Mayor Mike Duggan and city leaders joined developer Richard Hosey last week to celebrate the grand opening of a beautiful new 36-unit, mixed-income housing development at 655 W. Willis in the historic Willis Selden neighborhood of Midtown.
The $10 million development includes 9 studio apartments, 18 one-bedroom units, 9 two-bedroom units, and a rooftop deck with a sweeping view of the city. All nine of the studio units are for households with incomes up to 80% of the area median income and will be rented at between $1150-$1232 per month.
“I want to congratulate Richard Hosey and his team on bringing this great project to the City of Detroit,” said Mayor Mike Duggan. “Building a brand new, first-class apartment building right here in Midtown will bring more housing options to residents in a neighborhood where new restaurants and shops are opening all the time.”
Mayor Duggan congratulates Richard Hosey for developing vacant land into permanent affordable housing and thanks all the financing partners involved in bringing 655 W. Willis to this Midtown neighborhood.
The project used City-owned land for the development, which notably brings new multifamily housing to a previously vacant lot on a third of an acre on Willis Street between Second and Third Avenues in Midtown. The sale to create this project was contingent on 655 W. Willis including 20% affordability, which the development team voluntarily exceeded.
“Our development team is incredibly grateful to the city, state and our lending partner Capital Impact for working with us to complete this project despite all of the pandemic-related hurdles,” said Richard Hosey, Owner of Hosey Development. “We’re very happy to have the opportunity to showcase what can be achieved on the many smaller parcels around the city.”
655 W. Willis developer Richard Hosey and his daughter listen as Mayor Duggan talks about what a great partner Hosey is to the City of Detroit.
The project was granted a Neighborhood Enterprise Zone tax abatement, which will generate incremental tax revenue for Detroit and help keep rental rates affordable for residents.
“By turning this vacant lot into new housing, we are meeting the needs of a growing neighborhood while also boosting revenue for Detroit,” said Kenyetta Hairston-Bridges, chief operating officer and executive vice president for the Detroit Economic Growth Corporation. “The DEGC is proud to have supported Richard in making this project a reality.”
The development team worked with the City’s Historic District Commission to ensure the project fit into the neighborhood. Materials and even colors used on the building’s exterior were considered in the approval process.
Kenyetta Hairston-Bridges, COO and Executive Vice President of the DEGC says how happy she is to support Richard Hosey in his projects here in Detroit and wants Detroit developers know the DEGC is here to help.
Additional project financing and key support
655 W. Willis also received key financial support from several community partners.
“Supporting our developers of color here in Detroit is essential,” said Donald Rencher, Group Executive for Planning, Housing and Development. “When Detroiters see projects like this done by people who look like them, it helps encourage even more aspiring developers get involved in the building and rebuilding of our great city.”
Capital Impact Partners supported this project with a $6.2 million in debt through its Diversity in Development loan product, which helps developers of color across the country to develop projects in and with their local communities, and through the Detroit Neighborhoods Fund with generous support from JP Morgan Chase.
“This development will help the ongoing revitalization of Midtown Detroit while also providing mixed-income housing opportunities for the city’s residents,” said Damon Hodge, Senior Loan Officer for Capital Impact Partners, part of the Momentus Capital branded family of companies. “Richard Hosey continues to demonstrate his commitment to Detroit, both through his work around the city and via his invaluable mentorship of up-and-coming developers of color who participate in our Equitable Development Initiative and who hope to follow in his footsteps.”
Mayor Duggan joins city, state officials and community partners to celebrate the grand opening of Richard Hosey’s 655. W. Willis, bringing 36 new apartments to the heart of Midtown.
The project was awarded a $950,000 Community Revitalization Grant from the Michigan Economic Development Corporation.
“We extend a sincere congratulations to the developer’s vision and fortitude to reimagine this underutilized parcel by adding urban density and much needed affordable housing options in the Midtown neighborhood of Detroit,” said MEDC Managing Director of Regional Prosperity Nicole Black. “Investment in communities like this will help create more vibrant places that attract and retain talent, enable business creation and attraction, and provide resources for Detroiters looking to Make it in Michigan.”
The building has a large, beautiful first-floor space which will be leased out to a retail tenant, and street-level parking for residents on the first floor. The building’s first tenants have just begun to move into the units above.
Hosey, one of the key developers behind the project and a Detroit native, is also part of the development team behind the upcoming redevelopment of the historic Fisher Body 21 factory.
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