NORTHVILLE TOWNSHIP, MI-A joint venture of Bloomfield Hills, MI-based Real Estate Interests Group and Livonia-based Schostak Brothers has closed on its sale on 414 acres here that is the site of the former Northville Psychiatric Hospital. The deal on the property, sold by the state, has been a long time in coming, as many companies including REI have bid on the property and then backed out. The companies have said they want to build an $800 million residential and retail project on the site.

The deal closed for $31.5 million, much less than REI had agreed to pay in 2005. The company then forfeited $3.1 million to the state when it dropped out on an agreement to buy the property for $56 million, claiming the land is “replete with contamination” and that cleanup costs are too costly, as previously reported by GlobeSt.com.

An REI spokesman didn't explain why the company changed its mind and purchased the property. However, he tells GlobeSt.com. that the company is happy to have finally closed the deal. “We always intended to do this, and we're looking forward to developing it. In this depressed economy this should help, Michigan needs a project this size.” Plans for Highland Village include several sections of townhome, midrise, duplex and single-family residential, as well as roads with retail and medical offices.