Did Gilbert Buy the Vinton Building?

[dmike76]

Is anyone else getting a little bit anxious about how much Gilbert owns now? Don't get me wrong, I love all of the development, but what if something happens to Quicken/Bedrock? If Gilbert or his company gets taken down by illegal activity or a catastrophic economic scenario, all of this could be dead in one fell swoop, couldn't it? Seems like a lot of eggs in one basket, like the auto industry.

[Eber Brock Ward]

Is anyone else getting a little bit anxious about how much Gilbert owns now? Don't get me wrong, I love all of the development, but what if something happens to Quicken/Bedrock? If Gilbert or his company gets taken down by illegal activity or a catastrophic economic scenario, all of this could be dead in one fell swoop, couldn't it? Seems like a lot of eggs in one basket, like the auto industry.

I saw a chart the other day that put this in perspective.

- Gilbert owns something like 2.9 million square feet of space.
- The Ren Cen alone is something like 5.5 million square feet of space.

He's got a long way to go to be the #1 property owner in Detroit.

[bailey]

I saw a chart the other day that put this in perspective.

- Gilbert owns something like 2.9 million square feet of space.
- The Ren Cen alone is something like 5.5 million square feet of space.

He's got a long way to go to be the #1 property owner in Detroit.

I agree with you...would it affect reality that much, no. However, in the unlikely scenario something negative takes Gilbert out of the picture, it would be a tremendous blow to the forward momentum. Couple that with Illitch's death any day now. [[I mean he's at that age) and it could get very dark around here.

[southen]

I agree with you...would it affect reality that much, no. However, in the unlikely scenario something negative takes Gilbert out of the picture, it would be a tremendous blow to the forward momentum. Couple that with Illitch's death any day now. [[I mean he's at that age) and it could get very dark around here.

gilbert was smart enough to avoid all of the subprime lending that sunk many of his competitors. given how cheap hes getting everything and his business acumen i think he's going to be around making a difference for a long time.

[Gannon]

gilbert was smart enough to avoid all of the subprime lending that sunk many of his competitors. given how cheap hes getting everything and his business acumen i think he's going to be around making a difference for a long time.

Unless something happens which lowers the valuation of ALL properties, something that is never, ever considered in any banking and insurance and mortgage growth potentials. There was rampant deflation of everything around real estate in 2008, and it can happen again in this world climate.

[southen]

Unless something happens which lowers the valuation of ALL properties, something that is never, ever considered in any banking and insurance and mortgage growth potentials. There was rampant deflation of everything around real estate in 2008, and it can happen again in this world climate.

isnt that more relevant though in markets like new york or chicago? he's buying these properties at rock bottom prices, so isn't the risk almost nothing?

[Det_ard]

isnt that more relevant though in markets like new york or chicago? he's buying these properties at rock bottom prices, so isn't the risk almost nothing?

No. There's no natural law that says the prices he's in at are "rock-bottom". Plenty of folk have thought that, only to find a much lower bottom exists beneath rock-bottom. There's always risk and the most you can lose on any real estate investment is 100%. That said, I think his upside is larger than his downside.

What gives me pause however is that he is the only one buying at this pace in Detroit. There are other very astute investors out there, in Detroit, nationally and internationally and plenty of money to buy Detroit-priced properties. Yet no one else sees what Gilbert sees. None even seem to want to ride his coattails and pick up a building or two. That ought to make everyone stop and think about his plan, for there's no other major city I'm aware of where there's really only one buyer for central city real estate. Other cities have dozens or hundreds. We'd like to think he's a visionary genius but its possible he's not.