DETROIT – The historic Fisher and Kahn buildings sold at auction Wednesday for $12.2 million.
REDICO, a national real estate development and property management company, in partnership with developer Peter Cummings, John Rhea, managing partner, RHEAL Capital Management, and New York-based HFZ Capital Group had the winning bid.
The closing will occur sometime in July.
The partnership envisions office, retail, residential and entertainment uses, which will require additional investment into the properties.
In addition to this project, Rhea was recently awarded the development of the former Brewster Wheeler Recreation Center site in the Brush Park neighborhood.
"We are very pleased to have won the auction, along with our partners, and are excited to be a part of Detroit's continued revitalization," said Dietrich Knoer, chief investment officer, REDICO. "With the recent activity Downtown and in Midtown, along with the imminent arrival of the M-1 rail, New Center development is the next step in Detroit's comeback. We are pleased to have put together a local group of development partners with strong capital support."
The buildings' former owner, the Farbman Group, walked away from the foreclosed structures earlier this year.
Inside the Fisher Building there are longtime tenants, such as Pure Detroit, that have been using the space for business and weekend tours.
"I think we're excited about what's gonna come next, you know what I mean? It's obviously a historic building and I think maintaining it can be challenging," said Pure Detroit spokesman Ryan Hooper.
The building is made from 51 kinds of marble from 26 countries. It opened in 1928 and was designated a National Historic Landmark in 1989.
The Kahn Building opened in 1931 and was placed on the National Register of Historic Places in 1980.
Both buildings were designed by famous architect Albert Kahn and are located in Detroit's New Center neighborhood north of Midtown.
Fisher Building facts:
Address: 3011 W. Grand Blvd., Detroit
Architect: Albert Kahn
Height: 444 feet, not counting tower -- 29 stories
Size: About 635,000 square feet
Kahn Building facts:
Address: 7430 Second Ave., Detroit
Architect: Albert Kahn
Height: 168 feet -- 10 stories
Size: About 290,000 square feet