Politics & Government
Developers Present 'Gateway' Concept for I-696 Site to DDA
The major component of the plan is a 160-unit apartment building. The concept also includes office and retail space.
Developers presented an initial concept for a $50 million apartment/office/retail complex to the Downtown Development Authority (DDA) at a meeting at City Hall Wednesday afternoon.
Versa Development, CG Emerson Real Estate Group and Farran Group want to build apartments, a 4-story medical/office building and a retail area on the vacant parcel at Interstate 696 and Main Street.
"We recognize this is a fairly large project. It's complex. It's very visible. It's a gateway project to the city, so it needs to be done well," said Pat Corrick, principal of the Farran Group, a nationally focused multi-family development firm.
The proposed 160-unit apartment building is the major component of the development project.
"We're really very bullish when we look at sites like this. We love high visibility. We love gateways. We love to create entryways into communities," Corrick said, adding he's really excited about the demographic of the people who live in Royal Oak, too.
Another reason developers said the I-696/Main Street site is so appealing is that Metro Detroit hasn't seen a new supply of apartments for a whole generation. There has been a lot of research done on the rise of the rentership society, which wants more mobility and optionality and the ability to move, said Corrick. Last year the Washington Post reported there have been 4.2 million new renters since the end of 2006 while 1.2 million homeowners have been lost.
"The residential component really hugs the boundary so it defines that urban edge along Tiffany (Lane), Woodward and 696 . . . and conceals the parking deck. The parking deck is in the interior core of the site, so as you approach the downtown area you see a beautiful building versus a parking deck or an open parking lot," said Jeff Klatt, of Royal Oak-based Krieger | Klatt Architects.
The massing of the apartments increases from Tiffany Lane to I-696, with units along Tiffany of similar scale to the buildings north of the site and the units along Woodward stepping up as high as seven levels.
The average unit size would be around 750 square feet. There would be a combination of studios, one-bedroom units and two-bedroom units.
A retail space and office building are proposed for the site along Main Street.
"There's a big market demand in the area along the Woodward corridor, really from 696 all the way up to Maple into Birmingham, for professional space...and retail space," said Greg Erne, principal at Versa Development.
Erne said he envisions financial services, fast casual, coffee shops and wireless stores being interested in the retail space because of its location.
After fielding questions from directors, Erne said the group was ready to take the next steps and structure a deal with the DDA.
Tim Thwing, director of planning, said the board would talk about the concept at its strategic planning meeting in January and get back to the developers with some direction.
The development team has done their internal marketing studies on demand, according to Erne. Should the development team be working with the DDA in the early first quarter of 2014, a plan could be ready to submit to the city for approval by June, Erne said.
Versa Development and CG Emerson Real Estate Group are also the developers of the hotel complex at the former Fresard auto dealership site.
[Read: DDA Hears Update on Hotel Complex at Former Fresard Site]
About The Gateway plan
The Gateway development includes:
Retail
- 9,800 square feet of retail
- 10,000 square feet of office space (two floors)
- 10,000 square feet of medical space (two floors)
- 160 apartment units
The development team includes:
Developer: Versa Development, CG Emerson Real Estate Group & The Farran Group
Architect: Krieger | Klatt
Find out what's happening in Royal Oakwith free, real-time updates from Patch.
Counsel: Miller Canfield, PC
General Contractor: T.H. Marsh
Find out what's happening in Royal Oakwith free, real-time updates from Patch.
Accounting: Jenkins Magnus Volk & Carroll, PC
Civil Engineer: Professional Engineering Associates
Market Consultant:
- CBRE (John Latessa)
- MRC (Bill Watts)
Traffic Consultant: Wade Trim
Banking Relationships:
- Huntington
- WellsFargo
- KeyBank
- The Private Bank
- Glacier Bancorp
Public Finance
- MEDC (Paul Brown)
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