Fund 2 / Great Lakes
STATUS | Open
Great Lakes
Target Cities
Detroit, Grand Rapids, Columbus
Anticipated Closing
December 2020
Properties under contract:
Secco Portfolio
Berkadia Portfolio
Makino Portfolio
Regional Assets
The Great Lakes/Detroit/Grand Rapids/Columbus region has many significant assets that can be leveraged to support its future prosperity:
The perennial resilience and innovation of its manufacturers.
A wealth of colleges and universities, strong philanthropic and civic organizations.
Significant natural resources such as the Great Lakes themselves.
Demographics
Detroit
36%+ growth in tech and health care jobs since 2009 (strongest region in nation).
Top 10 “Most Innovative Cities” with over 127,000 tech jobs in the city, growing more than 26% since 2006.
Average rental rates at 20%-25% of income compared to cities like Chicago at 40% and San Francisco at 45%.
Region possesses nation’s largest number of engineering grads and STEM research focus.
28% of downtown residents fall within the key renter ages of 18-35, compared to 23% nationally.
Grand Rapids
Second largest metro area in Michigan with healthcare industry booming in the state.
3.1% unemployment rate (lower than national average).
Average rental rates $850/month (overall housing costs below national median).
No. 13 Best Places to Live in the U.S. (2019 U.S. News & World Report).
City’s affordability is one of the best
in the U.S. and is attracting college students and young families with its healthy job market.
Columbus
#1 Forbes top rising city for startups with its college presence, low costs (business and living) and venture capital deals.
1st BEST CITY to work for in technology — third year in a row (SmartAsset 2018).
Ranks 6th BEST cultural city in the U.S. — beating Los Angeles, New York, San Francisco and Washington DC.
1st BEST CITY for college grads (SmartAsset 2018) – cost of living is lower than national average.
2nd safest city in the U.S. for families with young children.
Regional Infrastructure Advantages
Engineering, water routes, natural resources, low living costs
M-1 Rail project, serves 8,000 daily riders, access to 125,000 jobs, 275,000 residents
Population increase, of people 25-35 with, graduate degrees, higher than Bay Area
US dept HUD estimate, 3,875 units needed, only 1600 are in the works now
2016 WINNER US DOT Smart City Challenge
$40MM in funding
20% residents between the ages of 20-29 third best US city for millennials
Palmer Park Historic District
Urban Communities is about to purchase an estimated 800 to 1,000 units in the Palmer Park Historic District, with upwards of 550 units under contract and negotiations in place for additional buildings. We’re creating one of the largest neighborhood redevelopment projects in the City of Detroit.
It has a rich history and upside potential for remediation of its buildings
Located 12 minutes from Downtown Detroit along a mass transit thoroughfare
Next to the historic Detroit Golf Club which holds the annual Rocket Mortgage Class PGA Event
Part of a “Focus Neighborhood” by the City of Detroit for redevelopment
Across from one of the largest parks in the city and within 1 mile of the State Fairgrounds (currently undergoing redevelopment)
Why Palmer Park
The Palmer Park neighborhood is rich with history and upside potential for remediation and redevelopment of its existing buildings. The land that this historic district sits on was once the estate of Thomas W. Palmer, Jr., a businessman and later Senator. Influenced by the suburban housing trend of the 1920s, the neighborhood was laid out with gently curving streets on large parcels of land. Apartment buildings, designed by prominent Detroit architects to accommodate middle-and-upper-middle class residents, were built throughout the neighborhood. The richly detailed designs of the 1920s were replaced over time by clean strong lines, large windows, flat roofs and plain wall surfaces – and the various architectural trends throughout the years can be seen in the many different styles of buildings found in this district. Urban Communities plans to restore this neighborhood to its full potential and build a nice community for the working-class population of Detroit.