Latest news with #RenCen
Yahoo
18-04-2025
- Business
- Yahoo
Renaissance Center Tower 600 auction winner wants to add big apartments
Ready for some Renaissance Center lofts? An investor group led by a metro Detroit doctor has bought one of the two smaller Renaissance Center towers in downtown Detroit, and plans to convert some of the 21-story office building into big apartments. Dr. Mahmoud Al-Hadidi, a pulmonologist, said Friday that his investor group, Stockbridge Enterprises, placed the winning $9.2 million bid last month for Tower 600, one of a pair of shorter towers to the east of the original five-tower 1970s RenCen complex that aren't owned by General Motors. Al-Hadidi said the sale closed Thursday and the final price was a bit higher than their auction bid because of closing costs and other fees. Tower 600 is mostly empty and its previously owner was a different group of investors, one whose majority owner was said to be Irvine, California-based, F&F Capital Group. News of the finalized sale was first reported by Crain's Detroit. "We believe in Detroit, we like the location," Al-Hadidi said in a phone interview Friday morning. "The view is spectacular and what possibly is coming on the RiverWalk is amazing. So we see the value there.' He said his group is still determining its plans for Tower 600, but is looking to move Stockbridge Enterprise's Michigan office there from its current location in Warren and it may convert a portion of the tower into apartments. "Most of it will stay as office building,' Al-Hadidi said. "And we are planning to make a few high-end apartments — large apartments, not small apartments.' How many apartments hasn't been decided, he said, and their timeline for completing the project is "a couple years, at least.' "We just closed so we are evaluating the situation," he said. The Tower 600 sale comes at time when the future of the original Renaissance Center complex is in flux. GM has partnered with Dan Gilbert's Bedrock real estate firm for a proposed $1.6 billion RenCen redevelopment plan that would demolish two of the five towers and the labyrinthine "podium," then rehab the remaining three towers as a mix of housing, hotel and office use. More: How GM and Bedrock would demolish 2 RenCen towers on Detroit's riverfront Asked his thoughts on the GM-Bedrock proposal, Al-Hadidi said, 'If it happens, it's great. If it doesn't happen, it's still OK.' Al-Hadidi said Stockbridge Enterprises owns various properties in Michigan, Illinois, South Carolina, Georgia and Florida. The firm has multiple investors and he is its chief executive. He said Tower 600 isn't the largest building that they have bought, although he declined to say which property in their portfolio is. Blue Cross Blue Shield of Michigan was a Tower 600 tenant until early 2024, when the health insurer moved its workers to Tower 500, where it now leases most of the building. The website for last month's online auction put Tower 600 as having 334,000 square feet and being just 11% occupied. Its tenants, as of earlier this year, included Great Expressions Dental Center, the Detroit Riverfront Conservancy and the Canadian Consulate. Towers 600 and 500 opened in 1981 as the second phase of the Renaissance Center development. Prior to the auction, the pair had last changed hands in late 2023, when they were sold by a New Jersey utility company. Farmington Hills-based Friedman Real Estate has managed the two towers and was a minority owner in Tower 600. The firm couldn't immediately be reached for comment Friday morning about the recent sale. Contact JC Reindl: 313-378-5460 or jcreindl@ Follow him on X @jcreindl This article originally appeared on Detroit Free Press: Renaissance Center Tower 600 auction winner wants to add apartments
Yahoo
27-03-2025
- Business
- Yahoo
Mike Duggan can't claim sole credit for Detroit's amazing recovery
Detroit Mayor Mike Duggan gave a masterful presentation Tuesday evening that I heard as much as an opening speech in his run for governor as his final State of the City address. Speaking at the new Hudson's Detroit building, Duggan touted the city's fiscal stability during his three terms, the city's new investment-grade credit rating, thousands of new housing units built and even a slight rise in Detroit's population after decades of decline. A lot to celebrate, for sure. And Duggan can justly claim credit for much of it. But what Duggan and many others miss is how deep the roots of Detroit's recovery go. Key building blocks of Detroit's comeback were in place at least a decade before Duggan took office in 2014. And before his time in office recedes into the history books, it's worth taking another look at exactly how this amazing city came back from the dead. More from John Gallagher: I'm a historic preservationist, but these RenCen towers have to go Certainly, the city's fiscal stability during Duggan's term owes