Intent on increasing its understanding of the Jefferson Avenue corridor, 1.618 Interests researched and documented in 2014 the market conditions for residential development on the near east riverfront of Detroit.
"We write as real estate developers fully engaged in the revitalization of central Detroit for over 30 years.
The purpose of this analysis is to determine if it is prudent for our investors and partners to commit financial resources to multi-family residential projects in the RIVERTOWNgoldcoast area.
Understanding real estate markets may be as much of an art as it is a science. With its unique characteristics of liquidity and permanent location, the economics of real estate speak with a distinctive dialect of Adam Smith’s invisible hand.
An economic understanding of Detroit from the point-of-view of an investor requires discipline and rigor. Southeast Michigan has intimately experienced the pain of the global economic crisis (2008) through its automotive industries, and public sector economic distress through the City of Detroit bankruptcy (2013).
The past twenty years have brought forward massive and unprecedented investments. International private sector investments have leveraged local resources – particularly the non-profit foundations. Public-private partnerships have yielded infrastructure improvements on an unprecedented scale. Public/political support has materialized from the Washington, Lansing and southeastern Michigan communities.
Accepting such a framework, this analysis seeks to develop a deep understanding of an area known in Detroit as RIVERTOWNgoldcoast, on the near east riverfront."