Plans to develop former Free Press Building

[kenp]

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.

Thats interesting. I would be inclined to pay more if I could get on a elavator, and get my car in a secure parking garage in the basement.

[DetroitPlanner]

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.

Anyone who has casually inspected the site can see that there already is an entrance for underground parking. It may not be as big of a challenge as some may think.

[ghettopalmetto]

Funny how people get so worked up about the quoted "average" rental rate, without knowing the average square footage of each unit. There's a huge difference between $1870/mo for 2000 sf and $1870/mo for a 500 sf studio. Does anyone know how big the proposed units will be???

[Pcm]

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?

I can only speak for myself, but I'm upset because they've priced me out of living there. And I already live in the city and WANT TO STAY. How is a young professional [[not a high income earner) early in his career supposed to afford that amount.

He can't.

So, I'm bound to the tiny craphole studio I live in now and can barely afford.

I certainly hope, however, that there are folks who can pay almost $2,000/mo in rent and choose to live downtown.

[ebutka]

Actually.... prices at the Fort Shelby Apartments would be higher than the Free Press would be...

One Bedrooms are priced between $1629-$1729
Two Bedrooms are priced anywhere from $2200 to $3200
Penthouses are over $4000

And I believe Crains had an article a few months back saying the building was almost completely occupied.

[Woodward22]

A lot of film people stay at the Fort Shelby. So they might be getting higher rents to compensate for short term leases.

[esp1986]

I can only speak for myself, but I'm upset because they've priced me out of living there. And I already live in the city and WANT TO STAY. How is a young professional [[not a high income earner) early in his career supposed to afford that amount.

He can't.

So, I'm bound to the tiny craphole studio I live in now and can barely afford.

I certainly hope, however, that there are folks who can pay almost $2,000/mo in rent and choose to live downtown.

In any downtown area, the rents will be higher... New York and Chicago, rents are $3,500-$4,500 a month for a one room place in a lot of cases in the downtown areas. So let's not forget that, only the highest earners live in most downtowns, as the cost of maintaining high rises and older buildings is higher, so the rents correspond. The problem is, that even in Midtown, or out into Lafayette Park, every place that would be affordable for young professionals, is at or nearing capacity, providing for very limited choices. We can't be disappointed that the rents are high on places in Downtown, but we can only be disappointed that developers are not providing lower cost options anywhere in the area.

[Rocko]

This would be a huge boost for the area, really livening up that part of Washington Blvd. and Lafayette and the Fort/Cass DPM stop. It should better connect central downtown [[Campus Martius, Coneys, etc.) with the Pick Fort Shelby, which will be a boost for that historic property/redevelopment. Too bad they likely won't put the huge "The Free Press" olde-english script back on the roof, a real character defining feature. The underground parking will be a unique perk.

I doubt I could afford $1,800 a month, but that's just an average. I could probably do something several hundred dollars less. The top units might go for $2,900 and some smaller footprints for more like $1,200. Can't wait to see the work begin!

[p1acebo]

I can only speak for myself, but I'm upset because they've priced me out of living there. And I already live in the city and WANT TO STAY. How is a young professional [[not a high income earner) early in his career supposed to afford that amount.

He can't.

So, I'm bound to the tiny craphole studio I live in now and can barely afford.

I certainly hope, however, that there are folks who can pay almost $2,000/mo in rent and choose to live downtown.

Get a roommate man, it does wonders in regards to reduced pricing for rent. I myself live downtown and am able to do so with a roommate.

[BrushStart]

Look, I'm just happy there are plans for another downtown renovation. I'm tired of looking at all these beautiful old empty buildings. If the developers can get $1,800/mo on average in rent, then let them charge it. If they can't, prices will come down [[just ask Ferchill). Right now, Book Cadillac and Fort Shelby command the highest prices, but that's because they are the newest, most extravagent buildings on the block. 20 years ago, my building was among the most expensive luxury buildings in the city. Now, it is just another building and the elite have moved on up. It's just the life cycle of a building. Once the Broderick and Freep Bldg hit the stage, Book Caddy and Ft. Shelby will be eclipsed, that is until Book Tower and David Stott take the lead, hopefully in the next 2-5 years.

