John Gallagher points to the Auburn apartments on Canfield and Cass as an example why development seems to move at a glacial pace in Detroit.
He writes: "The Auburn, with about 12 retail spaces available, has only three occupied several months after opening, despite predictions of full retail occupancy. It stands as an example of just how difficult and agonizingly slow it can be to close retail and development deals — large and small — inside the city of Detroit."
Over the years, Gallagher writes, the pitfalls have left many promising deals stillborn, slowing Detroit’s redevelopment at a crucial time in its history. Banks and major pension funds that underwrite suburban malls and office parks have shied away for many years, except in a limited way.
As a result, the gap between what traditional lenders will offer and what a project actually costs must be filled in with a patchwork of nontraditional loans and subsidies from government and foundations, slowing down the entire process.
The time-consuming stitching together of financing limits what developers can offer to tenants in terms of amenities.
