For Immediate Release -Grand Rapids, Michigan - Dec. 19, 2006

Wayne State University and Prime Development to launch construction of $34 million South University Village development in Midtown Detroit.

Landmark project to bring major retail, residential and parking opportunities to students and Midtown Detroit professionals

Grand Rapids and Detroit, MI — Final approval of a $1.95 Million SBT tax credit by the Board of Michigan Economic Development Corporation (MEDC) in Lansing cleared the final hurdle this morning for $32.0 million of new construction, known as the South University Village project. Vacant land on Woodward in Detroit will be transformed by a joint development between Wayne State University of Detroit and Prime Development of Grand Rapids. The new development in Midtown Detroit will feature a five-story $20 million 155,000 SF residential apartment and retail building on Woodward Avenue called Studio One Apartments. Wayne State University will spend an additional $12 million to construct an 800-space parking structure and other site improvements that will support both the residential and retail components of the project.

New construction will start in spring 2007 and calls for 26,200 SF of exciting shops and restaurants, plus 128 state-of-the-art residential apartments, between Wayne State University campus and the Detroit Medical Center. The project will provide much-needed housing facilities for Wayne State faculty, students and staff and the Midtown community while offering a broad spectrum of retail and commercial venues. Phase Two will add another $20 million of new construction in 2010-2012 with a second five-story apartment or condominium project.

Local real estate experts suggest the apartment complex in Phase One of South University Village may be one of the most significant new market-rate apartment complexes in Detroit in many years. Studio One Apartments, LLC will own, build and finance a new 155,000 SF five story mixed-use building -- of which 26,217 SF is first-floor commercial -- projected to cost $20,000,000. Construction is planned to start in spring 2007, with a planned completion and opening in spring or early summer of 2008.

The project will be located on two acres on the West side of Woodward, between Canfield and Forest, immediately North of The Whitney Restaurant. WSU will finance and build the parking structure in the same time frame on the south side of Forest between Woodward and Cass.  The parking deck and apartment building will be connected, enabling residents to park and walk into their building. The Studio One apartment/retail building will be constructed on WSU land leased by the developer through a 99-year land lease.  The first commercial tenant signed a 9,400 SF lease. Leasing of the apartments is targeted to Midtown professionals, including WSU faculty, staff and graduate students as well as Detroit Medical Center interns, residents and fellows.

“The university has made tremendous advances in transforming the neighborhood and making Midtown Detroit the bustling epicenter of Detroit’s revitalization,” said Wayne State University President Irvin D. Reid. “Today’s decision by the MEDC adds momentum to our long-standing commitment to continue building an exciting and vibrant campus community.”
“Already we have seen a massive economic growth spurt in Midtown as the result of our students living in campus housing,” noted WSU President Reid. “South University Village enables us to further expand the Wayne State residential neighborhood to graduate students and faculty.”

“Our productive public-private partnerships and close collaboration will enable us to dramatically improve the landscape of our campus and move the university and city forward,” said Reid.  “The development of this site will create a nucleus of activity that links the university’s main campus with that of its medical school.”

Mayor Kwame Kilpatrick echoed Dr. Reid’s sentiments about the exemplary collaboration with Prime Development that makes major development initiatives like South University Village happen.  “This project is symbolic of the revolutionary transformation of Wayne State University in the New Center area,” he said. “From this day forward the neighborhood that surrounds South University Village can look forward to a sustained and brighter future because of this development.”

James C. Epolito, MEDC president and CEO, also praised the joint effort behind South University Village. "We are pleased to join Wayne State and the city of Detroit in support of this tremendous revitalization project in Midtown," he said. "This project is a true team effort and will help continue the city’s transformation by bringing businesses, residents and visitors back to the city."

John Davis, Wayne State University vice president of finance and facilities management, notes that the university focused great attention on integrating the site plan with the new Woodward streetscape. “We aimed to provide pedestrian access to Woodward and immediate public parking in the area to address the needs of the community,” he said. “This project underscores the University Cultural Center Association (UCCA) vision of a ‘walkable community.’” He added that Woodward and Canfield is an outstanding location for the development given it has a daytime population of 63,151 people in a one-mile radius of the site. 

According to the Michigan Department of Transportation, traffic on Woodward at the site is 23,500 vehicles per day.  Midtown Detroit, in particular, has experienced more than $1.6 billion in new residential and commercial construction over the past ten years, according to UCCA.

The 128 one and two-bedroom apartments will be modern, open and loft-like, (attached are two sample floor plans). The units will have large windows, nine-foot ceilings and glass sliding doors that provide access to individual balconies in each apartment.

Wayne State and Prime Development also enlisted the cooperation and support of Mayor Kwame Kilpatrick’s office, the Detroit Economic Growth Corporation (DEGC), the Michigan Economic Development Corporation (MEDC) and the Michigan Magnet Fund (MMF).

For leasing information, contact Melissa Saxton at Prime Development (616) 957-4733.

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Wayne State University is a premier institution of higher education offering more than 350 academic programs through 11 schools and colleges to more than 33,000 students.