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Construction on Midtown high-rise buildings now two years behind schedule - Crain's Detroit Business

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A pair of high-rises planned for a key chunk of land north of Detroit's Whole Foods Inc. grocery store won't start construction until at least June next year, putting the project two years behind its initial building schedule.

The latest delay was revealed during a presentation Thursday evening to The Mid's Neighborhood Advisory Council, which was created as part of the planned $377 million project's community benefits ordinance process.

Crain's requested an interview with a representative of the development team, but received only a prepared statement:

"The Mid's sponsor has been working on activating this site for the past two years with more than $27 million invested in the proposed development and we look forward to reengaging when we experience more market stability. We, too, are frustrated by the pause but remain bullish on Detroit and the commitments we have made and remain eager to break ground on this shovel-ready project in the spring/summer of 2021."

The Mid was originally announced in March 2019 as a $310 million project with two high-rises, one with 25 stories and another with 30 stories, on a 3.78-acre site at 3750 Woodward Ave. that an entity tied to Ciena Healthcare CEO Mohammad Qazi paid $15 million for in September 2018. At the time, a groundbreaking ceremony was expected that summer.

In addition to a boutique Thompson Hotel, which would have 228 rooms across 16 floors of the original 25-story tower on Woodward, about 60 luxury condominiums were also planned in the nine floors above, although those have since been scrapped.

Under the original plans, a 30-story residential tower would be situated to the east off John R, with about 250 apartments and first-floor retail space, plus parking.

To the north of that tower would be a 12-story building with co-living housing across about 240,000 or 250,000 square feet with "a few hundred" units in 10 floors above two floors of retail.

Most recently, the project's 25-story hotel and condominium tower was revised to be a 22-story tower with 15 floors of hotel and seven floors of an undetermined form of residential housing. And the 30-story, 250-unit residential tower had been scaled back to a 27-story, 180-unit apartment building.

In July 2019, the Michigan Strategic Fund approved $58.3 million in brownfield reimbursement incentives for the project, which also included the 12-story building with about 198 co-living units; about 750 parking spaces between a 325-space one-level underground garage and 419 spaces in a five-level above-ground deck; and 75,000 to 100,000 square feet of Woodward-facing and other interior retail.

How much, if at all, those programming elements have changed is not known.

Several luxury condominium projects in the last year or two have been scaled back or scrapped altogether as rising construction costs ate into project margins. Cost increases have also forced redesigns of many projects around the city, and the COVID-19 pandemic has crippled some hotels and retailers.

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Construction on Midtown high-rise buildings now two years behind schedule - Crain's Detroit Business
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