Book-Cadillac condos: Hot, hot, hot

Joel J. Smith / The Detroit News

DETROIT -- The Book-Cadillac is becoming a coveted address.

Despite southeastern Michigan's sickly housing market, condominium sales have been brisk at the 1924 building, being revived as a hotel, restaurant and residential complex. Already, 61 of 67 condominiums in the Louis Kamper structure are spoken for.

Even John Ferchill, who put together the $180 million project, is stunned at how quickly condos have been snapped up. They range in price from $375,000 to $1.5 million.

"I wasn't surprised. It was more like pure unadulterated shock," Ferchill said. "We thought it would take three years to sell what we sold in three months."

The Westin Book-Cadillac reflects a bright spot in Michigan's moribund real estate market. Ferchill said the company sold 40 units the first day they were put on the market over a year ago. And sales have been steady since then, he said.

"It's because people want to be part of the Book-Cadillac and want to live downtown," said Ferchill, who addressed the National Association of Industrial and Office Properties at a luncheon Thursday in Birmingham. The association is a trade group for developers, owners, investors and others.

"The Book-Cadillac in the eyes of Detroiters is a very special place," he said. "It's pretty obvious to us that it is way more special than we thought."

The Book-Cadillac was the city's pre-eminent hotel for six decades.

Presidents, movie stars and high-rolling gangsters stayed there. It closed in 1984 and became a 33-story symbol of Detroit's decline. At one point, city officials couldn't even raise enough money to tear it down.

The 33-story, 455-room hotel is on target to debut Sept. 27. The top six floors will house condos, including six penthouses with price tags ranging from $900,000 to $1.5 million.

When completed, the grand property on Washington Boulevard will cater to business travelers with several restaurants, ballrooms, convention space and meeting rooms.

'A good sign for Detroit'

Don Grimes, a senior research associate at the University of Michigan's Institute for Labor & Industrial Relations, said he wasn't surprised at the success of condo sales at the Book-Cadillac. He said the property seems to have attracted buyers who aren't affected by the woes of the housing market.

"These people make their decision on things other than interest rates or a flat housing market," Grimes said. "For a variety of reasons, they find it convenient and attractive to live in downtown Detroit. It's a good sign for Detroit."

Ferchill agreed.

When he sold the 40 units that first day, he thought that maybe the buyers were speculators looking to turn a quick profit. But a check of purchase agreements showed that -- in every case -- the buyers planned to move into the condominiums. And most were planning to pay cash for their new digs.

The future residents include the CEO of a downtown Detroit company who purchased a penthouse, and a Philadelphia business executive who frequently travels to Detroit for business; he bought a condo.

A city that's safe, clean

While the 61 individuals have signed papers committing themselves to a purchase, Ferchill said a few likely will ask to be released from their agreements. In some cases, a prospective buyer cannot sell an existing property or personal problems crop up. In any case, Ferchill said he will likely let anyone out of an agreement for a good reason.

Ferchill, who has similar projects in Cleveland and Pittsburgh, said he thinks Detroit will become an entertainment destination for the Midwest.

He said the three casinos, two stadiums and the Fox Theatre have been very good for downtown. However, he said there's still a need for more jazz and comedy clubs, and other entertainment venues.

"At first, it's inconceivable that all these rich, nice, suburban housewives would come downtown to hang out," he said. "But they will do it if we can keep it safe and clean. We're working on that."

Ferchill said main hotel construction should be completed by April, and interior work will continue until the September launch. While a few unanticipated glitches have arisen, he said, they were balanced out by some expected problems that weren't as bad as predicted.

National City Bank is financing the project.

You can reach Joel J. Smith at (313) 222-2556 or jsmith@detnews.com.