Wednesday, July 23, 2025
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Market ReportsMichiganMidwestMidwest Market ReportsMultifamilyOffice

The Hunt for Yield Returns to Detroit and Its Suburbs

by Kristin Harlow

In 2008, the credit crisis had gripped the world and in particular, the Midwest. Lenders, whether CMBS or life insurance companies, had put large “X’s” through Michigan on their maps. And Detroit? South of 8 Mile, you couldn’t get a deal done. Enter entrepreneur businessman Dan Gilbert. Inspired by an intern spurning his then Livonia-based Quicken Loans for a more urban, walkable environment in Chicago, Gilbert made the bold decision to move his entire operation to downtown Detroit. Now in 2018, Ford, GM and Chrysler (and various suppliers) are humming, resulting in a decade-low statewide unemployment rate of 4.8 percent. The central business district (CBD) and Midtown Detroit multifamily occupancy rates are at 95 percent, with office just a touch under that, according to CoStar Group. And in downtown Detroit, which many in the metro area once regarded as a quasi-War Zone, vacant buildings are selling for millions of dollars and millennials in yoga pants dot the streets. Detroit’s resurgence since 2008 has earned it the nickname of “America’s Great Comeback City,” with no better metaphor than Ford Motor Co. recently buying one of the world’s great eyesores, Michigan Central Station, the former train station. However, the city’s renaissance is …

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Market ReportsMichiganMidwestMidwest Market ReportsMultifamilySingle-Family Rental

Positive Economic, Demographic Trends Fuel Detroit’s Apartment Rental Market

by Kristin Harlow

Throughout metro Detroit, employment and population gains are bolstering apartment demand. Following the creation of 40,200 jobs one year ago, employers in the metro area added 22,200 people to payrolls during the past four quarters. The hiring brought the unemployment rate to 4.5 percent in March, down 10 basis points year over year. The tighter rate may make it more difficult for some employers to find qualified workers to fill openings. During the past 12 months, the hospitality sector led hiring with 8,200 additional workers. New hotel openings contributed to the increase. Sustained job growth has helped to boost the metro population by nearly 11,700 people and 6,600 households over the past year. Many of these residents are opting to rent, as rising home prices place homeownership beyond the reach of more households. During the past five years, the median price of a single-family home has soared 68 percent to $177,053 as of March. Highly amenitized homes or properties in desired areas such as downtown Detroit, Troy or Royal Oak, have much higher median prices, making renting a more affordable option in numerous areas of the region. Construction concentrations Multifamily construction is gaining traction in the suburbs. Completions in the …

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DevelopmentMichiganMidwest

Corporate Eagle Breaks Ground on New Headquarters at Airport in Waterford, Michigan

by Kristin Harlow

WATERFORD, MICH. — Corporate Eagle, a provider of fractional jet ownership and jet management services, has broken ground on its new headquarters at the Oakland County International Airport in Waterford. Located on 5.7 acres at the corner of Highland Road and Patterson Parkway, the new facility will include 56,000 square feet of hangar space, 9,000 square feet of business and member VIP facilities, 85,000 square feet of concrete tarmac and jet fuel storage for 40,000 gallons. Corporate Eagle currently operates out of a 58,000-square-foot facility less than a quarter-mile east of the future site.

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CivicDevelopmentMichiganMidwest

Development Team Selected for Gordie Howe International Bridge Project Connecting Detroit to Canada

by Kristin Harlow

DETROIT — Bridging North America, a partnership of Fluor and ACS Infrastructure Canada, was selected to design, build, finance, operate and maintain the Gordie Howe International Bridge project for Windsor-Detroit Bridge Authority. The planned bridge and border crossing will span the Detroit River and connect Detroit to Windsor, Canada by linking I-75 and I-96 with the new extension of Highway 401 in Ontario. When complete, the bridge will be the longest cable-stayed bridge in North America. The scope of the project also includes building new ports of entry on both the U.S. and Canadian side of the Detroit River as well as improvements to existing infrastructure. Early work will start this summer in advance of financial close, which is set for this fall. Fluor and ACS will operate and maintain the facility for 30 years to performance standards that will be established by WDBA following completion.

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AcquisitionsMichiganMidwestRestaurantRetail

Encore Arranges Sale of Property Leased to Applebee’s in Roseville, Michigan for $3.4M

by Kristin Harlow

ROSEVILLE, MICH. — Encore Real Estate Investment Services has arranged the $3.4 million sale of a building leased to Applebee’s in Roseville, about 20 miles north of Detroit. The 5,689-square-foot property, located at 31653 Gratiot Ave., traded for $597.64 per square foot. Applebee’s has 10 years remaining on its lease. The sales price represents a 7.1 percent cap rate and $597.64 per square foot. Logan McAnallen of Encore represented the seller, a Flushing, Mich.-based private investment group. Encore also represented the buyer, a private investor from Eldersburg, Md.

