HFD Real Estate Speculation

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Re: HFD Real Estate Speculation

Postby Stosh Kielbasa » Tue Sep 16, 2014 5:13 pm

guest wrote:
The Suburban Avenger wrote:Take a few minutes to play "Spot the black people" in the renderings of the residential developments the Wings expect the new arena to spawn.

http://www.detroitnews.com/article/20140916/BIZ/309160077#ixzz3DUrJuR1L


the guy in the Wings shirt and the old lady sitting at the table with the waiter


Woman in the peach dress, and the guy with the ball cap on next to the Wings shirt guy.

Also, in the illustration with the waiter, the couple walking on the sidewalk in purple and yellow.
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Re: HFD Real Estate Speculation

Postby The Beav » Tue Sep 16, 2014 8:54 pm

Stosh Kielbasa wrote:
guest wrote:
The Suburban Avenger wrote:Take a few minutes to play "Spot the black people" in the renderings of the residential developments the Wings expect the new arena to spawn.

http://www.detroitnews.com/article/20140916/BIZ/309160077#ixzz3DUrJuR1L


the guy in the Wings shirt and the old lady sitting at the table with the waiter


Woman in the peach dress, and the guy with the ball cap on next to the Wings shirt guy.

Also, in the illustration with the waiter, the couple walking on the sidewalk in purple and yellow.


Those are unrealistic renderings.
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Re: HFD Real Estate Speculation

Postby guest » Wed Oct 29, 2014 3:00 pm

Art Van's house sold at auction. The winning bid remains a secret at this time.
The auction was held at the palatial home and open only to the bidders.

Bidders needed to present a $200K cashier check to participate.

I'm assuming that the price will become public when the transaction is recorded, right? I can't imagine him getting a fraction of what he thought it was worth.
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Re: HFD Real Estate Speculation

Postby The Suburban Avenger » Wed Oct 29, 2014 4:18 pm

Detroit developer Herb Strather has until late afternoon to make a down payment on his winning $3 million bid for thousands of blighted and foreclosed city properties, although his grand $2 billion vision for redeveloping them has already hit a snag.

Strather and his partner in the venture, Texas-based Eco Solutions, placed a $3,183,500 bid for over 6,000 of what he calls "Detroit's worst properties," which were packaged together in the Wayne County Treasurer's tax-foreclosure auction.

The properties are spread throughout Detroit and, according to Strather, consist of about 1,000 vacant lots, 1,000 houses in disrepair, and 4,000 abandoned and burnt-out structures. In an interview Wednesday, Strather said his goal is to redevelop the properties in tandem with Detroit nonprofits and community groups — a costly undertaking.

"It would take about $2 billion to finish it all," Strather told the Free Press. "Two billion in five years. We'll do it."

But first he must achieve a down payment. Auction rules require Strather to make a 10% payment on his bid by 4:30 p.m. today, or at least execute a wire transfer by that time that would be done by Thursday morning.

He must then make full payment within 14 days. He is also required to either demolish all of the structures within six months or submit a redevelopment plan for approval by Wayne County Treasurer Raymond Wojtowicz.

But a key component of Strather's plan — millions of federal demolition funds via the Detroit Land Bank Authority — could be in jeopardy.

Strather said he hopes to reach a redevelopment deal with the land authority, which could bring federal money for demolishing the thousands of blighted structures. At an estimated cost of about $10,000 per house, the total demolition bill could be in the tens of millions of dollars.

But as of this afternoon, the land bank was not yet a willing partner

"Federal law only allows us to use demolition funds on properties for which the land bank owns titles, not for the benefit of as private developer," said land bank spokesman Craig Fahle. "So if Mr. Strather is expecting the land bank to pay to demolish properties that he is purchasing, then he has misunderstood the law."


Strather was not immediately available for a response to the land bank's statement. But a representative said that he still plans to make his deposit today and carry out his plan.

"Whenever Plan A doesn't work, there is always a Plan B," said Strather's spokeswoman Princess-Odilia. "Mr. Strather has a history of doing very very successful developments. Trust and believe, he has a Plan B."

Strather is chairman of the Detroit-based Strather & Associates real estate investment firm and runs Strather Academy, a real estate training school.

He was involved in Detroit's Woodbridge Estates development and an early investor in MotorCity Casino. Strather also led a group that lost the Hotel St. Regis in Detroit's New Center to receivership in 2009.

http://www.freep.com/story/money/business/michigan/2014/10/29/detroit-blight-bundle-herb-strather-plan-snag/18128251/


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Re: HFD Real Estate Speculation

Postby Amadeus » Wed Oct 29, 2014 4:22 pm

guest wrote:Art Van's house sold at auction. The winning bid remains a secret at this time.
The auction was held at the palatial home and open only to the bidders.

