Crain's Detroit Business, Nov. 15, 2021 issue by Crain's Detroit Business

THE CONVERSATION: Gift of Life exec on why COVID-19 doesn’t stop transplants. PAGE 26

Real Estate: How Livingston growth has boomed. PAGE 17

CRAINSDETROIT.COM I NOVEMBER 15, 2021

SWEETER LURE In competition for labor, manufacturers forced to | BY KURT NAGL raise their game to hook workers

Jax Kar Wash is short 60 employees across its nine Michigan locations. The chain, which currently employs 300, has limited its full service interior cleaning work to only its monthly paid members to keep those customers satisfied and wait times down due to a shortage of laborers. The struggles at Jax are just one example of a pervasive workforce shortage across the U.S. and Michigan that has come about as a result of the lingering pandemic. Nearly 88 percent of metro Detroit businesses surveyed by Crain’s Detroit Business last month are short staffed. The 106 businesses surveyed by Crain’s have an average shortfall of nearly 17 employees. Jax has been able to find workarounds by

See LABOR on Page 24

See SURVEY on Page 24

BY DUSTIN WALSH

“THE ONE THING YOU DON’T DO IN THE AUTOMOTIVE INDUSTRY IS SHUT THE CUSTOMER DOWN.” — Elaine Tingle, Bridgewater Interiors

GETTY IMAGES

Survey: Pandemic labor shortage haunts businesses, but may be easing

N THE TIGHT LABOR MARKET BEFORE THE COVID-19 PANDEMIC BEGAN, Bridgewater Interiors LLC competed mainly with other suppliers for workers. The Detroit-based automotive seating manufacturer faces even stiffer competition from its supplier peers today. But now it’s also up against McDonald’s, Walmart, Amazon and other businesses spending big on employee recruitment to keep the lights on. That competition has threatened the ability of Bridgewater and some other manufacturers to keep production lines running. As Bridgewater executives saw the labor market tighten and competition increase, their chief concern was securing enough employees to keep operations going, said Elaine Tingle, vice president of human resources. That proved especially challenging at the company’s just-in-time Warren plant, which supplies seats for Ford’s F-150 and Stellantis’ Ram 1500. Despite the global microchip shortage that has forced sporadic production shutdowns across the industry, the automakers have prioritized their high-margin pickups, which meant no down time for Bridgewater.

Banking on cannabis: More get in the game As pot business grows, financial institutions take the plunge — and take on the risk BY ANNALISE FRANK

As the cannabis industry continues to expand in Michigan, there are a limited number of options for the businesses to put their money while their business is still illegal at the federal level. But that is changing. Nearly $125 million worth of recreational cannabis was sold statewide in September, up from

$60 million the same month last year. So it follows that despite the regulatory risk that banks and credit unions meet when dealing in cannabis, some are still choosing to do it. One of those institutions is Brighton-based Lake Trust Credit Union. Lake Trust started looking at the cannabis industry in 2018 and took two years before it began signing

on clients in June 2020. The credit union now has 20 cannabis members, out of a total 176,900, and it is onboarding three more to join within a month. It has gone slow on purpose, said Ray Zillgitt, the credit union’s senior vice president of risk management and general counsel. Caution is key because stakes are high. “The risk that we have is tremendous, right? I mean, literally, I

could go to jail if we are allowing money-laundered funds to come through our (cannabis) program,” he said. “I don’t look very good in orange, in all honesty.” Lake Trust had total assets of $2.2 billion in 2020, according to its latest financial reports. It saw net income in 2020 of $10 million, up from $9.3 million in 2019. See CANNABIS on Page 23

MICHIGAN CANNABIS SALES October 2020 to September $150 million 125

$124.9 million

100 75 50 25 0

O N D J F M A M J J A S

SOURCE: MICHIGAN MARIJUANA REGULATORY AGENCY

NEWSPAPER

Notable Executives in Real Estate PAGE 10

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NEED TO KNOW

BREWING DEAL

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT who were exposed to the water, adults who can show an injury, certain business owners and anyone who paid water bills. About 80 percent of what’s left after legal fees is earmarked for children.

 UAW OFFICIAL CHARGED WITH EMBEZZLEMENT

 JUDGE APPROVES $626M FLINT WATER SETTLEMENT THE NEWS: A judge on Wednesday approved a $626 million deal to settle lawsuits filed by Flint residents who found their tap water contaminated by lead following disastrous decisions to switch the city’s water source and a failure to swiftly acknowledge the problem. Most of the money — $600 million — is coming from the state of Michigan, which was accused of repeatedly overlooking the risks of using the Flint River without properly treating the water. WHY IT MATTERS: The deal makes money available to Flint children

THE NEWS: An official at a suburban Detroit branch of the United Auto Workers took $2 million from the union and spent it on cars, guns, luxury clothing and gambling, federal investigators said Wednesday. Tim Edmunds, secretary-treasurer of UAW Local 412, was charged with embezzlement and other crimes. The alleged theft by Edmunds “is a betrayal to every UAW worker,” said Timothy Waters, head of the FBI in Detroit. UAW Local 412 represents about 2,600 people who work for Stellantis, formerly known as Fiat Chrysler, at factories in the Detroit area. WHY IT MATTERS: Edmunds is the latest target in a corruption investigation that has stunned the union, sent more than a dozen people to prison and forced major changes.

 KELLOGG SUES UNION IN LABOR DISPUTE THE NEWS: The Kellogg Co. has filed a lawsuit against its local union in Omaha, Neb., complaining that strik-

ing workers are blocking entrances to its cereal plant and intimidating replacement workers as they enter the plant. The Battle Creek-based company asked a judge to order the Omaha chapter of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union to stop interfering with its business while workers picket outside the plant. WHY IT MATTERS: Workers in Omaha and at Kellogg’s three other U.S. cereal plants, including Battle Creek, have been on strike since Oct. 5.

 DETROIT CITY FC STEPS UP TO HIGHER LEAGUE THE NEWS: Detroit City FC announced Tuesday that the soccer club would be joining the USL Championship for its 2022 season. The USL Championship is the second tier of professional men’s soccer in the U.S., below Major League Soccer, with 31 teams competing in this year’s season. There are 33 set to compete next year with the addition of DCFC and Monterey Bay FC in California. The league’s matches are all streamed live on ESPN+ and some air on ESPN’s cable channels. WHY IT MATTERS: The move is another step up the ladder of professional soccer for the club, which has won two consecutive championsips as a professional team.

Why Larry Bell decided to sell his brewery  At 63 years old, craft brewing icon Larry Bell was ready for an out. Bell, the founder of Comstock Township-based Bell’s Brewery Inc. in Kalamazoo County, started the family-run, now-storied brewery in 1985, well before most American beer drinkers knew what an IPA was. On Wednesday, he announced he was selling the company to Lion Little World Beverages, an Australian brewing conglomerate which also owns Fort Collins, Colo.-based New Belgium Brewing Co, itself a legendary American beer maker. The sale price was undisclosed, and Bell would only say it had at least one zero in it. Bell told Crain’s the seventh-largest craft brewery in the nation had been approached by several different buyers over the years, and that he “used to throw away six pieces of paper a week from private equity firms” making offers. The executive declined to discuss what other types of options he may have explored as he sought to transition the owner-

Larry Bell

ship of the company. “The values that New Belgium and Bell’s share together, that’s what makes this elegant and makes me feel good about the deal,” Bell said. “The issues of environmental sustainability, work safety, the quality of the beer, how we take a look at social change and responsibility and respect out there. These are all things that we align very well on.” As part of the deal, Bell has pledged that little should change as far as operations for Bell’s Brewery going forward under new ownership, and the Two-Hearted and Oberon will continue flowing.

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SPORTS BUSINESS

REAL ESTATE

Game on: Esports firm sees room to grow in metro Detroit BY NICK MANES

Detroit, long known as a sports town, is also seen as an emerging hub for digital esports by at least one growing online gaming company. The Immortals Gaming Group, a Los Angeles-based, esports business affiliated with League of Legends, a nearly $2 billion team-based video game, plans to set up shop in metro Detroit in the next few months as part of a broader initiative aimed at expanding professional gaming’s presence in the Great Lakes Sherman region. The company generates revenue — which a spokesperson said is in excess of $10 million annually — through sponsorship and media sales, merchandising and licensing, ticket and event sales, as well as “centrally generated revenue from franchised or formal league structures.” Immortals is in essence an events company that puts on video game tournaments, and its teams play the games League of Legends, Valorant and Wild Rift. By moving to Southeast Michigan, a small professional sports league is essentially setting up shop in the area. As part of the relocation, the league will add an all-women Valorant team based out of the new headquarters. Immortals’ League of Legends team will remain in the Los Angeles office, according to a statement. Historically, the industry’s presence has largely been in Southern California, said Jordan Sherman, the 35-yearold CEO of Immortals, himself a metro Detroit native and graduate of the University of Michigan with a career working in traditional professional sports, including Major League Baseball.

CBRE Senior Associate Brandon Carnegie poses at Novi High School in Novi. Carnegie graduated from Novi High School and went on to play football at Ball State University in Indiana. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

Commercial real estate is full of former athletes. That’s not a coincidence. BY KIRK PINHO

By the time Brandon Carnegie was in his early 20s, he’d had two knee surgeries and a back injury thanks to football. His days playing cornerback at Ball State University in Muncie, Ind., where he landed after a standout four years at Novi High School, were over after his junior season. He played in 18 games and recorded 30 tackles. Now 32 and a new father, Carnegie has ended up professionally where many former high-level athletes who competed in col-

lege, the Olympics or professionally have ended up: Commercial real estate. Former athletes in a variety of sports attributed their success in business attire — whether in brokerage or advisory services, for example — to the lessons learned in their uniforms during their younger days. “The business is tough,” said Carnegie, senior associate in the Advisory & Transaction Services division in the Southfield office of Los Angeles-based brokerage juggernaut CBRE Inc. “It’s 100 percent commission in many in-

stances, and not getting a paycheck every week can be tough so you’ve got to be able to withstand a lot.” In certain aspects, Carnegie said, he learned a lot from playing cornerback and applying those lessons on the gridiron to brokerage — which involves a lot of deals in the pipeline that end up in disappointment by not closing. “If you get beat on a play, you still have to come back the next series, clear your mind and just start over,” he said. See ATHLETES on Page 22

“IT’S 100 PERCENT COMMISSION IN MANY INSTANCES, AND NOT GETTING A PAYCHECK EVERY WEEK CAN BE TOUGH SO YOU’VE GOT TO BE ABLE TO WITHSTAND A LOT.” — Brandon Carnegie , senior associate in the Advisory & Transaction Services division, Southfield office, CBRE Inc.

