RIVERTOWN | 11.75 Acres of Detroit Waterfront Development Opportunity DEVELOP RIVERTOWN We Are Pleased to Extend to You These Detroit Development Opportunities
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DEVELOP RIVERTOWN RIVERTOWN | 11.75 Acres of Detroit Waterfront Development Opportunity DEVELOP RIVERTOWN We are pleased to extend to you these Detroit development opportunities. EXECUTIVE SUMMARY Detroit is experiencing an infow of corporate headquarters, tech start-ups, millennials and global investment. While corporate offces are relocating to downtown Detroit to attract and retain top-talent, Detroit’s genuine gritty culture is also drawing young, entrepreneurial talent, resulting in the single fastest growing tech hub in the state of Michigan. Annual employment has topped 30,000 positions for eight consecutive quarters, resulting in the lowest unemployment since 2001 and a stabilized population on the verge of growth for the frst time in a half century. Simultaneously, the City has right-sized its operations through the course of the bankruptcy proceedings, resulting in more streamlined civic planning and management. As a Detroit bond insurer, Syncora Guarantee acquired the development rights to Rivertown land through the bankruptcy settlement. Witnessing the beginning of the Detroit recovery frst hand, Syncora pursued the development rights for two large land holdings in the Rivertown district, Chene at 8.9 acres and Atwater at 2.75 acres, as part of its settlement package with the City. Today, Syncora is looking to partner with a developer(s) to lead the development of the Rivertown options. The Chene option is made of 2 adjacent lots and has potential for more than 1.8 million square feet of development, spanning from the riverfront views of Atwater street to the primary traffc artery of Jefferson Avenue. The Atwater option is a 2.75 acre lot, representing over 400,000 square feet of development, a 6-minute walk to the GM Renaissance center and has riverfront views along Atwater and is adjacent to Milliken State Park. Chene and Atwater are a 10 and 20 minute walk to downtown, respectively, and ideal for developments that need a quieter berg with quick access to downtown Detroit. Lead by S.O.M of NYC, the Rivertown parcels are the subject of a district wide planning effort that is calling for increased density, a comprehensive park and public transit strategy and run/bike paths, phase-1 work is scheduled for 2017. Rivertown development incentives are being coordinated with the planning effort as the City encourages higher density development along the river. Additionally, given the potential density of the sites, around 2.2 million square feet of mixed product, the City is willing to commit special project teams to support developer needs and ensure a successful development. If your team is interested in further considering this development project, please contact Tom Waters at (517) 944-0630 or Mary Jane Constant at Maryjane. [email protected]. We are looking for a developer and investment partner(s) to work on these projects by March 31st. TABLE OF CONTENTS WHY DETROIT RIVERFRONT SYNCORA THE DETROIT MARKET COMPANIES RELOCATING DOWNTOWN DEVELOPMENT ACTIVITY DETROIT | BEFORE & TODAY THE RIVERTOWN OPPORTUNITIES CHENE | 9 Acres ATWATER | 2.75 Acres PROJECT SUPPORT COMPANY AND CONTACTS DEVELOPMENT PARTNER NEXT STEPS WHY DETROIT RIVERFRONT? Just east of the Renaissance Center, that houses GM’s headquarters and other businesses, the Detroit riverfront, known locally as Rivertown, is under going a district-wide redevelopment. The once heavily industrial area is the target for redevelopment into a world-class riverfront community, with the City providing master planning and both political and economic support. Like many urban waterfronts across the country, Rivertown’s history is heavily industrial, supplying Detroit’s material and shipping needs through the last 150 years. The bars and restaurants that serviced the Rivertown workers provided a rich cultural fabric. Over the past 25 years Detroit has turned its attention toward keeping that culture, while relocating industry and replacing it with community. Initially the Rivertown district was the anticipated site of Detroit’s casinos, but with casinos choosing different sites around Detroit rather than a single district, Rivertown is being planned as a high-density mix of old and new buildings that pay homage to Detroit’s storied and blue collar history. With the major industrial operations relocated and the former facilities razed, the Detroit Riverfront Conservancy started the transformation with the Detroit Riverwalk, making the waterfront a public resource. Next, the Downtown Detroit Partnership converted the below-grade railway, formerly used to transport local industrial supply, into a below-grade green-way known as the Dequindre cut. The Dequindre cut, connects Rivertown to the Riverwalk and other Detroit districts for runners, walkers and bikers. Further east of Rivertown and connected by Riverwalk is Belle Isle, the former playground of both Detroit public and elites. The island, which boasted a zoo, conservancy, yacht club, golf course, beach, casino and nature reserve, had been left to ruin