Late summer construction start for new 80-unit downtown Detroit apartment building

A downtown Detroit development of a new nine-story apartment building that will incorporate the facades of two existing buildings won approval Tuesday for millions in state-level incentives and is aiming for a late summer construction start.

The $38 million project, temporarily dubbed Broadway Lofts, is to contain 80 mixed-income apartments and about 6,500 square feet of commercial space for a possible restaurant and small food market. The development would stretch across three existing three-story buildings — from 1322 Broadway to 1336 Broadway — and demolish the buildings' interiors to make way for the new high-rise.

However, the historic facades of two of the buildings will be saved; that of the third — 1332-1336 Broadway — is considered too deteriorated and would be rebuilt.

Board members of the Michigan Strategic Fund in Lansing voted Tuesday to approve the project for a $8.2 million loan via the Michigan Community Revitalization Program and a Brownfield tax capture of up to $3.5 million.

Without those incentives — plus over $10 million in additional, previously approved local and state incentives and tax breaks — the project wouldn't be financially feasible, according to a Michigan Economic Development Corp. analysis.

The project's developer is Detroit-based Basco, whose president and CEO is Roger Basmajian.

“This is a really crucial project in a district that needs a lot of residences and lacks residences, and these (buildings) have been vacant for so many years," Basmajian said during the board meeting.

Following the meeting, Basmajian told the Free Press that construction could start in September and take about 18 months.

Although the final, official name of the development hasn't been decided, they are learning toward The Reckmeyer. The middle of the three existing buildings — 1326 Broadway — was originally known as the Reckmeyer Building in the late 1800s when it housed a fur clothing business.

The average market-rate rents in the development are expected to range from $940 to $1,448 a month for studio units, $1,007 to $1,993 a month for one-bedroom units and over $3,000 for two-bedroom units, according to development documents.

A full 20% of the units will be set aside at below-market rents for those with incomes at or below 60% of the area median income, or $40,320 per year for one person or $46,080 per year for two people.

The project is next door to the 11-story Harvard Square Centre building, 1346 Broadway, which Dan Gilbert's Bedrock firm is said to be eying for conversion to apartments in the near future.

Contact JC Reindl: 313-378-5460 or jcreindl@freepress.com. Follow him on Twitter @JCReindl