Studio One Apartments Refinanced by $15.66 M Loan from CBRE HMF

By Veronica Grecu, Associate Editor

Studio One Apartments, a residential building located at 4501 Woodward Avenue in Detroit’s Midtown neighborhood, has received $15.66 million in non-recourse financing from CBRE HMF, CBRE Group’s direct HUD FHA lender. According to a press statement, the loan was funded through CBRE’s FHA-insured permanent loan program with a fixed rate, 30-year, fully-amortizing loan.

Developed and owned by Studio One Apartments, LLC in partnership with Wayne State University as part of the University’s strategic development plan, the apartment project was completed in 2008 and includes 124 market-rate units. The five-story building is conveniently located close to the Detroit Medical Center; the Wayne State University campuses are within walking distance and the Museum of Contemporary Art, which will be renovated and expanded into a more functional cultural center for Detroiters, is just a few blocks down the street.

The five-story building totals 155,000 square feet of space, of which 30,000 are housing ground floor retail spaces. The facility also includes a ground-level parking space for 49 cars and an adjacent 950-space public parking garage owned by Wayne State University.

“We are pleased to provide this FHA-insured financing. CBRE’s loan will supply this Class-A property with stable fixed rate financing at a historically low interest rate to ensure the property remains a long term contributor to this vibrant community,” said Jayne Hulbert, president of CBRE HMF, in a press statement.

Image courtesy of www.studio1apartments.com

Detroit Invited to Bid for the 2024 Summer Olympics

By Veronica Grecu, Associate Editor

Twenty-five large cities and metropolitan areas in the U.S. and 10 other international cities that have expressed interest in hosting an Olympic competition have received invitation letters from the U.S. Olympic Committee (USOC) to bid for the 2024 Summer Olympic and Paralympic Games.

Though still fighting to recover from the economic decline that caused a massive loss of population, Detroit was one of the recipients. According to detroit2020.com, the city placed seven bids between 1939 and 1966 to host the summer games but each time gathered only a small number of votes, despite the city’s efforts to win the bids.

Written by USOC Chief Executive Officer Scott A. Blackmun, the invitation to bid letter emphasizes the unparalleled opportunity for a city to evolve socially and economically. Once chosen to stage such an event, a host city would require operating budgets in excess of $3 billion, not including costs related to venue construction and other infrastructure.

USOC  lists a number of infrastructure and financial requirements that an Olympic host city should include:

-          45,000 hotel rooms
-          an international airport that can handle thousands of international travelers per day
-          an Olympic Village that can accommodate 16,500 people and has a 5,000-person
dining hall
-          meeting and operations space for over 15,000 media and broadcasters
-          public transportation service to venues
-          roadway closures to allow exclusive use for games-related transportation
-          a workforce of up to 200,000.

If the authorities decide to bid for the 2024 Games, Motown would compete against major cities that also got the invitation, such as New York, Chicago, Dallas, Boston and Los Angeles. Whether Detroit can stand up to the challenge is debatable, as the city would have to invest huge amounts in order to meet USOC’s requirements, with a focus on renovating and expanding/building new sports venues.

Image via Detroit 2024 Summer Olympic Games Support Facebook Page

MOCAD Redesign Project Wins International Architecture Award

By Veronica Grecu, Associate Editor

As the real estate world gets ready for the upcoming MIPIM 2013—the international property market—the winners of the 11^th Annual MIPIM Architectural Review Future Project Awards were revealed last week. The contest has been running since 2002, covering various categories of residential and commercial design.

This year’s awards ceremony, which will take place in Cannes, France, on March 13, is announcing good news for Detroit. The redesign of the Museum of Contemporary Art Detroit (MOCAD) by Rice+Lipka Architects and urban design/landscape architects James Corner Field Operations (or RLA/JCFO) has been selected as the 2013 winner of the “Old & New” category and is being recognized by the monthly international magazine The Architectural Review.

Established in 2006, MOCAD is located at 4454 Woodward Avenue (one of the most vibrant streets in Detroit, at least when it comes to real estate transactions) where it occupies a 22,000-square-foot building that used to be an auto dealership designed by architect Andrew Zago.

“The recognition mirrors our own enthusiasm for MOCAD, which, like Detroit, finds itself at a critical moment of reinvention,” explained in a press statement Lyn Rice of Rice+Lipka. “The new vision for expanded infrastructure and grounds will work to invigorate MOCAD’s already robust programming and community engagement, and position the museum as an energetic catalyst for the resurgence of Midtown.”

MOCAD’s interior will be reorganized to create spaces where visitors can have an enhanced artistic experience, and the museum staff will work from expanded and improved spaces. The RLA/JCFO project calls for transforming the existing industrial structure into a more flexible and functional cultural center with a new layout and identity while preserving MOCAD’s raw design features.

 Rendering credits to Rice+Lipka Architects

State Approves Massive Redevelopment Project Backed by “Magic” Johnson

By Veronica Grecu, Associate Editor

The Michigan Land Bank Fast Track Authority voted unanimously in favor of a redevelopment plan that was proposed last year by a group of investors including basketball star Earvin “Magic” Johnson.

Considered to be one of the most ambitious revitalization projects proposed for Detroit in recent years, the plan aims to transform the Michigan-owned State Fairgrounds site located at Woodward Avenue and 8 Mile Road into a mixed-use development that would feature an Amtrak station, multifamily townhomes, senior housing, retail and office space, as well as a high-end theater complex anchored by several restaurants. The 164-acre property has been vacant since 2009, when Michigan officials decided to cut the budget for the annual fair, despite the fact that the state had to cover annual losses of around $1 million.

The $160 million proposal submitted by Magic Plus LLC, the joint venture made up of local investors Joel Ferguson and Marvin Beatty and Lansing native Earvin “Magic” Johnson, was the only one to meet minimum financial requirements, according to MLive.com.

As previously  reported here, most of the existing buildings at the historic Michigan State Fairgrounds will be demolished to make room for the proposed revitalization process. The only structures that will remain are the Coliseum, Joe Dumar’s Fieldhouse, the State Fair Band shell and the Dodge pavilion.

Image of the Coliseum Building at the Michigan State Fairgrounds courtesy of Wikipedia user Andrew Jameson 

Microsoft Set to Open First Store in Michigan

By Veronica Grecu, Associate Editor

Software giant Microsoft Corporation confirmed this week that it will open five new retail stores in five different states by summer. According to the list of locations revealed on the company’s official blog, Michigan’s first Microsoft location  will open in Troy at the Somerset Collection shopping center, where its direct competitor, Apple Inc., has already opened a store on the first floor.

Property Mentor Group notes that the Seattle-based tech company has reached 64 locations since opening its first store in Scottsdale, AZ in October  2009. Seeing that Apple has 250 retail locations, Microsoft seems to have embraced a new strategy against its competitor by opening retail stores within walking distance of Apple’s existing stores.

The other locations include:

•          Natick Mall (Natick, Massachusetts),
•          Ala Moana Center (Honolulu, Hawaii),
•          Pioneer Place (Portland, Oregon),
•          Woodfield Mall (Schaumburg, Illinois)

In 2012 Microsoft opened its first international full-line stores in Edmonton, Burnaby, Vancouver and Toronto, Canada. As the year came to an end, the company announced six new store locations for 2013: The Shops at La Cantera (San Antonio, Texas), Dadeland Mall (Miami), Beachwood Place (Beachwood, Ohio), Westfield San Francisco Centre (San Francisco), City Creek Center (Salt Lake City), St. Louis Galleria (St. Louis).

Image via Microsoft Store’s Facebook Page