The developer of nearly 100 new luxury condos planned in Detroit’s newest high-rise is betting the market is prime for potentially record-breaking units.
Bedrock, the development firm behind the project run by local billionaire and Rocket co-founder Dan Gilbert, submitted proposals earlier this month to the city outlining 96 condo units with an expected cost of $1,000 per square foot and an average size of 1,667 square feet.
That would be an average unit priced at about $1.66 million in a metropolitan with a median condo price of $254,500, according to Homes.com data. According to media reports, the units could range from the $500,000s up to $3 million.
The units, called The Residences at The Detroit Edition, are part of the larger Hudson’s Detroit project, designed by Shop Architects. Hudson’s is the city’s latest and second-tallest skyscraper, consisting of office, retail and restaurant space, and the attached hotel and residential units.
It’s spread across two buildings: the 45-story hotel and residential structure and the 12-story office building and event space. The office building opened earlier this month.
Hudson’s namesake is the razed J.L. Hudson’s department store, demolished in 1998, and where the new buildings were built.
With the announcement of residential units last year, these newly submitted proposals show the potentially highest-priced units to come to downtown Detroit, a city plagued by a declining population.
The proposal outlined plans for 14 one-bedroom units; 56 two-bedroom units; 21 three-bedroom units; and five four-bedroom units. They will be built on floors 26 through 45. Studio Yabu Pushelberg is handling the interior design. One parking space is included with each unit.
The developer plans for the units to have 10-foot ceiling heights, natural finishes, monolithic stone slabs and wood. Residents will have access to a fitness center, outdoor terrace, pool and other hotel services like valet parking, in-home dining and housekeeping.
The developer estimates a completion date of 2027. Bedrock did not respond to a request to comment.
Agents see buyer opportunity
Jan Dijkers of Berkshire Hathaway HomeServices said the condo market in the city has been in a buyer’s market since 2018 after demand peaked in 2016 and 2017.
“Because of all that demand from buyers, and a lot of tax abatements that came with it … I think a lot of developers saw the interest in condominiums and a lack of inventory and started to build a lot of new inventory right at the time when COVID happened and people no longer wanted to share common spaces or front doors or live close to people,” she said.
Condo developer Bedrock is also requesting a tax break for its future condo buyers through a neighborhood enterprise zone certificate. This would reduce property tax bills for buyers for a set period, typically several years.
There was a 10.5% annual uptick in condo listings last month, according to Homes.com data, for a total of 1,779 condos for sale throughout the entire metro area.
The median sale price of condos increased by 3.9% in September compared to the year prior, according to Homes.com data, but it pales in comparison to the 7.5% year-over-year increase for single-family homes and 17.3% increase in townhouse prices.
“For the condo market, there is a lot of inventory right now. It’s a good time if you’re a buyer. I’m seeing listings sit a little longer than they used to even a year or two ago,” said agent Erica Collica Swink of Max Broock Realtors.
The highest-priced condo in Detroit is currently a $2.32 million unit with three bedrooms and three bathrooms at $714 per square foot that is under construction. That building is slated to have 10 units. In the same neighborhood, a four-bedroom, three-bathroom home priced at $466 per square foot asks $1.39 million.
On Oct. 14, a unit in a condo building closed at $1.85 million with a price per square foot of $616.