Kefalinos is asking for $ 17.5 million for a former hospital that the city of Detroit plans to demolish



As his abandoned Detroit hospital faces city-ordered demolition again, controversial Detroit homeowner Dennis Kefalinos tries to sell him.

Former Southwest Detroit Hospital at 2401 20th St. was listed for sale late last week, said Ivory Moorer, partner broker for IJM Real Estate Services LLC, based in Allen Park, which is selling the building for sale.

He said the asking price is $ 70 per square foot, which for about 250,000 square feet is about $ 17.5 million.

“Right now, we just released it to the market,” Moorer said. “We are still in talks with the city regarding the postponement (demolition). We’re going to apply for a deferral to see if we can remove it from the demolition list. ”

But the city says it is still trying to demolish the property and hasn’t budged yet.

Brian Peckinpo, a city spokesman, said Kefallinos’ first request to remove the building from the demolition list was denied because he “did not provide us with a detailed timetable of how they are going to develop this property and obtain a settlement certificate. “

“There was another request to defer the demolition recently,” Beijingpo wrote to me in an email on Monday. “The building is considered damaged and BSEED will continue to seek permission from the city council to demolish the building.”

Crain’s reported in May this city council was asked to approve a recommendation that would lead to the demolition of the former hospital. The property owner applied for a deferral of demolition in 2019, but has not gone through multiple checks since the last check, March 9, Crain’s reported in May.

Let’s see what happens next in this saga.

Construction on the huge Kefalinos building on East Warren Avenue has recently begun. crumbling into the street below, prompting to block the road… (He bought the building at 1599 E. Warren Ave. in 2008 for $ 125,000 and it is up for sale for $ 3.5 million.)

Who knows how many balls the city is ready to play with him this time.

But I digress.

The former hospital was on the list 30 objects totaling over 2.3 million square feet that Kefalinos put up for sale in 2017.

Kefalinos has been involved in real estate in Detroit for decades. He has been the target of widespread criticism for sitting on facilities and postponing repairs or improvements to many of his buildings.

The hospital’s former website has been registered for years with the caption: “A comprehensive development coming soon in 2020.”

The 250-bed Southwest Detroit Hospital opened in 1974 as a result of the merger of four small hospitals to care for underprivileged residents in the neighborhood, according to the Detroit Free Press archives.

Unmanageable debt and bankruptcy hit in 1991, opening in the late 1990s as United Community Hospital. Ultimed HMO Michiganwho paid $ 1.5 million for the building in 1996. Ultimed Fails Ten Years Later and since then the hospital has been empty.

City land records show the property is about 5.6 acres and is approximately 243,000 square feet with an estimated value of $ 1.66 million.

Kefalinos’ holdings throughout the city are enormous.

Among its most notable assets is the Russell Industrial Center off I-75, which the city is empty in February 2017 for security reasons (Some tenants were later allowed to return as corrections are made); many residential buildings in which over the years there have been numerous problems with repair and maintenance; the former Roosevelt Hotel in Corktown; The Michigan Building and former Michigan Theater at 220 Bagley Street; other.

Over the years, Kefalinos has faced many lawsuits on a variety of issues: housing discrimination complaints to class action to rent his apartment buildings tenants with no proof of occupancy to another lawsuit over how dancers are paid at his Bouzouki strip club in downtown Greentown.

In addition to its buildings in the city, Kefallinos also owns a large former Boy Scout Camp of America in Lupton, about 10 miles from the Huron National Forest, with a total area of ​​630 acres.

In recent years, he has also sold assets, including Shapero Hall, the former $ 16 million Wayne State University pharmacy school building in Lafayette Park, to a developer with plans to build hundreds of homes; and the building at Harvard Square at 1346 Broadway St. ($ 6.25 Million) – To Dan Gilbert, who is planning a mixed-use redevelopment.


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