Gilbert eyes Apple to ll 3 vacant Woodward storefronts

BY KIRK PINHO

Bedrock is attempting to lure an Apple store to Woodward Avenue — and may be close to landing it.

Dan Gilbert’s Detroit-based real estate company is trying to put the Cupertino, Calif.-based tech giant into the three recently vacated retail spaces immediately north of the Shinola Hotel, according to two people familiar with the matter.

Bedrock has for more than a decade oated the idea of an Apple store — a kind of shopping Holy Grail — in the central business district and has considered several locations over the years, including the ground oor of 1001 Woodward, Chase Tower (which Gilbert referenced publicly a dozen years ago this month in a TV interview) and in the long-stalled Monroe Blocks development.

Messages were sent to Bedrock and Apple — which has stores in Somerset Collection in Troy, Twelve Oaks Mall in Novi, Briarwood Mall in Ann Arbor and e Mall at Partridge Creek in Clinton Township — seeking comment.

If the store happens, it would sit in at least roughly 5,800 square feet that was previously occupied by Le Labo (1,000 square feet), Détroit is the New Black (2,300 square feet) and Madewell (2,500 square feet), all of which left the Shinola Hotel block starting in February 2022. e space is currently adorned with a window cling across the three storefronts saying “Stay tuned, Detroit ... it’ll be worth it!” It’s not known

Budget

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It appears the House wanted to send a message against “corporate welfare, but the move is more bark than bite.

 Insulin factory: Whitmer proposed $150 million for state economic development o cials to partner on the development of low-cost insulin and to attract and establish a Michigan-based plant to make it. Neither the House nor Senate supported it.

 Regional grants: Whitmer proposed $200 million in Michigan Regional Empowerment Program competitive grants to “implement transformative regional economic development projects” — a ordable housing, broadband, manufacturing, education and workforce development. e House backed $100 million. e Senate did not fund it.

 College success: Whitmer proposed $25 million in grants for higher education institutions to adopt best practices to improve student retention and completion rates. e House did not fund it. e Senate authorized $10 million.

 Outdoor recreation businesses: Whitmer proposed $10 million support outdoor recreation businesses, including outdoor retailers, supply companies and service providers. e House and Senate did not include it.

 Talent: Whitmer proposed $20 million for employer-led collaboratives to target talent shortages. e House and Senate did not include it.

Transportation: Whitmer proposed $200 million to replace approximately 30 more state and local whether additional space is part of the proposal.

A marketing brochure for Gilbert’s Ally Detroit Center o ce tower downtown by Farmington Hillsbased Friedman Real Estate features a map of downtown with tenants identi ed. In the space where Le Labo, Détroit is the New Black and Madewell were located, it says

“lease out” and “con dential.”

Benji Rosenzweig, a retail expert who is vice president in the Royal Oak o ce of brokerage house Colliers International Inc., said the term “lease out” generally means that major terms between a landlord and prospective tenant have been agreed to and that attorneys are hammering out a few small details. e term typically means that both parties anticipate a lease to be signed imminently. Nothing has yet been inked, however.

An Apple store in Detroit — much like the long-rumored Target, which is expected at the corner of Woodward and Mack avenues — has been in the works for many years and would represent a serious retail win jail projects or do other “transformational” projects. e House stuck with legislator-chosen grants but, in a change, disclosed its proposed earmarks earlier in the process. Bene ciaries would include the Detroit Grand Prix; the Max M. and Marjory Fisher Music Center, home to the Detroit Symphony Orchestra; the North American International Auto Show; and the West Michigan Hispanic Chamber of Commerce. e House also allocated $35 million in infrastructure grants, including $20 mil- for the city. ey draw foot tra c from miles away and generally boost sales at nearby businesses. e company’s rst retail store opened 22 years ago last week.

But there are headwinds.

Apple tends to put stores in high foot tra c areas and Detroit’s daytime population has been dampened by the COVID-19 pandemic as many o ce users continue to have a hybrid work policy where employees can work from home or the company o ce. In addition, the size of the space proposed to the tech giant is smaller than its typical locations.

Apple no longer discloses the average store size (as of 2012, it was 8,400 square feet) although it recently opened a 20,000-square-foot store in Mumbai and others have clocked in at 10,000 to 15,000 square feet.

In addition to the closures of Madewell, Détroit is the New Black and Le Labo, downtown has seen the Under Armour Brand House shutter, as well as the John Varvatos Enterprises Inc. store close as a result of bankruptcy. at was replaced by golf clothing retailer Greyson Clothiers.

However, Gucci has since opened a store on Library Street and singer and business mogul Rihanna is opening a storefront for her Savage X Fenty lingerie brand just north of where Bedrock is proposing to put the Apple store.

Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB lion for Monroe Street in Greektown.

Republicans

For the budget to take e ect on Oct. 1, it needs immediate e ect — procedural support from 20 Democrats and at least six Senate Republicans. So the GOP has clout to get its priorities in the nal legislation. ose include extra spending on infrastructure and debt payments.

Contact: david.eggert@crain.com; (313) 446-1654; @DavidEggert00 bridges and $160 million in grants to support capital investments in rail, marine, intercity and local transit. e House included $60 million for local bus operations and a $100 “placeholder” for the bridge program. e Senate supported $150 million for the bridge program and $100 million for rail, marine, intercity and local transit.

Belle Isle State Park: Whitmer proposed $43 million to upgrade facilities, remove hazardous materials, implement safety measures and do maintenance. e House included $21.5 million. e Senate supported $35 million, but it is uncertain how much would go to Belle Isle because a portion would designated for a new state park in Flint and splash pads in state parks along Lake Michigan.

Earmarks

When Republicans controlled the e Department of Labor and Economic Opportunity would disburse $500 million in grants to applicants — cities, township and villages — that could partner with other government agencies, consortiums, authorities, community associations or nonpro ts. e Senate set aside an additional $100 million for infrastructure grants that the department would award to renovate municipal buildings and city halls, fund county

Legislature last year, lawmakers included an unprecedented $1 billion in earmarks for speci c projects and programs that were made public late at night and approved within hours. e process has come under scrutiny for a lack of transparency and “pork” for developers and the politically connected.

Democrats are at odds over how to proceed.

In the Senate, they voted to create the Michigan Partnership Initiative.