[Planner3357]

Look, I'm just happy there are plans for another downtown renovation. I'm tired of looking at all these beautiful old empty buildings. If the developers can get $1,800/mo on average in rent, then let them charge it. If they can't, prices will come down [[just ask Ferchill). Right now, Book Cadillac and Fort Shelby command the highest prices, but that's because they are the newest, most extravagent buildings on the block. 20 years ago, my building was among the most expensive luxury buildings in the city. Now, it is just another building and the elite have moved on up. It's just the life cycle of a building. Once the Broderick and Freep Bldg hit the stage, Book Caddy and Ft. Shelby will be eclipsed, that is until Book Tower and David Stott take the lead, hopefully in the next 2-5 years.

I agree. Every day I look out my windows I see the potential in all of the hulking buildings that are just sitting...waiting. Hopefully all of these rehabs buildings will inspire someone to do something with the United Artists building. I believe that when GCP area is thriving, so goes the city.

[stinkytofu]

Might deserve it's own thread, but some of the other MEGA tax breaks sound pretty cool and good for Detroit...

Projects seeking incentives are:
• An $83.5 million, six-story medical office building on the east side of Woodward, north of Mack Avenue.

The project, at 3800 Woodward Ave., will include the demolition of a medical office building and adjacent two-story office and retail suite on approximately 4.7 acres of property, according to a project description issued by the MEDC.

The project will have three components; a 200,000-square-foot, six-story mixed-use medical office building fronting Woodward Avenue; a 15,000-square-foot, single-story retail center fronting Woodward Avenue; and a 1,000-space parking garage screened by the two buildings.

The primary tenant of the new medical office building will be University Physicians Group, a for-profit corporation affiliated with the Detroit Medical Center. DMC and Wayne State University have an agreement to host residents of the medical school. Although UPG will host residents from the program, no direct financial assistance is gained from this relationship.

• A $73.2 million plan to redevelop the former Detroit Free Press office and printing facility at 321 West Lafayette.

The project will redevelop the building into a mixed-use retail, commercial and residential complex. It will have 23,000 square feet of first-floor retail, including restaurant space, and 27,000 square feet of commercial office space on the second floor. The third through 13th floors will be reconfigured from office space into 115 market rate apartments with an estimated average rental rate of $1,870 per month.

• A $16.2 million project to redevelop four vacant residential buildings in the so-called Sugar Hill Arts District in Detroit's Midtown neighborhood.

The two-phase project will redevelop lots at 81, 95, 107 and 119 Garfield St. In the first phase, the vacant property will be razed and a 213-space parking deck will be built. In the second phase, 46 residential units will be built above a first-floor art space.

• In Hamtramck, an old furniture showroom will be redeveloped into a $1.6 million mixed-use commercial and residential development.

The building, at 10201 Joseph Campau, will have a 3,000-square-foot restaurant on the first floor to be called Flavor Restaurant. The second floor will have 3,000 square feet of commercial office space, and the third and fourth floor will each have three, 1,000 square-foot two-bedroom units.

• A $33.1 million project to redevelop the Charles Terrace public housing development on the city's northeast side.

The development at 5825 Emerald Springs Circle will include the construction of 158 new home units in a mixture of single family, duplex, and townhome units. Of the 158 units, 83 will be financed with low-income housing tax credits and the remaining will be public housing units. Rents will range $50 to $632 per month.

http://www.crainsdetroit.com/article...te-tax-credits

[rbdetsport]

^ yea, what is the 6-story medical building to be built next to the Ellington. I have never heard of that before.

[Hypestyles]

how many pro athletes live within city limits? I suppose some of this could be attractive to them..

[esp1986]

how many pro athletes live within city limits? I suppose some of this could be attractive to them..

I have heard Matthew Stafford lives in the Fort Shelby, and I know for a fact that Ramon Santiago and one other Tiger did as well.

[Crew]

^ yea, what is the 6-story medical building to be built next to the Ellington. I have never heard of that before.

