David Stott Building Discussion

**Danny** · May-04-11, 01:05 PM

90% of the David Stott Building is vacant. The owners just couldn't lure some investors into the area because of the Capitol Park at the time was home to lots of DEAD [[C)KRAK HEADS, po'folks, pigeon rats, mutants and those waiting for the D-DOT busses.

**Khorasaurus** · May-04-11, 03:51 PM

Most commercial real estate investors use a formula based on Net Operating Income to determine the value of the building. The listing shows an NOI of 575,000, which would give the building a value of 5-7 million.

$11 million is still way too high of an asking price, but it's clear the Stott has some value. It's not vacant yet. Hell, if the buyer could get it to 50% occupancy they'd start doing pretty well for themselves. That's obviously a big "if" with with a lot of space still available in buildings like One Detroit Center and the Penobscot, but it's certainly posssible.

**Bham1982** · May-04-11, 03:58 PM

Originally Posted by Khorasaurus

Most commercial real estate investors use a formula based on Net Operating Income to determine the value of the building. The listing shows an NOI of 575,000, which would give the building a value of 5-7 million.

I would like to see the broker's pro forma, because I cannot imagine an NOI of 575k. I would be surprised if even the cash flow from rents and advertising were 575k.

**BrushStart** · May-04-11, 04:32 PM

Didn't this building just sell for 1.5mm? I could'a swore that it did.

**Eric_c** · May-04-11, 04:55 PM

Interesting to note Hudson's standing in back of the Stott in that for sale advert.

**Khorasaurus** · May-05-11, 12:35 PM

Originally Posted by Bham1982

I would like to see the broker's pro forma, because I cannot imagine an NOI of 575k. I would be surprised if even the cash flow from rents and advertising were 575k.

I don't necessarily disagree, but that's what the listing says. I suspect the operating expenses aren't high, so most of the rent from the tenants they do have is profit at this point.

**Brian1979** · May-05-11, 12:39 PM

I had thought that this building was vacant but when viewing Detroit's skyline you'll notice that the upper reaches of the David Stott Building are lit at night, it's like up like the Penobscot Building at night with the upper reaches being lit from the outside. The way you notice this building is there are two red brick art deco skyscrapers on Detroit's skyline, the David Stott Building and the Guardian Building. Is this building now vacant?

**Khorasaurus** · May-05-11, 02:10 PM

It's not vacant. It certainly has first floor tenants. I've heard conflicting things about the office portion, but there may still be a few hanging around.

Certainly the vacancy rate is well over 80 if not 90 percent, but it's not completely dead.

The current owners I believe brought back the lighting on top, which is great. Earlier in this thread there was talk of them making some changes, including renovating many floors into residential. If they're now selling it it looks like that won't be happening, which is too bad.

**Brian1979** · May-05-11, 08:50 PM

Well that is too bad that they are selling it and the possibility of residential in that building is slim now. It'd be nice to have residential in that part of downtown. I've always wanted to see Capitol Park redeveloped but I'm not sure into what.

**stromberg2** · May-06-11, 01:54 PM

A friend of mine in the Black Crowes always said Capitol Park reminded him of Greenwich Village. I agree, one of the best looking spots in the city.

Stromberg2

**buzzman0077** · May-06-11, 09:46 PM

I may have been mentioned here I didn't have it in me to read through three years of posts, why is there a lighted martini glass on the top portion of the tower facing north? That would be an awesome place to have a drink. Just saying.

**rbdetsport** · May-07-11, 12:14 AM

Building looked great tonight from the Detroit and Windsor sides. Glad to see it all lit up!

**carlscomputers** · June-14-11, 09:05 PM

http://www.modeldmedia.com/devnews/s...ahl061411.aspx

**Gistok** · June-14-11, 09:47 PM

Be sure to click on the SKYBAR LOUNGE webpage.... I was mesmerized for about 15 minutes watching the scenes from the bar, the building lobby and the views from the top of the building... all to very nice music.... WOW......

**carlscomputers** · June-14-11, 10:34 PM

I'm still bitter about the forced move!!!, but, it does look good...

**Mind field** · June-14-11, 11:16 PM

I wish them success in their planned conversion to condos.

**stromberg2** · June-15-11, 01:20 PM

Wow, damn cool pictures! I wish them great success and will stop by one of these days.

Stromberg2

**Danny** · June-15-11, 02:23 PM

I been to the David Stott Building with my mother to take care some business. It was somewhat at the 20th floor. That building at that time was 50% occupied. Then by 2008 Most of the building floor by floor is vacant except a few retail and the 2 new lounges opening soon.

**Planner3357** · June-15-11, 02:39 PM

I still think those Martini glasses atop the building are horrible looking. So cheesy.

**j to the jeremy** · June-15-11, 02:41 PM

I like the glasses. We already have 3 casinos, one with neon tye-dye. This is not bad at all. Capitol Park needs some non-crack related 24hr foot traffic. There are already a fair amount of students and artists living in lofts there, and D'mongos, Lafayette Coney, etc contribute to the district, but there's a lot of room to grow.

**Planner3357** · June-15-11, 03:38 PM

Originally Posted by j to the jeremy

I like the glasses. We already have 3 casinos, one with neon tye-dye. This is not bad at all. Capitol Park needs some non-crack related 24hr foot traffic. There are already a fair amount of students and artists living in lofts there, and D'mongos, Lafayette Coney, etc contribute to the district, but there's a lot of room to grow.

Just think they could have done a better job with the glasses. But I do agree that CP needs some more traffic. There really is a ton of potential. It could be one of the cooler spots, districts in downtown. I guess it'll have to wait until I win the lotto.