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A groundbreaking ceremony for The Beuton was held this week in Detroit’s North End attended by Detroit Mayor Mike Duggan, Detroit developer Charles Dickerson III, politicians, funders, and community members present. The US$7.3 million sky scraper will add 29 housing units to Detroit city.
The new affordable apartments available at The Beauton include 10 micro-studio units, 15 studio units, 2 one-bedroom units, and 2 two-bedroom units. Pricing for many of the apartments is below market value to be accessible to local Detroiters. Over half of the apartments will have rentals that are at or below 80% of the area median income (AMI), which ranges from 50 to 120%. The tiny flats will have monthly rents as low as $700. Additionally, under the agreement, the affordability of the apartments is guaranteed for the next 12 years.
Funding for The Beuton in Detroit
Funding for the $7.3 million project came from a number of sources, including a $1.55 million loan from the Detroit Housing for the Future Fund (DHFF). Additionally, the development received a $100K pre-development matching grant from DHFF and $550K in preferred equity from developers of colour. A grant of $93K, a bridge loan of $1.35M, and a construction loan of $2.45M were all given by Capital Impact Partners. A US$1.497 million grant supports the project and the company’s overall growth strategy. The grant is from Michigan Economic Development Corporation. A $500K loan from Ebiara to CADS III Management also supports the project. Furthermore, the project will receive a $743K tax abatement from the Detroit Economic Growth Corporation over the course of 15 years, or $700 a month.
The expansion of housing options and affordability has Council President Mary Sheffield enthusiastic about what it will mean for the storied North End and individuals who want to live, work, and play there. “I’m eagerly anticipating the project’s completion and the great effects it will continue to have on the neighbourhood of North End.” |
