quiet. quaint. quirky. living in the v. · 2018-08-03 · quiet. quaint. quirky. living in the v....

Quiet. Quaint. Quirky. Living in the V.

Real Estate Open House, Sunday, September 30, 2007

The Villages are a unique collection of Detroit east riverfront communities – each with authentic personality and charm. This includes historic neighborhoods, high-rise condos, edgy lofts, and new construction homes. If you’re looking for a diverse, walkable, urban neighborhood, discover the Villages. Housing prices range from less than $100,000 to more than a million, making living here an ideal option for nearly everyone.

Living in the V! Open HouseWHERE: Parkstone Apartments, 1415 Parker, Detroit, Michigan 48214WHEN: Sunday, September 30, 2007, 1 p.m. to 5 p.m. WHAT: Neighborhood presentations every half hour

Realtor’s open house of properties for sale

For more information, call (313) 438-4143 or visit www.TheVillagesofDetroit.com.

Sponsored by: Church of Messiah Housing Corporation, Indian Village Association, English Village Brownstones and Lofts, DetroitTowers, Henry Ford Health System, St. John’s Hospital, Riverfront East Alliance, Friends School Detroit. Organized by the Villages Community Development Corporation, representing Bellevue Village, Berry Subdivision, Detroit Towers, East Village, English Village Brownstones and Lofts, Indian Village, Indian Village Manor, Islandview Village, Shoreline East, and West Village

Neighborhood Features:

• Adjacent to Belle Isle and theDetroit Riverwalk

• Strong neighborhood associations• Community gardens and

garden clubs• Minutes from downtown and

Detroit’s cultural gems• Diverse educational options• Recreation opportunities,

including rowing, tennis and yacht clubs

CDBmagazine.qxp 8/1/2007 9:17 AM

FALL 2006 CRAIN’S DETROIT BUSINESSFALL 2007

Through Neighborhoods NOW,

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Living & InvestingQuirky rehabs

■ From 8

velopers in the 1800s. Instead of a hub forlaw and real estate offices or general andspecialty stores, McGowan has revampedthe space into a music and dining venue.

The two-story, 20,000-square-foot struc-ture at Pike and Saginaw streets is sched-uled to open this month. It includes The Cro-foot Ballroom, a live concert hall andnightclub; The Pike Room, a nightclub forsmaller bands; and Crofoot Café and Vernor’sGrille, both bar/restaurants.

“Oakland County needs a playground,and the people of Oakland County appreci-ate going into an older city with quaintbuildings. If we had built this complexfrom scratch in the suburbs, it would havecost much more than the $3 million we putinto this project,” said McGowan, who ren-ovated Detroit’s St. Andrews Hall in thelate 1970s.

Built in 1830, the Crofoot Building wasrebuilt in 1852 by Michael E. Crofoot, anOakland County attorney and probatejudge. The New Crofoot Building, as itwas called at the time, included a fullbasement and first and second floors. Athird floor at the front of the building wasburned away in a 1950 fire. In addition tohis law office, the building housed otherbusinesses.

Though McGowan had to gut the build-ing, he restored as much of the originalmaterials as possible. Now exposed brick,old wood, marble and glass set the stage foran inviting atmosphere. McGowan alsobuilt “green” by recycling block, brick andold timber, and installing a white roof.

ON THE WEBRead about what’s been dubbed“automobile row” in Midtown, a collectionof buildings with automotive history thathave made way for lofts, commercial spaceand museums. See our Web Extra coverageat crainsdetroit.com.

The renovation of the Crofoot Building wasfunded in part by a Cool Cities grant andbrownfield tax credits.

DETROIT BUSINESS MAIN 08-13-07 B 30 CDB 8/6/2007 4:54 PM Page 1

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CDBmagazine.qxp 8/1/2007 6:01 PM Page 1


Living & Investing intheDDRestorations

Lofts findsuccesswith rentalmarket

Housea DIYdreamcome true

Focused efforts, big resultsBY MICHELLE MARTIN

SPECIAL TO CRAIN’S DETROIT BUSINESS

he Lofts at New Amsterdam,nestled in the New Centeramong technology start-

ups and the university communi-ty, found a niche within an other-wise turbulent housing market.

When other developers wereconverting lofts for sale, South-

field-based Jonna Cos. focused onone of the New Center’s longtimestrengths: the rental market.

And with the help of the NewCenter Council, $4.8 million in fed-eral loans and $450,000 in grants,Jonna teamed with Detroit-basedZachary and Associates to developthe 52,000-square-foot Lofts atNew Amsterdam.

The partnership made sense.Zachary and Associates alreadyhad found success in the rentalmarket; the company convertedthe once-run down Garfield Build-ing on Woodward into rentalunits. The Lofts at Garfield, in thecity’s Midtown, currently has a

100 percent occupancy rate. Like the Garfield project, The

Lofts at New Amsterdam faced anumber of challenges — includinglongtime vacancy and neglect. For-merly known as the Graphic ArtsBuilding, the structure on Bur-

BY MICHELLE MARTINSPECIAL TO CRAIN’S DETROIT BUSINESS

arl William Swanson’s1907 Queen Anne homewas renovated with lots of

elbow grease, plenty of ingenuityand a little Hol-lywood flair.

Swansonbought the 1,800-square-foot his-toric home at1754 Parker inDetroit’s WestVillage in 2004.

“The placewas a mess,”said Swanson,who undertookthe project with his wife, VittoriaKatanski. “There was sewage inthe basement, the roof was fallingin. There was old wiring, oldplumbing, the toilet was falling

T

Carl William Swanson’shome was “a mess” beforehe took on the task ofrenovating it in 2004. Hisefforts were recognizedwith one of the 2007Governor’s Awards forHistoric Preservation.

Converting the former Graphic ArtsBuilding (far left) at the New Centerinto the Lofts at New Amsterdam wasnot without its challenges. Waterseeped into the interior (left) beforethe building was restored (above).The project was a recipient of theannual Governor’s Awards for HistoricPreservation.

See Page 36

C

See Page 35


CDBmagazine.qxp 8/2/2007 11:33 AM Page 1

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CRAIN’S DETROIT BUSINESS FALL 2006 Page 35FALL 2007

Living & InvestingRestorations

■ From Page 32

roughs had been vacant for at least 30 yearsbefore Jonna acquired it from Southfield-based Farbman Group in 2004.

