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Rendering of Cass and York project.
(Photo: The Platform)
There was a time not so long ago when investors would have been hesistant to put up new condo units in Midtown or downtown Detrot. Then came the mad scramble where projects were popping everywhere.
Now, some are hitting the pause button.
Slimmer-than-anticipated profit margins caused by increased construction costs have shelved two anticipated Detroit condominium projects, Crains' Detroit Business reports. Additionally, other for-sale multifamily projects have also been delayed.
The changes illustrate the changing landscape of commercial real estate development in today's Detroit market, which has not only caused for-sale multifamily projects to be re-evaluated, scratched altogether or postponed, but also apartment projects and other mixed-use efforts that would bring more density to the city.
The latest project being "re-evaluated" is Cass and York, a development by Detroit-based The Platform LLC, which planned 56 luxury condominiums plus apartments and a parking deck at that TechTown neighborhood intersection as part of a broader plan that also includes a renovation of the former Wayne State University criminal justice building at 6001 Cass Ave...
In addition, the Ashton Detroit condominium building that was going to have 83 condominiums at 600 W. Lafayette Blvd. has been reimagined as a 154-room Cambria Hotel, a project anticipated to cost $47 million.