See ESPORTS on Page 25

REAL ESTATE

Home offices get upgrades as workers expect to continue remotely BY ARIELLE KASS

Twenty months after office workers were sent home en masse for what many expected would be a few weeks of struggling to work at kitchen tables and on living room couches, many employees are deciding that regardless of office reopenings, the time to upgrade their home workspaces is nigh. Business is up at custom designers like KSI, where designer Kelsey Powell said she’s working on four home office designs concurrently — after having barely any before the coronavirus pandemic. She said plenty of clients have been converting extra rooms into offices, building permanent workspaces into kitchens or even planning new construction with a dedicated office.

A home office design from Pophouse. | JOHN D’ANGELO

“People are realizing more and more this shift is culturally here to stay,” Powell said of working from home. “It’s definitely shifting more toward becoming more permanent office spaces.” Powell’s clients typically spend from $5,000 to $45,000 to customize their space, and she said many are opting for built-in bookshelves or other feature walls that look good on video, as well as lighting that’s more flattering to meeting online. In kitchens, she said, parents are creating permanent workspaces for children to do homework or participate in online school while the rest of the family is nearby. Upgrades include charging stations, USB ports and inside-the-cabinet white boards that allow for work to be

done but contained. “It’s created a really good way to open that discussion of work/life balance,” Powell said. “If something comes up, you can still be functional and work from home and be productive. I think it’s here to stay, 100 percent.” Matt Rizik is back at the office every day, but the Rock Ventures CFO and chief tax officer said he continues to use his upgraded home office, too. Among the highlights of his Birmingham home built during the pandemic is a technological hub that allows him to participate in video conferences and includes a large screen where he can watch meetings and read emails. See HOME OFFICES on Page 25

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The Cass Lake Shore Club apartments in Waterford Township is one of the large suburban Detroit apartment complexes included in a nearly $1 billion sale of approximately 8,000 units to a New York City-based real estate company. | COSTAR GROUP INC.

Family real estate business ruptured, apartment portfolio fetching nearly $1B It’s been more than half a decade since the feuding between the Hartmans and the Tyners began. Now with both family patriarchs dead, the massive Kirk apartment portfoPINHO lio built over more than six decades by cousins Bernard Hartman and Herbert Tyner, the founders of Southfield-based Hartman & Tyner Inc., is being sold off to a New York Citybased firm for just shy of $1 billion, I’m told by real estate sources. The buyer is Lightstone Group, one of the sources said, and the purchase price is north of $900 million, another told me. The portfolio consists of more than two dozen properties, according to a tabulation done using information from CoStar Group Inc., a Washington, D.C.-based real estate information service. One source said the portfolio consisted of approximately 8,000 units. Among the properties are some pretty large suburban assets, including Knob in the Woods in Southfield, which has 588 units; Cass Lake Shore Club in Waterford Township, with 565 units; Hunter’s Ridge in Farmington Hills, with 487 units; and Village Square in Canton Township, with 600 units, according to data from CoStar. And those are just a handful of the places changing hands. Messages were sent last week Monday and Tuesday to a media email account for Lightstone Group. Messages were also left for Beacon Property Management, the new management company for the properties (Googling “Hartman & Tyner” yields a “Beacon Property Management” web page result along with an “fka,” for “formerly known as”); Robert Sosin, an attorney for the Hartman family who works for Bingham Farms-based Alspector, Sosin & Noveck PLLC; and Daniel Adkins, a former Hartman & Tyner executive who is in Florida and works for Fontainebleau Development. An attorney for the Tyner family, Daniel Quick in the Troy office of Dickinson Wright PLLC, said his client declined comment. Herbert Tyner died in August 2015 at 84, according to the Detroit News, while Bernard Hartman died in late June at 89, his obituary in the Detroit

Free Press says. Since Tyner’s death, according to a 2016 Detroit News report, an Oakland County Circuit Court lawsuit claims that the family was effectively shut out of decision-making and other aspects of the Hartman & Tyner operations. Hartman and Adkins allegedly took more than $1.5 million in compensation and bonuses while the Tyners received nothing, even though, the Detroit News reports, that on his death bed, Tyner was promised that his wife would be taken care of and that business would operate as usual after he died. A denial of summary disposition requests says the Tyners allege the Hartmans “seized control of the businesses, ignored basic corporate governance, refused to share information, excluded the Tyner family, took for themselves disproportional bene-

THE PORTFOLIO CONSISTS OF MORE THAN TWO DOZEN PROPERTIES, ACCORDING TO A TABULATION DONE USING INFORMATION FROM COSTAR GROUP INC. fits of ownership, and sought to harass and squeeze out the Tyner family through a variety of acts, including the willful withholding of annual distributions previously promised.” The Hartmans, on the other hand, claimed that their governance of the company has been “in the best interests of the company and its shareholders” as well as consistent with its articles of organization and bylaws and a 2004 shareholder agreement. They also alleged that Tyner received “over $1 million in improper benefits that were not correspondingly taken or enjoyed” by Hartman or his family, and that Tyner did not repay about $4.3 million in loans from the company, the summary disposition denial says. The Detroit News story says that a Tyner trust had 30 percent of the voting shares, while the four Tyner children had 5 percent each non-voting shares; Hartman had 30 percent in voting shares while a trust tied to him had the remaining non-voting shares. In addition to the apartments, Hartman & Tyner also had gaming interests, including in the former Hazel Park Raceway site that is now an industrial park, as well as greyhound

race tracks and other gaming operations in West Virginia and Florida. I’m told Hartman and Adkins bought out the Tyners from the apartment assets, although for how much is not known. The Hartman & Tyner portfolio isn’t Lightstone’s first acquisition in town. It has multifamily properties in Troy, Westland, Woodhaven, Dearborn, Dearborn Heights, Royal Oak, Riverview, Oak Park, Madison Heights, Livonia, Sterling Heights, Southgate, Southfield and elsewhere. The company is run by David Lichtenstein, chairman and CEO, and Mitchell Hochberg, its president.

Park Shelton retail, parking listed for $6.2M The 20,600 square feet of fully leased retail space on the first floor of the Park Shelton building at 15 E. Kirby St. in Midtown — as well as 70 parking spaces in a 322-space garage — are up for sale. The asking price is $6.2 million, according to CoStar Group Inc., a Washington, D.C.-based real estate information service. Net operating income for the property is about $434,000 with a cap rate of 7, CoStar says. It is owned by Park Shelton Propco LLC, which purchased the space in 2018 for what I estimate as $3.97 million based on real estate transfer taxes paid to the state and county. It hit the market for sale in March 2017 and sold about a year later to a joint venture between Sturgeon Bay Partners LLC and Millennial Partners LLC. The space is home to Chartreuse Kitchen & Cocktails, Babo Restaurant, Wasabi Korean & Japanese Cuisine, The Carr Center, The Peacock Room and State Farm. The Bloomfield Hills office of Mid-America Real State-Michigan Inc. has the listing. There are about 264 condominiums above the retail space, which are not part of the listing. The Park Shelton redevelopment into condos was completed in 2004. The building originally opened in 1926 as the Wardell Apartment Hotel and at times hosted Bob Hope, George Burns and Gracie Allen, and Diego Rivera stayed there while he worked on his murals at the Detroit Institute of Arts. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

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COMMENTARY

Stop the attacks on public health workers

EDITORIAL

Leave vaccine mandate decisions to business

usinesses have the right — and in some cases, the responsibility — to require employees to be vaccinated against COVID-19. What they don’t need is a rigid, one-size-fits-all government order to do it. That’s the biggest problem with a Biden administration directive that all companies with 100 more employees mandate the vaccine or establish a testing program by the first week of January. The rule, which covers millions of Americans, contains very specific protocols and would be a compliance nightmare for companies already struggling to keep employees on the payroll. President Joe Biden last week issued an executive order requiring federal contractors, health care organizations and those receiving Medicaid or Medicare funding to enact a mandate by Jan. 4. A separate rule from the Occupational Safety and Health Administration also requires private employers to mandate the COVID-19 vaccine or a COVID-19 testing program. A three-judge federal appeals court temporarily halted implementation of the OSHA order, but the legal challenge is unlikely to stop the rule from going into effect after the holidays, experts say. There are myriad reasons why the order is a bad idea for businesses and the employees it’s intended to protect. Most important, vaccine mandates are not a one-size-fits-all proposition. Companies need the flexibility to address COVID-19 in the ways that make sense to them. A sprawling health system and a 100-person law firm are not the same. In industries already suffering critical labor shortages — such as nursing homes and rural hospitals — a government mandate could have the unintended consequence of actually risking lives if it drives even more employees away. Second, the order already includes loopholes that essentially render it meaningless. Employees can claim religious or health exemptions that employers have no practical way to verify. As Crain’s Dustin Walsh reported this week, experts say companies would have wide latitude in determining what constitutes an ex-

emption. Organizations are required under the rules to maintain records of why an exemption was granted. But federal regulators don’t have the resources to investigate most employers for exemption violations, legal experts say. Michigan business groups raised early red flags about the rules, to no avail. The Michigan Chamber of Commerce and six local chambers last month urged Biden to reconsider the plan and asked that, if it must be enacted, Gov. Gretchen Whitmer make sure related state rules are no stricter. Michigan is among 27 states that operate and enforce workplace safety rules instead of the U.S. government, meaning OSHA-approved state plans must be at least as effective as the federal program. The chambers’ objections are reasonable, and legitimate. They cited the cost, the logistical challenge of checking workers’ vaccination status and test results at a time when human resources or other staffing is limited. They also said the 100-employee threshold is arbitrary. It’s also unclear the unvaccinated will be able to work while awaiting weekly test results and how long companies will have to comply. As Nikki Devitt, president of the Petoskey Regional Chamber of Commerce, told Crain’s: “The federal vaccine mandate is well-intentioned, but unfortunately it creates an entirely new level of private-sector responsibilities our member businesses, by and large, have neither the experience nor the resources to carry out at this time.” Vaccines save lives. Smart employers recognize that making employees feel safe in the workplace makes sense, especially those that seek a return to the office. In August, we reported that most employers support COVID vaccine mandates in the workplace, according to a Crain’s survey. And the vast majority are vaccinated themselves. As we said at the time, a vaccine mandate is as crucial as any other workforce safety requirement to protect employee well-being. But at this point, it’s a complicated decision best left to the businesses themselves, not the government.

