Project Category: Substantial Improvement Property
A proposed 180-unit Multifamily project in one of Detroit’s most stable neighborhoods within walking distance to the urban core. The project will include a full package of amenities, a high level of fit and finish, and it’s location will appeal to a broad tenant profile. The project includes underground, secured parking for each unit and 4-5 stories of wood frame construction above the podium. Exteriors will include masonry and metal paneling.
Project Qualification: Substantial Improvement PropertyReal Estate: ResidentialTotal Capital Required: $57,000,000Equity Required: $15,000,000Debt Required: $42,000,000Project Control: We own all the key propertyTimeline: 90-180 daysAddress: 1100 St Aubin St Detroit Michigan 48207 United StatesFile: Renderings-4.pdf
The Sponsor, Broder & Sachse Real Estate, has been in business for 26 years and is a leader in the development, construction, and management in the multifamily sector in Southeast Michigan. Situated on the site of the Pullman train car factory (circa 1870-1930), the proposed project will be the first high-end development in the mature neighborhood in many years providing Studios, 1BRs, 2BRs, and 3BRs. The project will include numerous gathering spaces, a large fitness facility, co-working spaces, gaming center, pet grooming center, bike storage, and outdoor hot tub. The Renato is located at the corner of E. Lafayette and St. Aubin, providing residents with convenient, walkable access to grocery, the urban core, theater and sports venues, and the Dequindre Cut, a paved recreational pathway providing access to the Detroit Riverfront and to the famous Eastern Market and beyond. The unique walk-up units at grade will interact with the street and the interconnected system of trails and pathways throughout the neighborhood. The Renato includes rents that are strategically positioned below the highest rents in the City, include larger units than are available in the urban core, and will offer a superior amenity package. A high-end condominium development is under construction adjacent to The Renato with prices ranging from $300k-$800k,
The sponsor owns the site, has secured Site Plan Approval and entitlements, and has commenced site development and remediation. Design has been advanced through Schematic drawings. Upon securing an LP equity partner, vertical construction on the project will commence within 150 days.
Strong market dynamics with growing employment, excess demand for high quality housing, and growing rents, and strong tenant retention are emblematic traits of the downtown apartment market. The Renato will be completed in early 2021, at or about the time when Ford opens its Automated Vehicle division (2,500 new employees) and FCA commences a new product line at its Connor Street Plant (3,500 new employees), both located in the greater downtown neighborhoods. The downtown office market is at full occupancy and there are is currently over 1 million square feet of new office under construction.