The redevelopment of the Albert Kahn Building in Detroit will come with a $58 million-plus price tag.
The cost to redevelop the historic New Center area building is revealed in a Detroit City Council document requesting the creation of a commercial redevelopment district for the property, which would allow for an up to 12-year property tax abatement on the planned commercial space.
Construction is expected to begin in January and take about 18 months to complete, said Matthew Sosin, principal of Farmington Hills-based Northern Equities Group, which is half of the joint venture that bought the building and five other West Bethune Street parcels in June for $9.5 million from another joint venture led by Detroit-based developer The Platform LLC. Birmingham-based Lutz Real Estate Investments is the other co-owner of the property along with Northern Equities.
The redevelopment is expected to bring about 211 apartments and 75,650 square feet of retail and other commercial space to the area across the 326,000-square-foot building at 7430 Second Avenue. A Neighborhood Enterprise Zone tax abatement will be sought for the residential space, the document says.
Sosin said the apartments are expected to rent for about $2.25 per square foot, with approximately 160 one-bedroom units, 47 two-bedroom units and three or four three-bedroom units. A 1,000-square-foot apartment would be $2,250 per month.
The building sits on about 1.27 acres while the Bethune Street surface parking totals about 0.74 acres. It was put on the market in August 2017. Designed by its namesake architect Albert Kahn, the 13-story building opened in 1931, according to Historic Detroit, which tracks Detroit buildings and architecture.
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Detroit-based Kraemer Design Group is the architecture firm on the project, while the general contractor is Novi-based Cunningham-Limp Development Co. The property will be managed by Farmington Hills-based Beztak Cos.
Author: Kirk Pinho, Crains Detroit