Discuss Detroit Archives - January 2008 Park Ave. And Other Vacant Building Prices Fall Previous Next
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Sean_of_detroit
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Username: Sean_of_detroit

Post Number: 328
Registered: 03-2008
Posted on Thursday, May 15, 2008 - 8:41 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

:::Nevermind guys, I misunderstood the pricing structure. RSA explains a few posts below:::

I've been looking at some property around town, and have been very surprised at how much some of these building's prices have fallen. Maybe this belongs in the "Sign of The Times" thread?

Park Avenue Building on Adams and Park. Listed with Century 21.
MLS #: 27181005
Asking Price: $169,275**

I know this has been posted in the past, but not sense the prices have come down. My realtor also told me that the Charlevoix is for sale. She wasn't sure of the price, but said that she thinks it's around the $130,000 mark.

The Antique Store near Cass Tech has also dropped the price by about $50,000.

Just thought you guys would be interested.

(Message edited by Sean_Of_Detroit on May 15, 2008)
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Sciencefair
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Username: Sciencefair

Post Number: 90
Registered: 10-2007
Posted on Thursday, May 15, 2008 - 9:08 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

The asking price for the Park Ave is pretty negligible considering the amount of cash it will take to fix it. Interesting just the same.
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Sean_of_detroit
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Username: Sean_of_detroit

Post Number: 330
Registered: 03-2008
Posted on Thursday, May 15, 2008 - 9:40 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

That statement would also hold true with the Charlevoix. I believe that is a wood building. It also appears to have fire damage, with giant holes in the roof. I wouldn't even bother looking at the Charlevoix for anything but the land. Of course, that's out mostly because of the fact that it's historic status would probably make it a strong preservation target. Charlevoix has also been horribly scrapped. The building doesn't even have interior stairs (stolen?).

Park Avenue Building on the other hand is not nearly as bad. It has been secured pretty nicely. I wounder how bad it is compared to Kales and Merchant's Row, pre renovation. It is smaller than Kales. The roof also does not leak (though it is green), and most windows have been sealed. It also could easily share the GCP Garage with Kales, or the Park Apartments surface lots.

I'm interested to know the occupancy of Kales and Merchant's Row as well. If Quicken builds across the street, that could be a good location for many things.

Even with all the rehabs, it is amazing how many vacant buildings are still in that area.
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Detroitstar
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Username: Detroitstar

Post Number: 1110
Registered: 01-2006
Posted on Thursday, May 15, 2008 - 9:41 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

How long has the Park Ave bldg been vacant? What was it previously used for?
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Sean_of_detroit
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Username: Sean_of_detroit

Post Number: 331
Registered: 03-2008
Posted on Thursday, May 15, 2008 - 9:53 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Park Avenue, Charlevoix, and Kales were all vacated around the same time, in the 80s.
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Registeredguest
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Username: Registeredguest

Post Number: 364
Registered: 10-2003
Posted on Thursday, May 15, 2008 - 10:12 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

I heard that they were converted into apartment- lofts back in the late 70's, but since the kitchens were in the front of the units, near the door, both developments failed. No one wants an apartment with the kitchen in the front.

Hopefully, someone will buy them and put the kitchen where it belongs - far away from the front door.
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Rsa
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Username: Rsa

Post Number: 1482
Registered: 10-2003
Posted on Thursday, May 15, 2008 - 10:13 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

hmmm; they've changed their advertising for those two buildings a bit. those prices used to be the prices to "get in on" the buildings. meaning that was the minimum price for you to buy a portion of a floor. word on the street was that it was the new get rich scheme of the owner; to publically offer "partnerships" or "condo-ize" (either residential or commercial) the buildings.

if you read the fine print:
quote:

TOTAL 101,000 SQ FT WITH 12 FLOORS. PARK BUILDING. IN THE MIDDLE OF EVERYTHING: TIGERS, LIONS OH MY. $20/SQ FT WILL DIVIDE.

for the park avenue building, that's a price of $2.03 million, which seems much more what it's worth. for the charlevoix building, that would be about $1.6 million, which also seems much more reasonable.

i highly doubt the owner of these two buildings would let them go for this price. i also highly doubt that they'd sit on the market for this long at that price (they've been listed for almost 9 months). there has to be a catch or something funny with the structure and/or arrangement. especially given the owner's (i won't mention any names) past attitudes on developers. he's desperately held onto these buildings for the better part of 20 years. [long history, but i won't get into all of it.]

now, before all the pessimists piss and moan about the market, narrow down your scope a little. the historic conversions in the downtown area are all operating at %90+ occupancy. there are also historic tax credits available for both these properties, which make them very attractive and competitive to redevelop. which, when utilized, relegates the buildings to rentals for 5 years, which is an expanding market currently. unless there are serious structural issues (maybe in the case of the charlevoix) these factors alone would make these extremely viable and competitive developments at the price listed.

interesting sidebar: if you've never seen the movie crimewave, rent it. pretty bad movie, but it is shot primarily on this corner. it utilized the tuller hotel, the park avenue building, and the kales. in the background of many shots you can see the glowing neon of cliff bells in one direction and the adams theatre in the other. it was shot in 1985.
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Sean_of_detroit
Member
Username: Sean_of_detroit

Post Number: 334
Registered: 03-2008
Posted on Thursday, May 15, 2008 - 10:30 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

LOL, thanks for clearing that up RSA! That makes much more sense. That puts it in line with the others available.

The ad is a little poorly written.

Still doesn't explain the Charlevoix. Anyone have any info on that?

(Message edited by Sean_Of_Detroit on May 15, 2008)
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Sciencefair
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Username: Sciencefair

Post Number: 91
Registered: 10-2007
Posted on Thursday, May 15, 2008 - 10:30 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Registeredguest = hilarious.
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Sean_of_detroit
Member
Username: Sean_of_detroit

Post Number: 337
Registered: 03-2008
Posted on Thursday, May 15, 2008 - 10:50 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Very funny Registeredguest.

:-)

The Charlevoix building must be wrong too. It doesn't make any sense. The land is worth more than that.

LOL, give me a break. It's been a long week.

(Message edited by Sean_Of_Detroit on May 15, 2008)
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Leland_palmer
Member
Username: Leland_palmer

Post Number: 523
Registered: 08-2004
Posted on Thursday, May 15, 2008 - 10:50 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

RSA I posted screen caps from Crimewave a long time ago. I have no idea where there are in the archives though.

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