DETROIT—Few places in the nation took a bigger hit during the recession than this metro area. Furthermore, the troubles of the auto industry and the bankruptcy of the Detroit city government generated headlines that had an impact on the region's reputation. But the economic news here turned positive years ago, and the auto industry's revival, along with a downtown renaissance, has given the recovery a broad geographic base. And that has multifamily investors from across the US checking out both suburban and city properties.
“Detroit has a buzz about it,” Peter Benedetto, a Detroit-based senior managing director of Berkadia Commercial Mortgage LLC, tells Globe St.com. Thousands of people are moving in to “be a part of Detroit and the renaissance associated with it.”
But what makes it especially attractive for investors is the lack of new construction, he adds. Historically, there has been only a modest amount of new supply each year, even in the suburbs, and “that has always kept the market tight.” In fact, here even 15-year-old properties can be considered class A.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
