Himmelhoch Eviction: "It's not the bad times that killed us, it's the good times."

**Lowell** · January-11-15, 01:39 AM

The owners of the Himmelhoch Building, Fourmidable of Bingham Farms, have evicted a group of current retailers. Most of the ground floor was leased by Larry and Dianne Mongo [of Cafe de Mongo fame]. "The husband and wife ran everything from beauty shops to restaurants in the Himmelhoch" for the past three decades reports the Detroit News.

Himmelhoch Brothers and Company building in 2003^

With the adjacent now upscale Whitney/Aloft opening its doors and filling with well-heeled residents and joining the similarly filled Broderick Tower across the street, moves on surrounding properties should not be surprising as the wave of downtown gentrification builds.

As Larry Mongo put it, "It's not the bad times that killed us, it's the good times."

Maybe Detroit IS the next Brooklyn.

Himmelhoch Brothers and Company building in 2010^

**Honky Tonk** · January-11-15, 06:04 AM

Smells like bullshit to me. This line says it all: "You could easily get $50,000 a month to rent that space right now, probably more," Fuck Fourmidable, fuck Midtown, and fuck the yupsters.

**canuck** · January-11-15, 07:44 AM

That will be a big problem for Detroit, the boom and bust in high contrast. $2500. a month maybe too little but unless someone
came with a much better offer, the idea that the rent would jump so fast is nuts. But all is possible and commercial rents are open tomore bullshit moves on owners parts.

**Chicago48** · January-11-15, 07:52 AM

Originally Posted by Honky Tonk

Smells like bullshit to me. This line says it all: "You could easily get $50,000 a month to rent that space right now, probably more," Fuck Fourmidable, fuck Midtown, and fuck the yupsters.

I don't know whose universe someone thinks that space is worth $50,000 a month. I don't know of any business that makes that amount of money in a month. It would have to be a luxury item business like Coach or Tiffany's, because no small business is going to rent that.
The owners will have to retro fit the space to accommodate a"special" tenant.
I hope Mongo got a payoff for the 2 years left on the lease.

**Danny** · January-11-15, 07:56 AM

When Gilberttown Detroit is on the rise. Those who don't have thousands or millions of dollars in the sock have no business investing there. I feel really sorry for the D-Mongo owner who have put out by yuppified rich white folks. Formidable wants have the Gilberttown action. A matter of fact it could be a secret plot from Bedrock Holdings to have Dan Gilbert buy the Himmelhock Building.

**Zacha341** · January-11-15, 09:05 AM

Wow! This is interesting and may be a first of what other businesses may be soon facing downtown. I would say in this case a READ OF THE 'COMMENT' SECTION of the article is quite revealing! The Mongo's weigh-in there as well as John Enot the restauranteur who was planning to move in the building and other interesting comments pro and con.

One could argue, as does one 'commenter' that the D'mongo's should have gotten a replacement check or cash in for that payment as it seems the owners seemed to may this the 'jump-off' point to ditch their lease. A thirty year lease coming to an abrupt end before suggest some has some plans to expedite no doubt. $50K Lease. Who do they plan to run up in the building Apple and Microsoft stores side by side. Ummm, not gonna happen.

I hope the D'mongo's have a good attorney and not just some dandy to further spend-down their resources. I recall D'mongo's salon well from back in the day. The Dmongo's and their sub-lease businesses weathered alot when that areas was a ghost town.

**rjlj** · January-11-15, 09:58 AM

What does it say about the business proprietors seriousness of their business when they are just liquidating the contents of the business instead of looking to relocate into one of the numerous empty first floor locations in the central business district?

Will the outcry be made when the Bail Bonds store on Woodward a few blocks down has their rent increased?

Detroit is not Brooklyn. People who even bring that sound like they have been there.

DetroitBoy · January-11-15, 10:02 AM

Its a very pretty building. 30 years for a business in one location is a pretty good run. In a typical rental market sites turn over more quickly [[think about stores at different locations in a mall). Are they saying they are going to try to displace the people in low income housing that live there also?

**stasu1213** · January-11-15, 10:48 AM

When had DMONGO ever had his restaurant open in the Himmelhoch building? I see tables and chairs with no signs of actual customers being served there. It is true that Fourmidable is a crappie management company. They had done a poor job managing Lafayette Towers while easing the rent on tenants more than 1 to $200 dollars on tenants after their leases term is up.

**animatedmartian** · January-11-15, 11:21 AM

While what Fourmidable did is kind of messed up, Mongo was planning on opening two restaurants within the space the he was leasing. This comes as he knew he had only less than a few years left on his lease. Obviously without knowing the terms of the lease or how long Mongo had these restaurants planned, something leads me to believe Mongo isn't completely innocent in this. Understandably, he might have bitter feelings about the circumstances of the situation regarding the rising values of downtown space, and certainly over what Fourmidable did, but something tells me there's more to this story than what's being reported. Either way, changes suck and I hope Mongo can find other space to open some businesses.

http://detroit.eater.com/2015/1/9/75...-landlord-feud

**eliboyer** · January-11-15, 11:54 AM

The $50K monthly rent estimation by Scott Griffin is an absolute joke. I'm not sure what kind of square footage these spaces occupy, but is it anywhere near 27,272 SF? If we're using the accurate estimate of $22 PSF annual rent, that's the size that would dictate $50K in monthly rent, and I don't think it's anywhere close to that.

