The offering memorandum does not include any of Kefallinos' residential properties, which are the subject of a long-running class action lawsuitbecause they did not have certificates of occupancy and were allegedly in substandard condition. It also does not include the Russell Industrial Center property, which had been ordered vacated this winter.
A voicemail was left for Kefallinos, who is out of the country.
"The offering memorandum speaks for itself," said Tom Arbaugh, the Bancroft Partners representative listed on the OM. "We are letting the market know the extent of the industrial and commercial properties in the Kefallinos portfolio."
Kefallinos has been investing in Detroit real estate for decades. However, has been the target of criticism for delayed renovations or improvements to a slew of buildings he owns.
Some of the other buildings included in the OM are the Roosevelt Hotel at 2250 14th St., which Kefallinos bought in 2010 for just $37,500 at a tax-foreclosure auction, and Shapero Hall, a former Wayne State University pharmacy school building that he purchased in 2010. The city had targeted that building for demolition, but Kefallinos staved off the wrecking ball and planned to create microapartments there.
Kefallinos lieutenants have long talked about plans for Harvard Square Centre and Shapero Hall. None of them have come to fruition.
In an interview with Crain’s last month, Kefallinos discussed the status of his redevelopment of a former Thorn Apple Valley slaughterhouse at 2902 Orleans St. on the edge of Eastern Market. Kefallinos had windows installed on the first two floors of one side of the abandoned meat processing plant that face the Dequindre Cut greenway walking path.
“I’ve got the windows for the other half, I just haven’t had time to get to it,” Kefallinos told Crain’s. “Sometime this summer I’m sure we’ll come back in for the windows.”
Kefallinos said the 114,000-square-foot building would be ideal for a chain grocery store or restaurant and brewery.
“Right now, our objective is to restore it,” he said.
But Kefallinos hedged a bit and acknowledged he was waiting for other developers to begin expanding the Eastern Market footprint before he makes a move.
“I just wait for the cranes to go up in Eastern Market,” Kefallinos said. “I don’t want to be first.”
- Senior reporter Chad Livengood contributed to this report.
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