Long-planned Restoration of Iconic Lee Plaza begins, will include 117 units of Senior affordable housing

• Art Deco gem has been vacant for nearly 30 years and has been Detroit’s last remaining vacant high-rise
• Development team closed last week on complex financing package, allowing full restoration work to begin this week
   

The long-awaited transformation of the iconic Lee Plaza is officially underway. Today, partners including the Roxbury Group, Ethos Development Partners and Lighthouse, commemorated the start of construction for the redevelopment of the historic art deco skyscraper located on West Grand Boulevard in Detroit.

More than 100 community members, civic leaders, and development partners gathered at the base of the building’s east façade for a groundbreaking ceremony. The celebration marked the culmination of a multi-year effort to bring Detroit’s last vacant high-rise back to life.

Originally opened in 1929 as a luxury residential hotel developed by Ralph T. Lee, the 15-story building will once again house Detroiters — this time, 117 seniors earning at or below 50% of area median income. The apartments will be affordable for residents who will pay no more than 30% of their income in rent, with affordability guaranteed for at least 45 years. A planned second phase will include up to 65 additional residential units on the upper five floors.

“Lee Plaza is one of the most beloved buildings in our city, not only because of its architectural beauty, but because it’s in a neighborhood,” said Mayor Mike Duggan. “Thanks to Roxbury and their partners, Amy Hovey and MSHDA and Julie Schneider and the Housing & Revitalization team, Lee Plaza is being transformed from blight to its original beauty as 117 units of beautiful affordable housing for our seniors.”

The project will restore the building’s ornate art deco façade and public spaces, including its grand first-floor common areas. The renovation will also include the re-creation of the building’s original decorative terra cotta lion heads — a nod to the once-stolen architectural details that became the subject of national news.

“This is the culmination of a seven-year effort in collaboration with the City of Detroit and the State of Michigan,” said David Di Rita, Principal of The Roxbury Group. “We at Roxbury, Ethos, and Lighthouse feel honored to be the stewards of this incredible restoration effort. Today, we proudly begin the redevelopment of Detroit’s last vacant high-rise.”

“Lee Plaza is symbolic of Detroit’s resilience and potential. After sitting vacant for nearly three decades, this historic landmark will soon offer 117 affordable homes for seniors,” said Amy Hovey, MSHDA CEO and Executive Director. “We’re proud to invest in a project that not only breathes new life into this building but also creates lasting impact through safe, stable housing.”

The restoration has already seen pre-construction activity over the past several months. The construction work is being managed by Detroit-based Sachse Construction with architectural design by Fusco, Shaffer & Pappas and historic preservation consulting from Kidorf.

The development is backed by a complex financing package that includes:

• Low-Income Housing Tax Credit (LIHTC) equity from MSHDA’s 4% and 9% programs
• City of Detroit ARPA funds
• Grant support from MSHDA
• Grant support from the Michigan State Legislature
• HUD HOME and CDBG funding from the City of Detroit
• Construction and permanent financing from KeyBank, Invest Detroit, and the Detroit Economic Growth Corporation (DEGC)
• Historic and LIHTC tax credit investments from JPMorgan Chase and Royal Bank of Canada
• Rental subsidy from HUD
   

“The Lee Plaza project is a testament to the transformative power of Historic Tax Credit equity in revitalizing historic landmarks,” said Lucas Visser, Vice President on the Historic Tax Credit team at J.P. Morgan. “Our collaboration with The Roxbury Group, Ethos Development Partners, and Lighthouse is not just about transforming an iconic building into affordable housing; it's about revitalizing the community, preserving Detroit's rich architectural heritage, and creating a supportive environment for low-income seniors. Together, we're fostering a vibrant future for the neighborhood and nurturing a sense of pride and belonging among its residents.”

Once complete, the project is expected to generate over 200 construction and permanent jobs, while serving as a catalyst for additional revitalization in the Northwest Goldberg neighborhood, just west of Detroit’s increasingly vibrant New Center area.

The redevelopment also addresses long-standing blight and safety concerns, especially for students attending Northwestern High School next door. Phase 1 is expected to be completed by the fourth quarter of 2026. The development team is actively pursuing financing for Phase 2.

The rich history of Lee Plaza can be found here at HistoricDetroit.org.

About the Roxbury Group

The Roxbury Group is a Detroit-based real estate development and investment firm founded in 2005. The firm specializes in complex real estate and economic development projects, typically involving historic preservation and adaptive re-use. Since its founding, the Roxbury Group has developed over $300 million in projects including nearly 800 units of market-rate and affordable housing. In addition to its work in housing, Roxbury is well known for its hospitality work in the City, including the redevelopment of Detroit’s famed David Whitney and Metropolitan Buildings, and recently completed construction on the AC Detroit at the Bonstelle in midtown Detroit.

About Ethos Development Partners

Ethos Development Partners (Ethos) is a Detroit-based team of experienced developers and consultants that partners with nonprofit developers and housing authorities who wish to engage in transformative housing and community development initiatives. Since its founding, Ethos has participated in the development of over $400 million in projects resulting in the construction and preservation of over 1,600 units of affordable housing.

About Lighthouse

Lighthouse is a Pontiac-based nonprofit organization on a mission to build equitable communities that alleviate poverty. Backed by 85+ years of experience, Lighthouse provides an effective, holistic, client-centered approach to moving individuals and families from homelessness to housing and crisis to self-sufficiency. We offer a broad range of housing, food assistance, stabilization and support programs that address emergency needs while also tackling individual and systemic barriers to self-sufficiency. To date, Lighthouse has developed more than $60 million in affordable and supportive housing with another $150 million in projects currently under development. Learn more: lighthousemi.org.