The CPA Building in Corktown is Up for Sale
Corktown is Detroit’s oldest neighborhood, but it’s got a new lease on life.
New housing, retail spaces, parks and commercial districts – everywhere you look in Corktown, change is all around you.
At the heart of this change is the monumental redevelopment of Michigan Central Station by Ford, which has become a catalyst for further investment and innovation in the area.
The latest development in this saga of Detroit’s resurgence is the CPA Building going up for sale.
So let’s take a closer look at what this sale could mean for Detroit rental investors.
Corktown’s Development Surge
Since Ford’s ambitious plans took root, Corktown has become a hotbed for development:
- Michigan Central Station: The epicenter of Ford’s autonomous vehicle project, this iconic building’s revival has attracted significant attention.
- Newlab: Housed in the former Detroit Public Schools Book Depository, this startup incubator fuels the tech-driven ecosystem.
- St. Vincent School: Recently sold to a nonprofit, this will soon become an early childhood education hub.
- Detroit City Football Club Stadium: Just blocks away, a new stadium promises to bring sports and community spirit into the mix.
With each new project, property values are soaring, attracting developers, like local billionaire Dan Gilbert, who are eager to stake their claim in this evolving landscape.
The CPA Building: A Key Piece on the Market
Amidst this flurry of activity, the CPA Building stands as a pivotal opportunity for investors.
The building was once home to the Conductor’s Protective Association – a historical organization for train conductors, but it’s been vacant for decades.
Situated right across from the renovated Michigan Central Station, this historic building went up for sale in September 2024, and is still on the market as of the time of writing (November 2024).
BFD Corktown LLC, associated with real estate stalwart Robert Zalkin, listed it through the Jonna Group for an undisclosed amount.
The property has over 800 feet of frontage along Michigan Avenue, between 14th and 16th streets, and comprises 2.15 acres total.
Its prime location means the CPA Building has huge potential as a mixed-use residential/commercial space, or even as a boutique hotel. But this particular piece of real estate has a very checkered past.
Timeline of the CPA Building’s Ownership
- Pre-2014: Owned by CPA Office Building Plaza LLC, linked to Ray Kouza.
- June 2014: Acquired by BFD Corktown for just under $900,000.
- 2018: The site made headlines when a court order demanded its demolition or renovation.
- 2018 RFP Process: Sought new ownership but found no takers.
- 2023: Re-listed amid Corktown’s real estate boom, with an undisclosed asking price.
But while redevelopment has been unsuccessful in the past, this time around is going to be different.
This is the last significant development left in Corktown. And Zalkin, who’s known for purchasing properties and selling them for sizable profits, anticipates a significant return on this investment, given the burgeoning interest here.
We estimate it will go for $2M+, at least.
And when it is sold and redeveloped, it will be exciting to see what new form this property will take.
What’s Next for Corktown?
As the CPA Building goes up for sale, it signifies the tail end of major real estate opportunities in Corktown.
With most prime properties claimed, investors are setting their sights further down Michigan Avenue, seeking new ventures near this burgeoning hub.
So, as the dust of development begins to settle, the focus will inevitably shift, pushing the bubble beyond Corktown’s borders and expanding Detroit’s revival further.
Our advice: Look further west along the Michigan Avenue corridor to find affordable properties in areas which will be next affected by the rising tide of property prices here.
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