**iheartthed** · January-11-15, 12:04 PM

Originally Posted by eliboyer

The $50K monthly rent estimation by Scott Griffin is an absolute joke. I'm not sure what kind of square footage these spaces occupy, but is it anywhere near 27,272 SF? If we're using the accurate estimate of $22 PSF annual rent, that's the size that would dictate $50K in monthly rent, and I don't think it's anywhere close to that.

$50,000 sq ft/month / $22 sq ft = 2,273 sq feet.

**Lowell** · January-11-15, 12:11 PM

There has been a charade of a restaurant on the Washington side noted a few times previously on this forum. It has never been opened and has been like a movie set frozen in time. Here are some pictures from 2002.

My table cloth please...

**BankruptcyGuy** · January-11-15, 01:29 PM

Originally Posted by iheartthed

$50,000 sq ft/month / $22 sq ft = 2,273 sq feet.

Commercial rental rates are quoted on an annual basis. When you see "$22/sf" that means for a full year. $50,000/month on a 2,273 sf building would be quoted as $263/sf.

**Zacha341** · January-11-15, 01:30 PM

^^^ That's odd [[re. the restaurant photos). You don't set plates and empty gravy boats etc. out like that prior to the sit down for the meal. Looks like a 'dust' catching setting, more than in use, or eye catching!

**Zug** · January-11-15, 01:43 PM

How many customers has this affected? If it's a substantial number of people, then I'll have more sympathy for the "it's unfair" outcry. But I don't really see any evidence that the businesses have created any noticeable foot traffic in that area. And I have failed to read anything [[either here or the News site) where customers are saying they are affected.

If the businesses only survive because just a few customers are needed to pay off ridiculously low lease rates, then personally I have no problem seeing them go. I want more foot traffic downtown.

Have any of the forumers gone to these businesses, or know someone who has? If so, are they any good?

**Zacha341** · January-11-15, 01:49 PM

Can't verify this, but per the articles 'comment' section [[in which even D'mongo makes a comment appeal to Dan Gilbert!) this building has the best of for section 8 tenants that change! If this trend continues there's gonna be alot of relocating in downtown, residents included!

I'd already heard that the Griswold once converted to condo obliged all of its former section eight and lower paying renters the heave ho!

Originally Posted by DetroitBoy

Its a very pretty building. 30 years for a business in one location is a pretty good run. In a typical rental market sites turn over more quickly [[think about stores at different locations in a mall). Are they saying they are going to try to displace the people in low income housing that live there also?

**stasu1213** · January-11-15, 01:51 PM

Was this restaurant there for curb appeal or just for tax write off purposes

**iheartthed** · January-11-15, 01:51 PM

Originally Posted by BankruptcyGuy

Commercial rental rates are quoted on an annual basis. When you see "$22/sf" that means for a full year. $50,000/month on a 2,273 sf building would be quoted as $263/sf.

That's interesting. Using my math the calculation works out closer to what the advert says:

Himeloch now has 72 spacious vintage apartment homes, and over 4,000 sq. feet of commercial shops. Our convenient shops at Himelhoch include beauty salon, shopping, accessories, entertainment, tax office and foot doctor. Our apartments have emergency pull cords that are monitored 24 hours a day.
http://www.rent.com/michigan/detroit...ments-4-437919

**Spartan** · January-11-15, 02:00 PM

I'm confused, when did this building last have actual occupants? I've lived in the city for 2.5 years and I don't remember ever seeing an active business there.

**Zacha341** · January-11-15, 02:06 PM

According to this link I found in the comment section of the article low income housing displacement is hardly new and for certain discussed here on Detroityes:

http://voiceofdetroit.net/2013/11/18/developers-hud-non-profits-collude-to-move-detroit-seniors-disabled-out-of-downtown-griswold-apts

http://voiceofdetroit.net/2014/03/02...nts-continues/

Originally Posted by DetroitBoy

Its a very pretty building. 30 years for a business in one location is a pretty good run. In a typical rental market sites turn over more quickly [[think about stores at different locations in a mall). Are they saying they are going to try to displace the people in low income housing that live there also?

**TTime** · January-11-15, 07:02 PM

On the one hand it seems pretty arrogant to toss any longtime business from an established downtown location. What happens if/when the new store under performs and closes?....on the other hand if you're landlord doesn't want you then pick one of the other plentiful vacant spaces.

**Lowell** · January-11-15, 08:11 PM

Originally Posted by Zacha341

^^^ That's odd [[re. the restaurant photos). You don't set plates and empty gravy boats etc. out like that prior to the sit down for the meal. Looks like a 'dust' catching setting, more than in use, or eye catching!

The Himmelhoch faux restaurant always struck me as eerie, as if from a Victorian gothic novel, like Miss Havisham's dining table with the wedding cake in Dickens' Great Expectation.

**canuck** · January-12-15, 10:07 AM

Originally Posted by stasu1213

Was this restaurant there for curb appeal or just for tax write off purposes

A business version of a "home staging" type thing, IMO.

**eliboyer** · January-12-15, 10:41 AM

Originally Posted by iheartthed

That's interesting. Using my math the calculation works out closer to what the advert says:

But your calculation has nothing to do with how commercial rent is quoted. It's 22 PSF Annual Rent, which is why Griffin's comment is ridiculous. Also, the advert you're referring to is one put out by Mongo himself.