Construction begins on 29-unit mixed-use development in the North End; guarantees affordable rates
“The Beauton Development not only creates new affordable housing units for residents and families, but it also showcases what is possible when developers of color are engaged and given an opportunity to participate in the revitalization of our neighborhoods,” says Council President Mary Sheffield.
What’s happening: Construction is underway at The Beauton, the new mixed-use development in Detroit’s North End. The $7.3M development features 29 residential units that have been guaranteed at “affordable housing” rates for the development’s first 12 years.
What it is: The Beauton features 10 micro-studio units, 15 studios, 2 one-bedroom units, and 2 two-bedroom units. More than half of the units will be rented at or below 80 percent of the area median income (AMI), with the rest of the units renting for 50 to 120 percent of the AMI. It means that the micro-studios can be had for as low as $700 per month. It’s expected that the three-story building will be ready for residents come summer 2024.
Why it’s important: “The Beauton Development not only creates new affordable housing units for residents and families, but it also showcases what is possible when developers of color are engaged and given an opportunity to participate in the revitalization of our neighborhoods,” says Council President Mary Sheffield. “I look forward to the completion of the project and the residual positive impact to the North End community that is sure to follow. “
Who’s behind it: Detroiter Charles Dickerson III is responsible for The Beauton, and the developer has utilized a varied group of funders to help make the project possible. It’s a group that includes the Detroit Housing for the Future Fund ($1.55M loan; $550K in preferred equity; $100K developer of color pre-development matching grant); Capital Impact Partners ($2.45M construction loan; $1.35M bridge loan; $93K grant); Michigan Economic Development Corporation ($1.497M grant); Ebiara Fund ($500K loan for developers of color); and the Detroit Economic Growth Corporation ($743K 15-year tax abatement).
What they’re saying: “The Beauton is the first “from the ground up” project for Charles Dickerson and CADS III Management,” says a statement from Rod Hardamon, Managing Director of Ebiara. “Our goal at Ebiara is to make sure that developers like Charles have a significant role in shaping Detroit long into the future.”
The Beauton is located at 530 Horton St. in Detroit’s North End.
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