New East Coast investors for Detroit? The Icon Realty Group has properties in Greater Philadelphia, South Jersey and New York and recently spent three days in southeastern Michigan including downtown Detroit. The team was looking at potential investments in multi-family, retail and hospitality but the verdict at this point is a no-go, it would seem. They team posted this on the blog:
One of the largest concerns that we came away with was the relatively large supply (yes, occupancy is high, but there are many buildings that could easily be converted) and a demand that had not proved to be historical[sic] reliable. Further, the continuity of tenancy has not been validated. Finally, downtown Detroit lacks a complete ecosystem. Retail is non-existent. The attraction of neighborhoods like Birmingham and Royal Oak continue to draw many of the young professionals that Detroit so covets. The good news is that the DDP is using Philadelphia and San Diego as case studies. We can attest to the success of both cities. If only Detroit could square away a beach. Wow. Well looks like the city v. suburbs debate is being reignited. So if we build the proverbial Jersey Shore, Royal Oak's Snookie will come? Yeah, no thanks.
· Icon Realty Group Visits Detroit [Icon Realty Blog]