much to Detroit's spin through Chapter 9 municipal bankruptcy in 2013-14. The Grand Bargain ― a financial agreement between philanthropy, the state and the Detroit Institute of Arts to secure the museum's collection and protect retirees' pensions in the bankruptcy process ― wiped some $7 billion of debt off the city's books, giving Detroit what former federal Judge Gerald Rosen, who served as mediator in the case, called the cleanest balance sheet of any city in America. Twelve years of balanced city budgets under Duggan flowed from that settlement. Then, too, the role of philanthropic foundations that pumped more than $300 million into the Grand Bargain followed years of an activist approach by philanthropy to help revive Detroit. The Kresge Foundation, Community Foundation for Southeast Michigan, Hudson's Webber and other philanthropies, flush with legacy wealth from Detroit's glory years, were already bankrolling the RiverWalk, the revival of Eastern Market, and a host of other social, artistic and neighborhood programs before Detroiters elected Duggan. Indeed, it's fair to say that philanthropic dollars, which I sometimes think of as money from heaven, has underwritten a vast amount of Detroit's revival. And speaking of the RiverWalk and Eastern Market, those were just two municipal operations languishing under direct city control that were handed off during Detroit's woeful pre-bankruptcy years to non-profit conservancies and public authorities. A city government too broken and dysfunctional to create the RiverWalk or revive the market spun those off to a whole series of newly created non-profit entities, where they thrived. Nor were they alone. Campus Martius Park, the city's convention center ― now called Huntington Place ― the city's workforce development agency, the DIA and Detroit Historical Museum ― all these and others were spun off from direct city control into non-profit stand-alone entities that took them in many cases from mediocre to newfound success. Ditto the many improvements to Belle Isle Park, once the island was handed off to the state's Department of Natural Resources, during the bankruptcy, after years of neglect. And more: The long-term transition in the city's economy from one based entirely on giant auto-related corporations to a more entrepreneurial model with hundreds of new startups ― all started in the decade before the mayor took office. And of course Dan Gilbert moved his mortgage business from the suburbs to downtown in 2010, and had already begun his unprecedented work of revitalizing downtown's derelict buildings and filling them with his workers by the time Duggan was sworn in. More from Freep Opinion: In race to succeed Gretchen Whitmer, Gilchrist says he can unite Democrats Don't get me wrong ― I believe Duggan will rank among Detroit's greatest mayors. He ran a tight fiscal ship, won back the confidence of both residents and business leaders, restored the city's parks, nurtured a revival in many Detroit neighborhoods and used the leeway given him by the bankruptcy and Gilbert's efforts to keep moving confidently forward. You might even say his record sets him up as a credible candidate to be Michigan's next governor, as he hopes to be. But he didn't do it alone, nor did the revival start with him. One day, historians write the full history of Detroit's amazing urban recovery. They'll give Duggan his full share of credit. But they'll note the recovery was a mosaic, not a silver bullet. Duggan is one in a vast cast of players who believed in the city and worked to make it better. John Gallagher was a reporter and columnist for the Free Press for 32 years prior to his retirement in 2019. His book, Rust Belt Reporter: A Memoir, was published last year by Wayne State University Press. Submit a letter to the editor at and we may publish it online and in print. Like what you're reading? Please consider supporting local journalism and getting unlimited digital access with a Detroit Free Press subscription. We depend on readers like you. This article originally appeared on Detroit Free Press: Mike Duggan was just one part of Detroit's comeback| Opinion
Axios
26-03-2025
- Business
- Axios
Mike Duggan highlights development in final State of the City speech
