DETROIT — The Gilbert Family Foundation (GFF) and Rocket Community Fund will make a $500 million philanthropic investment in Detroit over the next 10 years to assist with the property tax debt of low-income homeowners. GFF will contribute $350 million, and the Rocket Community Fund will invest $150 million. Quicken Loans founder and billionaire businessman Dan Gilbert, along with his wife Jennifer, are the founders of GFF. An initial $15 million investment from GFF will completely eliminate the property tax debt owed by an anticipated 20,000 low-income homeowners in the city of Detroit, according to a news release. GFF says this effort will assist in preserving an estimated $400 million wealth and home equity in Detroit. This investment will establish the Detroit Tax Relief Fund, which will be administered by Detroit nonprofit Wayne Metro Community Action Agency. Upon confirmation of eligibility, Wayne Metro will pay the remaining delinquent tax burden on behalf of residents. With its $150 million investment, Rocket Community Fund will continue to focus on issues of housing, employment and public life. Gilbert’s real estate arm, Bedrock, is a full-service real estate firm with more than 100 properties in its portfolio totaling roughly 18 million square feet in …
LANSING, MICH. — Kohan Retail Investment Group has acquired Lansing Mall in Michigan for an undisclosed price. The 706,925-square-foot regional mall is located at 5330 W. Saginaw Highway in Lansing. Tenants include JC Penney, Regal Cinemas, Best Buy, Barnes & Noble, TJ Maxx and Shoe Carnival. CBRE’s National Retail Partners Midwest team represented the seller, Brookfield Properties Group.
By Steve Eisenshtadt, Friedman Real Estate 2020 was a challenging year for the office market. The pandemic caused record-high unemployment earlier in the year. Offices were forced to close, and employees quickly learned to work remotely since March. The office market in metropolitan Detroit ended 2020 with an 18.4 percent direct vacancy rate and 19.5 percent when adding in available sublease spaces, which increased to over 1 million square feet throughout the metropolitan area. In 2021, we expect to see a continued increase in direct and sublease availability, as the pandemic will keep offices closed for at least the first half of this year. Post-pandemic, many office users will integrate remote work practices, better social distancing and healthy building environments into their office plans. On a positive note, office tenants that have shelved their plans for relocations or expansions are now finally in the market forging ahead with some of their decisions. While their ultimate office space configuration may look different than what was planned pre-pandemic, it’s encouraging to see more tenants active in the market taking steps to figuring out their game plans. Let’s take a closer look at four major office submarkets in metropolitan Detroit. Downtown Detroit (CBD …
KALAMAZOO, MICH. — JLL Capital Markets has brokered the sale of Lakeview Apartments in Kalamazoo for $19.6 million. The 280-unit apartment community features a playground, pet park and community barbecue area. The property is located at 1928 Colgrove Ave. and is situated adjacent to Ascension Borgess Hospital. David Gaines, Dave MacDonald and Kyle Butler of JLL represented the seller, Florida-based Property Resource Associates. The JLL team worked closely with Ron Plichta and Tommy Bateman of Property Resource Associates. Bender Cos. was the buyer.
HARRISON CHARTER TOWNSHIP, MICH. — Greystone has provided a $17.2 million Freddie Mac loan for the acquisition of The Shores of Lake St. Clair in Harrison Charter Township, just northeast of Detroit. The garden-style apartment community spans 13 buildings with 222 units. The complex was originally built in 1968. Amenities include a clubhouse, fitness center, pool, sports court and playground. Dan Sacks of Greystone originated the loan on behalf of Lightstone. The fixed-rate loan features a 10-year term and a 30-year amortization schedule with five years of interest-only payments. In addition to the acquisition, loan proceeds will be used for capital expenditures and property renovations.
PETOSKEY, MICH. — Big Lots has signed a 31,896-square-foot lease at Petoskey Town Center near North Central Michigan College. U.S. Properties eeewGroup (USPG) owns the 174,870-square-foot shopping center. Big Lots will occupy a former Kmart location, filling over 37 percent of the building. Petoskey Town Center is home to Hobby Lobby, AAA, Grondin’s Hair Center and Petoskey Sewing Center. The town of Petoskey is situated about 65 miles northeast of Traverse City. Ohio-based USPG owns approximately 4 million square feet and redevelops shopping centers in 10 states across the Midwest and Southeast.
LIVONIA, MICH. — L. Mason Capitani CORFAC International has brokered the sale of a portfolio of four office properties in Livonia. The properties include: Johnstowne at 16801 Newburgh Road; Charles Towne at 34441 W. Eight Mile Road; Pembroke Center at 37651-37695 Pembroke Ave.; and James Towne at 37701-37785 Pembroke Ave. The buildings were recently renovated, resulting in an overall vacancy rate of 85 percent. Mason Capitani of the brokerage represented the buyer, LREH Michigan LLC. The seller and sales price were undisclosed. L. Mason Capitani CORFAC International will oversee leasing efforts and the company’s affiliate, Liberty Property & Asset Management, will oversee property management.
By Doug Fura, Farbman Group With 2020 in the rearview mirror, hopes for a healthier and more prosperous 2021 seem likely to lead to economic and development surges in markets across the country. In Detroit, where the industrial market has been a clear bright spot in a pandemic-altered development landscape, industry professionals remain optimistic that development momentum won’t be slowing anytime soon. How realistic is that optimism, where does industrial stand right now and what’s in store for Detroit? No signs of slowing down The Detroit industrial real estate market is easily the tightest I’ve seen at any point in the last 40+ years. We are seeing speculative construction for the first time in over a decade. Even more impressive is the fact that, for the most part, that space is being leased up before the buildings are completed. While construction costs are at record highs, they are still dramatically lower than in many/most other large markets across the country. E-commerce influence Who and what is driving that demand? The 500-pound gorilla is Amazon, but the boom in e-commerce extends well beyond one company, no matter how influential. The market was already evolving prior to the pandemic, but COVID-19 has …
YPSILANTI, MICH. — Bernard Financial Group has arranged a $74.9 million HUD-insured loan for the refinancing of a multifamily property in Ypsilanti. The loan is the largest 223(f) HUD loan in over 30 years, according to Southfield-based Bernard Financial. The borrower was LITW LLC. Dennis Bernard and Dan Duggan of Bernard Financial arranged the loan with Gershman Mortgage. Further loan terms and property details were undisclosed.
DETROIT — LIFTbuild will construct The Exchange, a 16-story residential tower in Detroit’s Greektown neighborhood. The project will include 153 apartment units and 12 for-sale condominiums. There will also be ground-level rental office suites and retail space totaling 166,742 square feet. Amenities will include a valet and concierge, fitness and yoga studio and an outdoor terrace. LIFTbuild expects to break ground later this year with completion slated for 2022. LIFTbuild is a subsidiary of Southfield-based general contractor Barton Malow.