Detroit Property Development News: 10 Waterfront Units at Shorepointe Village
In case you haven’t heard, Detroit is making a major comeback.
We’re Detroit locals who’ve been investing and managing rentals here for almost 30 years, and the past few years have seen a remarkable shift for the city:
- Billions in development from Ford, Penske and Quicken
- 100s of new condos being built
- Commercial districts being revitalized
- Luxury home sales on the rise
For those of us who live here, it’s hard not to notice.
Especially when news comes out every day about a new property development project, a new infrastructure improvement plan, or a new major tech company relocating to the Motor City.
Just last month, we heard another big announcement: 10 new homes are going to be built along the waterfront at Shorepoint Village. The project targets the growing Class A demographic in Detroit, and is a sign of bigger things to come in the high-end real estate sector here.
Let’s break down the news and what it means for Detroit landlords.
A New Era of Waterfront Homes
Shorepointe Village is an exclusive gated community, developed by FPJ Investments LLC and Saros Real Estate Services.
With Downtown to the east and ultra-desirable Grosse Point to the northwest, this has always been an expensive area to live, but there simply aren’t enough homes to meet the growing demand.
And there hasn’t been a new waterfront development in Detroit for almost 25 years.
The expansion of Shorepointe Village, from 41 properties to 51, is an answer to this problem.
There are two models available ($499,900 for 1,550 sq. ft. or $569,900 for 1,850 sq. ft.), and every unit at Shorepointe Village will include:
- 3 bedrooms
- Open-concept kitchen and living room
- A personal backyard dock equipped with electric power
- Second floor deck overlooking the water
- 24-hour security
- Access to a private, residents-only pool
With high specs throughout and a pretty significant price tag, these homes definitely aren’t targeted at investors (although the developer expects prices to rise once the units are built).
But what they do show is the amount of opportunity there is for investors to create Class A housing and attract Class A buyers or tenants.
Reflections on Detroit’s Real Estate Trends
The expansion of Shorepointe Village is a microcosm of the broader real estate trends reshaping Detroit.
House prices in the city have surged by 8.2% YOY, but by as much as 20% YOY in some areas, reflecting increased demand driven by substantial investments from major corporations like Ford and Penske.
Detroit is also attracting a wave of technology startups, particularly in the autonomous vehicle sector, further boosting the housing market as professionals seek premium living spaces close to Ford’s new tech campus in Corktown.
This trend is complemented by the city’s revitalization efforts, which have seen significant developments in commercial districts and an influx of new housing options. With rents rising by as much as 4.45% even as they decline in other cities, Detroit presents an attractive market for property investors and landlords.
Advising Landlords: Renovating for the Future
For landlords and property investors, the message is clear: there is a burgeoning demand for high-quality homes in Detroit.
The city’s renaissance is enticing a new demographic of tenants who value modern amenities, strategic locations, and innovative designs. Therefore, investing in property renovations—particularly in emerging neighborhoods—can yield substantial returns.
Consider buying and renovating properties in fast-developing areas like the North End , or even buying and building on an empty lot in Corktown .
While Shorepointe Village isn’t investor-friendly, there are still a lot of neighborhoods in Detroit where you can pick up affordable properties, renovate, and make a solid profit by flipping them. Or, by finishing your units to a high standard, you can attract Class A tenants in these up-and-coming areas to maximize rental returns.
The Road Ahead
Spencer Ray of Jim Saros Real Estate Services told the Detroit Free Press: “I think it hits a need that the city may need,” pointing to the fact that, as of now, there aren’t many single-family units available outside of luxury condos Downtown.
“I haven’t seen anything like this in Metro Detroit,” he added. “Being on the waterfront makes this a truly special development.”
In short, the Shorepointe Village development will provide high-quality homes which people in Detroit desperately want.
So our advice to landlords is: Take a cue from these developers, and consider renovating properties in up-and-coming neighborhoods to a high standard to attract incoming tenants like these.
Because the demand for Class A housing is only going to increase in Detroit as more AV startups move here to follow Ford.
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Interested in investment opportunities in Detroit or the Metro Detroit area? Contact us for a list of all our available units, and tailored advice on where to invest next.