Future of Detroit's Renaissance Center uncertain, but a Dan Gilbert purchase could happen, documents show
(CBS DETROIT) - After General Motors announced they'd be moving their headquarters to the future Hudson's Detroit building downtown, the fate of the Renaissance Center downtown has been up in the air.
However, a recent document shows that a potential buy from a Dan Gilbert company could breathe new life into the iconic towers.
Resurgence Realty, an LLC owned by Detroit real estate mogul Dan Gilbert, and GM-affiliated Riverfront Holdings, have entered into a put and call agreement, which CBS News Detroit obtained
This option only makes it a possibility, but the end result is nowhere set in stone.
"A partial demolition is being considered right now, but there are also conversations about reusing it," said Kirk Pinho, a real estate journalist for Crain's Detroit Business.
Pinho cited the ever-changing landscape as a hurdle for another office occupant to swing in.
According to Upwork, by 2025, an estimated 32.6 million Americans will be working remotely, which accounts for 22% of the entire workforce.
"That's where the sort of state of development is going," Pinho said. "You don't want just one use in a building. You want to diversify your rent roll, which is the types of tenets you have in there."
Pinho added that the cost of converting RenCen into a mixed-use development is another hurdle, but it is not unheard of.
Pinho believes Gilbert's track record for taking old buildings and making them new again is promising, however he also said it his decision will be made with money in mind.
"But there is also the emotional appeal of the Renaissance Center. It's the defining property on the skyline. So, is it out of the question those buildings could be saved and repurposed? Absolutely not. They certainly could be."
The documents obtained do not provide details of how much these towers could sell for. It's also unclear what the duration of the option between GM and Gilbert will be.