The Downtown Development Authority of the City of Detroit (DDA) recently approved a comprehensive plan to redevelop nine properties in a historically significant pocket of downtown with a $52.4 million investment in new construction and renovations.
The Paradise Valley Cultural & Entertainment District project includes the simultaneous redevelopment of five existing buildings and four surface lots. The project will feature commercial and retail space, residential units, restaurants, entertainment venues and a boutique hotel; all scheduled to be built over the next three years. The DDA voted to approve four of five projects. To meet a legal requirement, approval of the final project is expected at a later meeting of the Authority.
The winning proposals came from developers with strong Detroit roots. Several of the developers, including Rainy Hamilton, Jr., Hiram E. Jackson and Ismail Houmani, already have a major presence in Paradise Valley. Other developers include Patricia Cole and Roger Basmajian, and Dennis Archer, Jr.
The development plan includes these five projects:
- Hastings Place.Paradise Valley Real Estate Holdings, II, LLC, led by Hiram E. Jackson as managing partner, plans to build a new 189,660 sq. ft. building on three current parking lots at 1468, 1480 & 1496 Randolph St.
- Randolph Centre Building. Hamilton Development Corporation, led by Rainy Hamilton, Jr., FAIA, NOMA, as president, plans to renovate the 36,000 sq. ft. building in which his firm, Hamilton Anderson Associates has been an anchor tenant for Paradise Valley, at 1435 Randolph St., and to build a 16,000 sq. ft. new office building addition on the parking lot next door at 1455 Centre St.
- Harmonie Club Hotel. 311 E. Grand River, LLC, led by Patricia Cole and Roger Basmajian as partners, plans to renovate the 36,000 sq. ft. building at 311 E. Grand River as the Harmonie Club Hotel.
- Harmonie Pointe. Gotham Capital Partners, led by Dennis Archer, Jr., as managing partner, plans to renovate the 17,328 sq. ft. in two buildings at 1407 and 1427 Randolph St.
- La Casa Cigars and Lounge. La Casa Properties, LLC, led by Ismail Houmani as principal, plans to purchase and refurbish the 7,500 sq. ft. building at 1502 Randolph St., in which he now operates La Casa Cigars and Lounge.
The development of Paradise Valley has been nearly a decade in the making.
At the urging of Detroit City Council, the Downtown Development Authority used casino fund dollars to purchase the buildings and lots in 2006 with the intention of developing an entertainment district that would celebrate African-American culture and the vibrant music scene of Paradise Valley. At that time, crime and blight was becoming a major concern in the district and the buildings were only 20% occupied.
“Stepping in to purchase these buildings to stabilize this section of the district was the right move,” Rod Miller, CEO of the Detroit Economic Growth Corp. (DEGC), said. “I’m proud that a decade later, the DEGC has found developers who have the capacity to develop the entire district at once and turn it into a cultural destination and economic hub that’ll serve Detroit for years to come.”
Executive Vice President – Real Estate