District Lofts in Birmingham switches from for-sale to rental

Thursday, September 4, 2008 | Source: metromode

The development bandwagon for rental properties is picking up speed in Metro Detroit, especially after one prominent project has jumped on -- The District Lofts in Birmingham.

The ritzy development in the posh suburb's emerging Rail District once billed its units as some of the priciest for-sale lofts in Michigan, starting at $400,000. They're still some of the most expensive modern living spaces around, but now they're just for lease. The developer decided to make the move after witnessing the credit market deteriorate to what were once unthinkable levels.

"The lending market is in so much of an uproar right now that even buyers who have had down payments on units for 18 months are being challenged (by banks making mortgage loans)," says J.C. Cataldo, developer of The District Lofts.

But this dark cloud has a silver lining in that for-sale housing markets are slumping while for-lease housing markets are soaring. A number of other downtown developments in Metro Detroit that were once for-sale are now for lease, and filling up fast.

Among them are The Fifth Royal Oak and New Street Lofts in Mt. Clemens. Urbane Apartment's redevelopment rentals in downtowns are going fast, too. These developments are cashing in on Hollywood workers looking for a place to live to people who want to rent because the housing market scares them so much right now.

The District Lofts is cashing in now, too. So far three of the units are finished and another six of the developments original 24 are set to be done and occupied within six months. Rents in these units start at $2,700 a month for a 1,550-square-foot loft, all of the utilities and an underground parking space. They go as high as $3,400 a month for just under 2,000 square feet.

The development consists of a 4-story, mixed-use building where the homes are located above ground floor retail space and an underground heated parking garage. They are a few blocks east of downtown Birmingham on South Eaton Street in the Rail District.

The old industrial corridor dotted factory buildings and a rail line is being converted to lofts and businesses as the city redevelops it. A stop for a northern extension of the Detroit-Ann Arbor commuter rail line is also planed for the area.

For information, call (248) 593-6000.

Source: J.C. Cataldo, developer of The District Lofts
Writer: Jon Zemke