s a former local health officer for both Wayne County and the city of Detroit, as well as a former public health director for the state of Michigan, I am acutely aware and concerned about the onslaught against public Vernice Davis health leaders and the Anthony is a public health infrastrucformer public ture. health officer in I began my public Detroit and for health career as a public the state, served health nurse in Detroit, as CEO of the walking the streets of Greater Detroit Southwest Detroit providArea Health Council and is ing services to a diverse currently CEO of mix of families. I also was VDAHealth a school health nurse providing required childhood Connect vaccines to long lines of Consulting. children and parents. I recall vividly how welcome and accepted I was by the families, schools and the overall community. In addition, I was a chief public health administrator in 1978, working for the state of Michigan to help create the current local public health system after the Public Health Code passed into state law. Now 43 years later, an already underfunded public health system is being seriously threatened by state and local efforts to thwart their legal authority to save lives through science-based disease control measures such as masking and vaccinations. Also, the withholding of funding for COVID-19 work is yet another strategy being used around the country by state legislators, governors and local county commissioners to create uncertainty and limit the ability of health departments to function adequately. These threats are compounded by the intentional misinformation, the politicization and the physical and emotional toll being carried by the public health leaders and workforce. According to a survey done by The New York Times and confirmed by the National Association of City and County Health Officers, more than 500 top health officials have left their jobs in the past 19 months due to firings, exhaustion from harassment and threats to them-

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes.

selves and their families, early retirements, inability to effectively carry out their official duties, lack of support from their legislative bodies and lack of community support largely due to the politicizing of the COVID-19 pandemic and intentional misinformation. In Michigan, eight health officers departed their positions mostly through retirement, nine medical directors have left their positions since March 2020. Close to home, an angry resident in Barry-Eaton County Health District suggested that the health officer should be put in a gas chamber and a citizen’s arrest was attempted at a public meeting. In Kent County, the health officer was personally threatened and the victim of road rage, related to his mask mandate. Also, just recently, Michigan lost our outstanding chief medical executive, Dr. Joneigh Khaldun, to CVS, a national drugstore chain. Essential to a strong public health infrastructure is well-qualified and committed leadership, along with an experienced public health workforce to provide the significant array of public health and community services. Also, an up-to-date data and information system, and an apolitical, unbiased, accurate and trusted disease reporting system that is shared publicly is essential. We’re losing the people who do this crucial work. Due to the political pressure and funding threats, we are losing our public health expertise and having difficulties recruiting and hiring, resulting in even deeper threats to the health and safety of our communities. In fact, in Michigan, we are experiencing a shortage of epidemiologists willing to work in government public health as they are being recruited by private health industries such as hospitals, pharmaceutical compa , because the impact will be felt not just today, but long into the future. Lives lost cannot be replaced, the pain of losing loved ones to preventable deaths and to die alone is devastating, and the long-term effects are yet to be known. We can be assured that in the future there will be more public health emergencies, more epidemics, continued need for a safe environment, and maternal and child health crises that will require strong public health infrastructure. We cannot allow this attack on public health to succeed. The future well-being of our communities, and indeed our entire country, is at stake.

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DANIEL SAAD FOR CRAIN’S DETROIT BUSINESS

BY VERNICE DAVIS ANTHONY

Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.

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OTHER VOICES

A solution to reducing carbon that makes economic sense BY THOMAS LYON AND MICHAEL MOORE

on the amount their products pollute. The carbon fee should start relatively low and rise steadily each year All around the until emissions reduction targets are world, grave signs met. The rising price will send a clear of climate change price signal to businesses, investors are evident. Our and consumers that fossil fuel-intenwarming planet sive products will become more exis fueling natural pensive. Fossil fuel companies will pass disasters from Hurricane Ida to some of the cost of the carbon fee wildfires in Sibe- down the supply chain, making all ria, drought in products reflect their true costs. BusiThomas Lyon is the western U.S., nesses and manufacturers will reDow professor of and flooding in spond by finding ways to become sustainable southeast Michi- more energy efficient and rely less on science, gan. The cost of fossil fuels. It will create demand for technology and d e s t r u c t i v e cleaner technologies which, in turn, commerce, weather is rising will spur private investment for those School for Environment and dramatically. Ac- technologies. On the consumer side, the cost of cording to the Sustainability, National Oceanic gasoline, electricity, heating and University of and Atmospheric some carbon-intensive goods will Michigan. Administration, rise. Consumers will seek out less exweather-related pensive alternatives, further incendisasters now tivizing producers to make cleaner regularly cost the goods. Plus, to protect households from U.S. over $100 billion a year, a rising costs, the revenue collected more than five- from the carbon fees paid by fossil fold increase fuel companies will be returned from just the equally to Americans as dividends, or 1980s on an infla- rebates. This rebate is for people to tion-adjusted ba- spend as they choose, just like the resis. Along with cent stimulus checks. A majority of Michael Moore the financial households, including the most ecois professor of costs comes un- nomically vulnerable, will receive environmental told human suf- more in their rebate checks than they economics, fering. Even with pay in increased prices. This net benSchool for m u c h - n e e d e d efit makes the fee progressive rather Environment adaptation mea- than regressive. and To avoid putting American busisures, the moneSustainability, tary costs and hu- nesses at a disadvantage compared University of man suffering to China or other nations, a border Michigan. will continue to carbon tax will be charged on carrise unless we ad- bon-intensive goods from nations dress the primary cause: burning fos- without a similar carbon fee. That money will be used for rebates to sil fuels. There is a policy tool to reduce the American manufacturers when exburning of fossil fuels that is broadly porting carbon intensive goods to favored by economists: charge fossil countries without a carbon fee. This fuel companies a carbon fee and re- will disincentivize American manuturn the revenue to households as a facturers from moving to a country dividend or rebate. It will reduce car- where they can pollute for free, while bon pollution throughout the entire incentivizing other countries to imeconomy and can complement other plement their own carbon fee. In fact, beginning in 2023, the Euroneeded policies, such as regulating local air pollutants and removing fos- pean Union intends to charge a borsil fuel subsidies, to accelerate emis- der carbon tax on imports of carsions reductions at the speed that is bon-intensive goods. Canada is considering the necessary. A For Ameristatement supTHERE IS A POLICY TOOL TO same. can companies porting this type to avoid paying of carbon pricing REDUCE THE BURNING OF that border carpolicy has been FOSSIL FUELS THAT IS bon tax, the U.S. signed by all forneeds to have our mer living Feder- BROADLY FAVORED BY own carbon price al Reserve chairs, in place. 28 Nobel Laure- ECONOMISTS: CHARGE We and the adates, and 3,500+ FOSSIL FUEL COMPANIES A ditional 44 econother econoomists across mists. A carbon CARBON FEE. Michigan who fee and dividend is simple, transparent and will help joined us in signing this statement stabilize climate risk. It will also im- agree that a well-designed carbon fee prove health by decreasing the pollu- and dividend policy will be a win for tion we breathe and provide a finan- America. The time to tackle climate cial benefit to the most vulnerable in change is now, and an economywide carbon fee and dividend should be our society. A basic economic principle is that the centerpiece of how we do it. The original version of this stateif you want less of something, make it more expensive. The simplest, most ment has been shortened for publiefficient way to make fossil fuels cation. The full statement and most more expensive is to charge fossil current list of signatories can be fuel companies a carbon fee based found at tinyurl.com/MIEconCFD.

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REAL ESTATE

Home auction deal rebuffed in Herman Kiefer redevelopment Detroit City Council rejects amendment over concerns about lack of benefit for residents BY ANNALISE FRANK AND KIRK PINHO

Detroit City Council turned down a proposal that would have given residents a chance to buy houses and lots around the sprawling Herman Kiefer redevelopment in exchange for removing a clawback clause from the developer’s contract. Mayor Mike Duggan’s administration saw the amendment to its 2015 deal with developer Ron Castellano as an opportunity for residents, many of whom have concerns about the Herman Kiefer project, to acquire at a discount houses near Herman Kiefer that they’ve long sought to rehab themselves — instead of keeping them under the wing of the developer. But the majority of City Council did not see it that way. They rejected the amendment 5-2 on Tuesday, with President Pro Tem Mary Sheffield saying she felt the deal needed more time for consideration and that it lacked a guarantee that residents would benefit. Other members also said there wasn’t enough engagement with residents in neighborhoods near the Herman Kiefer footprint and they were worried investors could still buy the properties at auction. “I can’t support it today because I just feel there should be more discussion around some of those guarantees, with the history of what’s happened in Virginia Park with the Herman Kiefer deal,” Sheffield said before voting. “There still seems to be some outstanding issues that could be resolved.” Other council members voting no on the amendment were Roy McCalister Jr., Scott Benson, Raquel Castañeda-López and President Brenda Jones.