The New Amsterdam project’s develop-ers said they expect the TechTown-basedlofts to have a similar occupancy rate. Cur-rently, 56 percent have been rented, withan average of two to three leases a month.

“The rental market always has beenstrong in the University Cultural Centerarea,” said Ernie Zachary, president ofZachary and Associates. “We’re address-ing today’s demand, which is high-qualityrentals.”

Work on the Graphic Arts building,which houses 39 units, was completed inOctober 2006. Leasing began in January.

The building was constructed in 1926,when it housed art studios that specializedin automobile advertising.

Nearly 70 years later, it had major struc-tural damage and obsolete mechanical andelectrical systems.

“It was sitting deteriorating for so manyyears,” said Christine Piligian, vice presi-dent of development and management forJonna. “It was more like a labor of love; itwas very tough work to do.”

Michigan historic preservation, brown-field redevelopment and federal rehabilita-tion tax credits helped make the project areality. One of the challenges, the develop-ers said, was incorporating current build-ing codes while satisfying the historicpreservation commission and maintainingan appealing floor plan.

Zachary and Jonna also both credit theirrelationship with the New Center Council,which helped them secure the financingand tax credits for the project.

Rental prices range from $850 to $1,550for the 640- to 1,360-square-foot units. Theyoffer secure parking, granite countertops,concrete floors and 12-foot ceilings. Five ofthem have patios.

On the main level is a 1,900-square-footspace for commercial or office use. It re-mains available.

The project is the first of two phases. Thesecond, which is 70 percent completed, isthe building at 6200 Second Ave., also inTechTown. Like the New Amsterdam pro-ject, it will have rental units.

“Compared to the doom and gloom wehear about Michigan, this particular vil-lage (TechTown and the New Center) is do-ing well,” Zachary said. “If you look at theindustry here, it is pretty solid, with theuniversity, culture and hospitals.”

DETROIT BUSINESS MAIN 08-13-07 B 35,36 CDB 8/6/2007 3:07 PM Page 1


Living & InvestingRestorations

■ From Page 32

into the kitchen ceiling. It was the worstplace on the block.”

Knowing he always wanted to restore ahistoric house, Swanson applied for Michi-gan’s historic tax credits. He also contact-ed the DIY Network’s “Restoration Realities”program.

Two weeks after he closed on the house,a production crew from “Restoration Real-ities” showed up to help him rehabilitatethe dining room. Among the room’s his-toric gems: African mahogany ceilingbeams, which since have been restored.

The African woodwork, also found in theliving room, was one of the reasons Swan-son bought the house. He liked that it nev-er had been painted.

Swanson, director of commercial revi-talization for Detroit-based U-SNAP-BAC, anonprofit that promotes economic revital-ization on Detroit’s east side, used contrac-tors for some projects but did a lot of thework himself, including restoring the orig-inal windows, rebuilding the porch andclearing the debris. It took four, 40-yardtrash containers to clear out the debris in-side the house.

The bulk of the restoration project tookabout a year. Overall, Swanson investedabout $75,000 in the three-bedroom, one-bath house.

The historic restoration credits havehelped move the project forward, he said.He won’t pay state income tax for 10 yearsbecause the credit is 25 percent of his eligi-ble income.

“It’s a great program,” he said. “The ap-plication process seemed a little intimidat-ing, because there’s a lot of paperwork, butonce you get into it, it’s not difficult.”

Swanson remains committed to the WestVillage neighborhood, which in July wasone of 26 communities to receive Neighbor-hood Enterprise Zone tax cuts beginningin 2008. The NEZ-designated areas are eli-gible for an 18 percent-to-35 percent taxbreak for 15 years.

West Village borders Indian Village andEast Village.

“That’s the next wave of development,”Swanson said. “Downtown is on one end,the Villages on the other end. We’re active-ly going after people who want to live inDetroit but don’t want to live in a loft; peo-ple who like the character of older houses.”

Swanson, who continues to work on hishome, doesn’t rule out the possibility ofpurchasing another house in West Villagesomeday.

“There are a couple of other houses inthe neighborhood,” he said. “I would rehabone of the houses just to get it back into cir-culation faster. It’s a great opportunity fora young person or a couple to come in andrestore.”


CRAIN’S DETROIT BUSINESS Page 37FALL 2007

Location, prices a drawBY DANIEL DUGGANCRAIN’S DETROIT BUSINESS

aving spent most of hislife living in the north-ern suburbs, Eric

Schoenbaechler was lookingfor something a little differentwhen it came time topurchase his firsthome.

So when the 29-year-old gave up hisRochester Hills rentalin June, he bought acondo in the Art CenterTown and CarriageHomes developmentnear Palmer and JohnR.

He was drawn toMidtown because hecan walk or ride hisbike to downtown andis close to culturalamenities.

“I thought thiswould be interesting— something new totry,” said Schoen-baechler, a designer inthe Birmingham officeof San Francisco-based furniture salesfirm Design Within Reach.

Developers and sales bro-kers in Detroit’s Midtown areaare looking for more peoplelike Schoenbaechler to move tothe city. While units are sell-ing, demand has slipped fromrecent history.

Since 2000, there has been$1.6 billion in investment inthe Midtown area includingcondos, institutional projects

such as schoolsand the DetroitInstitute of Artsrenovation.

Lofts andcondos makeup the bulk ofthe new resi-dential pro-jects, but rentalunits are be-

coming more common, saidSabra Sanzotta, owner/brokerof The Loft Warehouse residen-tial real estate brokerage.

“There’s some uncertaintyright now, so there are a lot ofpeople looking to rent for a lit-tle while before they buy some-thing,” Sanzotta said. “It’s aone-year cycle; they tend torent for a year, then buy some-thing.”

Among the large rental de-velopments under construc-tion is the Studio One mixed-usedevelopment, on the 6-acreSouth University Village site atWoodward Avenue and Forestwhere Vernors Ginger Ale used tobe produced.

The $35 million project willinclude 130 one- and two-bed-room apartments and 25,000square feet of retail. GrandRapids-based Prime Develop-ment Co. is the project’s devel-oper, partnering with WSU.

Rental space for WSU stu-dents and Detroit Medical Centerresidents is a niche to be filledin the area, said Larry Maran-tette, principal with Detroit-based Taktix, a real estate con-sulting firm. He was hired asan adviser to WSU to recom-mend a use for the parcel aswell as three other propertiesowned by the university.

