Dan Gilbert, Cleveland Cavs owner and CEO of the Bedrock Real Estate and Quicken Loans Services, recently got approved for a state loan worth $1 million from the federal government to redevelop the Capitol Park building into a residential and retail space. Varied renters were housed in the loft-style units prior to getting sold to Bedrock. Then the said firm converted these units into marketable apartments that resulted in many tenants getting eviction notices at the start of 2014. Senior tenants from a neighboring building even were not spared these notices handed out by another developer.
The Capitol Park building was sold to Mr. Gilbert in late 2013 by Mousa Amad, a Dearborn developer, for just $325,000. He further cites that covered more than $10 million in the project, and will net as much as 1.65$ million worth of tax credits in part from the government. As an addition to the million dollar loan, his interests extend as far as keeping the building's historic value intact. Other developers also have completed working on lofts in the city's oldest highrise standing today, the Detroit Savings Bank building. Gilbert certainly is not the only one who has his sights on property development projects in this hot downtown area.
The redevelopment project not only proves to be just a burden to the former tenants; Bedrock has stated that a total of 16 new jobs will be made available to the working public. Situated at 1215 Griswold Street, construction on the Capitol Park building is expected to complete by this fall with far more satisfactory results.
Mostly in the city's central business district, CEO Gilbert currently owns about 60 properties throughout the county, and has already invested an estimated $1.3 billion alone in buying property and renovating these edifices, among them buildings and parking structures. Now that's smart business.
