eye-detroit/

**Flintoid** · October-09-11, 05:21 PM

http://www.transinns.com/portfolio.html#mi

Link to the group that bought the building along with The Roxbury Group. Head down to the Michigan holdings and there is the David Whitney Building with the caption "COMING 2013 A BOUTIQUE HOTEL AND RESIDENTIAL APARTMENTS - DETROIT." Glad to see some confidence on the part of the investors!

**Doma** · October-11-11, 01:34 PM

Almost every press release talks about the Whitney Building, it look like Trans Inn is really behind this one...

http://www.transinns.com/press-and-media.html

Originally Posted by Flintoid

http://www.transinns.com/portfolio.html#mi

Link to the group that bought the building along with The Roxbury Group. Head down to the Michigan holdings and there is the David Whitney Building with the caption "COMING 2013 A BOUTIQUE HOTEL AND RESIDENTIAL APARTMENTS - DETROIT." Glad to see some confidence on the part of the investors!