=== March 21, 2017 1:46 p.m. UPDATED 2 HOURS AGO Syncora document: More than 2.2 million square feet along riverfront land possible Bond insurer sets March 31 deadline on development partner responses By KIRK PINHO Comments Email Print Detroit Economic Development Real Estate Bankruptcy More +
Photo by Kirk Pinho/Crain's Detroit Business This property at Chene and Franklin in Detroit is part of an 8.9-acre parcel that Syncora says could accommodate more than 1.8 million square feet of space. The offering document
One of Detroit's largest bondholders during its historic municipal bankruptcy says more than 2.2 million square feet of space could be built on nearly 12 acres of east riverfront land it received development rights to as part of its settlement agreement with the city.
Syncora Guarantee Inc., based in Bermuda, is putting a March 31 deadline on possible development partners to submit proposals, according to an offering document obtained by Crain's that has been privately circulated in the past several weeks.
The company said in a statement that it is "actively working with the city, along with various local stakeholders, to develop the best solution for each property."
"We have had substantial interest in the riverfront properties and are engaging in an open and equitable process to identify partners who will properly steward this land to complement the current community-driven plans and development," the statement said.
SYNCORA RIVERFRONT PARCELS Atwater properties 2.75 acres, contiguous 1303 E. Atwater 1365 E. Atwater 1364 Franklin 1340 Franklin 1310 Franklin 1399 E. Atwater 1325 E. Atwater 1370 Guoin
Chene properties 8.9 acres, adjacent 2310 E. Jefferson 2290 E. Jefferson 301 Chene 281 Chene 2263 E. Atwater Minimize The 35-page document says it has an 8.9 acre property that can accommodate more than 1.8 million square feet of space and a 2.75-acre property that could accommodate more than 400,000 square feet.
That would be two-fifths the size, in terms of square footage, of the 5.5 million-square-foot Renaissance Center.
"Rivertown development incentives are being coordinated with the planning effort as the City encourages higher density development along the river," the offering document says. "Additionally, given the potential density of the sites, around 2.2 million square feet of mixed product, the City is willing to commit special project teams to support developer needs and ensure a successful development."
The document says Chicago-based architecture firm Skidmore, Owings & Merrill LLP is working on the project.
Development options for the Atwater properties (see box) expire in December 2018 and for the Chene properties in December 2021.
Earlier this month, the Detroit RiverFront Conservancy, city planning department and Detroit Economic Growth Corp. released plans for the east riverfront that call for the creation of two new Dequindre Cut-style pathways; added preservation of about 8 acres of land for public use, particularly from Atwater Street south to the river, and Stroh River Place and Rivard Plaza; an eastward expansion of the Detroit RiverWalk; safety improvements along East Jefferson Avenue; and a mixed-use development of the historic Stone Soap Building.
"The plans for the east riverfront focus on public access and community space," said Mark Wallace, president and CEO of the conservancy. "We always expected that our investments would stimulate growth in the neighborhood and we are excited to see Syncora move forward with development plans." Syncora settled a $333 million bankruptcy claim for $44.8 million in new debt, development rights to the east riverfront land, a lease to operate the Detroit-Windsor Tunnel, a long-term lease of a Grand Circus Park parking garage and development rights to the former Detroit Police Department headquarters building at 1300 Beaubien.
The land development agreement is with Syncora subsidiary Pike Pointe Holdings LLC.
The development, if it comes to fruition, would be one of many taking place along the east riverfront. For example, Dan Gilbert and General Motors Co. are in discussions about a mixed-use project on 10 acres immediately east of the RenCen. Detroit native Richard Baron is building the first phase of the mixed-use Orleans Landing development, which has nearly 300 apartments coming to market. A groundbreaking on that project took place in October 2015.
City Council OKs transfer of former police HQ
In other Syncora property news, the Detroit City Council on Tuesday agreed to transfer ownership of the former police headquarters building from the police department to the planning and development department. According to the city, the building is 250,000 square feet.
It sits in the footprint of the proposed Major League Soccer stadium and mixed-use development planned by Gilbert and Detroit Pistons owner Tom Gores.
Syncora isn't the only bond insurer to let the city resolve some of its debt with real estate interests. Financial Guaranty Insurance Corp. received development rights for Joe Louis Arena, which is slated for demolition and replacement by a hotel with at least 300 rooms and standing no more than 30 stories and a mix of office, retail, recreation and residential space, according to bankruptcy court documents. The property sits on about 9 acres.
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