This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Detroit Real Estate Draws Interest from Google, JPMorgan

NEW YORK (TheStreet) -- In less than a year after it filed for Chapter 11 bankruptcy, Detroit is attracting real-estate investors and interest from companies, including Google (GOOG - Get Report), JPMorgan Chase (JPM - Get Report) and Quicken Loans.

International real-estate investors include Experience International, a London-based property-management company, and Fernando Palazuelo, a Peruvian developer. Chinese investors are coming, too. They have been making bulk purchases of cheap properties, many of which cost $25,000 or less.

"In recent years, Detroit has received a lot of attention internationally due to its affordable real estate opportunities," said Harmel Rayat, president of Telia Jevan Properties, a Vancouver-based private-investment firm, whose High Income Real Estate business encourages investments in rebuilding communities.

"Given an automotive industry that is back on the rise, it's no surprise that Chinese companies are snatching up buildings sight-unseen with the expectation of a massive ROI (return on investment) within 15 years," Rayat added. 

Earlier this month, Detroit Mayor Mike Duggan announced the formation of a 17-person committee to advise the city on an "innovation district," an area that is anchored by one or two large institutions and that tries to draw technology-related businesses.

Detroit has been included in Google's Tech Hub Network, a group of seven North American cities that will receive technical and financial support from the Internet giant.

Last month, JPMorgan Chase announced that it will invest $100 million to help strengthen Detroit's redevelopment efforts through grants and low-cost loans over five years. The money will be used to train city residents for new jobs and for blight removal, and to make mortgage loans more accessible to home buyers.

Quicken Loans, one of the country's largest online retail mortgage lenders, is building a data center and office complex in Detroit's Corktown district. The complex -- dubbed the Quicken Loans Technology Center -- is scheduled to be completed in January.

"The hope is that property values will regain lost momentum, job growth will return, and the Detroit boomtown of the past will return, as the city is revived. This area still has its problems," Rayat said. "But early investments in a city that is deep in disarray may prove profitable in the long run."


WATCH: More feature videos on TheStreet TV

Micron's Best Days Are Ahead of It, but Wait to Buy the Stock

Walgreen Shakeup From Investor Pressure Due by August

Flying Between U.S. and China Is Booming -- Too Bad It's Not Profitable

At the time of publication, the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GOOG $523.40 0.30%
JPM $67.52 -0.81%
AAPL $126.44 -0.13%
FB $87.28 0.43%
TSLA $280.02 4.04%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs