Midtown Development Updates

[stasu1213]

The photo update is appreciated. You're right, it seems like a lot of projects have been quietly scrapped, or at least significantly delayed. It feels like the 'momentum' that was building from 2018-2020ish is gone. Hopefully it's just a speedbump from inflated costs/interest rates, but who knows.

Corktown seems to be the only neighborhood where developments are announced and completed in a reasonable timeframe.

CODA: I'm bummed about this one. It was a bold vision, but at least some of the condos had been pre-purchased as of a year or two ago. It's disappointing that they still can't make it work.

AC Hotel: Just thankful it's moving at all after 5+ years since its announcement.

City Club: So frustrating. I maintain that they should just build the project in phases. Start with the Target, since they've already signed an agreement. Do the residential after, if financing is still an issue.

Brush + Watson: I'm almost positive that they built a foundation where the middle tower is supposed to go. Maybe it'll start when the side buildings are fully complete.

For everything else, I'll believe 'em when I see 'em.

Same for Related Companies. I thought their involvement would lead to success, but the new District is now 0/2 on scheduled groundbreakings. The UM DCI building has $100M in state funds tied to breaking ground this year, so maybe that still happens? Can't say I'm confident though, given the lack of action everywhere else.

Had Target selected Michigan and Trumbull area to put their store it would had been up and running by now. Things get done quicker in that district

[KnnNike]

Had Target selected Michigan and Trumbull area to put their store it would had been up and running by now. Things get done quicker in that district

The fact that a national retailer like Target can't be convinced to have stores in both locations is the real travesty.

You could build "urban scale" Targets in Midtown, Corktown, Downtown, and Rivertown tomorrow, and make $$$

[stasu1213]

The fact that a national retailer like Target can't be convinced to have stores in both locations is the real travesty.

You could build "urban scale" Targets in Midtown, Corktown, Downtown, and Rivertown tomorrow, and make $$$

I think it goes beyond them being convinced. Target wanted to open a store in downtown Detroit for the company was convinced that there were a support base in the midtown/ downtown area. There are factions in Detroit or so called planners who either to incompetent to have Target be a stand alone store or a be a City Target such as in other downtown areas or these factions and planners dint want to see Target or any other stores that will generate money open within the city. They would rather have a Target warehouse on the border of Detroit. Thus is something that Bedrock should look into. They renovate these buildings downtown ti get tenants to pay $2000 + in rent or $200,000 + for the price on condos but the residents don't have stores in the vicinity where they live? Birdbee and the tea shop Socrateas had already closed. Dies it take one of the bigger stores to close for the light to come on?

[K-slice]

The Platform finally gave up on Baltimore Station II it looks like. Perusing my local Zillow listings and saw 66 Balimore st is on the market. Given the news that they are likely on the hook for millions of dollars now that WeWork is going through Bankruptcy maybe they are looking to build liquidity.

https://www.zillow.com/homedetails/6...54441164_zpid/

Fingers crossed it goes to a developer looking to build. As long as you don't mind some rumbling from passing trains, and the 2AM White Castle crowd, it's a pretty prime spot.

On the good news side, I drove by Piquette Flats the other day and work seems to be coming along nicely. 161 units is pretty significant for that area.

[ShadowSoarer]

Why does it seem like some Midtown projects seem to move so slowly? The Mid, City Club Target, Coda Detroit, 112 Edmund, Brewster Douglas Development, Emagine Theater, Detroit Shipping Company Development, and 2nd Phase of Midtown West just to name a few hasn’t broke ground yet.

AC Hotel seems to be at 5 floors but do you guys think that it will be up and running for the NFL Draft?

This is Petit Bateau from Aug 5th compared to Dec 3rd:





This is Charlotte and 3rd Development from Aug 5th compared to Dec 3rd:

[JonWylie]

Why does it seem like some Midtown projects seem to move so slowly? The Mid, City Club Target, Coda Detroit, 112 Edmund, Brewster Douglas Development, Emagine Theater, Detroit Shipping Company Development, and 2nd Phase of Midtown West just to name a few hasn’t broke ground yet.

