Two square blocks of the popular Royal Oak Main Street will be rebuilt, says Tim Blum, senior vice president of HSA Commercial Inc. of Chicago. The company is building the project as a joint venture with the Morningstar Group.

The companies will tear down a National City Bank and renovate warehouses to create the project, Blum says. Phase one will feature the construction of a five-story building, with two levels of retail anchored by a Barnes & Noble bookstore, and three levels of offices above. "The office part will stay if we can get preleasing. We've retained Colliers International as our office broker. We have interested parties, but if we can't get preleased in time we'll have to drop the three floors of office from the project," says Blum.

Phase two will be a 10-story building between Fourth and Fifth streets on Main. The building will have two levels of retail on the bottom, two levels of parking above that, which will be totally dedicated for the residents of 84 loft condominiums on the top six floors. The condos will run at about $200 a s.f.