Plans to develop former Free Press Building

[innercitydoc]

http://www.detnews.com/article/20101...Press-building

[mwilbert]

They are pretty optimistic on their expected residential rental rates. Hope it works out.

[bailey]

They are pretty optimistic on their expected residential rental rates. Hope it works out.

at least they arent trying to float million dollar penthouses for sale.

[mwilbert]

True. I've seen [[much) less plausible plans.

[Pcm]

"The third through 13th floors will have 115 market-rate apartments with an estimated average rental rate of $1,870 per month, according to the MEDC. The 14th floor will feature a health club and meeting rooms. "

From The Detroit News: http://detnews.com/article/20101214/...#ixzz186W2d5h4


Almost $2k/mo is market rate? Who can afford that?

This will never happen.

[Fury13]

$1870 per month for a downtown rental is NOT going to fly in this economy. I'd love to see that great old building renovated, though. Why not convert five or six floors into artists' live/work "loft" space?

Here's an example of a similar project:
http://www.artspace.org/properties/riverside/

[bailey]

What is the Kales going for? the lofts along woodward? arent they pretty full and running around the same rates?

[kenp]

They may be gettting a 10 million dollar grant. This seems to far fetched for me, I just dont see this succeeding.

[davewindsor]

I remember seeing people moving stuff in and out of there a couple month ago. I figured it was for that Motor City Filmworks Production Studio. Now it's gonna be apartments and retail. It's a very nice building. I hope they get it off the ground.

[esp1986]

As far as I know, the Fort Shelby Tower Apartments and the Book Cadillac Condos are the only ones renting for this or more in the Downtown area. Even though they are both nearing capacity, it has taken them both a couple years to get there. With the Broderick Tower project, billed as luxury apartments, likely going for the same rate, there will be quite a vacancy rate downtown very soon if both projects go through. I think that Downtown certainly needs more luxury living options, but it is also in dire need of $1000-$1500 per month options.

I am glad to see this moving ahead, regardless of the rate. Odds are that they will end up lowering rates within a few months of opening when they want to fill it up. I believe the Free Press Building is owned by the same group that owns the David Stott Building... hopefully lightning can strike over there too.

[Planner3357]

I rent at Kales for UNDER $900. The 18th floor 2 bed 2 bath penthouse is $1800/month and still empty. Other than that the place is 100% occupied.

But that rent at the FREEP building is way too high.

[esp1986]

I rent at Kales for UNDER $900. The 18th floor 2 bed 2 bath penthouse is $1800/month and still empty. Other than that the place is 100% occupied.

But that rent at the FREEP building is way too high.

If they want to renovate that building and lease at a high value, then let them. After all, it is on Washington Boulevard, once the 'Fifth Avenue of the West.' With Downtown slowly picking up steam again, there are going to be more expensive places at some point, the disappointment is just that with such high demand for mid-price level rentals, $1000-$1200 and even to $1500, there is nobody willing to build them. Not to say there isn't any demand for this, just not as much, but if both this and the Broderick Tower project get off the ground, one [[if not both) of these projects is likely to lower their rates at some point to fill the place up.

[Hypestyles]

Why so expensive? Why not develop mixed-income units.. They seem to be targeting extremely well-off established single folks, mainly.. any units set up for families?
where would people park?

[Augustiner]

where would people park?

Did you read the article?

[hamtown mike]

Almost $2k/mo is market rate? Who can afford that?

This will never happen.

Totally agreed.

[kenp]

The plan is to change the 3 floor basement into a parking garage. Thats seems like a nightmare of a project to me. But if they can pull it off would be a huge benefit to the potential renter.

[hamtown mike]

if both this and the Broderick Tower project get off the ground, one [[if not both) of these projects is likely to lower their rates at some point to fill the place up.

Exactly! So somebody gets to be the sucker believing that a firm $1,800/month price tag would keep some of the dirtbags away. Two months later prices drop and there goes the "neighborhood."

[TheKage]

What this project really hinges on is the success of the retail/commercial space on the first two floors. Obviously the apartments also need to reach a certain occupancy level, but I don't think the project has a chance if they can't even find restaurant, bar and/or store owners to make a go of it on the first two floors.

http://fromthekage.blogspot.com/2010...-old-free.html

[hamtown mike]

Why so expensive? Why not develop mixed-income units.. They seem to be targeting extremely well-off established single folks, mainly.. any units set up for families?
where would people park?

No no no no no no no.

Get real. Let the market dictate where people live. If the market demanded family oriented units, the market would build them.

I could just see it now... A single successful young woman in her 30's goes to the leasing agent.
"Hi yes." I don't need a big space but I would like for it to be really nice. You know, perhaps granite countertops, private parking-I can pay up to $1,800 a month. But, oh, I really enjoy living below a family of 5. Especially if they have children that scream at 2 am. And oh, if they had extended family members that stop by at all hours of the day and night and get in shouting matches I would even considering going as high as $1,900 a month.

[p1acebo]

No no no no no no no.

Get real. Let the market dictate where people live. If the market demanded family oriented units, the market would build them.

I could just see it now... A single successful young woman in her 30's goes to the leasing agent.
"Hi yes." I don't need a big space but I would like for it to be really nice. You know, perhaps granite countertops, private parking-I can pay up to $1,800 a month. But, oh, I really enjoy living below a family of 5. Especially if they have children that scream at 2 am. And oh, if they had extended family members that stop by at all hours of the day and night and get in shouting matches I would even considering going as high as $1,900 a month.

Good point. Seems like there is a variety of developments going around downtown/midtown why not develop different looks? Let the market work itself out.

[esp1986]

Exactly! So somebody gets to be the sucker believing that a firm $1,800/month price tag would keep some of the dirtbags away. Two months later prices drop and there goes the "neighborhood."

Prices won't drop that much... they would drop a little at a time until they have a respectable occupancy rate, say above 90%. they aren't just going to drop the prices to $700... you will still have high earners in there... just more people willing to pay the price. The average would likely bottom out around $1300, that is unless they are magically able to fill the place up at higher rates.

[buildingsofdetroit]

Freep story, though it doesn't offer much more than the News': http://www.freep.com/article/2010121...et-tax-credits

[TheKage]

Why is everyone so worked up about the rent rates? If they're too high and there's no demand, they'll eventually adjust down. Is that not obvious?

[buildingsofdetroit]

The plan is to change the 3 floor basement into a parking garage. Thats seems like a nightmare of a project to me. But if they can pull it off would be a huge benefit to the potential renter.

Shouldn't be too bad, actually. The 3-floor basement is basically a huge cavern because the printing presses were huge. The parking lot behind the building [[on Fort) has an underground entrance. All they have to do is knock out holes in the wall and [[maybe) make some ramps and "Michigan Theatre it." Not as hard of a feat as selling 100+ apartments at $1,800/month.

[TheKage]

Good point, buildingsofdetroit. That old press area was constructed to allow vehicles in and out - not quite as a parking garage does, but close enough that it's probably one of the easier parts of the project.