“There are a number of con-

do projects along Woodward,but not really a market-rateapartment development,” hesaid. Rental rates for StudioOne will be in the $850- to$1,200-per-month range.

Other developers are inter-ested in the rental market as

well, said Sue Mosey, presidentof the University Cultural Associa-tion in Midtown.

Construction is under wayfor 28 to 30 units at 74 GarfieldSt. by developer ErnieZachary. The project is expect-ed to be completed in thespring.

Also planned is a 30-unitrental development by ScottLowell called the Beethoven,which would be at Prenticeand Third streets.

An additional 90-unit refur-bished apartment developmentis planned at 70 W. Alexan-drine St. Crain’s reported inApril the developer is a groupled by McLemore Developmentprincipals.

Sales might not be as brisk asthey were a few years ago, butunits are still selling at 55 W.Canfield St., said Colin Hubbell,principal with the Hubbell Group,

ROOM FOR RETAIL?Several of the residentialprojects in Midtown haveretail or commercialcomponents, bringing theprospect of shops,restaurants and smallbusinesses to the area. � The Ellington: 13,000square feet ofretail/commercial� Willys Overland Lofts: upto 18,000 square feet � Studio One: 25,000square feet � Also planned is aretail/commercialdevelopment at 4240Cass Ave., near CanfieldStreet, developed byDetroit-based MidtownDetroit Construction, saidprincipal Bob Slattery.Renovating an old AuburnAutomobile Co. servicecenter will bring 18,000square feet of retail andcommercial, he said.Some of the tenantsinclude Ace Hardware andPapa John’s.“With the residentialdevelopment that’shappening here, you’regetting some decentdensity,” Slattery said ofthe Midtown area.“There’s a lot ofmomentum building on theretail side. This has beenan underserved communityfor a long time.”

Culture ofthe corridorprovidesattraction

H

JOHN F. MARTIN

Eric Schoenbaechler was drawn to Midtown because he wanted to be close tocultural amenities like the Detroit Institute of Arts.

Living & Investing intheDDMidtown

See Page 38

Sanzotta


CRAIN’S DETROIT BUSINESSFALL 2007

Living & Investing

MORE IN STOREOther condo projects under construction orrecently completed in the Midtown area:� Crystal Lofts at 3100 Woodward Ave.,developed by Detroit-based BelmarDevelopment/Global Group, will include 17two-bedroom units with prices in the$170,000 range.� The Ellington, at 3670 Woodward Ave.,nearly completed by Detroit-based RamDevelopment Co., includes 55 one-bedroomlofts at prices ranging from $170,000 to$300,000.� The Moorie Townhouse Estates at 104Edmund Place, near Woodward Avenue,developed by Clarkston-based PlatinumBuilding and Development, will have 20units, with one-bedroom units starting at$198,000 and two-bedroom units startingat $225,000.� Nailah Commons, a 35-unit town homedevelopment between Kirby and Ferry westof I-75, is to start construction in the fall.The project will be developed by JulioBateau with units priced between$125,000 and $200,000. � Park Shelton, where 220 hotelapartments are in the second phase of aconversion to condominiums at WoodwardAvenue and Ferry Street by Walter Cohen ofPark Shelton Associates L.P., of Southfield.Studios start in the low-$100,000s, one-bedroom units in the $150,000s, and largerunits go up to the high-$300,000s.� The Springfield Lofts, under constructionat 627 W. Alexandrine St., near SecondAvenue, will include 10 lofts developed byDetroit-based Midtown Detroit Construction.Prices are near $300,000. � Willys Overland Lofts, under constructionat 444 West Willis St., is a 75-loft projectdeveloped by Plymouth-based DeMattia Groupand Midtown Detroit Construction has unitsranging from $180,000 to $600,000.

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■ From Page 37 Midtownwhich is developing the project.

Roughly half the 28 units have been sold,he said, many to first-time buyers.

That same buyer profile has driven salesat the Art Center development. The 29units in Phase 1 were sold-out in June 2006and nine of the 23 units in Phase 2 havebeen sold.

Part of what’s making sales move at thatHubbell Group project are low prices, hesaid, which start in the $150,000 range.

“I look at the guys with units starting at$300,000, scratch my head and say ‘Man,I’m glad I don’t have to try to sell that rightnow,’ ” he said.

Price factored into Schoenbaechler’s de-cision. “This was the right place for me,”he said. “But it was really affordable andthat helps.”

Daniel Duggan: (313) 446-0414, [email protected]


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CRAIN’S DETROIT BUSINESSFALL 2007

Envision healthy-vibrant-livable-sustainable-welcoming communities.Now make them happen with University of

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Funds findBY TOM HENDERSONCRAIN’S DETROIT BUSINESS

rivate equity, flush with capital andrunning out of deals in traditionalplaces, has taken aim at the local af-

fordable-housing industry, with an expect-ed deal in September expected to funnelmore than $32 million directly into metroDetroit.

Why are such sums of money attracted toprojects in distressed areas of Detroit andother communities? It’s because navigat-ing the complex world of tax credits allowsbanks, equity funds and builders to makemoney off projects that otherwise wouldmake no financial sense.

The Lansing-based Great Lakes CapitalFund, whose Detroit office helps fund af-fordable-housing developments and com-mercial renovation in Southeast Michigan,is doing its first deal with a private-equitycompany, which wants to buy $300 millionin bundled tax credits during the nextthree years.

Until now, once a year, Great Lakes bun-dled and sold tax credits solely to banksand related government institutions suchas Freddie Mac and Fannie Mae. Its 15thfund, which was raised late last year,bought $82.4 million in credits.

This year, Great Lakes is raising twofunds — a $100 million fund in Septemberfrom a private-equity company, and a sec-ond, about the same size, for banks. Thebank fund is scheduled to close by the endof the year or early next year.

Dennis Quinn, president of the Detroitregion, said he can’t name the private-equi-ty company because final details are beingworked out, but he said Great Lakes Capi-tal expects to raise two other funds of thesame size in 2008 and 2009 from the sameprivate-equity company.

The first fund is earmarked to spend$32.3 million for tax credits on projects inmetro Detroit, $13.6 million elsewhere inMichigan, and the rest in Great Lakes’ oth-er markets of Wisconsin, Indiana and Illi-nois.

