DETROIT-Dan Gilbert, chairman of Quicken Loans, has now closed on seven buildings in downtown Detroit and is negotiating for an eighth property in the CBD. The purchase price for all three properties was not disclosed, but it’s reported that Gilbert plans a $15 million redevelopment project to bring in offices and retail.
In a statement today, Rock Ventures, Gilbert’s umbrella group for a number of companies, announced that it has acquired the vacant properties at 1500, 1520 and 1528 Woodward Ave. The addresses are known as the Wright-Kay, the Lane Bryant and the Arts League of Michigan buildings, respectively. Detroit's Downtown Development Authority reportedly sold the latter two buildings to Gilbert for about $675,000, with a penalty of up to $1.3 million if the properties are not redeveloped.
Since January, Gilbert has purchased seven properties around Woodward, and is closing on 1550 Woodward, a 4,000-square-foot property which is just south of the Broderick Tower. All total, Gilbert will own about 1.8 million square feet of property around the area known as Campus Martius, where he also leases space at the Compuware Building.
Many of the purchased properties were vacant, and plans call for a mix of retail, office and multifamily space, according to Tuesday’s statement. A Rock spokeswoman tells GlobeSt.com that no one was available on Tuesday to comment on this story. In the statement, Gilbert said he is committed to create an environment where more and more businesses and their employers will call Detroit home. “In fact, in 2012, we will put on a full-court press to recruit many of the brightest and best businesses, as well as exciting start-up companies, to downtown,” he said.
Gilbert’s no stranger to development. The majority owner of the Cleveland Cavaliers is also rebuilding the Ohio city, with plans for a $600 million casino and other purchased properties.
His belief in Detroit is only matched by General Motors, which owns the massive Renaissance Center as its headquarters, and Mike Ilitch Sr., the Little Caesar’s Pizza magnate who owns a lot of downtown properties as well as the city’s baseball and hockey teams. However, while these two powerhouses have sustained the city, Gilbert’s moves – finally – seem to be emerging other Detroit investment. A Whole Foods store – no joke – has said it will locate downtown, where literally the number of national chains can be counted on two hands. And the 34-story Broderick Tower itself is getting redeveloped as apartments.
Nearby, Gilbert has invested in the five-story Madison Theatre building, the 505,000-square-foot Chase Tower, the 800,000-square-foot First National building and the 350,000-square-foot Dime building. Tenants at these buildings include Skidmore Studio, Rehmann and companies owned or partnered by Gilbert, including Quicken Loans, Detroit Venture Partners and Fathead. Several more companies are expected to announce moves to these locations in 2012, according to the statement.
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