Ron Castellano of Herman Kiefer Development LLC has a deal with the city of Detroit to redevelop the vacant Herman Kiefer medical site off Taylor Street west of the Lodge Freeway. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

Members James Tate and Janeé Ayers voted to approve. With the proposal nixed Tuesday, the properties in question will remain Castellano’s. The city’s housing department and the Detroit Land Bank Authority will now “work with the developer to determine a new timeline” for renovating the homes, which he has the option to buy under his past deals with the city and land bank, the DLBA said in a statement. Castellano could not be reached for comment last week. The proposal would have amended a master development agreement between Castellano’s Herman Kiefer Development LLC and the city, as well as a related deal between Castellano and the land bank. City Council approved the master development agreement in 2015, al-

though it took until 2018 to finalize Castellano’s $925,000 purchase of the 424,000-square-foot vacant Herman Kiefer medical complex and two Detroit public schools. He signed another deal with the land bank in 2017, aimed at wider redevelopment of the neighborhood, giving him the option to buy 117 empty homes and more than 300 vacant parcels within one to three blocks around the hospital and schools, according to a map included with the agreement. Some residents in the Virginia Park neighborhood near Herman Kiefer, which closed in 2013, have protested a lack of progress on the sprawling, vacant site. Critics of Castellano and the 2015 deal argue it has prevented nearby residents from buying the residential property he has tied up through the land bank deal, freezing any potential economic activity in the

area, and in the meantime property values have risen. “The only solution is to vote no on the amendment and hold Ron Castellano accountable and responsible for the current contract as it stands,” Joyce Moore of the Virginia Park Community Coalition said during public comment. She added that if the amendment passed it would be “another injustice” to the surrounding neighborhood. The amendments were born out of more than six months of negotiations with community members and the developer that the city started to address neighborhood concerns, city officials including Melia Howard, manager of District 5, said. The proposed changes would have stripped the city’s ability to take back ownership of the hospital and school property to enforce the development agreement. In exchange, Castellano would have terminated his option to buy 39 of the houses and 102 of the vacant parcels from the land bank deal, reverting them back to the land bank for sale. They would have been offered at auction, with an 80 percent discount for residents around the planned development and a 50 percent discount for community development groups that partner with the land bank. The developer has closed on the purchase of 29 of the 117 houses he has the option to buy so far. Without the amendment in place, he can still buy all of them and will likely do so within weeks, Luke Polcyn, deputy group executive for jobs and economy, told City Council on Tuesday. “No, everyone is not happy or comfortable with what we brokered, but this is where we landed, because the land bank cannot give those types of

guarantees that are being requested by the community,” Howard said. Polcyn said before the vote that Castellano has a record of performing within the city’s requirements in the development agreement and has “proven himself.” Castellano has invested more than $8 million in the property since the closing, Polcyn said, over the $3 million that’s been required so far. In his master development deal with the city, Castellano agreed to secure buildings, do cleanup and invest $1 million annually in the property for the first five years. After five years, or starting in February 2023, he will need to invest $2 million per year. Castellano’s benchmarks will get higher in coming years. By the sixth anniversary of the deal’s closing, or February 2024, the developer must have invested at least $20 million in the project and/or “activated” at least 35 percent of the floor area and land on the site. Then by the ninth anniversary, or 2027, he is required to have invested $75 million and/or activated 80 percent of the site. Castellano has also been required to rehabilitate 15 homes so far, missing deadlines but getting extensions “largely because of circumstances out of his control,” Polcyn said, like utility issues. The COVID-19 pandemic also played a role, according to a 2020 presentation by the city. Looking ahead, Castellano — or those he hires — must rehab a total of 92 houses by June 30 and all houses by March 31, 2024, according to his deal with the land bank. Contact: afrank@crain.com; (313) 446-0416; @annalise_frank

REAL ESTATE

Former prison property in Plymouth Township eyed for warehouse City Council considers sale of Detroit-owned land to developer for $5.5 million BY KIRK PINHO

The city of Detroit plans to sell off its owned portion of the former Detroit House of Corrections site in Plymouth Township for $5.5 million. If all moves forward under the current plan, the 190.5-acre vacant site would be developed into a 1.2 million-square-foot build-to-suit building by an out-of-state developer that does work for FedEx Corp., Amazon. com Inc. and others. The Detroit City Council is considering the sale to Kansas City, Mo.-based developer Jones Development, which plans what are only described as “industrial uses” on property at the southeast corner of 5 Mile and Napier roads, according to a council briefing memo. But Kurt Heise, Plymouth Township supervisor, said Jones Development has briefed township officials on a large distribution facility on the site. “These guys specialize in that kind of large-scale logistics ... We don’t think it’s a speculative project,” Heise said. An email was sent to Nicholas Jones, the company’s executive vice president of development, seeking comment on Tuesday and a voicemail was left on Wednesday. Elizabeth Kmetz-Armitage, deputy group executive for planning, housing

A chunk of the former Detroit House of Corrections site in Plymouth Township is targeted for a new 1.2 million-squarefoot distribution facility by Kansas City-based Jones Development. | SCREENSHOT/SUMMIT COMMERCIAL LLC

and development under Mayor Mike Duggan, said the city’s brokerage firm, Summit Commercial, briefed her on a serious offer from Jones Development in July, about five years since the city began marketing the property for sale. “Since 2016, we’ve had, I think, four significant, credible offers,” Kmetz-Armitage said. “For the most part, those have not gone through because of the zoning. With a couple of cases, folks were approaching us because they

thought they could get Plymouth Township to rezone the land to allow for single-family (residential uses) and they were not successful in that endeavor, so the deal fell apart.” The Jones Development website says it has Southeast Michigan projects in Auburn Hills and Pontiac, as well as statewide in Battle Creek, Kalamazoo, Portage and Portland Township. A resolution authorizing the sale was sent to the Planning and Economic Development standing committee on Tuesday. That committee typically meets on Thursdays although the Nov. 11 meeting has been postponed. The briefing document says a purchase agreement between the city and Jones Development requires closing within 30 days after a 180-day due diligence period. “We’re very pleased to have a deal that looks viable and is moving in the right direction,” Kmetz-Armitage said. “This has been something that we’ve been looking to sell for some time, so we’re pleased that we’re here.” This proposed sale comes three years after the council approved a sale of the property to Prime Land Holdings LLC, which is registered in

the Southfield headquarters of Ciena Healthcare, for $6 million. However, that deal never closed and Prime Land Holdings terminated the purchase agreement. The Detroit Building Authority, which manages the property, would receive $330,000 from the sale proceeds while Summit Commercial LLC, would receive $275,000, according to the resolution approving the sale. The 190.5 acres is part of the broader former Detroit House of Corrections site, sometimes abbreviated as DeHoCo, which sits in Plymouth and Northville townships and is now marketed as the Michigan International Technology Center. That area consists of 800 acres across 15 different chunks of land both north and south of Five Mile Road spanning between Napier Road to the west to just west of Beck Road to the east. Detroit’s owned site used to be the DeHoCo farm, Heise said. “Regardless of what side of Five Mile, at one time this was all owned either by the city of Detroit or the state of Michigan,” Heise said. “That goes back to the 1920s because in the 1920s and 1930s, this was tundra. This was Alaska. This was No Man’s Land, so land was cheap and Detroit and

Wayne County put their undesirable people way out here in No Man’s Land.” The Detroit News reported in early 2017 that DeHoCo replaced a former city corrections facility within its borders by buying approximately 1,000 acres in the two townships at about $30 per acre and building a $2.5 million prison in 1931. Over time, the prison closed and the city sold off much of the property for millions. Some of the properties that were once part of DeHoCo have been sold or are under control of other developers such as Southfield-based Redico LLC, which controls the Michigan Land Bank Fast Track Authority-owned site where the prison itself was located, and Novi-based Hillside Investments. Northville Township owns much of the former DeHoCo site that sits on the north side of Five Mile Road, minus a couple parcels, Heise said. He also said another portion of the property in Plymouth has been sold to Raleigh, N.C.-based Brookwood Capital Partners, which plans a 300,000-square-foot warehouse on the site. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

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INNOVATION

Growing life sciences companies face space crunch Considered an ‘emerging market’ for venture capital, lab real estate to scale up a challenge BY NICK MANES

Considered an “emerging market” for venture capital funding in life sciences companies, the Detroit and Ann Arbor region has a key issue to overcome: lack of space for the growing companies themselves. Startup and growing life sciences companies working to develop a therapeutic, medical device or other type of product heading toward commercialization can usually get a leg up for several years in university space at research institutions such as the University of Michigan and Wayne State University. While university officials say space remains available in certain cases, the challenge remains for scaling up a business once a company outgrows that space and turns to the private real estate sector. To that end, real estate executives say they’re working to develop solutions that could, in some cases, translate into free rent for growing startups. In hot beds like Ann Arbor, landlords are looking for different types of solutions to support the companies, which increasingly make up an integral part of the regional economy but are known for early struggles. That’s due in part to the very nature of startup life sciences companies, according to Wonwoo Lee, the director of asset management for Oxford Companies LLC, an Ann Arbor commercial real estate firm. Such comLee panies often have a high rate of failure and tend to burn through cash quickly, something many landlords, understandably, tend to be resistant toward. “Landlords like established financial history, right? They want to see a strong balance sheet, they want to minimize the risk of the tenant folding,” Lee told Crain’s in an interview. “So the difficulty is going to be landlords generally are reluctant to invest a lot into a tenant improvement allowance. So we’re probably looking at (older) space. It’s not absolutely perfect.” To help offset some of those challenges, Oxford Companies, one of the larger commercial landlords in the Ann Arbor area with about 2.7 million square feet under management, last year launched what it calls the Oxford Instant Office concept. Lee said the concept came about after talking with venture capital executives in the area who described the aforementioned challenges their companies were having with space. The concept is primarily focused on allowing for more short-term leases and readily available space. Building on that concept, the real estate company early next year plans to launch its SAFE concept, which stands for Simple Agreement for Future Equity. Oxford will offer reduced or free rent to such companies in exchange for future equity in the enterprise, Lee said. “And what it does is it provides a unique option for liquidity-constrained companies that … need to scale, but they haven’t locked down that next tranche (of financing) yet,” Lee said.

Accessioning supervisor Nick Meyer reprints a label for a COVID-19 sample at LynxDx in Ann Arbor. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

Yashar Niknafs, CEO of Ann Arbor-based prostate cancer and COVID-19 testing company LynxDx Inc., which grew rapidly starting in 2020 and found available space becoming a major constraint. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

‘An emerging market’ A report earlier this year from commercial real estate firm CBRE identified the Detroit-Ann Arbor region as an “emerging market” for venture capital funding for life science companies. The CBRE report, citing multiple data sources, notes that companies in the region hauled in just short of $80 million in VC funding in the first quarter of 2021, an increase of 431 percent over the same time period in 2020. Earlier this year, reports showed Michigan as leading the nation in overall growth in venture capital investment. Some 70 percent of the venture capital Michigan-based investors put into in-state companies went to firms in the life science or health care spaces, according to the annual report from the Novi-based Michigan Venture Capital Association, released earlier this year. Other emerging markets for the life sciences sector around the country include Sacramento, Calif., Indianapolis and the Dallas-Fort Worth region. Locales like Boston and Cam-

bridge in Massachusetts, San Francisco and Chicago also stand as hot beds within the sector, according to the CBRE report. In suburban Chicago, for instance, a pair of laboratory buildings recently sold for $77 million in a deal that highlights the Chicagoland’s “burgeoning reputation as a hub for startup and growth-stage pharmaceutical and biotechnology companies, and the rising value of properties that house them,” according to a report last month in Crain’s Chicago Business.

