Detroit is a city that goes by many different names: Motor City and Motown just to name a few. Detroit is one of those cities that has a little bit for everyone. There are the obvious car buffs but there also are some art museums, great music venues, lots of history, great sports teams, and of course nightlife. Detroit is also a major port located on the Detroit River and is the second largest regional economy in the midwest behind Chicago.
The real estate market is interesting as well. According to Fortune Builders, Detroit may serve as a testament to the strength of the United States economy. No more than a year ago, Detroit represented a city in decline for the better part of a half a century. However, having made significant improvements over the course of a year, Detroit is positioned to make a remarkable economic resurgence.
For Sharestates Detroit is a market we also see some great potential and are working to forge relationships with borrowers to help build the city back up. One property we funded is located in a neighborhood called Poletown East. The name came from immigrants who originally lived there. Poletown is sometimes used inclusively as slang for Hamtramck, Michigan, probably due to Hamtramck’s strong identification with Polish-Americans. The property is a multifamily property with 24 units. The borrower previously acquired the subject property and is refinancing to obtain construction financing to begin build-out. The borrower intends to complete the build-out and either sell at completion/stabilization or refinance into a conventional loan. Rehab on this property will include demolition, roofing, flooring, new HVAC system, all new plumbing/electrical, new installation of elevators, drywall and much more.
Loan Amount: $2,344,000
Rehab Budget: $2,753,457
Another property Sharestates recently funded is located in the East Grand Boulevard Historic District. This area includes a few moderate-sized apartment buildings and numerous large homes. During the late 19th century, creating wide, graceful streets was seen as a way to create a beautiful city and this area adopted that feel. Living in this area was considered prestigious at that time. East Grand Boulevard is a thoroughfare in Detroit, running east to west in some parts and north to south in others. The property is a residential multifamily property with 2 units. The borrower previously acquired the subject property and will begin rehab. The borrower intends to complete the rehab plans and market the property for sale. Rehab will consist of cabinetry, drywall, heating/cooling, plumbing/electrical, new hardwood floors, bathroom tiles/shower doors, and new rear porch to name a few.
Loan Amount: $417,000
Rehab Budget: $200,900
To learn more about Sharestates or to apply for a loan to fund your next real estate project click below.