Why Everyone Is Investing In Detroit

Detroit is making a comeback. Motor City is “On Sale” and developers know it. Businesses are opening up, people are returning, and its sports has never been more dominant.

There’s always something going on and something new to experience. It’s not just me noticing the revival, either.

“This is obviously a good sign… of course they are “Gobbling” up real estate. Detroit is a significant city, and when real estate is “On Sale”, not necessarily “For Sale”, but on sale. It is time to buy and hold!”

Jason Momoa, most famous for playing Khal Drogo in HBO’s Game of Thrones, says he’s opening a brewery in nearby Pontiac, having recently purchased a 9,000 square foot, 100-year-old former General Motors facility in the city. Why did he buy this building to open a brewery? The amazing beer, of course.

“I’ve never been to a brewery where I liked every single beer, except for New Holland Brewing. Dragon’s Milk, Mad Hatter, Monkey King. Everything works,” Momoa told Willamette Week.

Momoa has been in town recently filming one of the largest and most expensive movies ever made: Batman v Superman: Dawn of Justice. The movie — a fanboys dream — is coming to theaters with A-list talents and has filmed the majority of its scenes in and around Detroit. With Jason Momoa opening a brewery, Ben Affleck praising Detroit and wishing Michigan State the best of luck, Hollywood isn’t the only one showing its love for the Motor City.

Dan Gilbert of Quicken Loans aims to revitalize the city back to its former glory, and he shows no signs of slowing down. Since Quicken Loans moved its headquarters and 1,700 of its team members to Downtown Detroit in August 2010, he’s been going non-stop. Let’s take a look at some of his business ventures that’s been dubbed the “Gilbert Effect’ for investing in Detroit:

In 2011, Gilbert’s Rock Ventures group purchased several buildings in Downtown Detroit, including the historic Madison Theatre Building, Chase Tower and Two Detroit Center (parking garage), Dime Building (renamed Chrysler House), First National Building and three smaller buildings on Woodward Avenue.

In 2012, Rock Ventures purchased the former Federal Reserve Bank of Chicago Detroit Branch Building, One Woodward Avenue, 1201 Woodward (Kresge Building), and five smaller buildings on Woodward Avenue and Broadway Street, totaling 630,000 square feet of commercial space in downtown Detroit.

In 2013, Rock Ventures purchased the 1001 Woodward office tower, several smaller buildings in the downtown area and announced, along with The Downtown Detroit Partnership and the Detroit Economic Growth Group, a placemaking plan for Detroit’s urban core.

Rock Ventures Detroit real estate investments now includes more than 60 properties totaling 9 million square feet:

Going head to head with Gilbert is Mike Ilitch (owner of the Detroit Tigers, Detroit Red Wings, Little Caesars, and Motor City Casino). He has deep pockets and he’s basically reconstructing the sports area of Downtown Detroit:

Michael Bates, member of the successful Southern California real estate brokerage Hilton & Hyland, spoke to Social Underground about the city’s potential after witnessing what Ilitch and Gilbert were doing:

Bates has his own strategy when it comes to Detroit:

“Once something has competition in real estate, the price get’s driven up, and that is certainly not my angle,” Bates says.” I am the sleeper. I wait, watch, and let the big boys make their footprint, and then I invest on the adjacent block, and wait… follow their steps, and pick up smaller product on their back doorstep!”

As reported last July, Detroit filed for Chapter 9 Bankruptcy. It was the biggest city in American history to do so. You’d think that type of news would steer people away from the city, but Bates doesn’t seem to mind.

“When Real Estate, or anything else for that matter falls, I buy… my opinion: Detroit is too significant of a city in our country’s past. Amazing historical structures, downtown, water front, sports, motor city, East coast, etc

So what exactly is so enticing about investing in the Motor City?

“I am simply looking at it as: a quality product, in a historical area, huge future potential, and affordability… What this materializes into is unknown, and I’m ok with that, ” Bates tells Social Underground. “This is the only substantial, historical, significant city in America where you can buy at these prices! It is a “Hold Play” if you will.”

Detroit’s comeback has been “brewing” for quite some time now. Everyone is coming to the city and soon there may not be anything left to invest in. The fact is: Detroit is now an appreciating asset, “the place to be” and it’s time to join in on the action.

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Jeff Sorensen is an author, writer and occasional comedian living in Detroit, Michigan. You can look for more of his work on The Huffington Post, UPROXX, BGR and by just looking up his name.

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