The Lee Plaza, a historic building in Detroit, is undergoing a significant redevelopment to create new housing units.
The significant redevelopment of the historic Lee Plaza, a once luxury residential hotel in Detroit, has officially begun. The project aims to transform the vacant building into 182 apartments, including affordable units for seniors. After years of delays, financing has been secured for this $60 million initiative expected to provide much-needed housing while preserving the building’s historical design. The project highlights ongoing efforts to revitalize Detroit’s neighborhoods.
Detroit – Redevelopment work has officially commenced on the historic Lee Plaza, a 16-story high-rise located at 2240 W. Grand Blvd. The building, which was originally opened in 1929 as a luxury residential hotel, has remained vacant since the mid-1990s and is poised for a significant transformation.
Lee Plaza last operated as low-income senior housing before succumbing to years of neglect and vandalism. The building’s decline included the detachment of several stone lion heads from its exterior, some of which were later discovered adorning a townhouse development in Chicago.
The redevelopment project is set to create a total of 182 apartments, comprising 117 affordable senior apartments and 65 market-rate apartments. This ambitious plan aims to address housing needs in the region while revitalizing a key piece of Detroit’s architectural history.
The project has been in development since 2021, with the financing structure complicating its progress and causing delays. Although construction was originally slated to begin in spring 2023, recent financing challenges resulted in a missed start date. However, financing was finally secured within the two weeks leading up to the official announcement of the redevelopment’s initiation.
Detroit-based developers, including the Roxbury Group and Ethos Development Partners, are collaborating with Pontiac-based Lighthouse on this project. The total estimated cost for the first phase of redevelopment is approximately $60 million. For the affordable units, priority will be given to seniors with incomes at or below 50% of the area median income, which currently stands at $35,350 for a one-person household and $40,400 for a two-person household.
Rent for these affordable units is expected to start at around $450 per month, and the project is set to accept Section 8 vouchers to assist low-income residents. The completion of Phase one is anticipated by fall 2026.
Once the first phase is completed, a second phase will introduce additional market-rate apartments, utilizing the top five floors of the building. While Phase two’s funding has yet to be secured, developers are optimistic about finalizing finances by the end of the year.
The intricate redevelopment process has involved assembling nearly a dozen layers of financing, incorporating tax breaks, housing tax credits, and various development incentives. Funding sources include the American Rescue Plan, tax credits from the Michigan State Housing Development Authority, and support from federal housing programs. KeyBank, Invest Detroit, and the Detroit Economic Growth Corporation are providing essential construction and permanent financing.
Mayor Mike Duggan has been an ardent proponent of revitalizing Lee Plaza, emphasizing its historic significance to the city of Detroit. Restoration efforts are focused on preserving the original Italianate Art Deco-style design of the building, ensuring that replicable historical features are maintained wherever feasible. This redevelopment is not only aimed at providing housing but also at breathing new life into a historically important structure that has long awaited a revival.
As construction continues, the Lee Plaza redevelopment stands as a testament to the ongoing efforts to revitalize Detroit’s neighborhoods, offering the dual benefit of preserving history while addressing contemporary housing needs.
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