Room to grow Specific data on the Detroit-Ann Arbor region’s real estate market for lab and research space was not shown in the report, and Crain’s was unable to determine a specific occupancy figure for the sector. Still, most indicators, while anecdotal, point to a tight market. Research institutions such as UM, Wayne State and its affiliated incubator TechTown control lab space that early-stage companies formed around university research can make use of for some time.

The space controlled by universities and affiliated incubators varies greatly. Ned Staebler, president and CEO of TechTown, a Wayne State-affiliated small business incubator, said his organization has around 40,000 square feet of laboratory space that is full. However, he also noted he rarely hears of strong demand for more space. Diane Bouis, who runs the Office of Innovation Partnerships Startup Incubator at the University of Michigan, said she controls about 11,000 square feet that stands as the base of operations for about 20 companies, most of which are working on intellectual property formed within the institution. UM’s board of regents must approve companies that work in the space, so there’s usually a backlog of organizations waiting to get in, translating to some unused space. That rarely lasts long, according to Bouis. “I think more lab space is definitely needed,” she said, adding that those managing the space largely share a goal that is above simply making money. “We are all together growing the pie, and so we don’t need to be competitive with each other as lab landlords.” Companies in privately controlled space are also finding that growth without more space can be challenging, according to Yashar Niknafs, CEO of Ann Arbor-based prostate cancer and COVID-19 testing company LynxDx Inc., which grew rapidly starting in 2020 and found available space becoming a major constraint. “There were a number of instances where we were faced with (the possibility) that we’d need to move as we’re (hitting capacity),” Niknafs told Crain’s of the company’s experience over the last two years. “And so we looked into real estate a little bit here and there, but there’s not like a lot of out-of-the-box lab solutions, especially for a larger group. You can find a bench or two, but you can’t do a full-

fledged commercial operation.” LynxDx, like many other life sciences companies in the region, operates out of MI-HQ, a co-working type facility on the west side of Ann Arbor that totals approximately 170,000 square feet over three buildings, and includes wet lab space, production areas, warehousing and other features that such companies need. Building out laboratory space is “not for the faint of heart,” said Mark Smith, president of MI-HQ, who started the space “out of necessity” more than 20 years ago after investing in a company that was in need of space but wound up going belly up for a variety of reasons. “It’s expensive space to build,” Smith told Crain’s of owning and operating modern-day laboratory space. “It’s highly labor intensive to maintain because you have special needs across the board. And a lot of these companies don’t have the deep pockets to either build that space or maintain it. So we’re taking on some of that risk. But I can’t emphasize enough kind of the hands-on nature. It’s not for your typical landlord who wants to own a building and flip over the keys and collect rent.” Smith added that he’s working to grow MI-HQ to accommodate ongoing growth of current tenants as well as new companies expressing interest. Having such facilities, he said, can go a long way toward growing the region’s overall startup economy. “I think it’s really important to sort of build a campus, build a magnet area that attracts people,” he said. “This is what the Bay Area does so well. They’ve got critical mass there where people can go out and socialize and brainstorm on a daily basis. And we see that here in these types of setups. And that’s so important for the success and acceleration of a business.” Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

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GETTY IMAGES

Their colleagues called them visionary, tireless and dedicated. They’ve developed marquee properties, led training programs and have unique expertise on everything to land acquistion and tax incentives to religious property disputes. They’ve built reputations for their trustworthiness, knowledge and excellence. And many of them are breaking down barriers, making their industry more equitable and creating opportunity for future leaders in real estate. METHODOLOGY: The leaders featured in this report were selected from nominations by a team of Crain’s Detroit Business editors based on their career accomplishments, track record of success in the field and effectiveness of their efforts, as outlined in a detailed application form. The honorees did not pay to be included on the list. Notable Real Estate Executives was managed and written by Leslie D. Green. For questions about this report, contact Special Projects Editor Amy Bragg: abragg@crain.com.

JILL BRACK

CLIFFORD BROWN

ANTOINE BRYANT

CHRISTOPHER BUNCH

CHASE CANTRELL

Head of Community Engagement & Strategic Partnerships Broder & Sachse Real Estate

CEO and President, Woodborn Partners, Woodborn Property Management and Woodborn Capital

Planning Director City of Detroit

Executive Director Six Rivers Land Conservancy

Founder and Executive Director Building Community Value

Promoted to her current position in 2019, Jill Brack directs her firm’s social impact initiatives, resident engagement programs and mission-focused collaborations. She oversees a $1.2 million budget for the initiatives she leads at the company’s estimated 500,000 square feet of multifamily and commercial properties. Prior to her promotion, Brack produced the Sachse Construction Academy, a hands-on development program that has so far engaged more than 5,000 Detroit high school students. She spearheaded a partnership with the city of Detroit to get Broder & Sachse Real Estate residents, family members and friends vaccinated. She founded the firm’s lifestyle magazine and podcast, called EXP|DET, and leads its philanthropic committee, Sachse Social Mission. Brack is an ambassador for the Detroit Regional Chamber of Commerce and serves on the advisory committee for the Detroit Public Theater and the board of L!FE Leaders. “Jill Brack has served a critical role at Broder & Sachse Real Estate, ensuring our community programs and engagement strategies not only contribute to the well-being of our resident and tenant community but also expand upon our partnerships and relationships throughout the city of Detroit,” said Lee Hurwitz, president of Broder & Sachse Real Estate.

Clifford Brown launched his career as a pricing specialist for Ford Financial. After several promotions, he became financial analyst for Ford Motor Land Development Corp. and then treasury securitization and mid-office swap analyst for Ford Motor Co. At Woodborn, Brown has completed $70 million and 355,000 square feet of development and is now managing about 155,000 square feet and $40 million of active developments. Completed projects include development in four Detroit neighborhoods, including co-development of The Scott at Brush Park. “Cliff Brown is a visionary in the Detroit real estate market with his work in Midtown on The Scott and West Village developing the Coe,” said Hunter Pasteur CEO Randy Wertheimer. Brown is also an adviser and mentor for the Capital Impact Partners Equitable Development Initiative, helping underrepresented people understand how real estate development, capital, equity and wealth work. The program has had 66 graduates in Detroit and 51 in Washington, D.C. Brown serves on the boards of the Brush Park Community Development Corp., Detroit Future City and the Downtown Boxing Gym Youth Program.

Named one of Crain’s 2021 50 People to Know in Government, Antoine Bryant is responsible for 7,300 parcels on more than 1,260 acres of land. He manages 35 people and a budget of $5.5 million. “We are incredibly fortunate to have someone of Antoine’s national reputation to lead the process of redeveloping our neighborhoods in close collaboration with residents. He has a clear commitment to — and a long track record of — deep community engagement and developing a vision and plan that reflects the desires of residents,” said Mayor Mike Duggan. Prior to joining Detroit’s Planning & Development Department in July, Bryant was head of the Houston, Texas, Planning Commission where he worked toward establishing minimum setback and lot size requirements, preserving neighborhood character and increasing diversity and inclusion initiatives with architectural and other partners. Bryant serves on the boards of the National Organization of Minority Architects, the ACE Mentor Program of America and the Detroit Riverfront Conservancy among others.

Christopher Bunch is responsible for protecting more than 3,200 acres of land that includes 23 conservation easements and 10 preserves. He also acquires conservation easements and preserves; helps public agencies acquire parks and preserves; secures funding; and serves as fiduciary and operating partner for the Oakland and Lake St. Clair Cooperative Invasive Species Management Areas. Under his leadership, the conservancy acquired land in New Baltimore to create the foundation of the Anchor Bay Woods Preserve, which is critical to water quality in the area, and acquired the $4.2 million Fox Estate to expand Oakland Township’s Lost Lake Nature Park. Bunch is current board secretary and chair-elect of Heart of the Lakes, a Michigan association comprised of land conservancy directors and related professionals.

Chase Cantrell launched his career in 2008 as a transactional corporate and real estate attorney for Dykema Gossett and then Kotz Sangster Wysocki PC working on leases, easements, low-income housing, historic tax credit deals and more. He launched the nonprofit Building Community Value in 2016 to provide professional training and technical assistance to small-scale developers in Detroit, Hamtramck and Highland Park. So far, Building Community Value has trained more than 300 people. Through his for-profit company Speramus Partners LLC, Cantrell won an RFP from Invest Detroit to buy and renovate 8,000 square feet in the Live6 community. His $3.4 million project will house a Black-owned brewery, the third in the state. “Chase Cantrell … knew early on that the successes of downtown and Midtown should and would spread into the neighborhoods, and (he) implemented actions to train Detroiters to participate directly and equitably in their community’s redevelopment. … We now see some early BCV alumni planning larger developments,” said Richard Hosey, owner of Hosey Development LLC. Cantrell is vice chair of the Citizens Research Council of Michigan, chair of the nominating and governance committee of New Detroit Inc. and, by gubernatorial appointment, a member of the Board of Real Estate Brokers and Salespersons.

10 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

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DANIEL DALTON Attorney and Founding Member Dalton & Tomich PLC

Daniel Dalton leads a team of six attorneys specializing in land use, zoning litigation and denominational property disputes of projects valued upwards of $10 million. His work has included helping American Tower secure zoning entitlements to build cellular towers throughout the state and working with Southwest Solutions to secure zoning approvals for affordable housing projects. “Dan has done an extraordinary job in growing the real estate practice at our firm. His knowledge of municipalities and developers and the property laws that impact them … has made him a go-to lawyer for clients ... ” said Zana Tomich, co-founder of Dalton & Tomich. In addition, Dalton specializes in water rights cases, which includes securing permits for commercial and residential docks in Northern Michigan, and in religious property disputes. Successful cases include American Islamic Community Center Inc. v. city of Sterling Heights, in 2017. He serves on the Plymouth planning commission.