Bidders needed to present a $200K cashier check to participate.

I'm assuming that the price will become public when the transaction is recorded, right? I can't imagine him getting a fraction of what he thought it was worth.


Especially if all the talk about the foundation is true. Which leads me to wonder, how interesting would it get if something about the structural problems wasn't fully disclosed to the buyer and they sued Art?
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Re: HFD Real Estate Speculation

Postby thunderstruck » Wed Oct 29, 2014 4:36 pm

Amadeus wrote:
guest wrote:Art Van's house sold at auction. The winning bid remains a secret at this time.
The auction was held at the palatial home and open only to the bidders.

Bidders needed to present a $200K cashier check to participate.

I'm assuming that the price will become public when the transaction is recorded, right? I can't imagine him getting a fraction of what he thought it was worth.


Especially if all the talk about the foundation is true. Which leads me to wonder, how interesting would it get if something about the structural problems wasn't fully disclosed to the buyer and they sued Art?

I would think that on a home that expensive, it wouldn't be cost-prohibitive to pursue even very complex structural repairs assuming you buy it right.
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Re: HFD Real Estate Speculation

Postby thunderstruck » Wed Oct 29, 2014 4:41 pm

Re Herb Strather, I've heard both good and bad things about his business operations. I don't see his bulk purchase of Detroit detrius as anything other than an ill-formed attempt to profit primarily from his "partner", then from some governmental or quasi-governmental entity (too late, Kwame left town), then, if miracles happen, from actual real estate value creation.
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Re: HFD Real Estate Speculation

Postby higgs1634 » Thu Oct 30, 2014 12:18 pm

thunderstruck wrote:
Amadeus wrote:
guest wrote:Art Van's house sold at auction. The winning bid remains a secret at this time.
The auction was held at the palatial home and open only to the bidders.

Bidders needed to present a $200K cashier check to participate.

I'm assuming that the price will become public when the transaction is recorded, right? I can't imagine him getting a fraction of what he thought it was worth.


Especially if all the talk about the foundation is true. Which leads me to wonder, how interesting would it get if something about the structural problems wasn't fully disclosed to the buyer and they sued Art?

I would think that on a home that expensive, it wouldn't be cost-prohibitive to pursue even very complex structural repairs assuming you buy it right.


Mary Ann got the house in the divorce. Art isn't selling it, she is... hopefully she didn't rely on a 14 million dollar FMV when they were splitting up assets. Not that I think she's hurting for money, but she must be pretty motivated to dump it because it was a no reserve auction. I would guess 5-6 million would be a far and away record breaker for the area. I mean we're not talking some secluded estate in Northville or Franklin with tons of land...GPShores and Lakeshore is nice and the house is ok, but 14 million nice? Actual nice and historically significant mansions in the 10-13k sqr feet on Windmill Pointe, Lakeshore or Provencal..etc are only asking 1.5-3...and they aren't exactly selling like hotcakes. So, I guess tack on another million or two for being 10k bigger and new construction...maybe another million or two for the relatively large lot but that still gets to half the original ask on a good day.

Also, you don't have to disclose that there WAS a problem, you only disclose what current problems you are aware of to the best of your knowledge. Maybe there WAS a foundation issue, but if it was fixed and the problem has not occurred again (or you are not aware of the problem), then there are no "settling, flooding, drainage, structural or grading problems" to disclose. IIRC the only item one needs to report ever seeing "any evidence of" during one's ownership of the property is evidence of water in the basement.
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Re: HFD Real Estate Speculation

Postby The Suburban Avenger » Thu Oct 30, 2014 12:45 pm

thunderstruck wrote:Re Herb Strather, I've heard both good and bad things about his business operations. I don't see his bulk purchase of Detroit detrius as anything other than an ill-formed attempt to profit primarily from his "partner", then from some governmental or quasi-governmental entity (too late, Kwame left town), then, if miracles happen, from actual real estate value creation.


I'm kind of surprised there was no vetting (or maybe there was and it was poorly done) to see if bidders owed back taxes or had lost prior properties in tax foreclosure.

And google his spokeswoman; she's some kind of self-help huckster.
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Re: HFD Real Estate Speculation

Postby guest » Thu Oct 30, 2014 2:19 pm

higgs1634 wrote: I would guess 5-6 million would be a far and away record breaker for the area.


