Project Category: Substantial Improvement Property
The proposal presented is to developed a mixed-use residential and commercial project within a 6-story modern building aka “The 2211” condominium conversion project. The funding facility requested is $11,462,000 (or) 60% of the AIV assessed which is calculated at $19,116,000 or $708K per unit for a minimum of 27 of the 30 units averaging approximately 1,450 sq. ft., per unit (or) $488+ per sq. ft. The proposal is to complete the acquisition and renovation of the interior programmed to install 30 new SMART luxury residences with views of the Detroit River.
Project Qualification: Substantial Improvement PropertyReal Estate: ResidentialTotal Capital Required: $16,000,000Equity Required: $6,400,000Debt Required: $9,600,000Project Control: We have agreement on terms to acquire the key propertyTimeline: Less than 30 daysAddress: 2211 E Jefferson Ave Detroit Michigan 48207 United StatesFile:
The building negotiated for acquisition is measured at 91,956+ sq. ft., and originally constructed by the UAW in 1971 of concrete and steel. The building formerly served as the UAW- Chrysler National Training Center.
The “As-Improved Value” (AIV) and comparable sales of units currently being marketed in the same zip code are assessed at an average of $470+ per sq. ft. for 1,487 sq. ft. The location of those units does NOT include views of the Detroit River, Artificial Intelligence managed SMART home systems, on-site concierge services, upscale dining and entertainment venues or other amenities featured in “The 2211”.
The average price per unit marketed in 2020 were recorded at $792,890 for residences with similar square footage and located within 2 miles of the Detroit Central Business District. The comparable sales referenced are situated in historic buildings featuring loft style floor plans, minimalist interior designs, and located in areas formerly zoned for industrial use.
The AIV indicated reflects the current value of units recently (6 mos.) SOLD with a value range of approximately $390 per sq. ft. to $490 per sq. ft. Again, those units feature loft style floor plans, rustic location, street parking, unfinished interiors, NO SMART systems or Detroit River views.
The LEED design construction and SMART technology installed in each luxury residence will allow the homeowner to operate their SMART home on one platform managed by Artificial Intelligence enabled technology. The SMART home technology will also allow the operation of all digitally compatible SMART home equipment including HVAC, appliances, video, security and lighting systems by “voice”.