The redevelopment of Capitol Park has reached another milestone as developers announce that they have secured financing for the old Detroit Savings Bank building. Constructions crews have already started working on the building at 1212 Griswold as it transitions into downtown's latest mixed-use development.
The Archdiocese of Detroit is leasing five of the building's 13 floors as it relocates its offices to Capitol Park. Eight floors will be developed into 56 market-rate, loft-style apartments. The ground level is reserved for retail.
Capitol Park Partnership is the company responsible for the building's redevelopment. Richard Karp of Lansing's Karp and Associates, historic redevelopment specialist Kevin Prater, and former senior banking executive Richard Hosey III make up the partnership. Karp and Prater have successfully redeveloped historic buildings together before, such as their award-winning work on the Arbaugh building in downtown Lansing
Much is being made of another partnership, that of the several public and private groups responsible for raising the $38.5 million in secured financing. The financing structure features historic tax credits paid up front by private institutions, construction loans, and a permanent loan. Chase Bank is providing upfront funding for a $17 million New Markets and Federal Historic Tax Credit; Urban Partnership Bank and Liberty Bank are providing upfront funding for a $8 million Michigan Historic and Brownfield Tax Credit; Chase Bank and Urban Partnership Bank are providing $10.5 million in construction loans; and Develop Michigan, Inc. and Urban Partnership Bank are providing a $9 million permanent loan.
"This demonstrates what can be accomplished when public and private organizations share a commitment to creating a vibrant city," Karp says in a statement. "When you do these things, you lay the foundation for a stronger Detroit and create an environment conducive to additional investment and long-term success."
Source: Urban Partnership Bank press release
Writer: MJ Galbraith
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