Crain's Detroit Business - December 19, 2011 - (Page 10)

Page 10 CRAIN’S DETROIT BUSINESS December 19, 2011 Gilbert No. 2 owner of office space in biz district Four years ago, Quicken Loans Inc. was leasing office space in Livonia, Farmington Hills and Troy. By the end of this year, Quicken and many of the other companies owned by Dan Gilbert were fully housed in Detroit. The headcount is now close to 4,000. With the move, Gilbert also bought a significant portfolio of office buildings Gilbert through his Detroit-based Rock Holdings Inc. He purchased the Chase Tower, the Madison Theatre Building, the Two Detroit Center parking garage, the First National Building and the Dime Building. The real estate portfolio now comprises 1.7 million square feet and roughly 3,500 parking spaces in Detroit, making Gilbert the second-largest private owner of office space in the city’s central business district behind General Motors Co. And the spree continues down Woodward just south of Grand Circus Park. As of mid-December, his group had purchased the title from the Wayne County treasurer to the building at 1550 Woodward for $176,000 in back taxes. He also had the buildings at 1520 Wood- Grand Circus Park Park GILBERT’S SPACES 5 Joh nR 1. Dime Building: To be office space, perhaps for Chrysler Group LLC 2. Chase Tower: Used for Quicken Loans Inc.; first-floor retail planned 3. First National Building: Will house Gilbert-owned companies such as Title Source 4. Two Detroit Center: Parking 5. Madison Theatre Building: Incubator for Gilbert companies, plus space leased to Skidmore design studio 6. 1500 Woodward: To be residential or office space with firstfloor retail 7. 1520, 1528 and 1550 Woodward: Plans undisclosed Village Green plans new apartment projects BY DANIEL DUGGAN CRAIN’S DETROIT BUSINESS 7 Clifford 6 Br oa dw ay Grand River rd wa od Wo State Michigan 1 tte ye afa L 2 Campus Martius h olp nd Ra 3 rd wa od Wo 4 d rne La rt Fo ss gre on C on ers eff J CRAIN’S DETROIT BUSINESS ward and 1528 Woodward under contract to be purchased from the Detroit Downtown Development Authority for $337,500 each. The group has long-term plans to create a residential development on the portion of the former J.L. Hudson department store site immediately north of the Compuware Building. Gilbert’s real estate group also disclosed on its website that it has plans to redevelop the building at 1500 Woodward Ave. Purchase price was not disclosed. — Daniel Duggan With a new equity partner and a healthy outlook for Michigan and the city of Detroit, look for more projects from the Farmington Hills-based Village Green Cos. real estate company, said its chairman and CEO. The firm announced last week that a Dallas-based investment company both acquired a 50 percent ownership in the Village Green operating company and committed to a series of investments in apartment developments. Under the deal, Compatriot Capital Inc., a subsidiary of Sammons Enterprises Inc., will invest $50 million of equity to develop and acquire approximately $250 million of apartments over the next 24 to 36 months. “As of right now, we’re not just optimistic about Michigan, we’re investing in Michigan,” said Jonathan Holtzman. The company is roughly 30 days from starting construction on a 156-unit apartment complex in downtown Ann Arbor to be called Ann Arbor City Apartments. It also recently took an ownership stake in the 29-story Detroit Contingent Fee Business Litigation? In a word, “Yes.” When your lawyer is as invested in vested e the outcome of your case as you are, you know you will be getting your money’s worth. In Michigan, no ﬁrm handles contingent fee business litigation better than we do. Don’t pay hourly legal bills. Choose Sommers Schwartz for all your business litigation needs. Results. u ts. Powerful Attorneys. Remarkable Results. www.sommerspc.com | 248-415-2234 | 1-888-884-3878 | 2000 Town Center, Suite 900, Southﬁeld, MI 48075 ADVERTISING MATERIAL City Apartments at 1431 Washington Blvd. in Detroit near the Westin Book Cadillac. Holtzman said a 2012 project also in the works is an additional phase to the Regents Park complex in Troy. The key to projects is being able to assemble the banks, the mortgage companies and equity investors. With the Ann Arbor project, for example, he said Minneapolis-based U.S. Bancorp loaned money for the project. “There are areas in Michigan where there has been no development of rental apartments for 10, 15 or 20 years,” he said. “You need banks, mortgage companies and equity investors. “Village Green has brought together the banks, the mortgage companies and the equity partners, and we see the opportunity in Michigan.” The deal with Compatriot also represents a change in ownership of the umbrella management company, Village Green. Holtzman was a partner in the company with his father and uncle, along with developer Gilbert “Buzz” Silverman and the Silverman family. The predecessor company had been founded by the men’s grandfathers. When the group parted ways in 1995, Holtzman gave a 50 percent ownership stake in the firm to Chicago-based investors Ronald Benach and Wayne Moretti. The three men have common ownership in the individual limited liability companies that own projects developed in the last 16 years, Holtzman said, but the ownership in the overall management company was sold. “They didn’t want to retire, but aren’t as active in apartments as they used to be,” Holtzman said. Holtzman will continue to be CEO of the company under the new structure and will still own 50 percent of it. Compatriot CEO Paul Rowsey said, in a press release, the deal gives his firm a platform to make investments through a real estate operating company. “The current dynamics in the real estate market have afforded a unique opportunity to make direct investments in real estate operating companies,” he said. Village Green owns and/or operates $4.5 billion in assets composed of 40,000 apartments in 150 rental communities under five distinct brands: Village Green, City Apartments, Regents Park, Village Park and Leading Furnished Suites. Holtzman said Village Green is bullish on the city of Detroit. “You’re seeing a lot of strong leadership right now in the city, both corporate and political,” he said. “Village Green sees itself as a component of that leadership. “Someone needs to create more rental housing of different rental rates in the city.” Daniel Duggan: (313) 446-0414, dduggan@crain.com. Twitter: @d_duggan Washington ss Ca sh Bru old isw Gr http://www.sommerspc.com http://www.sommerspc.com

Table of Contents for the Digital Edition of Crain's Detroit Business - December 19, 2011

Crain's Detroit Business - December 19, 2011