VERONICA FARLEY-SEYBERT Manager of Tax Incentives City of Detroit

Veronica Farley-Seybert leads political and leadership discussions related to tax abatements in the city, drafts legal documents, educates stakeholders on the incentive process and evaluates and advises managers on the effectiveness and feasibility of housing development programs and operations. She manages six of the state of Michigan’s 17 tax incentives for the city and liaises between abatement applicants. In 2017, Farley-Seybert won Detroit’s $900,000 Mayoral Innovation Competition, which allowed Farley-Seybert to digitize the abatement application, approval and compliance process. “One of her many significant contributions to building the city’s development infrastructure and pipeline is a streamlined system for development abatements and tax incentives — a crucial tool for implementation of any Detroit development project,” said Donald Rencher, group executive of Housing, Planning and Development for the city of Detroit.

12 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

JILL FERRARI

TAMARA FIEMA

ANDY GUTMAN

Managing Partner and Co-Founder Renovare Development

Broker and Owner The Signature Group Realty

President Farbman Group

Jill Ferrari co-founded Renovare Development two years ago as a social-impact company dedicated to creating affordable mixed-use developments in Opportunity Zones. The company has three projects in the works ranging from $4 million to $40 million, all scheduled to close in 2022. Prior to Renovare, Ferrari was CEO of Michigan Community Resources, a community economic development nonprofit. Ferrari, who is also an attorney and private real estate developer, has managed brownfield redevelopment projects around the country. Ferrari is co-chair of the Urban Land Institute Michigan District Council, co-founder of ULI Michigan’s Leadership Initiative and co-founder of its Young Leaders Group. “Jill has spent her entire career focused on supporting women in commercial real estate and pushing creative initiatives to break down barriers that women face in the industry,” said Renovare Development Co-Founder Shannon Morgan.

To help her clients improve their balance sheets, Tamara Fiema began specializing in property tax appeals and has since filed more than 5,000 successful tax appeals for her clients. In 2015, after more than a decade in real estate, she opened her own brokerage firm. With offices in Dearborn and Dearborn Heights, she now leads more than 40 real estate agents and generates annual income of about $20 million. “Tamara Fiema stands tall in the world of real estate, a shining pillar for professionalism and success,” said Khalil Hachem, an agent at Signature Group that nominated Fiema.

Andy Gutman began his career in 1991 as a senior staff accountant for Schostak Brothers and joined Farbman in 1995 as CFO. Now he is responsible for more than 200 team members, 25 million rentable square feet and $1 billion in revenues. He has received numerous honors and awards in recent years, including being inducted into Commercial Real Estate Hall of Fame by Midwest Real Estate News and being named Financial Executive of the Year by American Business Awards and Commercial Real Estate’s Best Bosses by Globe Street. “Andy’s work ethic and dedication to the Farbman Group is apparent to everyone that has the opportunity to work with him and can be seen in the success of the Farbman Group as one of the true leaders of the real estate industry,” said Lowell Salesin, co-chair of the real estate department at Honigman. Gutman serves on the boards of Midtown Detroit Inc. and the Michigan Board of Real Estate Brokers and Salespersons.

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AMIN IRVING

Founder and Managing Partner Encore Real Estate Investment Services

Founder and CEO Oxford Companies

CEO and President HRC Realty LLC dba Coldwell Banker Professionals

Founder, President and CEO Ginosko Development Co.

Brandon Hanna, who Globe Street named a 2021 Net Lease Influencer, launched Encore real estate with partners in 2017. The firm now has 35 brokers and employees in Metro Detroit, Toledo and Minneapolis. Earlier in his career, Hanna was senior vice president at Marcus & Millichap, where he negotiated lease extensions with Fortune 500 companies and executed more than “$1.5 billion worth of exclusive representation of single-tenant net lease investments.” Since beginning a career in real estate more than 15 years ago, Hanna has completed more than 400 transactions in 40 states valued at more than $2 billion. “Brandon is a natural when it comes to reputation, and it is the main reason why we have partnered together for years,” said Charles Slane, president of 9780 Management Ltd.

In the mid-1990s, Jeff Hauptman raised funds through vendors and acquired Galleria Mall, an Ann Arbor office and shopping center. He was 26 years old. Today, Oxford Companies, a 2019 Crain’s Cool Places to Work winner, has about 100 people on staff and an annual budget of $60 million for its 2.6 million square foot, $500 million portfolio. Under Hauptman’s direction, Oxford bought the 777 Building in Ann Arbor and increased occupancy to 96 percent from 38 percent. “Jeff is a true asset to Ann Arbor, having made a strong impact on the local commercial real estate industry and our business community as a whole. His demonstrated commitment to driving economic development makes him a valued leader in our community,” said Peter Allen, a professor of Real Estate Development at the University of Michigan’s Ross School of Business. Hauptman also serves on the board of Ann Arbor SPARK and co-chairs a fundraising initiative for the Ann Arbor Community Foundation’s African American Endowment Fund.

Chris Hendrix is a part of the 2020 Coldwell Banker’s Chairman Circle, putting his agency in the top 3 percent of CB companies worldwide. HRC is also a top 100 Century 21 company in the U.S. He has grown his agency from one office and about 10 real estate agents to 600 agents and 60 staff members at 18 Michigan offices. CB Professionals expects to close on 4,000 homes this year for $800 million in sales. “Chris is one of the finest leaders I have ever worked with and for. He brings the perfect blend of technology and people skills to his company,” said Bill McCullen, senior vice president of HRC Realty. Under Hendrix’s leadership, HRC supports the community through fundraising for Easter Seals, and sponsorship of Habitat for Humanity Michigan homes for veterans and cancer research at St. Jude Children’s Center.

CHRISTINE JONNA PILIGIAN

Shortly after studying real estate and finance at the University of Michigan School of Business, Amin Irving worked as an investment banking associate for Citigroup. A few years later, he launched Ginosko. Nearly 20 years later, the company Irving co-owns boasts a team of 150 and manages more than 4 million square feet of property with transactions valued at more than $585 million. This year, Ginosko closed on its first private equity fund with Citigroup as its lead investor. Now the development company can purchase and develop up to $800 million in multi-family apartments around the country. Ginosko was one of five Black-led companies in the U.S. to participate in Citigroup’s racial equity program. “Over the years he has grown the firm to include all aspects of multi-family residential housing development, construction, ownership and management. Now, with the GDC family of companies, the firm is a force in the Midwest region,” said Irving’s Citigroup colleague Gina Nisbeth.

Chair and President Jonna Realty Ventures Inc. Christine Jonna Piligian has been making strides in real estate for 40 years. With her father as a mentor at Jonna Construction, she learned complicated financing transactions, created syndications, conducted lease transactions with national tenants and developed a joint venture with a national insurance company in her 20s. She later co-founded Jonna Realty. In the mid-1990s, she collaborated with the Dennis Archer administration and spearheaded a redevelopment of the vacant Garfield Building in Midtown Detroit into a mixed-use project with loft-style apartments and ground floor retail on Woodward Avenue. Piligian serves on the boards of the Chaldean Ladies of Charity and Midtown Detroit. “Christine has always worked tirelessly to make certain that of all her undertakings (business and personal) had the best possible outcome available for all parties involved,” said Patrick Sharrak, vice president of Jonna Realty.

CONGRATULATIONS! Garrett Keais has been named

One of the 2021 Crain’s Detroit Business Notable Real Estate Executives Garrett Keais Managing Principal

NOVEMBER 15, 2021 | CRAIN’S DETROIT BUSINESS | 13

CEO Dev

KAREN KAGE CEO Realcomp II Ltd.

When Karen Kage joined Realcomp in 1993, she was MLS (Multiple Listing Service) manager. In 1998, she became interim CEO, filling in after the sudden departure of her predecessor. Having proved herself, the Board of Governors appointed Kage CEO in 1999. Now she leads a team of 31 employees and oversees a $9 million budget. More than 18,000 Realtors use MLS data. Under Kage’s direction, Realcomp has added software that allows Realtors to virtually conduct showings and hold open houses. “Karen leads a diverse board of directors, guiding them through the maze of MLS services, negotiations, third party contracts, legal aspects and many more concerns in running a successful MLS organization,” said Bartley Patterson, vice president, general manager and associate broker for Re/Max. Kage also serves on the board of trustees for the Well of Waterford, a gathering place for girls and independent living program for young women.

GARRETT KEAIS Managing Principal and Executive Managing Director Cushman & Wakefield

Garrett Keais has worked in real estate for more than 30 years, from his role as vice president of commercial real estate at Standard Federal Bank and vice president at Singh Management to partner at Signature Associates. He joined Cushman & Wakefield in 2015 and became managing principal in 2018. Under his leadership, the firm has tripled its number of brokers and employees. One highlight in his career was his team’s work on the 1 million-square-foot One Detroit Center in Midtown. Now called Ally Detroit Center, the building dropped to 30 percent occupancy when Comerica Bank relocated. They increased occupancy to 70 percent and then facilitated the sale to Bedrock.

A DEEP NEWS DIVE

W. EMERY MATTHEWS

WITH A

SATURDAY VIBE

Month XX, 2021

Emery Matthews successfully created a small firm that leads large projects around the globe. Launched in 2012, Real Estate Interests is currently overseeing the development of three real estate projects, with a total budget of more than $450 million. Matthews considers leading the community benefits ordinance process for The Mid, a $300 million mixed-use development in Midtown, one of his biggest wins. Launching the project required public meetings, discussions with government officials and community engagement. “Emery Matthews is one of the smartest real estate developers I have ever met, and he approaches his work with both wisdom and heart,” said Mark Wallace, president and CEO of the Detroit Riverfront Conservancy. Matthews volunteers with the Archdiocesan Cathedral Council, which is working to enhance the area around the Cathedral of the Most Blessed Sacrament in Detroit. “Recently, we announced a partnership with MHT Housing to deliver affordable housing on the Woodward corridor directly across from the Cathedral,” he said.

