Midtown Detroit Development Projected to Support 109 Jobs and Add 47 Quality, Affordable Apartment Homes for Detroit Families through Historic Renovations
In April of 2014, Cinnaire, Cass Corridor Neighborhood Development Corporation, Ginosko Development Co., and other development partners broke ground on Cass Plaza and the Davenport Building’s along Detroit’s Historic Cass Corridor.
The redevelopment of the historic buildings to provide beautiful, affordable apartments for 47 Detroit families will further strengthen the economic comeback that Midtown Detroit is leading within the City. The restoration represents almost $17 million of investment to the Midtown/Cass Corridor neighborhood.
The project will consist of the renovation of two existing historic apartment buildings: one 7-story building reportedly built in 1924 (3350 Cass Avenue) and one 3.5-story reportedly built in 1918 (149 Davenport Street).
Through construction and recurring costs of operation, Cass Plaza and Davenport Buildings are projected to add 109 of jobs to the Metro Detroit region.*
Additionally, the development is projected to have a total economic impact of $8.9 million, through direct and indirect contributions of apartment construction, operations and resident spending to the state economy.*
Cinnaire (Cinnaire) invested just under $9 million in equity, by financing Housing Tax Credits to rehabilitate the historic buildings, which are currently vacant and badly in need of repairs.
“Cass Plaza and the Davenport Buildings have been a part of Detroit history since 1918, and thanks to all of the development partners, it will be a part of this great American city’s future for generations to come,“ said President and CEO of Cinnaire (Cinnaire), Mark McDaniel.
Development costs to restore the buildings to their former splendor will cost about $17 million, which has been provided by myriad of funding partners including: Michigan State Housing and Development Authority (MSHDA), who allocated the 4 percent Housing Tax Credits and tax exempt bonds; City of Detroit HOME loan funds; Wayne County HOME loan funds; Cass Corridor Development Neighborhood Development Corporation (CCNDC); Midtown Detroit, Inc.; Dearborn Federal Savings (FHLBI AHP Loan); Michigan State Brownfield and Historic Tax Credits; and Federal Historic Tax Credits. The development also received a Smart Grant from the Detroit Economic Growth Council and a Green Grant from Enterprise.
“Groundbreaking at these buildings represents incredible accomplishment and continuing momentum in the Cass Corridor,” adds CCNDC Executive Director, Pat Dorn. “There’s so much history in the City, and to capture the essence of our past while building the infrastructure for our future is a very neat thing.”
The development team for this exciting project includes: Cass Corridor Neighborhood Development Corporation and Ginosko Development Corporation as the project sponsor; Rohde Construction Company as the general contractor; Fusco, Shaffer & Pappas as the development architects; KMG Prestige will serve as property management company; and Robert Zinser Housing Development Consulting helped lead the team as a consultant.
Construction is expected to complete May 1, 2015, with residents moving in shortly thereafter.
* Sources: Census Bureau, 2011 American Community Survey, 1-Year Estimates and microdata. Economic impact (dollars spent, jobs supported, and economic contribution) based on 2010 American Community Survey and 2010 Consumer Expenditure Survey). National Apartment Association and National Multifamliy Housing Council, “The Trillion Dollar Apartment Industry”.