Banks, private-equity funds and builderscan make money off projects that rent theequivalent of a $1,200-a-month apartmentfor $400 or $500 by turning the typical mort-gage model on its head.

Traditionally, buying or developing realestate involves a modest down payment andsubstantial debt. Much of the cost of themonthly note pays the interest on the debt.

Living& Investing inthe

P


nd Detroit theDD


But in affordable housing, 80 percent or90 percent of a project might be funded byequity. With debt at a minimum, themonthly cost to live there is lowered.

Here’s how the financing works: Devel-opers apply for state and federal tax cred-its, which can include brownfield-redevel-opment, low-income housing and historictax credits.

A syndicator, such as Great Lakes Capi-tal, raises a pool of money from its in-

vestors and buysthe credits at a ne-gotiated discountfrom the builders.The investors getthe credits againstfuture tax liabili-ties. They make aprofit on the dis-count and deductthe tax creditsfrom their corpo-rate taxes over 10years.

Banks get anoth-er payoff. By par-ticipating in afford-able housing andredevelopment

projects, they meet the requirement of the1977 Community Reinvestment Act, creat-ed by Congress to counter redlining anddiscrimination in banking.

The last few years, the demand for cred-its in a low-interest environment was high.Quinn said that in some regions of thecountry last year, syndicators paid morethan $1 for each $1 of tax credit, with bankswilling to take a small loss to satisfy termsof the CRA.

He said local banks paid 95 cents percredit in his 15th fund last year, but thatthe pendulum has begun to swing in South-east Michigan as banks, under pressurefrom the local economic environment,have demanded a bigger up-front discount.

Regional banks that routinely buy taxcredits include Chase, Comerica, Fifth ThirdEastern Michigan, National City, Key Bank,Huntington Bank, Charter One and LaSalleBank Midwest N.A.

Quinn estimated the private-equity fundwill pay between 88 cents and 92 cents perdollar of credit, and he expects banks in thefund after that to pay between 85 and 89cents.

Tom Henderson: (313) 446-0337, [email protected]

Getting things done

Banks, private-equity funds andbuilders canmake money byturning thetypical mortgagemodel on itshead.


BY CONSTANCE CRUMPSPECIAL TO CRAIN’S DETROIT BUSINESS

ommunity developmentcorporations are the dri-ving force behind a grow-

ing tally of neighborhood revivalsin progress.

These groups have an in-creased economic role in an arrayof projects through creative col-laborations and more funding op-tions.

Nonprofit CDCs act as the de-velopers of last resort, bringingtogether public and private re-sources to carry out planningdone at the neighborhood level.According to a recent Detroit LocalInitiatives Support Corp. study, de-velopment projects are up 17 per-cent over last year, measured bydollar value.

Detroit LISC supports nonprof-its through technical assistance,project financing, operating sup-port and training.

It has a campaign under way,“Neighborhoods Now,” whichseeks to promote $100 million innew residential and commercialdevelopment during the next twoyears in strategic-investment ar-eas. The initiative has leveragedmillions of dollars into areaneighborhoods through 2005-06.

“We have invested $38 millionin projects and organizations. It’sresulted in nearly $320 million inprojects: residential, commercial,community buildings, green

space and new facades,”said Deborah Younger,the new executive direc-tor of Detroit LISC.

“There’s excitementand energy. Concern forneighborhoods is echoedby many groups. There’srecognition that strongneighborhoods are goingto rebuild cities, con-

tribute to economic develop-ment.”

That mindset is a change fromDetroit’s past.

“In olden days, Detroit wasknown for its planning — such asLafayette Park. It came from onhigh. CDCs are doing that plan-

ning now, piece by piece. I don’tthink that fragmentation is hurt-ing the city, because it’s market-driven,” said Ernest Zachary,president of Zachary & Associates,Detroit-based development plan-ning and finance consultants.

Because CDCs are community-based, they act on opportunitiesthat defy conventional views.

“The perception that we’re in adefensive mode shapes decision-making. Except in the best CDCs;they see a place where the popula-tion is growing, jobs are being

generated, businesses developed.Until we’re the city of the futurein more than rhetoric, CDCs aregoing to lead by example,”Zachary said.

CDCs can be made up of neigh-borhood residents, businesses ina shopping district, or associatedwith churches, all with boardmembers who come from theneighborhood.

“They’re equipped to decidewhether or not a project is appro-

Page 42 CRAIN’S DETROIT BUSINESSFALL 2007

Community groups gain momentum

Living & Investing intheDDGetting things done

They’redriving$317million inprojects

THE NEXT WAVE OF INVESTMENTThis map highlights the parts of the city of Detroit and nearby suburbsthat are targeted for neighborhood development.The Detroit Local Initiatives Support Corp.’s “Neighborhoods Now”initiative seeks to spur $100 million in investment in seven investmentzones with different priorities.

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Michigan Ave.

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Woodward Ave.

LAURA KOWALSKI

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See Page 45

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Central Woodward: Mixed-income housing, education,

health care Far East/Lower East:Housing, retail, educationNorthwest Detroit:Residential, commercial Southwest Detroit: Increasemarket-rate housing, socio-

economic diversity

Detroit-Grosse PointeCollaborative: Commercial

corridor cleanup, collaborationamong neighborhood associations

Fort-Visger Collaboration(Detroit, Ecorse, Lincoln Park,

River Rouge): Residential, retailVan Dyke — 8 Mile GatewayCollaborative (Detroit, Warren,

Center Line): Attract retail, improvefacades

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smmodel D MSHDA is proud to be a sponsor of Model D. To learn more about neighborhoods across Detroit, visit www.modeldmedia.com

ADVERTISEMENT

This is a picture of a city with new hope and new life - thanks to so many nonprofit community

development organzations. MSHDA is proud to support those who support Detroit.

www.michigan.gov/mshdaMichigan State Housing

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priate, needed or wanted,” saidBob Chapman, executive direc-tor of WARM Training Center inDetroit, which provides adviceon energy-efficient homes andtraining for new homeowners.

Said LISC’s Younger: “Peoplewho live in the neighborhoodshave to save themselves. Theycan stem decay and turn neigh-borhoods around. Neighborsprioritize, based on their assets.(They) attract private invest-ment with planning legwork(through CDCs). They assemblesites, match plans and investors’needs, direct them to placeswhere they’ll be welcomed.”

However, sometimes CDC’srelative amateur status can be ahandicap when compared withmore advanced organizationsin other big cities.

