The LaSalle on Livernois, formerly the Fred’s Furniture building, is a mixed-use redevelopment located at 20201 Woodward Ave in Detroit, MI. This five-story ground-up development will feature over 50 residential units and more than 8,000 square feet of commercial space, including restaurants and retail establishments.

The Challenge

The Fred’s Furniture building—once a neighborhood retail fixture—had become a blighted, underperforming asset in the heart of Detroit’s emerging Fashion District. Redevelopment potential was high, but the site presented complex obstacles:

• Zoning Restrictions: The existing zoning did not permit the proposed density or mixed-use form.
• Structural and Environmental Limitations: The aging building required full demolition.
• Economic Gap: Rising construction costs and modest post-COVID rent projections created a financing gap that made the pro forma infeasible without public support.
• Community and Political Resistance: Local residents and some city stakeholders raised concerns about gentrification, building height, parking, and neighborhood fit.
• Unclear Path to Permitting: Approval required multiple layers of city review and coordination with various departments.

The Solution

Our team designed and executed a full-scale redevelopment strategy centered on economic feasibility, public-private partnership, and stakeholder alignment. Key elements of our approach included:

Strategic Acquisition

• Secured an assignable purchase agreement for the Fred’s Furniture property.
• Cleared historical ownership and title issues with legal and municipal review.

Zoning and Entitlement Negotiation

• Successfully obtained a zoning variance and site plan approval through the City Planning Commission.
• Collaborated with planning staff to redesign the frontage, setbacks, and street engagement strategy to meet local design guidelines.

Capital Stack Engineering & Gap Funding

• Structured a mixed capital stack including:
• Private equity and commercial construction financing
• State-level gap funding through the Michigan Economic Development Corporation (MEDC)
• Local support via Neighborhood Enterprise Zone (NEZ) and Community Revitalization Program (CRP) incentives
• Closed the funding gap with layered capital and milestone-driven public support.

Community Engagement & City Relations

• Facilitated multiple stakeholder meetings with neighborhood groups, council members, and local business owners.
• Addressed concerns around height, traffic, and affordability through a combination of design concessions, community benefit commitments, and transparent communication.

Design & Leasing Execution

• Partnered with a top urban architect to create a modern design that respected the historic commercial corridor.
• Designed the ground floor to accommodate both restaurant and boutique retail concepts, enhancing walkability and activating the street.
• Developed a dual leasing strategy for residential and commercial components, prioritizing local tenants and early-stage entrepreneurs.

Key Activities

Acquisition

• Negotiated favorable purchase terms; cleared title issues.

Pre-Development

• Navigated zoning changes, secured variances, and achieved site plan approval.

Funding

• Built a complex capital stack leveraging private capital + gap funding from MEDC, CRP, and local incentives.

Stakeholder Relations

• Conducted neighborhood outreach and overcame initial resistance from both city staff and local residents.

Design & Planning

• Worked with architectural teams to deliver a design balancing density and aesthetic compatibility.

Construction Management

• Oversaw contractor selection, pre-construction budgeting, and vertical buildout.

Leasing

• Executed a dual leasing strategy across residential and commercial assets, achieving 90%+ occupancy by completion.

The Outcome

• Revitalization Achieved: A once-blighted parcel now anchors a resurgent commercial corridor.
• 50+ Housing Units Added to a supply-constrained submarket with increasing demand from young professionals and creatives.
• 7,000+ SF of Restaurant & Retail Space activated with LOIs from local boutique brands and a destination chef-driven restaurant.
• Public-Private Partnership Success: The project leveraged local and state programs effectively to fill the financing gap and catalyze economic development.
• Community Buy-In: Initial resistance turned into long-term support through inclusive planning, communication, and shared benefits.