GM Condos
by Chris Gottschalk
The world of Detroit condominiums is about to become a lot bigger. The General Motors Corporation recently partnered with the Hines real estate firm to build luxury condominiums along the Detroit River. Hines will develop six acres next to GM's headquarters in the Renaissance Center, and GM will get a share of future profits from the condominiums.
The move is part of an ongoing effort to renovate the riverfront. Construction for the 600 luxury condominiums is expected to begin in 2008. These condominiums are expected to fetch luxurious prices, ranging from hundreds of thousands of dollars to well over $1 million. The development will be primarily a residential dwelling. This will allow owners to take advantage of the many facilities in the Renaissance Center, such as restaurants and a movie theater. While the riverfront has primarily been home to small industrial businesses and decaying warehouses, Detroit has claimed the area as a Renaissance Zone. This gives any new construction in the area a significant tax break.
The area is located in the core of Detroit, with Interstate 75 and 375 located nearby. The core is beginning to attract young, up and coming professionals, which is considered key in revitalizing Detroit.
"We want this to be a part of the fabric of a great downtown and a great urban center," Matthew Cullen, head of GM's Economic Development and Enterprise Services, said. "There needs to not only be places to work and shop. People need to be living there."
This is not the first time Hines has developed real estate in Detroit. General Motors originally hired them in 1996 when the company renovated the Renaissance Center into the global headquarters for GM, a $500 million project.
Hines and GM teamed up again when GM built the Comerica tower. In addition, Hines is also the manager of the City Country Building and the Compuware headquarters in downtown Detroit.
Hines will build the Riverfront condominiums in phases. First, they will build a high-rise condominium tower on a one-acre plot next to the Renaissance Center. If the venture is successful, the company will construct three more on adjacent parcels.
The Riverfront condominiums are one of three major river developments. Dave Bing, former member of the Detroit Pistons is financing a luxury condominium project called Watermark Detroit. It will contain 112 condominiums, town houses and apartments. The prices are expected to be over $1 million to purchase. The final riverfront project is a luxury development called the @water, pronounced "Atwater". It contains 225 units, and commands prices that are also in excess of $1 million.
GM timed the announcement to fall before the first Detroit International RiverDays. This will also feature the grand opening of the East RiverWalk, which spans the 3.5 miles between the Joe Louis Arena and the Belle Isle Bridge. The East RiverWalk runs past the proposed condominium development.
Detroit Condos
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