This has been in the works for a while.

[stinkytofu]

This has been in the works for a while.

I'm curious - anybody have a rendering?

[hybridy]

Might deserve it's own thread, but some of the other MEGA tax breaks sound pretty cool and good for Detroit...



http://www.crainsdetroit.com/article...te-tax-credits

FYI

http://www.senate.mi.gov/dem/pr.php?id=1765

[English]

For "four figure rent" in today's Detroit, I want multiple floors and a garage. With the extra you have to shell out for taxes, insurance, and driving everywhere, I can't figure out how even your average DINK professional couple can afford $1600-2000 per month.

My issue is that the rents in the CBD have gotten insane. 10 years ago, we were paying 20-40% less, but incomes have actually gone DOWN over the last decade.

I also agree that part of the premium you're paying in any city is for the right to live around certain kinds of neighbors. This is important in dwellings where you share walls. I'm renting a room in metro Detroit from a family member who has a condo, which is spacious, but right now I am listening to her upstairs neighbor blast music while I'm trying to watch the news. Sigh.

[BrushStart]

For "four figure rent" in today's Detroit, I want multiple floors and a garage. With the extra you have to shell out for taxes, insurance, and driving everywhere, I can't figure out how even your average DINK professional couple can afford $1600-2000 per month.

My issue is that the rents in the CBD have gotten insane. 10 years ago, we were paying 20-40% less, but incomes have actually gone DOWN over the last decade.

I also agree that part of the premium you're paying in any city is for the right to live around certain kinds of neighbors. This is important in dwellings where you share walls. I'm renting a room in metro Detroit from a family member who has a condo, which is spacious, but right now I am listening to her upstairs neighbor blast music while I'm trying to watch the news. Sigh.

Demand is way up even though incomes are down. There's also many more places to live downtown today than there was 10 years ago. Total residential space has doubled. Since 2000, downtown has added numerous lofts [[Merchant's Row, Woodward Lofts, Eureka, Broadway, Bricktown Lofts, Harmonie Park, etc.), PLUS, the Book Cadillac, Fort Shelby, Kales Building, Cadillac Square Apts, and others. Generally, it is those places that are commanding the highest downtown rents [[$1,200+/mo). The other buildings, like mine, have held pretty steady for a long time. However, I think the slight uptick in my rent this year is a sign that my building is at or near occupancy, which would not surprise me.

The best chance for lower rates is for large quantities of new units to be dumped on the market, i.e. Broderick Tower and Freep Bldg, and for supply to [[at least temporarily) outstrip demand. If rent prices dip at buildings like the Book Caddy when those new buildings hit the market, I'm jumping ship and signing a 5-year lease at the lower rate. However, I'm thinking that demand will continue to rise faster than available space. I'll go as far as to say that there will NEVER AGAIN be a cheaper time to live "downtown" than right now...

[Det_ard]

For "four figure rent" in today's Detroit, I want multiple floors and a garage. With the extra you have to shell out for taxes, insurance, and driving everywhere, I can't figure out how even your average DINK professional couple can afford $1600-2000 per month.

Your average DINK professional couple is making at least $150K per year, often more. They can easily afford to spend $20K - $24K annually on rent. In any other major city in the country they'll be spending a multiple of that. Detroit is cheap, really cheap. See what $1600 gets you in NYC, Boston, DC, SF etc. You won't like it.

[LeannaM]

$1870 average rent? That's market rate?

I know it's not the most accurate to compare cities here, but I know in St. Louis a few of the apartment buildings have affordable rate apartments that go for under $700. I've seem a few luxury loft apartments listed for $3k-$4k or a little more, but the average for a Downtown apartment is probably around $1,000 a month [[there can be quite a variation, though). Not to knock Detroit or act like St. Louis is better [[each city has good and bad points), but I can't imagine that Detroit apartments would be so much more valuable that $1870 would be market rate.

