1401 Vermont Building Joins Resurgence of Redevelopment in Corktown Neighborhood
Develop Michigan, Inc. (DMI) has announced the closing of a $3.5 million loan to support the acquisition and renovation of 1401 Vermont in the Corktown area of Detroit. The project joins a resurgence of redevelopment in the area. In the past 24 months, approximately $1 billion of new real estate investments have been announced or completed in the Corktown neighborhood. The two-story, 28,000 square-foot Ponyride Building will be redesigned and renovated to provide flexible office space opening in mid-summer.
Corktown is a historic district located just west of Downtown Detroit. Ford Motor Company recently announced that the renovation and new development of its holdings in Corktown will total $740 million, including the 500,000 square-foot $90 million Michigan Central Train Station. Ford also acquired 45 nearby acres of vacant land with plans to build two parking decks with 2,800 parking spaces. The renovation of the DPS Book Depository, The Brass Factory and the North Michigan Avenue Parking Deck are also part of the massive Corktown redevelopment underway.
1401 Vermont was originally constructed in 1929. The renovation will deliver high-quality flexible office space in the desirable location along with 25,000 square-feet of parking. The total development cost is estimated at $4.4 million. The building is located in the path of two large scale Greenway Projects that will create a comprehensive recreational ring around the City with 31.5 miles of pedestrian and bike paths connecting the West & East Riverfronts to the Outer Neighborhoods.
Develop Michigan, Inc. partnered with Invest Detroit in the funding of 1401 Vermont. As part of the Corktown revitalization underway, DMI also invested in the $9 million renovation of the Trumbull & Porter Hotel in 2016. To date, DMI has invested more than $69 million in 20 developments across Michigan, leveraging more than $355 million in development costs.
“DMI is excited to partner with the development team to bring much-needed office space to Corktown,” said Rick Laber, DMI president. “This investment will support the transformative redevelopment efforts underway in Corktown. We are pleased to continue to provide sponsors with access to flexible financing solutions to support revitalization throughout Michigan communities.”