DETROIT—Downtown Detroit has undergone a remarkable transformation in recent years, as developers have renovated dozens of buildings now occupied by thousands of employees. In the latest chapter of the CBD's bounce back, Capitol Park Partnership, a local development firm, has just secured the financing necessary to transform a 13-story tower in Capitol Park, one of downtown's most historic neighborhoods, into a mixed-use building.

The developers will turn the 126,000 square-foot former Detroit Savings Bank building at 1212 Griswold into offices, retail and residences. The Archdiocese of Detroit will use the first five floors for new office space for 185 employees, retail will occupy the ground floor, and the top eight floors will consist of 56 market-rate rental homes.

A diverse mix of public and private funders will provide $38.5 million in construction and permanent financing. The complex financing structure includes: $17 million in New Markets and Federal Historic Tax Credits, funded upfront by Chase Bank; $8 million of State of Michigan Historic and Brownfield Tax Credits with upfront funding from Urban Partnership Bank and Liberty Bank; $10.5 million in construction loans from Chase Bank and Urban Partnership Bank; and Develop Michigan Inc., and Urban Partnership Bank will provide the $9 million permanent loan. The NMTC allocates are Invest Detroit, NCIF, and Chase Bank.

Richard Karp of Karp and Associates, Kevin Prater, a specialist in historic redevelopment, and Richard Hosey III, a former senior banking executive, formed Capitol Park Partnership. In addition, LIVE Downtown, a residential subsidiary program, will offer financial incentives to employees of several companies to live in the building.

“The collaborative financial structure with its array of financial tools has enabled us to begin the redevelopment and restoration of 1212 Griswold and continue the revitalization of the historic Capitol Park neighborhood,” said Karp, in a prepared statement. He could not be reached by press time. “This demonstrates what can be accomplished when public and private organizations share a commitment to creating a vibrant city."

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