Bedrock to redevelop former DPD headquarters building

Bondholder Syncora received Albert Kahn-designed property during Detorit's bankruptcy

Redevelopment plans and timeline not known

The former Detroit Police Department headquarters in Greektown is slated for redevelopment under an agreement struck between Dan Gilbert's Bedrock LLC and a key holdout creditor during Detroit's Chapter 9 municipal bankruptcy case.

It's the latest deal by the billionaire real estate and mortgage giant, whose acquisitions and projects in and around downtown Detroit have come forward at a more rapid pace the last few months.

Gilbert has amassed a massive portfolio since his buying and development spree started seven years ago with what was then known as the Madison Theatre Building and completion of his Quicken Loans Inc.'s relocation to the central business district from the suburbs.

The Albert Kahn-designed former police department building, 1300 Beaubien St. between Clinton and Macomb streets, is 261,000 square feet and has been vacant since 2013.

Terms of the deal struck between Bedrock and Pike Pointe Holdings LLC, a subsidiary of Bermuda-based Syncora Guarantee Inc., were not disclosed. Peter VanDyke, a Syncora spokesman, said both Bedrock and Syncora "have an ownership interest in the entity that owns the property," but declined to elaborate. He said Bedrock was chosen "from several interested developers" of the property.

"We are excited to work with Pike Pointe to revive a priceless piece of Detroit architecture," Jim Ketai, CEO of Gilbert's Bedrock real estate ownership, development and leasing company, said in a statement. "The Greektown neighborhood and its adjacent areas will see a lot of amazing plans take shape in the coming years, making this the perfect time to begin this building's next chapter."

A specific redevelopment plan and timeline is not known, a news release says. However, redevelopment patterns in and around downtown the last several years have generally been for mixed-use projects with first-floor retail or restaurant space with residential or office space above. Another former Detroit public safety property, a Detroit Fire Department firehouse at 250 W. Larned St., was turned into the $35 million Foundation Hotel, which opened last year.

Crain's reported in November that Bedrock was in discussions with Syncora about the property.

The DPD building opened in 1923, according to Historic Detroit, which chronicles the city's buildings and architecture. The police department moved out of it in 2013 to a new headquarters at 1301 Third St., formerly home to the U.S. Internal Revenue Service and MGM Grand Detroit.

It's the seventh downtown property in which Gilbert, the billionaire founder and chairman of Quicken Loans and Rock Ventures LLC, has taken a stake since late last year.

Last month, he bought three small retail buildings sandwiched between Greektown and Campus Martius. In December, he added the Buhl Building skyscraper, its parking deck and Harvard Square Centre to his real estate portfolio.

Gilbert has amassed more than 90 properties totaling more than 16 million square feet since 2011.

Syncora settled a $333 million bankruptcy claim for $44.8 million in new debt, a lease to operate the Detroit-Windsor Tunnel, a long-term lease of a Grand Circus Park parking garage, development rights to the DPD building and nearly 12 acres of east Detroit riverfront land.

"Syncora has been active in completing due diligence and (feasibility analysis for different types of developments)," VanDyke said of the east riverfront land. "Syncora is in active discussions with various developers."