Manhattan-based HFZ Capital Group partnered with Southfield developer Redico LLC to win yesterday's auction of the Fisher Building. The New Center property and adjacent Kahn Building sold for $12.2 million in a deal that also includes 2000 parking spaces, both on the street and in covered decks.
While many in Detroit worry that plans for the Fisher might not respect the building's historical and architectural significance—its unofficial nickname is "Detroit's greatest art treasure," after all—HFZ has a long history of restoration and stewardship of older buildings. Per the company website, HFZ "takes pride in its stellar reputation for restoring and preserving historic buildings to their original grace and refinement." The local partner, Redico, specializes in high-end strip malls and modern office towers, and is probably best known in Detroit for its role in building Compuware Headquarters.
Redico's local presence and HFZ's proven record of developing historic buildings seem like qualities that will complement one another well as the partnership works on the Fisher's next chapter. Estimates for its restoration range from $70 to $80 million, and both developers have experience managing projects of that scope.
HFZ, founded by Ziel Feldman in 2005, primarily develops mixed-use and residential spaces, a model many speculate is the plan for the Fisher. Condos in one such HFZ-developed Manhattan property, the Marquand, start at $15 million—nearly $3 million more than the price for an entire landmark building in Detroit. While Detroit condos won't bear anything like that asking price any time soon (if ever), Feldman's aesthetic combined with Redico's experience with large-scale developments in Detroit offer intriguing hints of what may be in store for the Fisher Building. - Rebecca Golden
· Iconic Fisher, Kahn Buildings Auctioned for $12.2 Million [Curbed Detroit]
· Redico joining HFZ in Fisher Building purchase [Freep]
· The Closing: Ziel Feldman on Gary Barnett, roller coasters and the Jewish singles scene [The Real Deal]