Blog RSS

Kefallinos puts 30 Detroit properties up for sale By KIRK PINHO

Detroit landlord Dennis Kefallinos is marketing most of his nonresidential properties in the city for sale or lease, Crain's has learned.

An offering memorandum obtained by Crain's on Tuesday shows dozens of properties in Detroit and Hamtramck being offered, including the Harvard Square Centre high-rise, Michigan Theater Building and 28 others. All told, they total more than 2.3 million square feet and sit on more than 100 acres.

Dennis Kefallinos

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."

PROPERTIES FOR SALE

• The Michigan Building and former Michigan Theatre, 220 Bagley St.

• Harvard Square Centre, 1346 Broadway St.

• 227 Adelaide St.

• Shapero Hall, 1401 Rivard St.

• Roosevelt Hotel, 2250 14th St.

• Former Burton International School/Franklin Elementary School, 1333 Pine St.

• Former Caesar Chavez school, 1548 Porter St.

• 1.5 acres of vacant riverfront property, 1801 W. Fort St.

• Industrial building, 1221 Rosa Parks Blvd.

• Former distribution building, 1982 W. Jefferson Ave.

• Former southwest Detroit hospital, 2401 20th St.

• Topor's Pickle and Food Service building, 2850 Standish St.

• Fairmont Creamery building, 600 E. Milwaukee Ave.

• Perlex building, 2821 E. Grand Blvd.

• Russell Street industrial building, 5845 Russell St.

• Hamtramck office building, 10201 Joseph Campau

• Southern Fires restaurant building, 575 Bellevue St.

• Goeschel Building, 3230 Gratiot Ave.

• Former Pfeiffer Brewing Co. building, 3700 Beaufait St.

• Bellevue industrial property, 2425 Bellevue St.

• Former Joe's Marine buidling, 547 Lycaste St.

• Former Midwest Cabinet and Counter property, 630 Lycaste St.

• Former Anna M. Joyce Elementary School, 8411 Sylvester St.

• Former southwest Detroit YMCA, 1601 Clark St.

• Former Roberts Brass Co. building, 5435 W. Fort St.

• Former Wayne Foundry and Stamping Co. building, 3100 Hubbard St.

• Property at 3944, 3948 and 3950 Michigan Ave.

• Former Thorn Apple Valley slaughterhouse, 2902 Orleans St.

• Land, 1825 Division St.

• Former Hoban Cold Storage Co. property, 1599 E. Warren Ave.

 

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.

 

See Full Article