Mayor Mike Duggan used his 12th and final State of the City speech Tuesday to spotlight Detroit's resurgence and pitch continued riverfront development as essential to the city's future. Why it matters: With the race to replace him as mayor underway, Duggan looked back at the city's evolution during his tenure — highlighted by development, financial recovery, the emergence of Detroit's riverfront parks, and community violence intervention strategies that led to lower gun violence. Driving the news: Promoting his development track record as he exits office, Duggan spoke from inside Hudson's, the prominent $1.4 billion, two-building site downtown that will offer hotels, condos, retail, GM's new headquarters and more. "We have enough construction and projects to carry this city for the next five years," he said. "That's because all of these people have been working together. It hasn't been one person." Flashback: Duggan, who became mayor in early 2014, touted conservative spending practices used to rebuild the city's decimated finances after its 2013-14 bankruptcy. The city climbed back up from junk bond status to investment grade last year, meaning Detroit's bonds went from highly risky to a safe bet. The city is getting $150 million more a year in income taxes than projected during the bankruptcy and leaving $550 million in rainy day funds and other reserves for the next mayor. Zoom in: Duggan is prioritizing solidifying the future of the outdated Renaissance Center. Its owner, GM, and developer Bedrock want public funding assistance to redevelop it, though some state legislators pushed back last year on subsidizing the project. Duggan said Tuesday that using public funding to repurpose old urban sites has been a success across the state and could help create a riverfront legacy in Detroit for future generations. Along with Wilson Centennial Park and a plan to add public space and entertainment uses around the RenCen, the contaminated former tire-making site next to Belle Isle could get a new developer after the city recently got control of the property back. The Uniroyal site, Duggan said, is targeted by a group including the Pistons' owner to become an outdoor sports complex and youth sports center. The intrigue: While Duggan didn't mention his 2026 run for governor in the speech, there's no doubt his mayoral legacy will lead his pitch. The longtime Democrat, who's running as an independent, positions himself as a uniter who does away with the "two Detroits" or "us vs. them" politics — a dynamic he's applying to both the city and Lansing. He said Tuesday night that Detroit is the opposite of the national "toxic political debate." What we're watching: While many 2025 mayoral candidates shout out the foundation Duggan has laid for the city's future, some also acknowledge the criticisms that downtown has seen the bulk of investments, and that many Detroiters continue to face harsh realities while the central business district shines.
Yahoo
25-03-2025
- Business
- Yahoo
Sheetz is getting blocked in Michigan. Why? Too many regulations.
Twenty years ago, as a broke college kid, my first date with my now-wife was to a Sheetz. Yes ― the gas station/convenience store/made-to-order food stop. We shared a burger, fries and a drink (it was $4). If we had been in metro Detroit today, the date might never have happened. At least it if were up to a few vocal residents in Livonia and Farmington Hills. Sheetz, the popular gas station chain, sells made to order food, like burgers, sandwiches, milkshakes and coffee. The chain started in Pennsylvania and has begun expanding across the country ― and is now planning to open 50 to 60 stores in Michigan. But nowadays, it seems nobody can build or expand without a fuss from a few people with too much time on their hands. Some locals ― and sometimes businesses who don't want new competition ― are using government power to prevent new stores, restaurants, shops and homes. Sometimes, the complaints are legitimate. Cities should think about public health and safety. They do need to evaluate plumbing, drainage, electricity and traffic. But, way too often, that is just an excuse to block a business or housing that people in the community want or need. If there were no market, the new facility wouldn't be considering the area. More from Freep Opinion: I'm a historic preservationist, but these RenCen towers have to go In Farmington Hills, Sheetz was blocked by the city council. The main reasons stated by residents were that the store would be open 24/7, and that it 'abuts' a residential neighborhood. In the meantime, the same intersection already has two gas stations, a Planet Fitness, CVS, a pizza place, coffee shop, grocery store and more. In Livonia, complaints were raised about traffic, noise and pollution. This Sheetz would replace a Rite Aid ― how much more could it add to what has been there for years? Some residents were more explicit: "We noticed that it's cannibalizing from existing gas station owners," said one. Whether it's gas stations, grocery stores, medical facilities or housing development ― it isn't the job of government to prevent competition, but rather to foster it. But, increasingly, policymakers in Michigan aren't doing that, and it's a major reason why prices get higher and services get worse. As research from the think tank I work for shows, it's everywhere. Local zoning rules delaying or blocking apartment buildings. Cities making duplexes and fourplexes illegal almost everywhere. 