Two square blocks of the popular Royal Oak Main Street will berebuilt, says Tim Blum, senior vice president of HSA CommercialInc. of Chicago. The company is building the project as a jointventure with the Morningstar Group.

The companies will tear down a National City Bank and renovatewarehouses to create the project, Blum says. Phase one will featurethe construction of a five-story building, with two levels ofretail anchored by a Barnes & Noble bookstore, and three levelsof offices above. "The office part will stay if we can getpreleasing. We've retained Colliers International as our officebroker. We have interested parties, but if we can't get preleasedin time we'll have to drop the three floors of office from theproject," says Blum.

Phase two will be a 10-story building between Fourth and Fifthstreets on Main. The building will have two levels of retail on thebottom, two levels of parking above that, which will be totallydedicated for the residents of 84 loft condominiums on the top sixfloors. The condos will run at about $200 a s.f.