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Market ReportsMichiganMidwestMidwest Market ReportsOffice

Detroit Office Market Development Quickly Accelerates

by Kristin Harlow

The most exciting story in Michigan’s overall recovery from the Great Recession has been the revitalization of downtown Detroit. For locals and out-of-towners, Detroit’s development boom is surprising, exciting, refreshing, and at times, hard to believe. This real estate cycle may go down as the most important and consequential in 50 years. Indeed, the numbers and the anecdotal evidence demonstrate that we are not just witnessing a hot market — we are witnessing a once-in-a-generation shift in Detroit’s office market. Where we were What makes Detroit’s renaissance so amazing is how far the city has come in just eight years. For decades, downtown Detroit’s office market was effectively in the Detroit River. The central business district (CBD) continuously bled tenants to suburban markets, and heavy concessions along with incentives were required to lure office users to the city. Office tenants tended to be law firms, city, county and federal government agencies, non-profits, and city contractors — generally users that had to be downtown for proximity to the courts and City Hall. While the real estate statistics were not strong, the larger issue was the overall look and feel of the setting. Many buildings sat ominously vacant, the restaurant scene was …

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LoansMichiganMidwestMultifamily

Bernard Arranges $17M Refinancing for Apartment Property in Detroit

by Kristin Harlow

DETROIT — Bernard Financial Group has arranged a $17 million CMBS loan for the refinancing of River Place Apartments in Detroit. The 301-unit apartment complex, originally built from 1891 to 1908, features lofts and townhomes. River Place GP LLC was the borrower. Dennis Bernard of Bernard Financial originated the loan.

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LoansMichiganMidwestMultifamily

KeyBank Provides $14.4M Freddie Mac Loan for Acquisition of Manufactured Housing Community in Michigan

by Kristin Harlow

KALAMAZOO, MICH. — KeyBank Real Estate Capital has provided a $14.4 million Freddie Mac loan for the acquisition of Pavilion Estates in Kalamazoo. The 531-pad manufactured housing community was built in 1965 and is situated on 74.3 acres of land. Tim Weldon of KeyBank originated the 10-year loan, which features a 30-year amortization schedule. The borrower was not disclosed.

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DevelopmentMichiganMidwestMultifamily

NAI Wisinski Brokers Sale of 1.5-Acre Development Site for Apartment Project in Grand Rapids, Michigan

by Kristin Harlow

GRAND RAPIDS, MICH. — NAI Wisinski of West Michigan has brokered the sale of a 1.5-acre development site located at 745 Stocking Ave. in Grand Rapids. The sales price was not disclosed. The buyer, Woda Cooper Cos., plans to tear down the current building onsite and develop a four-story, 50-unit apartment complex. Known as Seven45, the property will feature affordable apartments intended for those who make 30 to 60 percent of the area median income. The unit mix will include one-, two- and three-bedroom units. Stan Wisinski of NAI Wisinski represented the buyer and the seller, John VanTongeren, president of Ferris Nut & Coffee.

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DevelopmentMichiganMidwestOffice

Ford Unveils Plans for Detroit Train Station Transformation at Public Event

by Kristin Harlow

DETROIT — Employees of Ford Motor Co., city and state officials and Corktown residents gathered on Tuesday at Michigan Central Station for a celebration during which the auto giant officially announced its plan to breathe new life into the former train depot. Ford plans to transform the long-vacant property into a new Corktown campus for work on autonomous and electric vehicles, as well as design urban mobility services and solutions that includes smart, connected vehicles, roads, parking and public transit. “We at Ford want to help write the next chapter, working together in Corktown with the best startups, the smartest talent, and the thinkers, engineers, and problem-solvers who see things differently — all to shape the future of mobility and transportation,” said Bill Ford, the company’s executive chairman. The acquisition of Michigan Central Station comes alongside the company’s purchase of the former Detroit Public Schools Book Depository, two acres of vacant land, the site of an old brass factory and the recent purchase of a refurbished former factory in Corktown, now home to Ford’s electric vehicle and autonomous vehicle business teams. Ford’s campus will span at least 1.2 million square feet of space in Corktown. Approximately 2,500 Ford employees, most from the mobility team, will call Corktown …

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