Detroit startup real estate developers had finally given longtime residents a stake in their neighborhood's revitalization. Most of the brick mansions built in Detroit's auto industry boom had fallen into neglect. In these dilapidated historic homes though, David Alade and Andrew Colom, collegemates with a passion for social justice and urban planning, saw an opportunity.
Alade, who worked on Wall Street, had observed renters getting priced out of Jamaica, Queens, the neighborhood where he grew up. Colom, who worked in Mississippi real estate, thought that more accessible urban development was a way to revitalize communities. So the two Columbia University alumni decided that they would rebuild houses, transform them into affordable housing and improve the traditional housing model in the process, according to a report from Venture Beat.
The Detroit startup duo had seen how the economy was being flatlined by the housing crisis, and decided this was the perfect place to start. The two moved to Detroit and formed Century Partners, a small real estate development company centered around the city's historic North End and Boston Edison districts, with iconic homes that are nearer to Midtown. With over $1 million in funding from friends and families, they purchased and renovated 30 housing units and began renting them out. Real estate was cheap in Detroit, so with little startup capital they set up a neighborhood association, which gave affordable rent to residents while also provided locals the opportunity to gain profit, Smithsonian Mag reported.
The Detroit startup developers bought houses from individuals by offering cash and a share in the partnership. Colom has said that homeowners who were longtime Detroiters remained stakeholders in the development. According to the Wayne County Auction, home prices had increased by over five percent since Century Partners started development there. Colom added that a year and a half ago, they found the perfect street to try out their our model, which was Atkinson Street, one of the most prestigious districts in Detroit, and also its oldest.