“In other places, attention ispaid to CDCs — Cleveland,Chicago,” Chapman said.

Besides disrespect in somecases, site assembly andcleanup of land are classic im-pediments to development,along with zoning and title is-sues. These are factors that can

make greenfield developmentmore appealing.

“Private developers don’twant the hassle. Time is money.We’re helping to overcomethat,” she said.

Detroit LISC’s latest study ofdevelopment projects by com-munity groups bears her out.Between June 2006 and May2007, 1,696 residential unitswere planned, under construc-tion or completed, comparedwith 1,343 units between Janu-ary 2005 and May 2006.

Commercial projects total303,638 square feet in the newstudy, compared with 261,446square feet in the earlier study.Total value of projects in thenew study is $317.4 million,compared with $270.9 million inthe earlier period, an increaseof 17 percent.

The projects are blossomingall over town, Younger said.(See list, this page.)

Linda Smith, executive direc-tor of U-SNAP-BAC, a CDC, hasseen a big increase in participa-tion at community meetings.Smith is encouraged on thatfront but troubled by the effects

of the local housing slump.“We have money to build (the

remaining housing units) butonly two buyers,” she said. “Thedifficulty is finding qualifiedbuyers.”

Younger concurred: “Adownturn in the economy hitsthe housing market, especiallyin older neighborhoods. Wehave to ‘grow’ buyers. We alsohave foreclosures. Michigan isthird in the nation.”

U-SNAP-BAC is trying somenew tactics to cope with thechallenges.

“We are working on a part-nership with Thrivent-Habitat forHumanity. We’re trying for a $1million ‘Thrivent Builds Neigh-borhoods’ planning grant —half grant, half loan — for the16-block Morningside Com-mons” neighborhood actionplan, Smith said. “We need todeal with abandoned housing,develop a program to get assis-tance with boarding-up, cuttinggrass. The banks and mortgagecompanies aren’t gettingaround to it. Formerly we re-lied on the city (for all thesethings).”

■ From Page 42

COMMUNITY DEVELOPMENT■ At Mack Avenue and Alter,the Warren Connor DevelopmentCoalition and Eastside Land Inc.completed a 58,000-square-foot retail center.■ In the same neighborhood,Church of the Messiah HousingCorp. is planning up to 40affordable homes.■ Grandmont RosedaleDevelopment Corp. renovatedthe 7,600-square-foot LindsayBuilding and completed 24store facade updates.■ Southwest Detroit has 300residential units underconstruction or completed inthe past two years, the OddFellows Hall renovation onVernor Highway and theMexicantown Mercado. ■ On the northeast side, DetroitCommunity Initiative Inc. built48 senior apartments, with 50single-family homes underconstruction in the Gratiot andRochelle area.■ On the east side, U-SNAP-BAC plans 40 homes to add tothe 27 completed at EastWarren Avenue and Alter Road.

— Constance Crump




Faith-based developmentChurchesleadhousing,retailprojects

BY MARTI BENEDETTISPECIAL TO

CRAIN’S DETROIT BUSINESS

hen the Rev. EdgarVann looks out thewindow of his Second

Ebenezer Church on East GrandBoulevard, he sees the fruits ofhis church’s labor: housing, aschool, jobs and retail stores.

The church and its VanguardCommunity Development Corp.have put many of those in placeduring the past 14 years.

Second Ebenezer also isbuilding a new church at I-75and McNichols Road that isscheduled to open in the fall,bringing the church’s total in-vestment to $65 million, Vannsaid. The old church will beused for community develop-ment programs.

“The churches are the pre-mier community developer ofour city,” said Vann, pastor ofSecond Ebenezer, near thecity’s New Center. “We have todo this to meet (all of) the needsof our people, not just spiritualneeds.”

Second Ebenezer is one ofseveral major Detroit houses ofworship spending millions ofdollars to create varied hous-ing, business and educationalchoices for the residents oftheir neighborhoods.

Church pastors often thinkof their neighborhoods as smallcities, said the Rev. Charles El-lis III, pastor of the $36 millionGreater Grace Temple on thecity’s northwest side. “Whatwe’re creating is a campuswhich we call the city of David.When we built this church, wethought of it being a city thatwould offer all kinds of activi-ties.”

Greater Grace’s 20-acre“city” includes a banquet andconference facility, retail cen-ters, an 89-unit apartment com-plex for senior citizens, aMontessori School and the his-toric Rogell Golf Course, pur-chased from the city of Detroit

for $2.1 million in the spring. The 18-hole course was origi-

nally built in 1914 by promi-nent members of the Jewishcommunity. Since GreaterGrace bought it, it is the onlyblack-owned and -operated golfcourse in the state and one of afew in the country.

Ellis, also bishop of the Pente-costal Assemblies of the World,said the church’s efforts areeven more important as theneighborhood feels threatenedwith the closing of the EighthPrecinct police station and aYMCA branch, along with thepossible closing of Redford HighSchool.

To keep the area viable, Ellissaid, the church plans to ac-quire three retail centers and agas station on Seven Mile Road.

Fellowship Chapel Church onDetroit’s west side completed anew, $16 million church inJune 2005. The church is on 10.5acres of formerly blighted land,said the Rev. Wendell Anthony,Fellowship Chapel’s pastor.

The second phase of develop-ment is Fellowship Village Es-tates, 126-market rate, single-family homes and town homes

being developed by Detroitbusinessman Herb Strather.The church’s community de-velopment corporation Amand-la (a Zulu word meaning powerto the people) and Stratherbroke ground in June. Con-struction is expected to beginin September, and the homeswill be priced from $145,000 to$225,000.

Hartford Memorial BaptistChurch, on Detroit’s northwestside, and its pastor, the Rev.Charles G. Adams, are pioneersin city economic developmentas well. About 10 years ago, ittook a leadership role in buy-ing land at Seven Mile andMeyers roads and gettingKmart to locate in the city. Re-cently, the Kmart was replacedby Home Depot.

Hartford Memorial Commu-nity Affairs Director EdithClifton said Adams was instru-mental in starting the SummerLeadership Institute 10 yearsago in partnership with HarvardUniversity’s Divinity School.Adams’ two-week class on eco-nomic development andchurches typically draws 50

WILLIAM PUGLIANO

The Rev. Edgar Vann leads Second Ebenezer Church, which is amongseveral Detroit churches working on economic development.

