The latest investor in Downtown Detroit: DDI Group, the Chinese corporation that won the David Stott and Free Press buildings when both were up for auction in September. The one thing anyone seems to know about DDI is that they have Dan Gilbert levels of cash, and they're eager to dump millions into their new Detroit properties. The futures of the David Stott and Free Press buildings look considerably brighter, especially knowing that renovations are expected to commence very soon.
David Stott Building
The 38-floor office tower was won with a $9.4M bid. According to broker Ryan Snoek, DDI topped Dan Gilbert's bid by just $50K. The corporation plans on start renovations on the 4th floor, building out office space level by level. The upper floors might see a residential conversion, but we're told those plans have yet to be finalized. The Stott's current tenants will all be retained, including SkyBar.
Free Press Building
According to Snoek, DDI is "looking to continue the vision of the previous owners," meaning the building's longtime promise of residential units will finally be fulfilled. DDI won the auction with a $4.2M, and the overall renovation is expected to cost $40M-$50M. A good chunk (about $22M) of that cost is covered by tax credits left in place by the building's previous owners.
· Free Press Building Sells For $4.025M After Last Minute Bid [Curbed]
· David Stott Sold: Skyscraper Auctioned off for $8.95M [Curbed]