If that's what the land is worth, then that's the value I'd put on it, (OK maybe add in the value of used marble and whatever copper they can get out of it), unless they're lucky enough to find a buyer with the unlikely combination of too much money and too little taste.
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Re: HFD Real Estate Speculation

Postby Exciteable » Thu Oct 30, 2014 3:33 pm

This position will serve as Project Manager for the New International Trade Crossing (NITC) real estate acquisition project in Detroit, Michigan. This project is estimated...
http://agency.governmentjobs.com/michiG ... xPacket%3E
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Re: HFD Real Estate Speculation

Postby higgs1634 » Fri Oct 31, 2014 8:34 am

guest wrote:
higgs1634 wrote: I would guess 5-6 million would be a far and away record breaker for the area.


If that's what the land is worth, then that's the value I'd put on it, (OK maybe add in the value of used marble and whatever copper they can get out of it), unless they're lucky enough to find a buyer with the unlikely combination of too much money and too little taste.


The adult table is reporting 3.7 mil was the winner. Commence handwringing that Art's house fetched more than the bundle of thousands of houses in the d.
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Re: HFD Real Estate Speculation

Postby thunderstruck » Wed Nov 05, 2014 2:02 pm

thunderstruck wrote:Re Herb Strather, I've heard both good and bad things about his business operations. I don't see his bulk purchase of Detroit detrius as anything other than an ill-formed attempt to profit primarily from his "partner", then from some governmental or quasi-governmental entity (too late, Kwame left town), then, if miracles happen, from actual real estate value creation.

http://www.detroitnews.com/story/news/l ... /18534489/

Blight bid withdrawn. Kinda knew this was going nowhere, I'm glad it got undone before too much time was wasted.
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Re: HFD Real Estate Speculation

Postby Saginaw » Mon Dec 08, 2014 8:27 pm

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Re: HFD Real Estate Speculation

Postby Mad Max » Mon Dec 08, 2014 8:41 pm

Rents keep going up in greater downtown Detroit

People continue to write bigger rent checks for the chance to live in or around downtown Detroit, with some mainstream rents at levels once reserved for penthouses and other ultra-luxurious spaces.

Driving the higher prices is a demand for apartments at all price ranges in downtown, Midtown and Corktown that still exceeds the supply of available units — despite a mini-boom of construction and building rehabs.

According to local experts, the going rent for newly built or newly restored Class A apartments is up to about $1.70 per square foot in Midtown and $2 per square foot in downtown. It was only five years ago that $1.25 was a common number.

But the hot rental market has inevitable side effects, with some university students and young professionals complaining they've been priced out of the market or pay too much for comfort.

Tenants in existing market-rate buildings in Midtown experienced rent hikes this year averaging about 5% and about 14% over the past three years, said Sue Mosey, president of the nonprofit Midtown Detroit Inc.

"We have priced out a lot of the undergraduates from the neighborhood because they typically need very cheap rent," Mosey said. "We think that's a missing market piece right now."

Landlords raised rents 3% to 10% this year in some market-rate apartment buildings as new, high-profile redevelopment projects also burst on the scene at price points that would have been unimaginable just three years ago. The momentum is carrying over to Detroit's once-stalled condo market, which experienced similar price increases this year and saw the conversion of some former rental units.

While some new and planned buildings in Midtown set aside 20% or more of their units for individuals or families with below-average incomes, not all demographics can afford the new rents.

New rent levels

Two redeveloped downtown buildings set new rent levels this year for the upper-end market.

The first to open in July was the Albert, 1214 Griswold in Capitol Park, which most recently was a home for low-income seniors. The original 1929 office building, designed by Albert Kahn, underwent an $8-million total renovation.

The Albert caused a stir in the market by introducing $2-per-square-foot rents throughout an entire downtown building that, until then, were typically seen only in showcase apartments, usually with rare and breathtaking views. Some renters are experiencing sticker shock.

"It's the price for the size of the units," said Albert tenant Kelly Lewis, 31, who pays $1,415 a month for a roughly 670-square-foot one-bedroom unit and a parking spot. It's a per-square-foot price she called "outrageous."

Despite those misgivings, Lewis said she moved in last summer because she was pressed for time and didn't see many other options available. She hopes to find less expensive housing next year. "I can't wait until my lease is up," she said.

There are happy Albert tenants, too. Former Dearborn resident Pat Bernardelli, 25, pays $1,645 a month for a two-bedroom unit on the top floor and a parking space. He said that he and his parents were taken in by the amenities and the building's expansive views of downtown.

"I was like, 'Wow, this is really nice,' and my parents were like, 'You'd be foolish if you didn't move in here,' " said Bernardelli, who until recently worked at Quicken Loans downtown and is now in the insurance industry. "I was making excellent money over at Quicken, so $1,600 was really just a throw in the bucket."