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Managing Principal and Co-Founder Real Estate Interests LLC

14 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

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CEO Develop Detroit

Regional Operations Manager Colliers International

President and Principal Broker Century 21 Curran & Oberski

Sonya Mays founded Develop Detroit, a nonprofit real estate development firm, in 2016. The nonprofit has a more than $50 million “comprehensive neighborhood investment strategy” that includes preserving affordable apartment buildings, building new rental units and renovating historic homes. Under her leadership, the nonprofit has acquired or preserved more than 350 affordable housing units. It also has 700 mixed-income housing units and 60,000 square feet of commercial space, for a development value of nearly $225 million. “Sonya Mays … recognizes that the social issues faced by many Detroiters must be addressed holistically. ... She promoted integrated solutions that weave together affordable housing, economic viability, access to necessary services — such as food, health care, and safety and education,” said Kate Kohn-Parrott, president and CEO of the Greater Detroit Area Health Council. Prior to Develop Detroit, Mays was vice president of Corporate and Investment Bank for Deutsche Bank and senior adviser to the emergency manager for the city of Detroit. Mays is treasurer of the Detroit Public Schools Community District board and a member of several other boards, including the Boy and Girls Clubs of Southeast Michigan and the Detroit Regional Chamber.

After more than 11 years at Grubb & Ellis, Kimberly McMahon joined Colliers in 2011 to administer operations for the firm’s Southfield, Ann Arbor and Birmingham locations. She directly oversees a staff of 18 people and a budget of between $35 million and $50 million. Among McMahon’s responsibilities is ensuring the company maintains enough employees to keep up with growth. Company transactions are valued at more than $1.2 billion. “Kim is widely recognized as the go-to operations expert in Colliers on a national level. She gets things done that no one thought possible and has made our office run like a well-oiled machine. She expects a lot of out everyone here but also has created a great culture with the staff,” said Paul Choukourian, executive managing director and market leader for Colliers Metro Detroit. McMahon has served as treasurer for CREW Detroit. McMahon, who has an adult son with Down syndrome, often assists with Team Farmington Special Olympics.

President Advocate Commercial Real Estate Advisors

Independent Housing Consultant and Vice President of Economic and Social Justice Community Reinvestment Fund, USA

MICHAEL PERNA

CONNAÉ PISANI

CEO, The Perna Team — Keller Williams Partner, Legacy Title and Silverline Mortgage

Founder and CEO National Real Estate Management Group

According to Craig Braham, CEO of Advocate Commercial Real Estate Advisors, Sam Munaco is humble, dedicated, team-oriented and the best hire he ever made in 30 years. Before joining Advocate, Munaco worked for 19 years with Signature Associates, more recently as a principal. In his 30-year career, he has negotiated more than 17 million square feet of leases and sales valued at more than $4.5 billion. Munaco leads 25 real estate brokers, consultants, financial analysts and project managers who represent Illinois and Michigan-based Fortune 500 companies, including Borg Warner, Strategic Staffing, Walbridge and Warner Norcross. One of his most recent wins was working with Mayor Mike Duggan to keep a tenant that had been based in Detroit for more than 115 years in the city. Munaco is board director for the Rainbow Connection in Rochester Hills.

Curran & Oberski is ranked the top Century 21 company in Michigan in terms of sales volume and units. Recent highlights of Adam Oberski’s career include opening an office in Royal Oak and watching agents start and grow their own businesses. By year end, the firm is on track to grow staff to 250 professionals from 150, sell about 2,750 houses for $600 million and generate $18 million in commissions. “For those who Adam Oberski engages with regularly — the hundreds of relentless real estate professionals in his four offices, tens of thousands of homeowners and families and, of course, his wife, children and family, the result of his influence is immeasurable,” said Century 21 President and CEO Mike Miedler. Oberski recently completed his second Ironman.

Krysta Pate joined Community Reinvestment Fund in 2016 to design and launch a new home mortgage program developed to spur systemic change in Detroit’s housing market. She manages a $20 million joint fund with five banks and collaborates with agencies to help turn renters into homeowners. In August 2021, CRF promoted Pate to her current role, where she leads a new department created to unify the organization’s business practices and ensure diversity, inclusion and equity in part by uncovering and eradicating bias in CRF policies. Before joining CRF, she co-led the design and launch of Rehabbed and Ready, the Rocket Community Fund’s collaborative project with the Detroit Land Bank. “Krysta is the most seasoned and knowledgeable person in the Detroit market regarding the single-family mortgage finance system and how to make that system work for low-income residents. She is a tireless advocate for the residents of Detroit, and her work has been a major contributor to bringing back single-family lending in the city,” said Aaron Seybert, managing director of the Kresge Foundation.

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Michael Perna oversees more than 100 agents at the Perna Team, which he founded in 2010. He estimates that in 2021 his agents will close on more than 750 homes for $180 million. For five years running, from 2016 to 2020, Keller Williams has named him Millionaire Agent. Perna is also responsible for 45 employees at the title company he runs with two partners. In 2020, Legacy Title closed 4,800 transactions. Silverline Mortgage closed $65 million in volume the same year. His agency recently developed an Agent Training Program and a “Help Me Hotline” to help staff with any work-related issues. “I’ve been with The Perna Team for over 3 years, and he has taken the steps to guide and help me grow both as a leader and as a person in general from day one. He has given me the constant support, confidence, and tools that I need to advance forward in my career,” said Andrew Roberts, director of operations for The Perna Team.

After earning a degree in civil engineering from the University of Michigan, Connaé Pisani worked as a supply chain management program engineer at Halliburton and project controls engineer at Bechtel Corp., where she served as a lead planner for an ExxonMobil project in Texas. She became a licensed Realtor in 2018 and delved into real estate investment. Her staff of 30 at National Real Estate Management Group helps clients with investment strategies, property acquisition, property construction management and renovation. The company manages $16.5 million in management assets in Detroit. “Pisani has single-handedly built three companies from the ground up in just under two years and has been a big part of the resurgence of the Detroit area by bringing investors and homeowners into the city,” said NREMG portfolio manager Michelle Piper-Walker.

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better future

When you support United Way, you help families in your community put food on their table, keep their lights on, and access the support they need to move past crisis. Together, we can be the light that guides our neighbors toward a brighter future. DONATE TODAY:

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NOVEMBER 15, 2021 | CRAIN’S DETROIT BUSINESS | 15

ROBERT PLISKA

KRYSTOL RAPPUHN

REINA SNIVELY

JOSEPH SOWERBY

MICHAEL TAMULEVICH

President Sperry Commercial Global Affiliates — Property Investment Counselor

Co-Founder, Executive Vice President and General Counsel Beanstalk Real Estate Solutions

Director of Operations DOBI Real Estate

President Anton, Sowerby & Associates Inc.

President — National Brokerage Marketplace Homes

Robert Pliska has been part of the Metro Detroit real estate scene for more than 30 years and has completed more than $1.5 billion in transactions as a broker and mortgage banker. His notable projects over the years include closing on the $31.5 million, 440-acre Northville Psychiatric Hospital site, a University of Michigan hospital site and headquarters for Cooper-Standard. More recently, he closed on the $19 million, 432,000 square foot Ottawa Towers office in Pontiac. Pliska was also integral to the development and/ or renovation of $400 million of real estate that includes the Townsend Hotel in Birmingham. “He joined a firm that I was previously affiliated with 16 years ago and has done exceptionally well showing many of the qualities of an outstanding businessman and leader. He shows great passion, perseverance, integrity, excellence, discipline and collaboration to get things done,” said Rand Sperry, CEO of Sperry Commercial Global Affiliates and Sperry Equities.

Krystol Rappuhn is responsible for Beanstalk’s corporate legal matters, human resources and commercial and residential brokerage team. Beanstalk has 3.5 million square feet under management and 500,000 to 1 million square feet in the works. For Rappuhn, her biggest wins at Beanstalk include securing property management for 211 Fort Street, the Buhl Building and the Guardian Building. The latter was in conjunction with 400 Monroe Associates. “She has grown the Beanstalk team to over 25 employees and created an environment that allows for personal and professional development. Krystol was a key factor in the year-over-year doubling of business growth through her ability to negotiate flexible client contracts, offer exemplary client representation on brokerage and leasing, and to find creative ways to market and brand Beanstalk’s services,” said Beanstalk partner and President Lynnette Boyle. In addition, she is actively involved in Delta Theta Phi Law Fraternity and mentors law students.

When owner Simon Thomas was planning DOBI Real Estate, Reina Snively was by his side designing both the business plan and its offices. She has helped grow the company from seven agents and a staff of two in 2018 to a staff of 14 employees and 90 agents. “From day one she has changed our business. Her traits are a perfect combination for a CEO starting and growing a company because you need someone with a get-it-done attitude that you can lean on and that is Reina. Reina was every department head for a while and is hands down the biggest reason for our success,” said DOBI CEO Thomas. Snively, who manages a budget of $7 million, is responsible for accounting, commissions, contracts, onboarding systems and processes. She is also overseeing the expansion of their office from 4,000 square feet to 8,000. In addition to volunteering her time with Adopt-A-Family, Covenant House and Enchanted Makeovers, Snively has also facilitated DOBI’s partnership with those nonprofits along with Boys and Girls Clubs of America.

Joseph Sowerby manages a staff of 10 people and a budget of about $900,000. He specializes in selling commercial properties, apartments and businesses. His most recent notable transactions include an Alfa Romeo/Fiat dealership, an LA Fitness, and Genisys Credit Union. After it was on the market for more than 10 years with other brokers, Sowerby successfully sold a 154-acre parcel of land in Grand Blanc. Living up to his mantra that “life’s best deals aren’t always for money,” Sowerby advocated for the agency to donate more than 5,000 pounds of fresh produce to be delivered to front-line workers at Henry Ford Macomb and McLaren Macomb hospitals. He has also organized fundraisers for the Macomb County Warming Center. An animal lover, Sowerby founded the national pet adoption events “Meet Your Best Friend at the Zoo” and “Pet-A-Palooza.”

Michael Tamulevich worked in the finance industry before embarking on a career in real estate. After 10 years in the real estate business, he handles more than $1 billion and 5,000 single family rentals for clients. His big wins in recent years include closing a $100 billion private equity group, which resulted in 1,500 single family rentals in 12 states. Under his leadership, his team has also closed more than $1.5 billion in new construction transactions. “Mike leads by example and has built an exceptional, client-focused team at Marketplace Homes. I was always amazed at the vigor by which Mike’s team went above and beyond to support the rapidly developing portfolio needs of our company,” said Joshua McLeod, senior vice president of American Homes 4 Rent.

