Dan Gilbert: Detroit bankruptcy a ‘step toward a better and brighter tomorrow’
Quicken Loans founder Dan Gilbert and others Detroit business leaders revealed a retail ‘master plan’ for downtown Detroit Thursday afternoon. Gilbert with Rock Ventures President and CEO Matt Cullen, Downtown Detroit Partnership President and CEO Dave Blaszkiewicz, Detroit Economic Growth Corporation President and CEO George Jackson and Fred Kent, the President of Project for Public Spaces, as well as other Detroit officials made remarks about the future of downtown Detroit at the City Theatre on Woodward Avenue.
DETROIT, MI – Dan Gilbert, whose affiliated companies own more than 30 buildings and 7.5 million square feet of real estate in downtown Detroit, said the city’s apparent move toward bankruptcy is a “first step toward a better and brighter tomorrow for our city.” His full statement is below.
The Quicken Loans founder, a self-described optimist, has been investing in Detroit at an unrelenting clip for at least the past three years.
The city’s filing for Chapter 9 protection under the U.S. Bankruptcy Code – as it sits saddled in $19 billion of debt – comes on the same day that Gilbert and co. appeared ready to make yet another major investment in the city, this time buying a failed Wayne County jail site that sits partially finished after spending $115 million of a poorly managed $300 million construction project budget.
Gilbert’s umbrella company, Rock Ventures, which includes some 75 companies, now employs about 9,200 people in downtown Detroit, and has a total workforce of about 15,000 employees nationwide.
Dan Gilbert’s company now owns over 40 buildings in downtown Detroit (over 8 million sq. ft of space)…
Here’s Gilbert’s full statement on the city’s bankruptcy filing:
“Today’s Chapter 9 bankruptcy declaration by the City of Detroit is the first step toward a better and brighter tomorrow for our city. The financial condition the city finds itself in is years, if not decades, in the making. Bankruptcy will be painful for many individuals and organizations but together we will get through it and come out stronger on the other side. We simply do not have a choice.
It’s important that we ignore the noise that this filing will surely bring. Many forecasted the end for GM and Chrysler when they declared bankruptcy just a short few years ago. Today, GM and Chrysler are thriving. Detroit will thrive again as well and sooner than most think.
Just as the auto companies reinvented the way they do business so will the city of Detroit. Once our financial challenges are behind us the city, region and state will have a clean slate to operate with a philosophy and strategy that works for its citizens, businesses and the entire community.
We are all in. We are more committed than ever to Detroit and the opportunities downtown. Detroit’s best days are ahead.”
-Dan Gilbert, chairman and founder of Quicken Loans
From Bankruptcy to Opportunity…are you taking advantage of this real estate market yet?
Gilbert wants Detroit neighborhoods revitalized
Check out and learn more about what Dan Gilbert is doing in Detroit and his plan to start revitalizing the neighborhoods there. Dan is saying that the number 1 item that needs to take place is demolishing the 80,000 abandoned/vacant homes in the area. Once you take them down, it’s a lot easier for residents and developers to see the future and begin to develop that land.
There is a ton of government money that is available to those pursuing such an endeavor. Detroit has obviously been a target over the years for stimulus money, etc. and this would certainly be one way to help revitalize many neighborhoods in and around the city of Detroit.
The Techonomy conference is being held in Detroit this year due to the tech companies that are already in Detroit and starting to stimulate the local economy by creating many jobs, etc. What do you think about Detroit and its ultimate comeback?
As you can see, there is nothing but brighter skies in Detroit’s future. The Bankruptcy was an inevitable piece to the puzzle that is Detroit’s Comeback. The city will only come back stronger from this situation and will you be one of the savvy investors that bought into Detroit while it was still on sale? Or…did you wait until the masses started to buy and overspend (missing the boat)??
If you have been watching the real estate trends in Detroit over the past year or 2, you’ll notice that homes are selling faster and for a higher amount. It’s not rocket science to see that Detroit real estate investing is only getting hotter so get in while you still can!
This is more fantastic news for Detroit Real Estate Investors. WHY??? Well, job creation is huge right now for the city of Detroit. It’s no surprise that Detroit was hit hard during the recession and lost many jobs, etc. However, it’s how you rise up out of a tough situation that will determine your future and right now the city of Detroit is responding loud and clear!
Just by adding a third shift to the workforce here at Chrysler, they were able to increase their employee base by over 1,000 people – that is awesome!! Imagine how many families this will affect is a positive way. Imagine what this will do to the local real estate market as more and more jobs are moving into the city and surrounding areas. Are you positioning yourself to take advantage of the Detroit Real Estate Market? It’s a fact that Detroit Investment Property is at a very low price point…the only direction it can go is UP in value!
Whether you are a brand new investor or have been doing this for years, the best strategy is to buy low and hold for cashflow while the market appreciates. By taking massive action now, you could easily build your real estate wealth portfolio up to 10-20 additional Detroit Properties (just this year) and sit back and enjoy the monthly rent checks that come in.
5 years from now, you will be glad that you took action and will have the ultimate decision of holding onto the property for more and more cashflow or to sell off 1 or 2 at a time and make some large chunks of money all because you purchased at the right time and in the right market