'Certificate of Need' laws preventing health care facilities. Special use permits blocking dollar stores. Labor and environmental policy stopping high-speed internet broadband projects. More from Freep Opinion: I was dumbfounded by Democrats' response to Trump's speech. They are in denial. The bad results from these unnecessary regulations show up mostly prominently in housing costs. Labor force and material prices are a big deal, but that affects every builder fairly equally. But government regulations are significant, adding nearly 25% of the total cost to every home or apartment building. And that's not even considering whether builders can build at all. Local zoning rules are blocking, limiting or severely delaying what can be built and where. Michigan simply isn't building enough ― the number of housing permits has flatlined, with fewer than half the housing being built that we were building in the 1990s. Metro Detroit has an affordability problem as well. No surprise, considering its land-use rules are some of the strictest in the nation. Cities and counties should get on board and let builders build. And state lawmakers should help by limiting zoning and regulatory rules to focus on only important safety issues, not a be-all-end-all stopping or delaying of industry people need. From housing to commercial development, some businesses and a lot of local busybodies are using government power to block out new enterprise. Lawmakers should no longer go along with it. Who knows ― maybe it will even help others get a first date. Jarrett Skorup is vice president of marketing and communications at the Mackinac Center for Public Policy, a free-market research and educational think tank in Michigan. Submit a letter to the editor at and we may publish it online and in print. Like what you're reading? Please consider supporting local journalism and getting unlimited digital access with a Detroit Free Press subscription. We depend on readers like you. This article originally appeared on Detroit Free Press: Sheetz' Michigan expansion faces unfair local blockages | Opinion
Yahoo
10-03-2025
- Business
- Yahoo
Detroit's RenCen: Historical photos of GM HQ take you back in time
Detroit's Renaissance Center has been a crowning gem of the city's skyline since the 1970s. But since General Motors announced plans to move its headquarters out of the towers, the RenCen has faced questions about its future, including the possibility of demolition. With the fate of the skyscrapers at stake, we decided to take a peek into the photographical archives, back to when the project was announced, its groundbreaking, big events and eventually, its status as a ghost-town, when COVID-19 temporarily cleared the building in favor of remote work and GM moved some employees to Warren. Scroll through the gallery below, for a look into the history of the iconic landmark. Here are some recent news stories to capture where the development discussions stand: Historic review: Detroit City Council shoots down RenCen historic review, paving way for GM, Bedrock plan Sound off: Detroiters feel mixed about RenCen demolition plan Neal Rubin: I explored the almost-vacant RenCen. Here's what I found. The RenCen consists of seven towers, of which GM owns the original five. The original structure opened in 1977 and consists of four 39-story office towers surrounding a central 73-story hotel, which is now a Marriott. The original plan for the RenCen was proposed in 1971 by auto magnate Henry Ford II, then chairman of Ford Motor Co. The architect was John Portman and the development's original ownership was a 49-member partnership spearheaded by Henry Ford II. The restaurant near the top of the central tower at one time featured a revolving floor. In 1981, two additional 21-story towers were built. Those two shorter towers were sold in 2023 by a New Jersey utility company, which had owned them for years, to Farmington Hills-based real estate firm Friedman Real Estate. One of those buildings houses Blue Cross Blue Shield of Michigan. The other is mostly vacant. GM bought the RenCen in 1996 to be its world headquarters. Previously, GM was located in Detroit's New Center area in what was then called the General Motors Building, now known as Cadillac Place. The automaker went on to spend over $500 million on renovations and upgrades to the RenCen in the late 1990s and early 2000s that were widely credited with making the center better, and its labyrinthine corridors somewhat easier to navigate. The weekday population in the RenCen plunged following the COVID-19 pandemic and the continued popularity of remote and hybrid work arrangements. GM also relocated a number of workers from the RenCen to its Technical Center in Warren. The Detroit Free Press contributed to this report. This article originally appeared on Detroit Free Press: Detroit's RenCen: Historical photos of GM HQ take you back in time Sign in to access your portfolio
