New Center Investing Guide

New Center’s name may reflect its historical aspirations, but it also accurately describes its place at the heart of Detroit’s resurgence. Investment in the neighborhood has reached incredible heights in recent years. Residential, commercial, light industrial/technical, institutional, recreational projects are all in the works. Any and all types of development ranging from small to enormous have planted their roots in New Center.

Many neighborhoods in Detroit have seen their overall success rest upon a foundation of residential investment. New Center is no different. The beginning of New Center’s residential resurgence dates back to the late 1970s, when General Motors began to restore houses just north of their then-headquarters, now known as Cadillac Place. This charming and well-maintained historic residential district, New Center Commons, currently enjoys a stable level of home ownership coupled with very low turnover.

Recent activity means that New Center now also boasts newly-constructed single-family houses, lofts and townhouses as well as numerous renovations of condominium, apartment and loft units. One of the first projects off the block was Gramont Manor, an historic Albert Kahn building that was renovated by the Farbman Group into 50 moderately-priced apartment condominiums that sell from $90,000. Crosswinds Communities also came to New Center to build 82 units of new loft housing priced in the $150-$240,000 range and 47 townhomes priced at an average of $169,000.

Big-time projects coming

The New Amsterdam Project is being developed by Jonna Construction in conjunction with New Center Council (NCC), the neighborhood’s non-profit development association. It is located in the southern end of the neighborhood and includes two buildings totaling 130,000 square feet that will house 89 units of renovated residential lofts.

The residential development parade will continue well into the future with several more big-time projects. While retaining 55 hotel rooms, a portion of the Hotel St. Regis will be converted into apartment-style condos to be sold for $90-120,000.

The redevelopment of the Argonaut Building, located on Milwaukee Street at Second Avenue, has the potential to make the biggest impact on the New Center residential market. This massive 725,000 square-foot structure will be developed by Orton Development into 275 residential live/work lofts, 15,000 square-feet of retail space and 150,000 square-feet of loft office space.

Orton’s Greg Herbert is bullish on the prospects of New Center. “You know when you are in New Center because the prominence of the buildings and the maintenance of the area by NCC set it apart," Herbert said. "Plus, the wide range of services in and around New Center is unusual in Detroit.”

Diversity strengthens retail

When General Motors announced its decision to move from its long-time headquarters to the Renaissance Center, there was some trepidation regarding New Center’s future retail prospects. However, the removal of the neighborhood’s benevolent father proved to strengthen the diversity of retail. Jeff Axt, owner of Biz-R Collection, Detroit’s largest independent women’s clothier said the neighborhood has actually flourished in the absence of General Motors. "What we have now is better. Inside New Center One, it used to be all GM," Axt said. "Now we have some Henry Ford Hospital services, a nursing school, Detroit Public Schools offices. This mix helps us achieve our sales goals.”

From yarn store City Knits to Detroit-themed boutique Pure Detroit to exclusive furrier Dittrich Furs, New Center has plenty of amenities often found lacking in Detroit. Most retail is clustered inside New Center One, the Fisher Building, Cadillac Place and along Woodward Avenue south of W. Grand Boulevard.

NCC has worked hard to improve the retail climate along Woodward by spearheading a streetscape improvement project that includes new lighting and an aesthetically pleasing sidewalk design. Additionally, they have provided property owners with matching grants towards façade improvements.

Detroit Hardware, a haven for the handy located in an historic Woodward storefront, took advantage of NCC’s façade improvement program. Owner Emily Webster said that she had decided to do only small improvements before New Center Council stepped in. “We had planned to do some minor façade work. Probably just siding, the least-expensive route,” Webster said. She credits a matching grant the business received from the NCC as the key to the quality of the finished product. “We couldn’t have done it without (NCC),” Webster said. The sharply updated storefront now attracts more drive-up and walk-in traffic because of its increased visibility.

TechTown in the neighborhood

Some major investment dollars are being pumped into the southern end of New Center as well. TechTown is an entrepreneurial village concept created by Wayne State University, General Motors and Henry Ford Health System. When it is completed it will be a high-tech research and development park. TechTown is nestled within 12 city blocks bounded on the north by the Grand Trunk railroad, on the south by I-94, on the west by the Lodge Freeway and on the east by Woodward Avenue. It currently boasts 21 tenants, ranging from biomedical researchers to a digital media development company to alternative energy distributors.

Ramone Crowe is the proprietor of The Java Exchange, a coffee house located in TechTown’s anchor building, called TechOne. Crowe decided to relocate his business from East Jefferson because he likes the environment TechTown is nurturing for start-up businesses. "I like the incubator concept. I also like the demographics in the area," Crowe said. "Young and old, students and corporate types: that kind of diversity will drive my business.”

Another major development in this section of New Center includes the University Preparatory Academy High School, a technology-focused charter school. The school’s curriculum links students to surrounding TechTown businesses and its five-building campus serves as the home of the renowned Mosaic Youth Theater ensemble.

Quality of Life benefits

NCC is also working to ensure adequate recreational opportunities for neighborhood residents and workers. To this end, they are engaged in a capital campaign to raise funds that will be used to construct an outdoor movie screen/band shell pavilion at New Center Park, located at the southwest corner of W. Grand Boulevard and Second Avenue. These park improvements, which are being supported by the State of Michigan’s Cool Cities program, will provide a “quality of life” benefit for residents as well as a prime lunch and meeting space for area employees.

Despite this staggering success, New Center is not a neighborhood set to rest on its considerable laurels. Karen Gage, NCC’s Economic Development and Planning Coordinator, said more is needed, “We definitely need an office supply store, a copy center, more clothing stores, a book store and grocery stores.” It is this type of drive that will likely fuel investment strategies to propel New Center into bigger and better arenas for some time to come.

Directions to New Center

From the East:
Take I-94 West to Exit 215C toward M-1/Woodward Ave/Brush St. Stay straight to go onto Edsel Ford Fwy East. Turn right onto Woodward and arrive in New Center.

From the North:
Take I-75 South to Exit 54 toward Clay Ave/E Grand Blvd. Stay straight to go onto Chrysler Dr., and then turn right onto Grand Blvd East. Arrive in New Center.

From the West:
Take I-96 East and merge onto I-94 via Exit 190A toward Port Huron. Continue to M-1/Woodward Exit 215C toward John R St. Stay straight to go onto Edsel Ford Fwy East and turn right onto John R St. and right again onto Hendrie St. Turn right onto Woodward and arrive in New Center.

From the South:
Take I-94 East toward Detroit. Continue to M-1/Woodward Exit 215C toward John R St. Stay straight to go onto Edsel Ford Fwy East and turn right onto John R St. and right again onto Hendrie St. Turn right onto Woodward and arrive in New Center.

Take I-75 North toward Detroit and merge onto I-96 West/Jefferies Fwy via Exit 48 on the left toward Lansing. Merge onto I-94 East toward Port Huron. Continue to M-1/Woodward Exit 215C toward John R St. Stay straight to go onto Edsel Ford Fwy East and turn right onto John R St. and right again onto Hendrie St. Turn right onto Woodward and arrive in New Center.