Lofts lift downtown housing

By Michael McConnell
HPR Media Services

An artist’s rendering of the River Place lofts. The airy River Place lofts feature a full complement of upscale amenities.

A trend in urban living with its roots in such hip locales as New York’s SoHo district is taking hold in the Motor City.

That trend is loft living.

In the past few years, dozens of new residential loft projects have opened in and around downtown Detroit, many in sections of the city and buildings that most real estate agents long ago left for dead. Developers have spent millions of dollars converting formerly vacant warehouses, stores, even factories, into spacious living quarters.

Developers say lofts are becoming popular

in Detroit for the same reason they have been in demand for years in places like San Francisco and Chicago: people find the historic old buildings interesting places to live.

Although long considered an inexpensive apartment alternative, today’s loft shoppers can choose from dwellings that range from the ordinary to the opulent.

And perhaps none are as opulent as 200 River Place, an 80-year-old former warehouse the Farbman Group has turned into what company officials like to call “loftominiums.” The 48 new loft-style luxury condominiums, located just off the Detroit River, feature 17-foot-high wood beam ceilings, maple floors and granite kitchen countertops. Prices range from $250,000 to more than $575,000.

Even at such lofty prices, more than half of the condos have been sold, said Danny Samson, a project manager with the Southfield-based Farbman Group.

“We’ve been really happy with where our sales are at,” Samson said. “I think we’ve been lucky in that this product is unique, and there aren’t that many of them in the city, so the demand is high.”

The condos include large bathroom suites, indoor parking and high-speed Internet access. Some units also contain gas fireplaces and spiral staircases that lead to private rooftop gardens.

While such modern conveniences may be nice, for many residents, a large part of a loft’s appeal is still the chance to live in a historic structure. Samson said designers took that into account, incorporating the vintage wood beams found throughout the building.

Once a laboratory for pharmaceuticals maker Parke Davis, the building was later used as a warehouse by the Stroh Brewery Co.

“They don’t make them like this anymore,” Samson said, adding that the company is passionate about seeing the city’s historic properties renovated.

Many Detroit loft dwellers are equally passionate about their homes. John Lauer operates www.DetroitLofts.com, a Web site dedicated to the downtown loft experience. It includes a list of local lofts for sale and rent, as well as new construction and renovation projects around Detroit.

Growing up in the Oakland County suburbs, Lauer said it wasn’t until he started a Web development firm in a Greektown loft in 1996 that he realized how great working and living in a loft could be.

“All my friends who came to visit were just totally blown away by how cool it was,” he said.

The Web site proved to be equally popular. Shortly after going online, the site was registering large numbers of visitors, Lauer said. Eventually it became so popular “that some of the developers wanted us to take their listings down, because they were 100-percent leased,” he said.

Despite such surging interest in downtown lofts, many developers say Detroit is still behind the times.

“Every other city realized eight or 10 years ago that they had a base of old buildings that people wanted to live in,” said Dennis Ammerman, a loft developer who has been involved in several local projects.

Ammerman is a former marketing executive who came to Detroit from loft-heavy Seattle several years ago. He also operates a Web site of Detroit loft listings, www.lofts-and-more.com, and says the city’s large collection of vacant pre-World War II structures is an incredibly valuable resource.

“We have not realized how much of an asset we hold in these yet,” Ammerman said.

That may be changing. Ammerman said his company is getting 10 to 15 calls a day from interested buyers and renters. He said he’s also been hearing from retail companies, inquiring about the number new residential developments in the city. Most retailers wait for an area to attract enough residents before deciding to open a store, he said.

Ammerman predicted the next big trend in Detroit lofts would be large developments, designed to hold 75-100 units.

There are already a few such places in the city, including the Lofts at New Center, a 104-unit development off Woodward Avenue. Unlike most loft projects, which involve renovating an old structure, these lofts are newly built by Crosswinds Communities of Novi. The 1,280-square-foot lofts are available in two floor plans and come with oversized, floor-to-ceiling windows, a balcony and two-car garages.

Company officials said there was strong interest as soon as the project was announced.

“Once they opened up, they started going,” said Crosswinds spokeswoman Nancy Rosen. “The response has been very, very good.”

Rosen said 85 percent of the lofts in the first phase of the project have been sold, mostly to young singles and married couples.

“It’s in the hot spot. People like the downtown area,” she said.

Loft lingo

Real estate experts say anyone who goes loft hunting should remember that lofts are often very different from apartments or condominiums. When it comes to amenities, the market includes everything from the very Spartan to high-end units that feature granite countertops and whirlpool baths.

With that in mind, here are a few commonly used terms:

Hard loft — The loft is open except for the bathroom. The heating system’s ductwork, plumbing pipes and columns supporting high ceilings are exposed. The floors are often refinished hardwood, and the walls are made of brick. Windows are typically large, and may be several feet high. Prices in Detroit start at about $1 a square foot.

Soft loft — These lofts have private bathrooms, walls that partition one or more bedrooms, and may have carpeting. The walls are sometimes called three-quarter length because they may not reach the ceiling. Soft lofts look more like a traditional apartment. Rents are usually well over $1 per square foot.

Raw — An unfinished loft that may or may not include a toilet and/or sink. These are the lowest-priced units. If the loft lacks a restroom, communal facilities are available. Most recently renovated “raw” lofts include private bathrooms. Prices begin at about 75 cents per square foot. Experts say also make sure the owners of such lofts have a certificate of occupancy — some people are renting raw lofts illegally, and the units may not be up to code.

Moderate — A loft that includes a bathroom and kitchen.

Upscale — Such lofts often feature luxurious amenities, including high-speed Internet access, stainless steel kitchens and natural gas fireplaces. Luxury lofts are often more likely to marketed to those who wish to own their own home. Local prices can run more than $500,000.

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