Chinese firm buys old Free Press, David Stott buildings in downtown Detroit
October 16, 2013
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The DDI Group paid about $4.2 million for the old Free Press Building, shown on Sept. 9, 2013, at 321 W. Lafayette, said Snoek, noting the final prices included a 5% buyers premium. Purchase Image
The DDI Group paid about $4.2 million for the old Free Press Building, shown on Sept. 9, 2013, at 321 W. Lafayette, said Snoek, noting the final prices included a 5% buyers premium. / Andre J. Jackson/Detroit Free Press
By JC Reindl
Detroit Free Press Business Writer
FILED UNDER
Business
Michigan Business
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The DDI Group paid about $9.4 million for the David Stott, 1150 Griswold, shown on Sept. 9, 2013, said Snoek, noting the final prices included a 5% buyers premium. Purchase ImageZOOM
The DDI Group paid about $9.4 million for the David Stott, 1150 Griswold, shown on Sept. 9, 2013, said Snoek, noting the final prices included a 5% buyers premium. / Andre J. Jackson/Detroit Free Press
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A Chinese firm has bought the former Detroit Free Press and David Stott buildings in downtown Detroit and plans to redevelop the former newspaper headquarters into a $50-million apartment and retail complex.
Shanghai-based DDI Group, also known as Dongdu International Group, was the highest bidder for both buildings last month in back-to-back online auctions, said Ryan Snoek, a regional manager for Luke Investments, the buildings’ previous owner.
The DDI Group paid $9.4 million for the 38-story David Stott, 1150 Griswold, and $4.2 million for the Albert Kahn-designed Free Press building, 321 W. Lafayette. Snoek said the prices reflect the auction’s 5% buyers premium.
“They actually beat out Dan Gilbert for the David Stott,” Snoek said this afternoon. “Dan Gilbert was the other bidder.”
DDI Group has more than 20 years of experience in real estate in China and specializes in developing housing aimed at younger people, according to a past news release.
The firm has invested before in U.S. real estate, although these deals were their first Michigan purchases, Snoek said.
He said DDI officials had studied the resurgence in Detroit’s greater downtown area and were undeterred by the city’s bankruptcy filing. The group, which bought the buildings sight unseen, was astounded by an opportunity to get a skyscraper for under $10 million.
“They are very well funded, and they’re very big,” Snoek said. “They’ve done skyscraper projects before, so this is a very able and capable group.”
Gilbert, the Quicken Loans founder who owns or controls about 40 buildings in downtown Detroit, has no hard feelings over last month’s bidding war.
“It is our hope that they will transform these historic buildings and continue to build on our city’s momentum and the great opportunities in Detroit,” Matt Cullen, president and CEOof Gilbert’s Rock Ventures, said in a statement.
DDI Group will continue leasing office space in the Stott building, but could add some residential units later. The reddish-orange Art Deco tower opened in 1929 and is about 15% to 20% occupied..
As for the Free Press building, DDI is planning a $40-million to $50-million redevelopment that would fill the ground floor with retail and create roughly 150 units of rental apartments, according to Snoek.
Work could begin early next year and finish by late 2015 or 2016.
The Free Press site is eligible for various local, state and federal tax credits for redevelopment, to be determined by a spending formula. For a project with a $50-million price tag, the credits would be about $22 million.
Opened in 1925, the Free Press building consists of two six-story wings flanking a 13-story central tower. It has been empty since 1998.
Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com.
October 16, 2013
A
A
The DDI Group paid about $4.2 million for the old Free Press Building, shown on Sept. 9, 2013, at 321 W. Lafayette, said Snoek, noting the final prices included a 5% buyers premium. Purchase Image
The DDI Group paid about $4.2 million for the old Free Press Building, shown on Sept. 9, 2013, at 321 W. Lafayette, said Snoek, noting the final prices included a 5% buyers premium. / Andre J. Jackson/Detroit Free Press
By JC Reindl
Detroit Free Press Business Writer
FILED UNDER
Business
Michigan Business
ZOOM
The DDI Group paid about $9.4 million for the David Stott, 1150 Griswold, shown on Sept. 9, 2013, said Snoek, noting the final prices included a 5% buyers premium. Purchase ImageZOOM
The DDI Group paid about $9.4 million for the David Stott, 1150 Griswold, shown on Sept. 9, 2013, said Snoek, noting the final prices included a 5% buyers premium. / Andre J. Jackson/Detroit Free Press
ADVERTISEMENT
A Chinese firm has bought the former Detroit Free Press and David Stott buildings in downtown Detroit and plans to redevelop the former newspaper headquarters into a $50-million apartment and retail complex.
Shanghai-based DDI Group, also known as Dongdu International Group, was the highest bidder for both buildings last month in back-to-back online auctions, said Ryan Snoek, a regional manager for Luke Investments, the buildings’ previous owner.
The DDI Group paid $9.4 million for the 38-story David Stott, 1150 Griswold, and $4.2 million for the Albert Kahn-designed Free Press building, 321 W. Lafayette. Snoek said the prices reflect the auction’s 5% buyers premium.
“They actually beat out Dan Gilbert for the David Stott,” Snoek said this afternoon. “Dan Gilbert was the other bidder.”
DDI Group has more than 20 years of experience in real estate in China and specializes in developing housing aimed at younger people, according to a past news release.
The firm has invested before in U.S. real estate, although these deals were their first Michigan purchases, Snoek said.
He said DDI officials had studied the resurgence in Detroit’s greater downtown area and were undeterred by the city’s bankruptcy filing. The group, which bought the buildings sight unseen, was astounded by an opportunity to get a skyscraper for under $10 million.
“They are very well funded, and they’re very big,” Snoek said. “They’ve done skyscraper projects before, so this is a very able and capable group.”
Gilbert, the Quicken Loans founder who owns or controls about 40 buildings in downtown Detroit, has no hard feelings over last month’s bidding war.
“It is our hope that they will transform these historic buildings and continue to build on our city’s momentum and the great opportunities in Detroit,” Matt Cullen, president and CEOof Gilbert’s Rock Ventures, said in a statement.
DDI Group will continue leasing office space in the Stott building, but could add some residential units later. The reddish-orange Art Deco tower opened in 1929 and is about 15% to 20% occupied..
As for the Free Press building, DDI is planning a $40-million to $50-million redevelopment that would fill the ground floor with retail and create roughly 150 units of rental apartments, according to Snoek.
Work could begin early next year and finish by late 2015 or 2016.
The Free Press site is eligible for various local, state and federal tax credits for redevelopment, to be determined by a spending formula. For a project with a $50-million price tag, the credits would be about $22 million.
Opened in 1925, the Free Press building consists of two six-story wings flanking a 13-story central tower. It has been empty since 1998.
Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com.
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