W

See Page 49


pastors to the university’s Cam-bridge, Mass., campus. “A num-ber of Detroit pastors have tak-en it,” Clifton added.

Little Rock Baptist Church onWoodward Avenue oversees $50million in investment in itsneighborhood, south of High-land Park, and beyond.

The Rev. James Holley, pastorof Little Rock for 35 years, saidthe church has tried to stay “cut-ting edge” with economic devel-opment. Little Rock and its for-profit community developmentcorporation Rock Property Man-agement L.L.C. employ 476 peoplein enterprises that include edu-cation, housing and retail —even a soon-to-open pharmacy.

Holley is involved with sevenother ministers in developingthrough the Michigan CommunityAction Program a 144-unit apart-ment building near EasternMarket. Privately, Holley is de-veloping 14 market-rate condosat Holbrook and John R that areset to open in September.

Holley also owns 25 percent

of St. Regis Detroit Partners L.L.C.,which includes 16 other Detroitministers who are part of De-troit 20/20.

Jacquelyn Williams-Arm-strong, Michigan State HousingDevelopment Authority director ofthe Southeast Michigan Devel-opment Division in Detroit,said the organization seeks toincrease affordable rental hous-ing through church collabora-tion.

She said the MSHDA has a

longstanding relationship withDetroit pastors to help them un-derstand how to jump-start de-velopment. “We also recentlymet with the Council of BaptistPastors. We plan to meet withthem regularly.”

The faith-based Kendall Com-munity on the city’s west side isproviding that kind of help. Anarm of the New Gospel Church ofGod and Christ, a few miles fromKendall, it helped build 38 mod-ular homes along with Champi-on Enterprises; 42 more housesare planned.

“It’s necessary that thechurch take a leadership role inchanging the mindset and val-ues of the residents,” saidVeronica Adams, KendallHomes consultant.

Second Ebenezer’s Vannhopes his church’s MilwaukeeJunction Small Business Center willhelp do that. The business incu-bator is designed to help peoplestart businesses in industriessuch as information technology.

Perfecting Church at Seven

Mile Road and Woodward Av-enue has invested $60 million ina new church, a parking struc-ture and an administrationbuilding. Its second phase in-cludes 50 single-family homes,which the church’s communitydevelopment corporation hopesto start next year, said the Rev.Marvin Winans, pastor.

“Churches leading economicdevelopment are important fora real comeback for this city,”Winans said.


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■ From Page 46

Little Rock Baptist Church oversees$50 million in local investment.

AARON HARRIS

BEYOND TITHESLocal churches are drivingnearly $300 million indevelopment, according toresearch for this story.Churches’ communitydevelopment corporationspartner with other nonprofits,developers and city, county andstate governments. Fundingcomes from church groups,lenders, government grants andorganizations such as the LocalInitiatives Support Corp.


BY AMY WHITESALLSPECIAL TO


arsha Bruhn raisedfour kids in NorthRosedale Park in the

1970s and ’80s. For a fewyears after her divorce, sherented on the east side, butwhen she heard her oldneighborhood was having acommunity open house in1988, Bruhn, director of De-troit’s planning commissionfrom 1983 to 2005, decided totake a look.

“The market was down atthe time, as it is now, andsome of the neighborhoodresidents got together anddecided to have a (communi-tywide) open house,” shesaid. “I thought it was greatthat I could go to all thesehouses in one Sunday after-noon. I bought the third one Isaw. I fell in love with it im-mediately and bought it aweek later.”

North Rosedale Park is adiverse, family-orientedneighborhood. It has oldtrees, custom-built homes,and its own park and com-munity house. But for thepast 18 months, Bruhn’s 1936Tudor Revival home hasstood between two vacanthomes, stark reminders thatno neighborhood is immuneto Southeast Michigan’s softreal estate market.

A lack of neighbors isn’tgood for the neighborhood,which is why four neighbor-hood associations in Grand-mont Rosedale organized acommunity open house inMay 2006. Real estate agentsopened 62 houses on oneSunday in May 2006, andmore than 200 people touredthem. Eight houses sold toopen house visitors in thenext two to three months,said Bruhn, who chaired theevent — along with anotherone in May 2007 — and

worked with HuntingtonHome Lending to track thesales.

“The way we approachedit wasn’t just in terms of howmany houses sell rightaway,” said Bruhn. “Some-times people aren’t ready tobuy, but it creates an aware-ness of theneighborhood. Iknow some peo-ple who (cameto the openhouse and)bought a househere five yearslater. It’s likeplantingseeds.”

The ideaseems to be ger-minating.GrandmontRosedale,Boston-Edisonand the Universi-ty District com-munities allhave held com-munity openhouses thisyear. Suburbancommunitieshave borrowedthe idea too; forexample,BloomfieldTownship heldone based loose-ly on a modelused by the city of Berkley in2006. The Villages, a consor-tium of Detroit neighbor-hoods and condominium as-sociations, has amultineighborhood openhouse in the works for Sept.30.

Community open houseswork for real estate agentsbecause they bring many po-tential buyers to a concen-trated area at little cost.Where a typical open housemight attract five to sevenpeople, more than 200 peoplesigned in at each of theneighborhood community

open houses this spring. “Ihad a Realtor who called mesay he had 30 people comethrough,” said WaltBaczkowsi, Metropolitan Con-solidated Association of Real-tors CEO. “He said, ‘I’ve nev-er had 30 people comethrough a house. They were

lined up outsidewaiting to comein.’

“Thirty peo-ple walkingthrough is al-most unheardof, particularlywhen there are16,000 proper-ties on the mar-ket (in Wayne,Oakland andMacomb Coun-ties).”

Communityopen housesgive neighbor-hoods a chanceto debunk sub-urban precon-ceptions andshowcase whatmakes themspecial — be it ahistoric desig-nation, schools,intriguing ar-chitecture,walkability orfamily friendli-ness.

Grandmont Rosedale’s for-mat, which several neigh-borhood events borrowed,included an initial back-ground session with real es-tate agents, the open housesthemselves, and ongoing pre-sentations about the neigh-borhood in a central spot.