during the 90’s and into the recession. Through the course of the bankruptcy, Detroit returned the operation and control of Belle Isle to the State of Michigan. The Belle Isle restoration is well on its way to returning the island to former glory and becoming again a resource and destination for Detroiters. (Cont’d) WHY DETROIT RIVERFRONT? (CONT’D) To begin repopulating Rivertown as a diverse, mixed-use community, Detroit partnered with developer Richard Baron to break ground on Orleans Landing, a 267-unit multi-acre mixed use development, set to open in April of 2017. While Orleans Landing proved the demand for waterfront living, Detroit hired S.O.M. of NYC to develop a district plan to help guide the dense, urban community that Detroiters envision. S.O.M., in collaboration with City offcials, district property holders, developers, the Detroit Riverfront Conservancy and the larger Detroit community, have developed a master plan to standardize zoning/incentives, public transportation and a large district park strategy, all to guide the redevelopment of the Rivertown area. The district plan is expected to be made public in Q1 of 2017. As a result of corporate headquarters, offces and millennials moving downtown, for the frst time since the 1950’s, the population has stabilized and is on the cusp of growth. With 16-year record low multi-family vacancies of 2-3%, the community needs places to live and work as the downtown community expands. Rivertown represents a unique opportunity as so many market forces converge simultaneously. “Detroit’s long population decline slowed to its lowest pace in decades last year and some experts say next year’s numbers could show the frst signs of growth since the 1950s. ‘I’m very confdent that the city of Detroit is growing now and that will be refected in the next report...We’re at a historic tipping point.” Freep.com | “Duggan sees positive in Detroit population loss” SYNCORA & THE DETROIT BANKRUPTCY Syncoras primary business is bond insurance. It was through insuring City debt and the recent Detroit RIVERTOWN SITES bankruptcy that they ultimately acquired the development rights to Detroit riverfront land. ATWATER SIZE | 2.75 Acres Witnessing the beginning of Detroit’s recovery frst hand, Syncora pursued land as part of its settlement TYPE | Contiguous land package. The option rights to the Rivertown land are in the form of a Development Agreement with the LOCATION(S) | City of Detroit, which can be provided as part of the due diligence package. 1303 E Atwater 1365 E Atwater 1364 Franklin To help create and realize the value from the riverfront opportunity, Syncora is looking to partner with 1340 Franklin 1310 Franklin a developer to lead the redevelopment of the Rivertown options. Syncora, who is not a developer, is 1399 E Atwater looking for a partner to create and execute a robust development plan for these rare urban-riverfront 1325 E Atwater 1370 Guoin St opportunities. Syncora is looking for a well qualifed development partner to develop the Rivertown area and ensure a successful Detroit recovery. CHENE SIZE | 8.9 Acres TYPE | 2 Adjacent Lots In addition to the Rivertown land, Syncora has additional operations throughout Detroit, which include LOCATION(S) | operating the Detroit-Windsor tunnel through wholly-owned subsidiary American Roads as well as 2310 E. Jefferson 2290 E. Jefferson development options for other city assets. Through those operations the Syncora team has established 301 Chene relationships throughout the City and community and can provide introductions and support where 281 Chene 2263 E. Atwater needed or desired. SYNCORA & THE DETROIT BANKRUPTCY THE DEVELOPMENT AGREEMENT The bankruptcy settlement was fnalized in December of 2014. The settlement package included a Development Agreement, which provides development rights to 3 distinct Detroit properties including the 2 Rivertown properties, Chene and Atwater, as well as the former Detroit Police Head Quarters building. The Development Agreements (D.A.) intended purpose is to encourage the redevelopment of the Rivertown area and ensure a quick and successful Detroit recovery. To encourage development, the D.A. represents a no-cost option with time restrictions and option expiration. The D.A. requires that upon taking title to each subject property, construction must start within 15-months and be completed within 39-months from the date of exercising the respective options. Each sites expiration corresponds to the respective size of development, with the Atwater option expiring December of 2018 and the Chene option expiring in December of 2021. With timing as the primary restriction, the Development Agreement does not intend to limit or restrict the development as it relates to zoning, development/product type or economic incentives. The Development Agreement assigns rights to Pike Pointe Holdings, a subsidiary of Syncora Guarantee. THE DETROIT MARKET | ECONOMIC SUMMARY MEDIAN INCOME (HH) MULTIFAMILY VACANCY RATES 8% US Average $70,000 Detroit Metro 6% $60,000 $50,000 4% $40,000 Detroit 2% Vacancy Rates Vacancy Income per Year Income per $30,000 National “Vacancy in the Detroit metro 0% has fallen to the tightest rate in 97 01 05 09 13 17 12 13 14 15 16 16 years..