Detroit-based developer the Platform said Tuesday that work has begun on its $38.2 million project to redevelop the former Studebaker building in Detroit into a 161-unit affordable housing apartment complex.
Called the Piquette Flats, the 108,000-square-foot historic industrial building at 411 Piquette will house 71 studios, 87 one-bedrooms and three two-bedroom loft-style apartments. The development in the city’s Milwaukee Junction neighborhood is expected to open in summer 2024.
All rental units will be priced between 60%-120% of the area median income, according to the developer.
“Milwaukee Junction is the birthplace of the U.S. auto industry where, in the early 20th century, manufacturers sprang up around the Milwaukee and Grand Trunk railroad lines,” Peter Cummings, chairman and CEO of the Platform, said in a statement Tuesday. “Piquette Flats allows us to repurpose this important historic building and provide affordable housing options for a diverse range of city residents.”
The renovation will include preserving the historic architectural features and restoring the original red brick façade. The building will receive electrical, mechanical and plumbing systems and new historically accurate industrial sash windows, a new roof and elevators.
The loft apartments will feature high ceilings, open ductwork and exposed brick.
The project has local and state support with the City of Detroit approving a 12-year, $3 million tax abatement and $2 million of brownfield tax increment financing. The project’s capital stack includes a $7 million low-interest loan from the Michigan Economic Development Corporation.
“The Piquette project will not only renovate a historic building that contributes to a National Register Historic District, but it will also bring new vibrancy to the Milwaukee Junction neighborhood and much-needed workforce housing to the nearby Woodward corridor and New Center commercial area,” Michele Wildman, MEDC executive vice president of economic development incentives, said in a statement.
“At MEDC, we are committed to supporting transformative projects that help create vibrant, resilient communities as part of our efforts to create a holistic, people-first approach to economic development in Michigan,” she said. “We’re pleased to work with our partners to support this project and look forward to seeing the additional investment it will encourage in other Detroit neighborhoods.”
The project also benefits from Michigan State University as an investment partner and funding from Flagstar Bank as the senior lender.
The Piquette Flats project is expected to meet demand for workforce housing in the Milwaukee Junction neighborhood and create a more walkable community. The building is next to the historic Ford Piquette Avenue Plant Museum.
“Adding workforce housing is critical for creating a Detroit where residents can get good-paying middle-class jobs and afford quality housing,” Mayor Mike Duggan said in a statement. “We are grateful that developers like The Platform continue to show their commitment to building housing that many Detroiters can afford to call home.”
cwilliams@detroitnews.com
Twitter: @CWilliams_DN