“One of the things westruggle with is: People willget into this neighborhoodon a home tour or whateverand say, ‘My God, I had noidea this kind neighborhoodexisted in Detroit,’ ” saidJames Hamilton, president

“I had a Realtorcall me to say hehad 30 peoplecome through.He said, ‘I’venever had 30people comethrough a house.They were linedup outsidewaiting to comein.’ ”

Walt Baczkowski,MetropolitanConsolidated

Association ofRealtors

Page 50 FALL 2006 CRAIN’S DETROIT BUSINESSFALL 2007

COME AND VISITThe Villages, a consortium ofneighborhoods andcondominium associationsbordered roughly by Baldwin onthe west, Mack on the north,McClellan on the east and theDetroit River on the south, hasa multineighborhood openhouse in the works for Sept. 30.The gathering site for theinformational presentationsevery half hour from 1 to 5 p.m.will be the ParkstoneApartments, 1415 Parker. Seewww.thevillagesofdetroit.org.

Living & Investing intheDDNeighborhoods

Opening doors to buyersCommunityopen housesallow hundredsto check outneighborhoods

M

See Page 52

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Living & Investing intheDDNeighborhoods

of the Historic Boston-Edison As-sociation, whose neighborhoodincludes homes built by promi-nent turn-of-the-century De-troiters like James Couzensand Sebast-ian Kresge.“There arepeople whojust aren’taware ofthese places.It’s hard tofind a buyer if(the neigh-borhood’s)not on theirradar.”

By hostingopen houses,neighbor-hood associa-tions can helpreal estateagents understand what itmeans to live in a certainneighborhood, from paintingto property tax credits. Itmakes for better-informedbuyers and better-preparedneighbors, especially in his-

toric districts.“We have houses that take a

special buyer,” said JudyDelusky, a 15-year resident ofIndian Village. “You have to be

willing totake on thechallenge ofan olderhome andyou have toaccept that ifyour door isgreen andyou want itblue, youhave to fillout a lot of pa-perwork orelse scrapeaway thepaint andshow that itreally was

blue to begin with.“On the other hand, you’re

getting into an area where youcan be as involved as you wantto be. … Everybody knowseverybody else right down totheir dog’s name, and on Satur-

day it takes about three hoursto mow the grass because peo-ple stop and talk.”

Delusky’s neighborhood isjust one part of The Villages’September open house, whichwill include the full spectrumof urban living, from historichomes to condos overlookingthe river.

The open house might notgenerate more than a handfulof immediate sales, said SteveWasko, president of The Vil-lages Community DevelopmentCorporation, but other commu-nities have shown it doesn’thurt; and taking action feelsbetter than waiting aroundwringing your hands.

“Who knows who will take acard or packet and come back ayear from now or give it to afriend or colleague?” saidWasko, who’s also president ofthe Historic Indian Village Associa-tion. “I think a lot of this isstanding up, opening the doorand saying very loudly, ‘We’reopen for business. Come seeus.’ ”

■ From Page 50

“We have houses thattake a special buyer. ...You have to accept thatif your door is greenand you want it blue,you have to fill out alot of paperwork.”

Judy Delusky, resident,Indian Village

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Page 52 CRAIN’S DETROIT BUSINESS



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Living & Investing intheDDHamtramck

A home for the worldBY CONSTANCE CRUMP

SPECIAL TO


mmigrants from South Asiaand the Middle East arechanging the face of Ham-

tramck and shifting the city’seconomic development strate-gy.

The enclave city mostly sur-rounded by Detroit was oncesolidly Polish, but now Polesare only one of 29 ethnicities inits 2.2 square miles.

The shift has wrought changein retail demands and put a newface on neighborhoods. Afterthe Polish population, Bengalisare the second-largest group,followed by Yemenis andUkrainians. Polish meat mar-kets and fraternal clubs sitcheek-to-cheek with sari shops,Bangladeshi restaurants andYemeni video parlors along

Joseph Campau and Conant.Erik Tungate, Hamtramck’s

director of community and eco-nomic development, said thecity faces two hurdles. The citydoes not own property ear-marked for renewal, and its cityservices budget leaves littleroom for funding development.

Investment is taking placedespite the challenges.

Vet Park Lofts, a four-unit,$750,000 live-work developmenton Joseph Campau by Ham-tramck-based Unique UrbanSpace L.L.C. just opened. Two de-velopers have completed 80 of153 in-fill housing units on scat-tered sites in the city. Thehomes by Rochester Hills-basedGrand Haven Homes L.L.C. andTown Center Homes L.L.C. sell for$110,000 to $140,000.

Several loft conversions arein the works because of Ham-

tramck’s Neighborhood Enter-prise Zone, set up 18 monthsago to encourage second-storyloft-living by offering property

tax abatements. The city alsohas a new group, the HamtramckEconomic Development Corp.,with a board composed of Ham-tramck and Detroit officials,and support from General MotorsCorp., American Axle & Manufac-turing Holdings Inc. and NationalCity Bank.

The creative class attractionto cities helps too. The Ham-tramck Art Collective, based atCafé 1923 on Holbrook Street, israising money to renovate abuilding for offices and low-costartist studios.

Collective President Christo-pher Schneider said the grouphas prepared a business plan tosecure a decommissioned citybuilding. The planned $150,000project includes studios, exhibi-tion space, a gift shop andshared resources such as adarkroom and kiln.

JOHN F. MARTIN

Christopher Schneider is raisingmoney to renovate a building forartists’ studios.

I



Living & Investing intheDDHighland Park

Resurrecting a cityBY MAUREEN MCDONALD

SPECIAL TO


n Macomb or Canton town-ships, the groundbreakingfor a new shopping plaza

might not elicit a community-wide celebration. In HighlandPark, the anticipated shovelceremony at the Shops at Wood-ward Place later this month is

expected to attract political andbusiness leaders wearing theirSunday best.

At least four developers triedand failed to resurrect the sitewhere the Sears departmentstore departed in the mid-1980s.With the continuing help of HPDevco, the nonprofit develop-ment arm of the city, the WayneCounty Land Bank and stateCities of Promise efforts, a $6

million plaza will rise up on a40,000-square-foot brownfieldsite.

“It’s great to have the com-munity support you,” saidMike Curis, partner of Curis En-terprises. His ability to secureGerman-based grocer Aldi Foodsand Detroit-based Communicat-ing Arts Credit Union led to a five-year property tax break. Histwo sons, Michael and Antho-ny, and partner Mark Thomas,are also workingon the deal.

“We’ve spentnearly two yearsplanning, jump-ing throughhoops. Fortunate-ly we have a repu-tation for main-taining andmanaging cityproperties,” saidCuris, who alsoruns the Mack andAlter Plaza and theRiverbend Plaza onJefferson.

