1001 Woodward Joins Dan Gilbert’s Properties in Detroit

By Veronica Grecu, Associate Editor

Dan Gilbert’s investment spree in downtown Detroit is far from coming to an end. Rock Ventures, one of Gilbert’s companies that has become one of the big players on the Detroit real estate market, has acquired another office building located on Campus Martius Park, in the city’s commercial heart. The company’s real estate portfolio has now reached 2.9 million square feet of commercial and residential space in Detroit.

The 1001 Woodward tower was built in 1965 for the first federal Savings and Loan of Detroit under plans designed by local architecture firm Smith, Hinchman, & Grylls (now SmithGroupJJR). Known for many years as the First Federal Building, the structure was bought in 2008 for $5.4 million by Dimitrios “Jim” Papas’ Greektown Investment Group Llc., according to Curbed Detroit.

The building, which encompasses 275,000 square feet of Class A office space and first floor retail space, is currently 68 percent occupied by GalaxE.Solutions, the University of Phoenix, Meridian Health Plan, the Southeast Michigan Council of Governments (SEMCOG) and other tenants. The acquisition also includes an attached parking structure with 730 spaces and 15,000 square feet of first floor retail space facing Woodward Avenue.

According to a news release, Dan Gilbert’s Quicken Loans will lease 65,000 square feet of the 23-story building, bringing occupancy to 87 percent.

“The acquisition of the 1001 Woodward building allows us to continue to offer premium office space at affordable rates for those looking to join us in the technology district that is gaining more and more momentum each and every day,” Dan Gilbert said in a press statement.

As with the previous acquisitions in Downtown Detroit, the transaction was brokered by Rock Ventures’ real estate arm, Bedrock Real Estate Services, which will also manage the property and leasing activity and oversee future renovations.

Image credits to author Mikerussell on Wikipedia

Gold Star Mortgage Financial Group Relocates to Former Borders HQ in Ann Arbor

By Veronica Grecu, Associate Editor

Just weeks after a local and out-of-state group of real estate investors acquired the former corporate home of bankrupt bookseller Borders Group, Gold Star Mortgage Financial Group Corp. is moving its global operations to the new headquarters in Ann Arbor.

Quoting real estate sources familiar with the transaction, Detroit Free Press previously reported that Modern Woodmen of America, a financial services organization, sold the 330,000-square-foot office campus back in February for slightly less than the listing price of $6.9 million. While sources declined to name the buyer, Crain’s Detroit Business hints at Ann Arbor-based Madison Property Co. as the new owner.

Founded in 2000 by Ukraine immigrant Dan Milstein, Gold Star has become the fourth-biggest mortgage originator in the state of Michigan and it employs more than 500 people in more than 40 offices across the U.S.

Still based in Pittsfield Township where it occupies two office buildings, the company has been looking for new space that would bring together the 300 employees at the two offices and provide room for up to 250 new people that the company plans to hire in Ann Arbor in 2013.

According to Crain’s, Gold Star will lease at least 70,000 square feet of space in the office campus located at 00 Phoenix Avenue.

A recent market report by CBRE reveals that the vacancy rate in the Detroit metropolitan office market declined to 26.3 percent in Q4 2012 as compared to Q3, while rental rates continue to be low and attract tenants.

Chart courtesy of CBRE

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