The Urban Condo Boom Has Reached Its Final Frontier: Detroit

David Di Rita first attempted to develop luxury, high-rise condos in America's poorest city of Detroit almost a decade ago. Now that every other major city has slowed their develop of these condos, Di Rita is once again going to erect a high-rise condominium building in Detroit.

 This is considered to be quite the gamble due to a continuous decrease in population, an unemployment rate double the nation's average, and banks with little to lend. The developers and Di Rita are hoping that this new endeavor isn't a flop. The development itself, called The Griswold, is 15 stories tall and features 80 units total. Di Rita reports that it is already 50% leased despite having a rent price triple the amount of leased homes in the area.

Di Rita is not the only developer to target this particular market of real estate. Over 2,000 new units have popped up all over downtown Detroit. Despite the development of several new apartment buildings in a city where 99% occupancy is centered in the downtown area, the leasing of these new developments began to drop off.

Original Article: WSJ

Kara Key