While HighlandPark still has itsstruggles, it hasreceived a steadyprocession of newjob-creating ven-tures. Those in-clude investmentsby Budco (2000),Visteon Corp. (current), Techni-com Group (2001), Coca-Cola Co.(2006), Forman Mills Inc. (2006)and Walgreen Co. (1998). AlongWoodward Avenue, the Model TPlaza and Highland Park Place areflourishing. And longtime citybusiness Bill Snethkamp ChryslerJeep is buying up properties tobecome one of the largest urbandealerships in the nation.

Perrin Emanuel, president ofHP Devco, the commercial andretail development organiza-tion — and a former tight endfor Highland Park High School— carries the ball forward asbusiness and grant recruit-ment and city liaison with

Highland Park. This spring hetook over the top job from in-ternationally acclaimed plan-ner Harriet Saperstein.

“I’m feeling very bullishabout Highland Park’s future,”Emanuel said. “Harriet Saper-stein left a very stable organi-zation.”

Among the highlights are au-tomotive, cultural and distrib-ution center developments.

Bill Snethkamps’ third- andfourth-generation,mega-dealer fami-ly occupies an in-creasing presencealong the northend. Plans are un-der way to build AlDeeby Dodge withinthe dealership’selongated pres-ence.

The new storewill be named forAlphonse Deeby,the general man-ager of the High-land Park opera-tion. The storewill occupy 80,000square feet.

Highland Parkis one of eightcommunities tar-geted for state as-sistance throughthe Cities of

Promise program. The pro-gram is helping restore the Mc-Gregor Library south of the Davi-son, a preservationist jewelbecause of its Beaux Arts-stylearchitecture. It also is the typeof project expected to makeneighborhoods safer and morewalkable.

“The city has had a numberof incidents to recover from,”cautions Josephine Powell, as-sistant Highland Park attor-ney, noting that about 600 resi-dential and commercialstructures are on the danger-ous buildings list. The city is

Developerhas faith informerSears site

I

See Page 56

Michael Curis (front)has succeeded whereothers have failed. Heand his sons MichaelCuris Jr. (far left) andAnthony Curis (right)and partner MarkThomas are building a$6 million plaza at thesite of the former Searsdepartment store.

JOHN F. MARTIN

While HighlandPark has itsstruggles, it hasreceived a steadyprocession ofnew job-creatingventuresincluding Budco, Visteon,Technicom andCoca-Cola.


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This year marks the 200th Birthday of Woodward Avenue. In celebration of this historic event, the Woodward Avenue Action Association (WA3) has planned special events thatare designed for business participation. Don’t miss the opportunity for your business to be a part of these activities:

Organize a team and come out for the historic “Hands Along Woodward” event on Sunday, August 19 at 2:00 p.m. Visit www.WoodwardAvenue.org for more information.

Celebrate Woodward Heritage Week, August 27 – September 3. Register your business in “Shop Woodward”, a special retail and shopping promotion. To register visit www.WoodwardAvenue.org or call 248-288-2004 for more information. Shoppers can also download the “Shop Woodward Passport to Savings” coupon for savings at more than 100 participating businesses listed online.

Call the WA3 at 248-288-2004 to joint the WA3 and learn how to involve your businesses in Woodward economic development, promotion and tourism efforts.

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Living & InvestingHighland Park

■ From Page 54

using a combination of community blockgrants and other funds to address the prob-lem. Blight elimination is a key factor inthe state’s campaign.

A perfect complement to tearing downvacant structures is the long-awaitedpaving of Hamilton Avenue this summer,Powell said, noting the 2-mile strip is thesecond-most-trafficked surface streetthrough the city after Woodward Avenue.

The city also is reaping benefits from thesuccessful redevelopment of the formerChrysler Corp. headquarters. Prior to itsDaimler-Benz merger and just-closed separa-tion, in 1992 Chrysler recognized the voidit was leaving in the city and gave a $14million parting gift, $5 million to forge HPDevco and the remainder to fund commu-nity development. The automaker invested$65 million to repair the brownfield beforeselling the property to Troy-based StuartFrankel of Stuart Frankel Development Co.The result is the Oakland Park redevelop-ment.

“Sixty-six percent of its ultimate capaci-ty is up and running,” said Frankel, whobought the 145-acre site in 1997 and erectedwarehouse/light manufacturing/distribu-tion space of 1.2 million square feet to date.

Under construction are two buildings: a217,000-square-foot plant for Visteon, po-tentially employing 175 people, and a200,000-square-foot speculative building.The investments earned state and federaltax credits.

“If you look at demographics alone,Highland Park is the poorest city in thestate of Michigan. But certain clients andcompanies have visions for urban redevel-opment, and they make the strongest an-chor tenants,” said Curis as he supervisedthe backhoes descending on the WoodwardPlace construction site.

“If you look at demographicsalone, Highland Park is thepoorest city in the state ofMichigan. But certain clientsand companies have visionsfor urban redevelopment.”

Michael Curis


If you thought you needed a West Coast zip code to make it on the web, think again. Case in point: ePrize — a globally successful interactive promotion company that works with the world’s top brands. Not only did ePrize fi nd a great creative talent pool here with some of the best colleges and universities on the planet, they also found a great place to call home in Pleasant Ridge, Michigan. Hot clubs, great restaurants, year-round sports and recreation, friendly tree-lined neighborhoods and a world-class arts community.

ePrize also found fi nancial and economic incentives from the Michigan Economic Development Corporation to put their Internet business out in front. As Josh Linkner, founder and CEO of ePrize, put it…“All the production, all the technology, all the innovation, is happening right here in Michigan.”

So is it time to move your entrepreneurial company to Michigan? Absolutely. And we’ll do whatever it takes to make that happen. Because wherever on the web you compete,Michigan can give you the upper hand. Let the Michigan Economic Development Corporation show you how to break the mold. Click on michigan.org/upperhand.

Wherever in the world you compete,Michigan can give you the upper hand.

ePrize is the model for innovationand Internet success. Michigan helpedthem break the mold.

Josh Linkner Founder and CEO

ePrize

342IN A SERIES OF THOUSANDS

michigan.org/upperhand


quiet. quaint. quirky. living in the v. · 2018-08-03 · quiet. quaint. quirky. living in the v....

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