With a new condominium projects opening up in Detroit, the real estate market is ready to test whether people are ready to stop spending their money on apartments, and start investing in downtown homes.
Before the recession, more than 10 different condominium developments were underway near downtown, Midtown, Corktown, and across the riverfront. However, when the real estate market took a halt in 2008, most of these projects switched gears and looked to finish as rental apartments and workspaces.
Why Real Estate Investments In New Detroit Condos Makes Sense
The demand for middle and higher-end apartments has increased, making the condo market seem even more enticing. However, until now, banks were not willing to give out mortgages for new inner-city condos, regardless of the buyer’s credit history or standing. Now, some banks and credit unions are changing their minds, and have started granting loans towards Detroit condos. The condos that were once near completion in 2008 are starting to take form, once again.
The owners and developers of the FD Lofts Condominiums, located in Eastern Market, believe that the condo market is ready to see some new locations in Detroit. Owner, Robert Heide and project developer Brian Giles, are looking at converting even more of the FD Lofts into condo’s units for sale. Currently, some of the tenants include businesses and rentals, but have all been made aware of the switch, along with discounted rates, if they are willing to purchase their space. Heide explains that he has seen a significant increase in demand for higher-end condominiums, especially in the city. With a limited amount, the one’s that are available now, are going fast.
Developers around the area have been keeping a close eye on Heide & Giles, to see how successful their condominium venture truly is. People are eager to experience the outlook on condos in some of the nicest buildings in Detroit, and how easy it can be to receive financing from the banks. Currently, about half of the FD Lofts have already received deposits for the newly renovated condominiums, which range from 523 – 2,000 square feet, and prices starting at $124,800 – $329,800. With nearly $1 million in renovation efforts and upgrades to the FD Lofts, the condo association fees will be around only $300 a month.
With a project that was originally slated in 2012 for condominiums, it quickly went away and was finished as rentals. Heide has expressed excitement and hopefulness for the future, now that they have the lenders and tenants to make this dream possible and worthwhile.