The city of Detroit is experiencing something of a real estate boom. Investors interested in seeing the city flourish are working together to create investment and financing opportunities for commercial and residential developments.
Competition continues between lender groups in long-term fixed mortgages. Although the rates have ticked up, the competition has not decreased commercial transactions momentum. This has helped private investors purchase commercial buildings throughout the city. During a recent tax-foreclosure auction, an investment group based in Canada purchased 21 properties in Corktown for approximately $185,000.
However, long hindered by the city’s dire economic situation, those interested in moving the city forward on larger scale are now able to find alternate funding for their developments. Instead of being stymied by the restrictions and parameters that have inhibited lending, continued development of funding through the union of foundations and commercial lenders brings in capital that is sorely needed, so that these investors can better serve the needs of the city’s population.
The Woodward Corridor Investment Fund recently announced new funding of $30.25 million. The funds are the result of investment by The Kresge Foundation and NCB Capital Impact. The new funding from The Kresege Foundation and NCB Capital Impact will combine with support provided by the Max M. & Marjorie S. Fisher Foundation, Living Cities, PNC Bank, Prudential, MetLife Inc., and Calvert Foundation, to provide opportunities for investment and rebuilding.
Rather than focus on a specific type of commercial or residential building project, the fund will support mixed-use building projects. This reflects the city’s demand for such buildings, where commercial and residential real estate serve the needs of a vibrant urban population. In an effort to revitalize the city for all its citizens, the building project includes transit-oriented projects, as well as developments that appeal to a mixed-income base.
The donors to the Woodward Corridor Investment Fund have a vested interest in bringing the city to its full potential. Whether the ties are long-standing, such as with the Kresge Foundation, or are more recent, such as with NCB Capital Impact, all are united in their goal to revitalize the city that means so much to them.
DTE Energy looks to be another important factor in the city’s development. Not only are crews working with other developers in order to rehabilitate projects and buildings, but the company reportedly purchased the Temple Hotel, between Cass Avenue and Woodward Avenue. This building is located in the proposed Red Wings sports and entertainment district.
Dan Gilbert, chairman and founder of Rock Ventures LLC, recognizes the importance staying true to the city. “Designing a signature architectural project from the ground up in downtown Detroit — or any great city — is an opportunity of a lifetime, and we are committed to getting it right,” he said. Detroit’s Hamilton Anderson Associates and New York’s Shop Architects PC will be working together to create a development on the former Hudson’s site that will reflect the architectural traditions of the city.