AC Hotel seems to be at 5 floors but do you guys think that it will be up and running for the NFL Draft?

This is Petit Bateau from Aug 5th compared to Dec 3rd:





This is Charlotte and 3rd Development from Aug 5th compared to Dec 3rd:

Because developing multi million dollar projects is hard.

[401don]

Because developing multi million dollar projects is hard.

Always was but the last few years since covid there's been a sunami of things making it even harder - labor shortages, higher material costs, interest rates, obtaining financing even if you can afford the interest rates, etc.

[stasu1213]

Because developing multi million dollar projects is hard.

Target would had been up and running by now if someone didn't decide to make it part of a development that can't get off the ground.

[Jason]

Target would had been up and running by now if someone didn't decide to make it part of a development that can't get off the ground.

It's frustrating to hear you repeat this. They are not building a Target with some other stuff attached to it. They are building a residential development, with several commercial spaces on the ground floor.

Target will be leasing one of the commercial spaces. If Target pulls out, they will continue with the development, and a different store would lease the space instead.

Or to put it a different way. There are 350 apartments that start at $1,000 per month. So they're making at least $6 million per year in renting the apartments. The Target is 32,000 square feet and they're probably charging around $25 per square foot per year, which is $800,000 per year. Target is not the emphasis of the development. They built a retail space suitable for Target because they thought the features of the site could attract one. If it didn't, they would have several smaller retail spaces instead like they did with their development on Grand Circus Park.

[stasu1213]

It's frustrating to hear you repeat this. They are not building a Target with some other stuff attached to it. They are building a residential development, with several commercial spaces on the ground floor.

Target will be leasing one of the commercial spaces. If Target pulls out, they will continue with the development, and a different store would lease the space instead.

Or to put it a different way. There are 350 apartments that start at $1,000 per month. So they're making at least $6 million per year in renting the apartments. The Target is 32,000 square feet and they're probably charging around $25 per square foot per year, which is $800,000 per year. Target is not the emphasis of the development. They built a retail space suitable for Target because they thought the features of the site could attract one. If it didn't, they would have several smaller retail spaces instead like they did with their development on Grand Circus Park.

Target was the main draw for this development. Get frustrated. Having a Target or something like it was more important than having that development especially if Detroit want to increase residency in the downtown midtown area and bring in new talent

[gratiotfaced]

On the bright side, I could see a real construction boom happening in the next 3-5 years.

Lingering COVID issues will eventually subside -- interest rates, labor/material shortages. We'll also start to see major economic engines like Michigan Central, UMCI, HFH/MSU and others kicking into gear.

[ShadowSoarer]

It just feels like Midtown developments have taken a huge hit compared to developments in Corktown and Downtown. Most developments in Corktown have been moving at a decent pace. While some developments in Downtown have been a bit slow it does feel like some progress have been made such as the Hudson Tower, Book Tower, The Exchange, The Louis, Cambria Hotel, Huntington Tower, etc.

[stasu1213]

It just feels like Midtown developments have taken a huge hit compared to developments in Corktown and Downtown. Most developments in Corktown have been moving at a decent pace. While some developments in Downtown have been a bit slow it does feel like some progress have been made such as the Hudson Tower, Book Tower, The Exchange, The Louis, Cambria Hotel, Huntington Tower, etc.

District 5 have many stalled projects

[Jason]

Target was the main draw for this development. Get frustrated. Having a Target or something like it was more important than having that development especially if Detroit want to increase residency in the downtown midtown area and bring in new talent

That's what I'm trying to say. Target wasn't the main draw. The developer is City Club which is a national apartment building developer. They don't do office buildings or shopping malls or retail buildings, they do apartment buildings, and some of their apartment buildings have some ground floor retail. I'm sure they worked hard to get Target and are very happy to be having it, but they are in the business of apartment buildings, not retail.

