Greektown's Papas lands troubled Campus Martius skyscraper, parking garage.
Wednesday, January 16, 2008
Robert Snell / The Detroit News
DETROIT -- Greektown mogul Dimitrios "Jim" Papas is buying the troubled 1001 Woodward skyscraper near Campus Martius Park and has purchased an attached 12-story parking garage.
Papas, who owns Pegasus Taverna restaurant and co-owns the Atheneum Suite Hotel, paid $5.4 million for the skyscraper Tuesday in a move that could revive a building seen as key to downtown redevelopment.
"I feel very strongly about downtown and have for the last 30 years," Papas said. "Hopefully after this little blip with the financial markets, Detroit will come back stronger."
The skyscraper became one of the most visible failures along the resurgent Woodward financial district last year after a company defaulted on a deal to turn the building into luxury condominiums. The Detroit News reported in October that a company headed by Warren-based developer Lorenzo Cavaliere and a related group owed more than $23 million in land contract payments and loans for the skyscraper and garage.
A Cavaliere company bought the skyscraper and owed more than $5.3 million to the Operating Engineers' Local 324 pension fund, according to court records.
On Tuesday, Papas said he paid the balance of the land contract and expects to own the skyscraper in a day or two.
A pension fund lawyer declined comment Tuesday.
"We want to see this and other buildings downtown redeveloped, and we hope that this is a step towards that," said Brian Holdwick, vice president of business and financial services for the Detroit Economic Growth Corp. "We look forward to seeing how it progresses."
The developments follow last week's unveiling of the $150 million Cadillac Centre project nearby. It is slated to fill an empty block east of Campus Martius with two 24-story towers that will feature 84 apartments or condominiums, a green "living" roof, a multiplex cinema, sports bar and 800 parking spaces.
Downtown real estate expert Mark Talley said a viable development at 1001 Woodward would help complete a circle of development around Campus Martius Park. "That potentially is a big deal," said Talley, a vice president with the commercial real estate firm Grubb & Ellis. "It's a big piece of what's happening downtown."
Papas is leaning toward developing office space in the 25-story building.
Papas said he purchased the mortgage on the 750-space parking garage Dec. 20 from Charter One Bank but declined to disclose the purchase price. Papas said the property could be transferred to another one of his companies soon.
Wednesday, January 16, 2008
Robert Snell / The Detroit News
DETROIT -- Greektown mogul Dimitrios "Jim" Papas is buying the troubled 1001 Woodward skyscraper near Campus Martius Park and has purchased an attached 12-story parking garage.
Papas, who owns Pegasus Taverna restaurant and co-owns the Atheneum Suite Hotel, paid $5.4 million for the skyscraper Tuesday in a move that could revive a building seen as key to downtown redevelopment.
"I feel very strongly about downtown and have for the last 30 years," Papas said. "Hopefully after this little blip with the financial markets, Detroit will come back stronger."
The skyscraper became one of the most visible failures along the resurgent Woodward financial district last year after a company defaulted on a deal to turn the building into luxury condominiums. The Detroit News reported in October that a company headed by Warren-based developer Lorenzo Cavaliere and a related group owed more than $23 million in land contract payments and loans for the skyscraper and garage.
A Cavaliere company bought the skyscraper and owed more than $5.3 million to the Operating Engineers' Local 324 pension fund, according to court records.
On Tuesday, Papas said he paid the balance of the land contract and expects to own the skyscraper in a day or two.
A pension fund lawyer declined comment Tuesday.
"We want to see this and other buildings downtown redeveloped, and we hope that this is a step towards that," said Brian Holdwick, vice president of business and financial services for the Detroit Economic Growth Corp. "We look forward to seeing how it progresses."
The developments follow last week's unveiling of the $150 million Cadillac Centre project nearby. It is slated to fill an empty block east of Campus Martius with two 24-story towers that will feature 84 apartments or condominiums, a green "living" roof, a multiplex cinema, sports bar and 800 parking spaces.
Downtown real estate expert Mark Talley said a viable development at 1001 Woodward would help complete a circle of development around Campus Martius Park. "That potentially is a big deal," said Talley, a vice president with the commercial real estate firm Grubb & Ellis. "It's a big piece of what's happening downtown."
Papas is leaning toward developing office space in the 25-story building.
Papas said he purchased the mortgage on the 750-space parking garage Dec. 20 from Charter One Bank but declined to disclose the purchase price. Papas said the property could be transferred to another one of his companies soon.
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