A rundown apartment sandwiched between the old Whittier Hotel and Owen Park on the east Detroit riverfront has fallen into the hands of a lender.
The former River Plaza Apartments, two buildings at 8430 E. Jefferson Ave. and 8434 E. Jefferson Ave., were foreclosed by Columbia, Maryland-based Enterprise Community Loan Fund Inc. for $1.65 million. A mortgage was issued. December 2016.
The property, owned by longtime Detroit developer and landlord Kathy Makino Leipschitz, was the subject of Mayor Mike Duggan’s efforts earlier this year to rid the city of a building his administration deemed dilapidated. .
It was One of 100 such propertiesowned by various landlords and selected for demonstration by Team Duggan.
It’s not clear if the government is still pushing for the demolition. A spokeswoman said the city’s demolition department did not have an update on the plans.
Sources familiar with the matter said the building was expected to be a mixed-use project with affordable apartments and commercial space, but Makino Leipschitz was unable to secure funding for the project, and the property was fixed. I was struggling with paying property taxes. Violation of withering, among other problems.
The foreclosure sale was originally scheduled for the end of December, but was postponed multiple times and finally took place in late August, according to a sheriff’s deed published by CoStar Group Inc., a Washington, D.C.-based real estate information service. rice field.
Makino Leibschitz, who heads Detroit-based Shelbourne Development, has until February 25, 2023 to redeem the assets, the deed said.
That’s what she plans to do, she said in an email.
“This loan simply expired,” she said. “We weren’t in default at maturity, but unfortunately the loan came due and the lender wouldn’t extend it further.”
“After investing hundreds of thousands of dollars in the planning of ‘Plaza on the Park’ over the past six years, we have no doubt that we will complete the restructuring of the underlying debt and proceed with the development plan. 2015/2016 I wish I had gone ahead with plans to build the nation’s first urban vineyard in Owen Park, and use part of the ground floor space of the building for wine production/tasting. A bistro with a boardwalk to the river for space. I could see it becoming a destination and a beautiful wedding venue.
Depending on how everything changes in the next few months, she may be able to get the property back or it may end up in the hands of new owners.
That is, unless the city destroys it first.