Although, St. Louis has a lot of affordable rate apartments, including the Washington Ave Apartments which is working with the St. Patrick's Center. Veterans who were on drugs graduate from St. Patrick's Center's program and they live in the Wash Ave Apartments for a few months with certain restrictions while they look for work. The counselors also live in the building and check on them every day. Most cities probably don't have programs like that Downtown [[although Chicago has a prison Downtown). A lot of the other Downtown St. Louis buildings are income-restricted. That probably lowers the average price. But the affordable rate is one of the conditions for getting the historic tax credits:

As a benefit of restoring a historic building utilizing state and federal tax credits, a portion of The Paul Brown Lofts will be set aside as an "Affordable Alternative." Households who meet established guidelines can qualify for the Affordable Alternative units, which carry a reduced rental rate.

http://paulbrownlofts.com/rental_rates.html

Obviously, places like Chicago and New York and LA would be more expensive, but you would think that Detroit's rents would probably be along the lines of St. Louis, KC, and Cleveland. From brief Craiglist overviews, $1870 seems a bit above average for those cities.

Here's a Detroit Craigslist ad for a rental at the Fyfe for $1150
http://detroit.craigslist.org/wyn/apa/2112479022.html
Granted, I know nothing about the building, but this apartment is significantly cheaper than $1870.
There's a few others for less than that around Comerica Park for under $1000, but, again, I know very little about the area.

Maybe it's just because I'm looking at this from an outsider's prospective, but that seems a bit high for market rate for Detroit or any other cities along its same tier. But I'm used to St. Louis' Downtown, which has lower rates than probably most Downtowns in a city/metro that size do.

[Hermod]

In any downtown area, the rents will be higher... New York and Chicago, rents are $3,500-$4,500 a month for a one room place in a lot of cases in the downtown areas. So let's not forget that, only the highest earners live in most downtowns, as the cost of maintaining high rises and older buildings is higher, so the rents correspond. The problem is, that even in Midtown, or out into Lafayette Park, every place that would be affordable for young professionals, is at or nearing capacity, providing for very limited choices. We can't be disappointed that the rents are high on places in Downtown, but we can only be disappointed that developers are not providing lower cost options anywhere in the area.

When I worked downtown, I lived out by 7-mile and Schoenherr and drove or got bused the length of Gratiot. The landlord had taken an income flat and "renovated" it into four small apartments. Hey, $85 a month wasn't too bad. Then I went in into the army and lived in trailer parks for a few years [[easier commute though).

[Pcm]

^ yea, what is the 6-story medical building to be built next to the Ellington. I have never heard of that before.

December 15, 2010 2:30 PM
Wayne State medical group wants to lease offices in new building

By Jay Greene


Wayne State University's University Physician Group, a 550-physician non-profit medical group, is negotiating a lease with Southfield-based Woodward Offices LLC to occupy 75,000 square feet of space at a new medical office building in downtown Detroit.
The building is scheduled to be constructed in 2012, said Ken Lee, UPG's executive director.
On Tuesday, the Michigan Economic Growth Authority approved $10 million in tax credits for the $83.5 million private development project at 3800 Woodward Ave., north of Mack Avenue.
Some 155 people would be employed for the construction project at an average of $22 per hour, according to the development application.
Under the plan, the existing Professional Plaza buildling would be demolished to make way for a 200,000-square-foot, six-story medical office building and an 800-car parking lot on the 4.7 acre site, said Gary Novara, a lawyer representing the developer with Southfield-based Novara, Tesija & McGuire, PLLC.
Lee describe the negotiations as preliminary.
He said Wayne State has long wanted to consolidate physician offices into a central location. Physicians currently occupy locations at 3750 and 3800 Woodward Ave. and other offices outside of Detroit, he said.
Navara said he hopes to complete the lease negotiations with UPG by the end of the first quarter of 2011. Construction could begin during the fourth quarter and completed sometime in 2012, he said.
The project, which would include using energy efficient and environmentally safe materials, also would include a 15,000-square-foot retail center on Woodward Avenue, Novara said.


http://www.crainsdetroit.com/article...n-new-building

[Danny]

That's great start for the west side of downtown. Bringing in some much need retail and living spaces into the Free Press Building. Keep those Downtown Detroit buildings utilized and develop for classical use.