Famous Detroit Buildings Sold to Chinese Group

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Chinese firm Dongdu International Group purchased two iconic buildings in downtown Detroit for a combined $15.6 million during back-to-back online auctions.

The Chinese group paid $9.4 million for the 38-story, art deco David Stott building. The group plans to continue leasing space in the tower, but could add residential units in the future, according to the Detroit Free Press. The building is approximately 15 percent to 20 percent occupied. 

Dongdu International Group also purchased the Albert Kahn-designed Detroit Free Press building for $4.2 million, the Free Press reports. The former newspaper headquarters opened in 1925 and includes two six-story wings and a 13-story central tower. It's been empty since 1998.

The Chinese group plans to redevelop the building into a $40 million to $50 million complex with retail space on the group floor and about 150 rental apartments. Work could begin in early 2014 and finish by late 2015 or 2016.

Shanghai-based DDI Group focuses on real estate in China and specializes in housing for younger people. This is the first investment in Michigan, but not the first in the U.S.

While the prices for the buildings were low by international standards, the influx of Chinese money is certainly good news for Detroit, which is still mired in an economic depression. The city filed for bankruptcy protection earlier this year. 

DDI Group outbid Dan Gilbert, founder of Quicken Loans, for the David Stott building, according to the Detroit Free Press.