Detroit Free Press

Discussions are underway for a potential sale of the Palace of Auburn Hills, the former home of the Detroit Pistons.

Sources told the Free Press that talks are being held between Pistons owner Tom Gores' organization and Livonia-based real estate firm Schostak Brothers.

Crain's Detroit Business reported Wednesday that Schostak Brothers has the Palace under contract. No details of price or plans were reported.

People familiar with the talks told the Free Press that the discussions were "promising," but cautioned that things could still fall apart.

Ever since the Pistons announced in late 2016 the team would move to Little Caesars Arena in downtown Detroit, speculation about the future of the Palace site has focused on a possible future as a technology park.

More:How miscalculation, market trends doomed Palace of Auburn Hills

The roughly 100-acre site of the Palace sits amid some of the most in-demand land in southeast Michigan for new auto-supplier headquarters and research and development companies. The vacancy rate for industrial, light manufacturing, and R&D space in Auburn Hills is down to nearly zero.

Last fall, Oakland University was reported to be in serious talks with Piston owner Tom Gores' organization to buy the Palace site. But Oakland’s talks broke down when it ran into issues over financing, two sources told the Free Press. The university had hoped to partner with a private developer, but were unable to complete a deal.

Vince Ellis and John Gallagher contributed to this report. Read more on business and sign up for our business newsletter.