$14.2M Development Boosting Detroit Rental Opportunities

Detroit’s Avenue of Fashion is set to undergo a major transformation, thanks to a proposed $14.2 million mixed-use development at the site of the former Fred's Furniture Liquidation Inc., located at 20201 Livernois Avenue.

This exciting project will bring new life to one of the city's most iconic corridors with residential units, commercial spaces, and a range of amenities designed to stimulate growth in both the local economy and housing market.

Here’s a closer look at the details and why it’s a game-changer for rental investors eyeing Detroit’s resurgence.

The Vision for Livernois

This redevelopment project is spearheaded by Warren-based Brown Schroeder & Co. in collaboration with Shelby Township's BmK Design+Planning LLC.

Slated to begin demolition in spring 2024, construction will end in 2027, giving way to a modern, mixed-use building featuring 50 high-quality rental apartments, a 4,000-square-foot restaurant, and an additional 3,000 square feet of commercial space.

With rental rates ranging from $836 to $2,400 per month, the project will offer options for a diverse tenant base.

Notably, 11 units will be designated as affordable housing for residents earning 60%-80% of the Area Median Income, contributing to the city's inclusive housing goals.

Why This Matters for Investors

Detroit’s Avenue of Fashion has been a focus of revitalization in recent years, with streetscape enhancements and a surge of new businesses injecting vitality into the area.

This development is the latest in a string of projects aimed at solidifying Livernois Avenue’s reputation as a vibrant, sought-after location.

Job Creation and Local Growth

The construction phase alone will create a significant number of jobs, benefiting both the trades and the service industries.

Once completed, these new commercial spaces, including a restaurant, will provide additional economic opportunities for the neighborhood, and help draw in more professionals and renters who are looking for upgraded living and working spaces.

Increasing Property Values

Mixed-use projects such as this are known to have ripple effects on nearby real estate. By revitalizing key thoroughfares, developments attract both middle- and upper-income residents, further boosting the surrounding area’s desirability.

This can lead to rising home values in adjacent neighborhoods, providing excellent growth for both short- and long-term investors.

Appealing to Quality Renters

The project is designed to meet the needs of a range of tenants, from professionals to families. Modern, amenity-rich apartments near a bustling commercial corridor are ideal for attracting tenants with steady incomes and long-term rental potential.

Combined with Livernois Avenue’s growing appeal as a trendy destination, this addition is expected to enhance demand significantly.

Financial Backing and Support

The development’s $14.2 million price tag is backed by a mix of funding sources, including $10.81 million in debt, $1.78 million in equity, and $1.5 million in grants. Additionally, deferred developer fees help balance the project’s finances.

Tax abatements are also playing a role in making this project viable. Secured under the Commercial Rehabilitation Act and the Neighborhood Enterprise Zone, these incentives total more than $1.1 million.

This financial backing underscores Detroit’s commitment to fostering community-focused developments along key corridors like Livernois Avenue.

Neighborhoods Poised for Growth

For rental investors seeking to capitalize on this revitalization, nearby areas present a wealth of opportunities.

University District

Historic homes, tree-lined streets, and proximity to the Avenue of Fashion make this neighborhood a prime target for investors.

Property values have been climbing steadily, with growth expected to accelerate as new developments take shape.

Bagley

South of Livernois, Bagley offers investors affordability paired with significant upside potential.

Its proximity to renovations and commercial upgrades makes it an excellent choice for both first-time and experienced property buyers.

Sherwood Forest

Known for its larger homes and serene environment, Sherwood Forest appeals to families and high-income renters.

It’s a fantastic option for luxury-informed investors looking to cater to more affluent tenants.

Palmer Woods

This neighborhood features unique architecture and stately homes, ideal for high-end rental opportunities or flips.

Its location close to Livernois Avenue and other cultural touchpoints makes it a standout for savvy investors.

Final Thoughts

The $14.2 million redevelopment of Livernois Avenue isn’t just another project—it’s a signal of Detroit’s continuing renaissance.

For rental investors, it represents a golden opportunity to align with a rapidly improving market.

Whether you focus on affordable or upscale properties, leveraging the momentum of projects like this can help you build a diversified portfolio with strong long-term growth.

Looking to invest in Detroit’s hottest properties? today to access exclusive off-market deals in these growing neighborhoods.