AUBURN HILLS, MICH. — Eastern Union Funding has arranged a $12.7 million acquisition loan for a 259-unit apartment community in Auburn Hills, approximately 35 miles north of Detroit. Bloomfield Square Apartments, located at 3161 Bloomfield Lane, is comprised of 28 buildings. Bloomfield Loop Square LLC was the borrower. Nate Hyman and David Metzger of Eastern Union Funding arranged the loan through Greystone & Co. The ownership plans to add a fitness center and upgrade the units and clubhouse.
Even as hotel operators continue to report steady gains in revenue per available room (RevPAR) nationally, Wall Street execs have begun to downgrade the lodging outlook, painting an entirely different picture. This disconnect is rooted in fears that the year-over-year growth in RevPAR is not sustainable in the current climate and that a spate of high-profile mergers and acquisitions among national operators must dictate a lower assessment of the industry. In spite of these concerns, demand continues to outpace new supply, both of which are occurring at a strong clip. Though industry observers may point to tepid occupancy as a concern, robust increases in average daily rates are leading to continued growth in RevPAR nationwide. How does Detroit stack up? Similar to the national hotel industry, Detroit is registering these same trends. On one hand, the market has recorded an increase in supply and a decrease in occupancy. On the other hand, average daily rates are steadily rising and RevPAR is growing overall, a sign of a strong hotel market. STR’s April 2016 report on the U.S. hotel pipeline indicated 1,046 rooms under construction in metro Detroit, or approximately 2 percent of the existing supply. This supply increase is at …
ANN ARBOR, MICH. — The Michigan Union, a student life building at The University of Michigan, will undergo an $85.2 million renovation. The project, which was approved by the Board of Regents last week, will add social space on the main level, improve lounge and study space, feature counseling and student support services and enhance ballroom meeting space. The building, originally opened in 1919, will also improve the space for people with disabilities and feature safety, electrical, mechanical and plumbing improvements. Student fees and investment proceeds will fund the project. Design Solutions, Workshop Architects Inc. and Hartman-Cox Architects will collaborate on the design of the project.
SAGINAW AND MUSKEGON, MICH. — CBL & Associates Properties Inc. has sold two shopping malls in Michigan for $66.5 million. The private buyer was undisclosed. The properties include the 901,181-square-foot Fashion Square Mall in Saginaw and the 645,677-square-foot The Lakes in Muskegon. The sale price included the assumption of a $38.2 million loan secured by the Fashion Square Mall. CBL & Associates is an owner and developer of malls and shopping centers throughout the United States.
HOLLAND, MICH. — NAI Wisinski of West Michigan has brokered the sale of a 2.5-acre plot of land in Holland, approximately 30 miles southwest of Grand Rapids, which will be home to a new hotel. The Home 2 Suites by Hilton will be located on West Shore Drive. The extended-stay hotel will be pet friendly and feature full kitchens. Doug Taatjes of NAI Wisinski of West Michigan represented the seller, West Shore Investors LLC. Berkshire Hathaway’s Cheri Renfeld represented the buyer, IMDC Acquisitions LLC.
STERLING HEIGHTS, MICH. — L. Mason Capitani CORFAC International has arranged a seven-year office lease in Sterling Heights, approximately 25 miles north of Detroit, for CoreSource, a third-party administrator of employee benefits programs. CoreSource will occupy space at the 24,700-square-foot Liberty Professional Center, located at 35601 Mound Road. Al Iafrate of L. Mason Capitani represented the landlord in the transaction.
NOVI, MICH. — Children’s clothing retailer Hanna Andersson and American Girl are set to open new locations at Twelve Oaks Mall, a 550,000-square-foot center located in the Detroit suburb of Novi. Both retailers are slated to open in early August on the mall’s upper level near Nordstrom. The American Girl store will be the retailer’s first in Michigan, and will be a temporary boutique, according to reports by Crain’s Detroit Business.
DETROIT — Wayne State University will break ground this Wednesday, July 20 on the Mike Ilitch School of Business, a new academic building on the public university’s Detroit campus. The new school is named for Mike Ilitch, the founder of Little Caesars Pizza and owner of the Detroit Red Wings professional hockey team. The project will be largely funded by a $40 million gift from Ilitch and his wife, the largest donation in Wayne State’s history. The project in total will cost $50 million, according to Crain’s Detroit Business. The Mike Ilitch School of Business will be located on the southwest corner of Woodward Avenue and Temple Street in The District Detroit, a massive redevelopment surrounding the Red Wings’ new arena currently under construction. The school is scheduled for completion in 2018.
MADISON HEIGHTS AND HOWELL, MICH. — Signature Associates has arranged three industrial leases totaling just shy of 110,000 square feet in Southeast Michigan. In the first transaction, Signature negotiated the lease of 52,045 square feet at 1044 Durant Drive in Howell. Jim Montgomery of Signature Associates represented the landlord, North Star Ranch, and the tenant, Hatch Stamping. In the second transaction, Signature negotiated the lease of 38,776 square feet at 900 E. Whitcomb Ave. in Madison Heights to Martin Fluid Power Co. Paul Hoge of Signature Associates represented the landlord, Aventura Properties. In the third transaction, Signature negotiated the lease of 18,800 square feet of industrial space located at 31201 Mally Drive in Madison Heights. Paul Hoge of Southfield, Mich.-based Signature Associates represented the landlord, Mallco Co. and the tenant, Superior Cam Inc.
To get a sense of what is happening in Southeast Michigan retail these days, the place to start looking is the past. It’s interesting and important to recognize that the seeds of many of the retail trends manifesting themselves today were planted years ago. Fortunately, the overall retail marketplace in Southeast Michigan remains generally strong. The marketplace may change over time, but one constant that remains unaltered is that quality rises to the top. Thoughtfully designed and developed retail projects in favorable locations have always done well — and that has remained the case through recessionary ups and downs and the whims of a consumer base that can be quick to change. Rethinking e-commerce Today, one of the most discussed topics of conversation for any retailer is the competitive pressure of the online and mobile marketplace. The convenience of virtual transactions, the rise of Internet powers like Amazon, and an increasingly tech-savvy population of shoppers who are comfortable and confident shopping online for a wider variety of goods and services has prompted the vast majority of brick-and-mortar retailers to work hard to carve out their own space in the digital marketplace. Online and mobile growth has had less of a …