To the general public, the Target is of more interest, because you can go there to shop, while the apartments are not of interest unless you plan on living there or know someone who will. But for the developer, the apartments are the important part.

[stasu1213]

That's what I'm trying to say. Target wasn't the main draw. The developer is City Club which is a national apartment building developer. They don't do office buildings or shopping malls or retail buildings, they do apartment buildings, and some of their apartment buildings have some ground floor retail. I'm sure they worked hard to get Target and are very happy to be having it, but they are in the business of apartment buildings, not retail.

To the general public, the Target is of more interest, because you can go there to shop, while the apartments are not of interest unless you plan on living there or know someone who will. But for the developer, the apartments are the important part.

Since the developer had piqued Target's interest in considering opening a store maybe Dan Gilbert or someone else could sway Target into operating its store inside one of their developments or renovated buildings. Maybe the idea of a City Target can resurface

[K-slice]

That's what I'm trying to say. Target wasn't the main draw. The developer is City Club which is a national apartment building developer. They don't do office buildings or shopping malls or retail buildings, they do apartment buildings, and some of their apartment buildings have some ground floor retail. I'm sure they worked hard to get Target and are very happy to be having it, but they are in the business of apartment buildings, not retail.

To the general public, the Target is of more interest, because you can go there to shop, while the apartments are not of interest unless you plan on living there or know someone who will. But for the developer, the apartments are the important part.

Thank you for saying it before I did, again... The idea of a single story Target in that space is so unappealing, I don't get why it keeps getting brought up.

Many of them do seem to have stalled which is unfortunate. Seems like if development could get done anywhere it would be midtown.

[ShadowSoarer]

Updates on some stall Midtown projects, probably going to come back next year and it will look the same.

Coda Detroit


Edmund Place


City Modern


Elementa



City Club Midtown


Petit Bateau

[stasu1213]

Its amazing how empty storefronts in the Brush Park development still line John R and also Beubien

[gratiotfaced]

This sign used to read "late 2023" -- now says "late 2025", so at least we know Edmund Place is still planned and not totally dead here.

[mikeg19]

https://www.crainsdetroit.com/real-e...hotels-planned

Behind the paywall but it seems a group has purchased land directly next to the planned The Mid development with the intent of building 2 hotels.

[hybridy]

https://www.crainsdetroit.com/real-e...hotels-planned

Behind the paywall but it seems a group has purchased land directly next to the planned The Mid development with the intent of building 2 hotels.

The site at 4 E. Alexandrine St. at Woodward Avenue would house a lifestyle hotel and an extended stay/multifamily concept, said Shawn Namou, an executive with the company. The lifestyle hotel would have things like a rooftop bar, co-working space and a fitness center, and the extended-stay hotel would have fully-equipped kitchens, communal lounges and recreational areas, Namou said in an email.

Namou said a conservative estimate would be to have both hotels open by early 2027, although that could change.

[gratiotfaced]

I wonder what kind of height we're looking at here. Presumably just 4-8 stories, but higher would always be cooler.

[royce]

The site at 4 E. Alexandrine St. at Woodward Avenue would house a lifestyle hotel and an extended stay/multifamily concept, said Shawn Namou, an executive with the company. The lifestyle hotel would have things like a rooftop bar, co-working space and a fitness center, and the extended-stay hotel would have fully-equipped kitchens, communal lounges and recreational areas, Namou said in an email.

Namou said a conservative estimate would be to have both hotels open by early 2027, although that could change.

Is that the parking lot behind the Majestic [[or slightly to the south of it)? That would not be a part of The Mid, which is south of Alexandrine.

[RAPLAS]

It looks like AC hotel topped off but slow progress on Bonstelle theater.

[Lowell]

Nice to see the old Temple Beth El facade re-emerge!