He keeps up his shopping spree:
Link to Freep Article
1953
He keeps up his shopping spree:
Link to Freep Article
1953
I am pretty sure that he will own every building downtown except the RenCen soon. Hello Delta City.
The Dime Building needs no work done to it... it was gloriously restored a few years back, and received several preservation awards.
If he's buying occupied and profitable buildings, that should help him pay for renovations or attracting new tenants to his other buildings.
According to Dan Duggan over at Crain's, he has a blurb about the purchase as well, the building is 36% vacant. It is being purchased from Wells Fargo, foreclosed upon a few years ago. But at only $15m, this has to be nearly profitable as it is now, not to mention when Gilbert fills it up. It is obvious he is finding deals on buildings that are in good enough condition to either move into, make a buildout relatively inexpensive [[Madison), or only need minimal work [[First National). It's unfortunate the likes of the United Artists and Book likely don't fit the bill.
36% vacancy is higher than I thought. Thanks for the info.
I don't get the feeling he's in the real estate business to make money either. He is in it for Detroit. As long as he's not losing gobs of cash, i.e. breaking even, look for him to continue this trend. The man is very well connected, and obviously respected. He has that ability to motivate people to move down there. He also has that ability to do what GM has been doing and motivate companies that Quicken does business with to move downtown or risk losing that business. It is getting pretty interesting.
I think for this very reason things are going to get pretty interesting. Who knows what his final plans are for these buildings or who he has been talking with in regards to mobilization of business.
"When Gilbert fills it up."
How can we assume he can do what any number of smart people have failed to do before him? I want to see him work his magic, but I have trouble seeing how one person can turn around a regional market.
what businesses-- if any-- are in the dime building? anything cool for the general public?
i don't think dan gilbert got where he is today by losing money. he must see a way to make money from these deals. which is a good sign; here is a guy who ran a mortgage company that survived the mortgage meltdown. seems like he's the kind of guy who can see around corners while the rest of us are bumping into walls ...
My biggest fear is that he's biting off more than he can chew...too big, too fast. If his "empire" shall fall, so goes Detroit...I don't like putting so many eggs in one basket.
Don't get me wrong, I love the passion he has..but I do have my concerns.
There is a Pizza Papalis/Rio Wraps restaurant, a small coffee cafe, and a snack store that does it's own pretty decent lunch inside the Dime. They are good excuses to look at the beautiful interior.
I got some junk mail from Quicken yesterday about refinancing my house- but I was very happy to see a Detroit return address!
Good news! Hopefully he can boost occupancy. Im surprised occupancy is around 36%. I thought it was like 20%
Because he is the bank and able to take risks that the bank would not allow others to, worse case scenario its a write off,you can buy an empty building at as is value and put tenants into it and have an instant value increase,cash is king if you have the cash to buy now and hold even if it is break even the way he is doing it he can control the future market long term. Everything has its positives and negatives.
Thanks for the props esp1986. Here's the link to my blog detailing the deal. And, my own analysis, is that Gilbert will be second only to General Motors in terms of non-government landlords in Detroit.According to Dan Duggan over at Crain's, he has a blurb about the purchase as well, the building is 36% vacant. It is being purchased from Wells Fargo, foreclosed upon a few years ago. But at only $15m, this has to be nearly profitable as it is now, not to mention when Gilbert fills it up. It is obvious he is finding deals on buildings that are in good enough condition to either move into, make a buildout relatively inexpensive [[Madison), or only need minimal work [[First National). It's unfortunate the likes of the United Artists and Book likely don't fit the bill.
http://www.crainsdetroit.com/article...other-building
I wouldn't worry too much about Gilbert biting off too much debt.... he's got the sole monopoly on the only Casino in Cleveland and Columbus Ohio.
With all of that Ohio real estate [[including the Cavaliers)... it's nice that he's making downtown Detroit his HQ.
Dear Mr. Gilbert,
As you continue to buy up real estate in Detroit, please consider buying my house.
Thank you,
Mr. Un Derwater
Well maybe the 15m price tag has something to do with it. He doesnt seem to be overextending.
The good thing is that he is generating interest on properties in the downtown. There are bound to be investors from abroad who can take this further. Imagine a Dubai chieftain making a part of the cbd his pet project. A mall in downtown and an amusement park on part of the eastern riverfront past the RenCen.
[QUOTE=. A mall in downtown and an amusement park on part of the eastern riverfront past the RenCen.[/QUOTE]
Although, the greater downtwon is making some progress with people living there especially Midtown; we still need much more measurable and quantifiable
younger, educated dwellers with disposable income before a mall comes in. We need shops with walking accessibility, not an enclosed mall.
The more commercial movement is bound to create the demand for more residential however!!
Is it really this easy to buy Downtown Detroit property? Where have all the other Detroit philantrophists/real estate moguls been?
Eh... as an East Riverfront resident, I am suddenly NIMBY about an amusement park. Family fun center in the Globe Trading Company, sure. But Chene Park generates enough traffic in the area. I can't imagine what living next door to Six Flags Over Detroit would be like.
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