• Jun 21st 2007 at 6:07PM
  • 9

GM, delivering on promises to make Detroit all it can be, is getting into the development game. The General has given Hines Real Estate, out of Houston, a 6-acre riverfront plot next to the Renaissance Center where Hines plans to build 600 luxury condominiums. The condos, to be built in three phases, will go for anywhere from $300K to a $1M, and GM will get a cut of the profits. Hines oversaw the RenCen makeover, and built Detroit's Comerica tower.

According to the head of GM's Economic Development and Enterprise Services, "there's still a lot of pent-up demand for people to live in the city of Detroit." This, even though Detroit's riverfront -- and perhaps the entire city itself -- has long been overdue for some grooming. Fifty thousand residents have left Detroit since 2000, yet the downtown area has seen a slight rise, and the claim for the riverfront is that "there is no better real estate in the region." Groundbreaking on the potentially decade-long project is scheduled for the spring of '08. People might be able to move in by the spring of '09.

[Source: Detroit News]

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    • 1 Second Ago
      • 8 Years Ago
      Looks like we need some investing right GM.....wow not even FORD has sunk this low for a measly profit...DESPERADO
      • 8 Years Ago
      How'bout a pent up demand to sell some great cars to the USA, ones not made in China.
      • 8 Years Ago
      Pent up demand for people to live in Detroit? Really?
      • 8 Years Ago
      While it has never been a GM project, it's too bad the General's contribution to Detroit doesn't include an investment in the long promised condo/reclamation of the Book-Cadillac Hotel, which is currently a blight on the City's landscape. That old Detroit landmark deserves somebody's attention. It is a real diamond in the rough.
        • 8 Years Ago
        it doesn't need the general's investment... it's already undergoing renovation and will open next year as the westin book cadillac

        • 8 Years Ago
        dear god -- have the people buying these condos ever _been_ to Detroit? Ick -- sorry, but I was buying riverfront property there, I'd go a bit farther upriver.
      • 8 Years Ago
      Just when all over the country new condos are going empty despite fire sales, and the industry promise that empty nesters would flock to urban condos is proving empty, GM decides to invest in urban 'luxury' condos?

      Downtown Detroit is not Manhattan. And while it may not quite be Mogadishu, it is not somewhere you want to walk your dog or raise your kids or stroll to the nearest sidewalk cafe of an evening.

      A few basketball players will buy these. Maybe some young professionals who think it's hip to the live in the city until they discover there is nowhere around to buy groceries conveniently. No doubt GM will retain a few for its execs and other big shots.

      Other than that I expect this to lose money hand over fist. Why else would an investment firm have even asked the big dummy to get involved?
        • 8 Years Ago
        "Why else would an investment firm have even asked the big dummy to get involved?"

        because they own the land.

        people don't seem to understand this... GM didn't just agree to develop condos. they simply let a development company have some land they weren't using in exchange for a cut in profits. they really have nothing to lose here.
      • 8 Years Ago
      "they really have nothing to lose here."

      If (when) the condos do not sell, they just turned over that property for nothing. Whereas if they had sold it to the developers, they might have seen some real return.
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