Asking rents for all of the Albert's 127 units — starting at $1,295 for smaller one-bedroom apartments — meet or exceed the $2-per-square-foot mark once considered the minimum required to develop market-rate Detroit projects without tax credits or government subsidies. (Some developers now insist the "magic number" is higher, perhaps $2.25 a square foot.)

Todd Sachse, vice president of Birmingham-based Broder & Sachse, developer of the Albert, said the rents reflect the high quality of the units and the building's hotel-like amenities, which include a 24-hour concierge, a fitness room, dog-washing station and an elaborate common area with billiards tables and fountains. More than two-thirds of the units are leased.

"It's been wildly successful," he said.

The low-income seniors who lived in the building before the renovation received a one-year notice of the coming redevelopment, Sachse said. His firm also paid their moving expenses.

"I would bet you that of the 100 people who moved out of here, 95 of them are happier today," Sachse said. "You can't even wrap your imagination around what this place once looked like — it was beyond a dump."

This summer, Midtown resident Graham Davis, 28, saw the rent increase to $1,300 from $1,175 a month for the two-bedroom, townhouse-style loft on Canfield that he shares with his girlfriend.

"We're happy here and that's why we renewed," Davis said.

He said they weren't surprised by the 10% increase and were willing to pay it, as they enjoy their neighborhood near Wayne State University and are eager for the new M-1 Rail, which Davis intends to ride to his work downtown once the streetcar opens in late 2016.

David Whitney restored

Rents in the newly restored David Whitney Building in Grand Circus Park will slightly surpass the $2-per-square-foot mark.

The 19-story David Whitney features 105 apartments and a 136-room hotel that opens next week. Tenants will start moving in after Jan. 1 and face average rents of $1,450 a month for one-bedroom units and about $2,500 a month for two-bedroom units.

James Van Dyke, a vice president at the Roxbury Group, lead redeveloper of the $92-million restoration, said half of the apartments are already reserved. The incoming tenants include young professionals, empty-nesters and even a few families with children.

The condo market in greater downtown is also regaining momentum that it lost in the recession, when half-sold buildings had to convert vacant units to rentals. Now many of those rentals are going back up for sale.

"The rents are going up to the point that many people now renting are converting over to ownership," said Austin Black II, founder and president of City Living Detroit brokerage. "At $2 a square foot that is $2,000 a month for a 1,000-square-foot unit, and you can get a decent condo with that kind of money."

Rentals become condos

The Park Shelton near the Detroit Institute of Arts is selling units that it once rented out. And last week, the FD Lofts project in Eastern Market sold the last available condo of its 34 units that previously were rentals.

FD Lofts' sale prices ranged from about $120,000 for studio units to $220,000 for the one bedrooms and $330,000 for its largest three-bedroom suite.

"I was surprised by the demand and the depth of the market," said Brian Giles, codeveloper of FD Lofts with Robert Heide. "We had people coming through the building almost on a daily basis who were interested in buying."

Where there was once an oversupply of condos, there are now concerns of an undersupply.

"We really do need more for-sale development," Black said.

Units in pipeline

Most of the projects in the planning stages call for rentals.

Mosey, the Midtown Inc. president, said about 300 housing units are under construction in Midtown alone, with other projects totaling nearly 1,700 units in various stages of planning.

One of the biggest Detroit projects in the pipeline is Orleans Landing, which calls for 278 apartments in 19 all-new buildings that will rise along the riverfront east of the Renaissance Center. (Opening target is mid-2016.)

Its developer, McCormack Baron Salazar of St. Louis, is also a partner with Midtown Inc. for a total renovation of the old Strathmore Hotel in Midtown on Alexandrine Street into 129 units. (40% or more will be set aside as affordable.)

Jack Hambene, the firm's senior vice president, said he doesn't yet know what the rents will be.

"What the market is at the time we actually hit the market is what we will charge," he said.

How Detroit rents compare

■New or newly renovated building in Midtown Detroit: $1.70 per square foot

■Newly renovated in downtown Detroit: $2 per square foot

■New or newly renovated in downtown Cleveland: $1.75 per square foot, $2 for high-end building

■Typical rent in downtown Cincinnati: $1.50 to $1.70 per square foot, $2 for new construction

■Newly renovated in downtown Toledo: about $1 per square foot

■Average rent in downtown Chicago: $2.66 per square foot, $2.80 and above for luxury

http://www.freep.com/story/news/local/michigan/detroit/2014/12/07/rents-keep-going-downtown-detroit/20019111/
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