DMI has announced the closing of a $5.6 Million subordinated mortgage to support the renovation of the Metropolitan Building at 33 Joh R Street, Detroit, MI into a 110-room extended stay hotel with first floor retail operations. The property, which will be operated under the Starwood brand, will be known as the Element Detroit at the Metropolitan Building. Located in Detroit’s Central Business District, the Metropolitan Building has been vacant for 40 years – the longest vacancy of any building in the area – and the rehab is a key element in the revitalization of the Detroit Central Business District. The project will also incorporate New Market Tax Credits (NMTC), Federal Historic Tax Credits and a Community Revitalization Program (CRP) Loan. Since 2015, DMI has closed more than $41 million in commercial real estate loans in similar developments throughout the State of Michigan, including $21 million which has been invested in developments to revitalize the City of Detroit.
“The transformation of the Metropolitan Building will advance the momentum of revitalization efforts taking place in Detroit’s Central Business District,” said Rick Laber, DMI President. “Develop Michigan is excited to partner with the development team to restore one of the City’s historical buildings and to provide visitors to Detroit’s emerging entertainment district with a first-class hotel experience.”
DMI finances commercial real estate, including mixed-use commercial and residential properties, office buildings, light industrial facilities, warehouses and retail. DMI provides capital across the financing spectrum and is a competitive source for mezzanine capital, longer term senior debt financing and short-term bridge loans. Click here for more information on DMI programs and funds.
DMI is a strategic partnership between Cinnaire, Michigan Strategic Fund, Development Finance Group and its private partners. DMI seeks out projects that have significant impact on low or moderate-income communities, either through the jobs that are created, workforce housing, or elements of the projects that support community revitalization or economic activity.