Developers Richard Hosey, left, and Gregory Jackson, right, stand inside the dilapidated Fisher Body 21 factory in Detroit, which they plan to turn into a mixed-use apartment complex.
Photo by Moon Reflections Photography
After decades of being an eyesore and symbol of decay the Fisher Body 21 factory at 6051 Hastings St. will be transformed into a mixed-use housing complex.
Developers Gregory Jackson and Richard Hosey along with builder Kevin Lewand, founder of the Lewand Development, plan to bring affordable housing to the city’s Greater New Center area through this Black-led project.
Hosey and Jackson talked to the Michigan Chronicle about how their vision for the building is coming to life one measured step at a time.
For years, many have called for the old factory’s demolition, but Jackson, Hosey and Lewand saw the vision to rehabilitate it into the Fisher 21 Lofts. At $134 million, the project is believed to be the largest African American-led development deal in Detroit’s history. The project team is all Detroit-based and dedicated to hiring city workers and contractors, meaning the Fisher Lofts will not only bring quality market-rate and affordable housing to the city but also jobs.
“We’ve both been driving around, and both were thinking how nice it would be to change this building around,” Hosey said just outside grounds recently. “We [Jackson and I] grew up in similar ways and have similar thought patterns of always striving for excellence and the like.”
Lewand agrees and told the Michigan Chronicle that his nearly 30-year-old construction team brings “something special to the table.”
“We’re a talented group of people here,” he said. “Being part of the team that has the skill and the ability, and the local knowledge is what’s crucially important to me.”
Hosey said that being a Black developer where “Black money” is on the table is not lost on him in Detroit, adding that it is important to make sure that the “barriers are removed” so the development opportunities are more equitable for other developers, too.
Jackson said during a recent press conference that he is “excited” to be part of a project that is supported by Mayor Mike Duggan, his staff and the entire city of Detroit. Jackson, “born and raised” on Linwood, added that he is glad to also invest in the city he still lives in, regardless of his color.
“We’re not here because of a race — because we’re a certain color doing something,” Jackson said, adding that this is not a Black deal but a business deal. “We’re here because we’re business people.”
Roderick Hardamon, a Black developer and CEO of multi-use real estate group URGE Development Group, told the Michigan Chronicle that in a primarily Black city having one of Detroit’s own developers working on this project is impactful.
“Having developers that represent the residents of the city provides a statement of trust and context that continually [is] rebirthing the revitalization,” Hardamon said, adding that the developers have a cultural “context that is relevant and resonates.”
Hardamon also said that for those who “never left Detroit,” being able to see in real-time that other Black people are an integral part of the revitalization of the city is also key.
“The Fisher Body [plant] is a symbol and statement of that,” he said. “When you have context of culture and communities in which you are impacting … influences how you develop.”
Duggan announced during a press conference in early March that the Fisher Body 21 factory, the “largest African-American-led project in city history,” was revealed to be not only a housing project but a transformative initiative to create a new destination retail district, according to a press release.
“For almost 30 years, Fisher Body 21 has loomed over the I-94 and I-75 interchange as an international poster child for blight and abandonment in our city,” Duggan said during a mid-March press conference. “For much of that time, demolition seemed like the likely outcome because the idea of finding a developer willing to renovate and reuse it seemed impossible. But it’s a new day in Detroit, and we have a team of outstanding developers led by two Detroiters — Greg Jackson and Richard Hosey — who are going to transform this vacant eyesore from a source of blight to a source of beauty and opportunity, bringing new housing for Detroiters of all income levels.”
The new housing complex would create 433 market-rate and affordable apartments, 28,000 square feet of commercial and retail space, and 15,000 square feet of co-working space. At least 20 percent of the units will be at or below 80 percent area median income (AMI) and will represent a mix of studios and one- and two-bedroom apartments. Housing is considered affordable when housing costs do not exceed 30% of a household’s monthly income. For renters, these costs include rent and basic utilities (electric, gas and water), according to the City of Detroit’s website.
According to www.bridgedetroit.com, a Detroit-led study shows that Detroit residents who need the most assistance with securing affordable housing make less than 60 percent AMI, or, for example, that would be a two-person household making less than $37,680 a year.
A Vision Shared
Pending City Council approval of the sale, the developers expect initial work to begin in the next month with the financial closing and start of construction slated for late next year. The project is expected to be complete in 2025. There is secured equity within the development team, which has committed $15 million in internal equity to the project and is being financed through Bernard Financial, Michigan’s largest mortgage banking firm.
“This project is being done by Detroiters and for Detroiters,” said Jackson, whose daughter Anika Jackson Odegbo, also involved in the project, is part of the father-daughter team behind Jackson Asset Management. “This project is proof of the potential of Detroit, its spirit and its people. We are honored to become stewards of this forgotten piece of the city’s storied past and turn it into a key piece of its future, bringing catalytic investment, quality housing and destination retail to this proud neighborhood.”
The large building is a prominent part of the Milwaukee Junction neighborhood and is creating quality affordable and market-rate housing and a major retail and shopping hub for residents in the heart of the city.
“Just as it is hard to overstate the effect of this highly visible Detroit challenge being unmet, it is also hard to overstate the effect the successful redevelopment will have on Detroit’s momentum,” said Richard Hosey of Hosey Development. “This transformative project will become a road map for repurposing industrial buildings around the city.”
With the project subject to the City’s Community Benefits Ordinance, the City’s Planning & Development Department will begin meetings with residents next month. Residents in the project area will be notified of those community meetings, and they will form a Neighborhood Advisory Council to represent their interests as the development moves forward.
The project is in the heart of District 5, represented by Detroit City Council President Mary Sheffield, who joined the mayor and developers to celebrate the announcement.
“This is the type of project that can have an incredible, transformational effect on a neighborhood,” Sheffield said.
“This icon is profoundly important to Detroit’s past and will soon be a light on the hill in Detroit’s future,” said Nicole Sherard-Freeman, group executive of Jobs, Economy & Detroit at Work for the City of Detroit. “Beyond the hundreds of units of housing and the retail and shopping that it will bring, the developers are committed to working with Detroit at Work to ensure that Detroiters benefit from the jobs this project will create.”
Kevin Johnson, president and CEO of the Detroit Economic Growth Corp., which helped shepherd the deal and make it possible, called the development project “game-changing,” turning a symbol of decline into one of the city rising.
“Beyond the jobs, housing and economic impact, it is also a symbol of development excellence and an incredible testament to what is possible when we all work together toward a common goal,” he said.