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to

CRAINSDETROIT.COM/PEOPLEMOVES

16 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

A WAITING GAME Livingston County still looks for commercial building boom that never came.

REAL ESTATE: LIVINGSTON COUNTY

DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS

PAGE 18

GOING UP Workers apply vinyl siding and trim on a home for sale on Ivy Wood Circle in the Oak Grove Meadows subdivision, just north of Howell.

Livingston County has enjoyed massive growth; can it continue? BY ARIELLE KASS Douglas Sabin moved to Lansing to

go to school, and 10 years later, still missed the “farm country” where he grew up in Gratiot County. So when he got a job as an engineer for General Motors that has him traveling to Milford, Pontiac and Warren, Sabin knew he wanted to buy a house somewhere with a more rural feel than the city where he’d lived for a decade. It took several months of looking, but Sabin finally found about 2.5 acres in Brighton Township on a deadend road. It has a creek, he said, and plenty of land for his newborn, Lillian, to eventually run around and play. “We drew a pretty big circle on a map,” Sabin said of himself and his wife, Janelle. “We were looking for an area that’s more affluent, with more green space, less urban.” That combination brings a lot of people to Livingston County, which saw a 7 percent growth rate from 2010 to 2020, according to Census data, making it one of the fastest growing counties in the state. More than 193,000 people now call Livingston home.

Situated with access to Lansing, Ann Arbor and Detroit, locals said it’s the proximity to job centers, along with the bucolic, small-town feel, that makes Livingston desirable — even as more people business are moving in. As with the rest of the metro Detroit area, the cost of a house increased in the county as stock went down. The median sales price in September was $335,000, up 11.7 percent from the year before. Year-over-year inventory dropped 15 percent. “There hasn’t been substantial new construction in the last 10 years,” said Mike McGivney, vice president of sales and marketing at Allen Edwin Homes, which took out permits to build 50 houses in the county between January and September. “Very few builders are adding inventory.” There were 591 total permits pulled in Livingston for the first nine months of the year, according to data from the Home Build-

“WE DREW A PRETTY BIG CIRCLE ON A MAP. WE WERE LOOKING FOR AN AREA THAT’S MORE AFFLUENT, WITH MORE GREEN SPACE, LESS URBAN.” — Douglas Sabin, Livingston County homeowner

ers Association of Southeastern Michigan. And McGivney, who grew up in Pinckney, said the addition of big-box stores like Target and Costco in recent years has made it more desirable to some newcomers. Some areas, like Fowlerville, remain more affordable as prices continue to rise. McGivney said the same floorplan that sells for $284,900 in that city will go for $339,900 in Howell, less than 10

miles down the road. The area will continue to get more expensive, he said. The biggest challenge for the area is the availability of sewerage systems, said Scott Schwanke, the area president in metro Detroit for M/I Homes. That company took out 48 Livingston County building permits for the first nine months of the year. Schwanke said one development, featuring ranch homes and colonials targeting empty nesters, opened a year and a half ago. He expects to continue building in the area. Historically, Livingston County has a reputation as a hotbed of Ku Klux Klan activity and racial intolerance. The area is still “very red” politically, said Marcia Gebarowski, the director of business development for Livingston. She said much of the small-town feel remains despite the growth. See GROWTH on Page 19

NOVEMBER 15, 2021 | CRAIN’S DETROIT BUSINESS | 17

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FOCUS | LIVINGSTON COUNTY

Livingston County still waiting on commercial building boom that never came BY KIRK PINHO

Jon Savoy took data projections in the mid-’90s to heart when he moved his real estate business, Lee & Associates, to Brighton. He was betting on population growth that came, to an extent, but the commercial building wave that he expected to follow never actually materialized. He has since moved back to Southfield. Around many stretches of Southeast Michigan freeways, the speculative industrial, warehouse and distribution center building market is gobbling up key chunks of real estate as e-commerce and other uses continue to require more space. More than 7.5 million square feet is under construction in the region to accommodate the need. But not in Livingston County. That

area has been a comparative dead zone for such construction. Nestled between Oakland and Ingham counties, Livingston appears to have the perfect storm for new construction: Very low vacancy (3 percent or so), outdated inventory and rising rents, north of $6 per square foot for several quarters in a row. So what gives? In the last four years, there has been just one new 40,000-squarefoot industrial building constructed in the county’s 585 square miles. Nothing else is currently being built, according to historical data from the local office of New York City-based brokerage firm Newmark Knight Frank. “It’s just a little far out there,” said Dan Labes, an industrial real estate expert who is executive managing director locally for Newmark Knight

Frank. “Doesn’t have the employee nor customer base. Few demand generators such as assembly plants. The reasons are numerous.” Oakland County, by contrast, has had more than 2 million square feet under construction each quarter for the last two years, and at one point — the third quarter of 2019 — had more than 3 million square feet across 17 different buildings underway. In the second and third quarters of 2019, Wayne County had 544,000 and 664,000 square feet under construction, respectively, but hasn’t had less than 1 million square feet with shovels in the ground at any other time in the last five years, Newmark Knight Frank data says. According to the data, Livingston County has approximately 13.5 million square feet of industrial space across 374 buildings with an average

asking rent of $6.47 per square foot per year. The vacancy rate is just 3.4 percent, effectively making the market full. That hasn’t translated into tangible building activity for Savoy and others, however. “We have 200 acres in the middle of the county at Latson Road that we just got utilities to two weeks ago,” Savoy said of property he has with Royal Oak-based Versa Real Estate. “We are getting a lot of distribution-style developers calling, but nobody has stepped up to the plate. It’s like, ‘Gee, Amazon has to be out here sooner or later.’ Those are the thoughts.” It’s not just that the populations of the counties are wildly different, experts said, with Livingston’s roughly 194,000 people coming in at about one-sixth the size of Oakland County’s 1.26 million and one-ninth of

“IF YOU’RE A LAST-MILE DISTRIBUTOR, YOU’RE NOT GONNA LOCATE THERE BECAUSE THE POPULATION DENSITY IS NOT THERE.” — Philip Sprague, vice president, advisory and transactions services, Southfield office, CBRE Inc.

Wayne County’s 1.75 million. Livingston’s population has grown dramatically from some 115,600 in 1990 to 157,000 in 2000, then jumping to 181,000 in 2010, according to data from the Southeast Michigan Council of Governments. Issues ranging from available workforce to available infrastructure are all other factors in new industrial space not coming to the county, even though industry experts said the existing stock is largely outdated and owner-occupied. In the meantime, much of the inventory is owned by the businesses that occupy them — not by multinational e-commerce behemoths, tier-one auto suppliers or the like.

18 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

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Pedestrians on the sidewalks on busy Grand River Road in downtown Howell last week.

“A lot of privately owned businesses that own their building and those tend to trade less than the big leased warehouse and distribution sites,” said Philip Sprague, vice president of advisory and transactions services focusing in industrial and logistics real estate for the Southfield office of Los Angeles-based CBRE Inc. “Typically if people are out in Livingston County, I would say three out of four, or more, are there because they own the business and they live there ... When they own the building, they want to be there as long as humanly possible.” “If you’re a last-mile distributor, you’re not gonna locate there because the population density is not there. If you’re looking for heavy labor, there is labor obviously, but if you’re looking for it to be condensed labor, it’s just not there,” Sprague said. In addition, utility services such as power, water and sewer may not be readily available at some sites throughout the county, causing delays in development. “The hotspot is Brighton because it has sewer and water, but I don’t know there is a site available in the whole

DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS

From Page 17

Still, she said, there is more demand for housing than there is supply. And with an aging population, the area is conducive to more condos and other dense construction that can concentrate some of that growth. With strong school districts and easy access to nature, she said, no areas are being left out. What Gebarowski says she wants to see is more back-office jobs or regional headquarters, so people don’t have to commute out of the county to get to work. Most still do, said Nathan Burd, the Livingston County administrator. But he said he has a lot of reasons for optimism about the area’s economic outlook. The challenge, he said, will be maintaining the county’s rural feel while still facilitating growth. “We have a high quality of life here in Livingston County,” he said. “We also have room to grow and opportunities to build that aren’t readily available in other parts of the state.” Burd said he expects the county’s demographics to change “bit by bit” as more people move in. Now, Livingston’s population is more than 96 percent white. DeAndrea Murray hopes to help change that. Murray, who lives in Southfield, will close on a house in Brighton next month. She said she had some hesitation about moving her Black family to the area, but the house she bought had everything she’s looking for and the area is convenient to the day care center she runs, as well as other places she likes to go. Plus, seeing some “Black Lives Matter” signs in her new neighbors’ yards helped ease some of her concerns, she said. “The diversity is low, but if someone (doesn’t) start it, it will never change,” she said. “Eventually, people will get on board. Times are changing.” Murray said her 7-, 10-, and 12-year-old children have some concerns about their new home, but she wants them to grow up comfortable in all spaces. And she said her

Workers apply vinyl siding and trim on this home for sale on Ivy Wood Circle in the Oak Grove Meadows subdivision. | DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS

presence in Brighton might make others feel more comfortable moving to the neighborhood. “I think it’ll help somebody else on the fence,” she said. “It’s time for people to open up and get with the program.” Sirisha Uppalapati, demographic coordinator for the Southeast Michigan Council of Governments, said the racial mix of the area is changing, but “it’ll be slow compared to the urban counties.” “It’s older white people who are still finding the county attractive,” she said. “For a rural county, it has seen tremendous growth.” Nearly a third of all households in the county have at least one resident who’s older than 65, and at 17 percent, the county has the highest percentage of seniors in the region. The median age of a Livingston County resident is 43.5 years old; in Southeast Michigan, it’s 39 years old. The county’s residents are more likely to have a college degree, Uppalapati said. They also have higher incomes than the rest of the region. And since 2010, Livingston is the only county in the region that experienced positive in-migration every year since 2010. Scot Moceri benefited from that in-migration. Moceri, the chief financial officer of MJC Cos., held on to land in Livingston for several years before deciding to build more homes just before the pandemic. He said Livingston has been a strong market for his stacked-ranch homes, and he plans to keep building there over the next several years. “It’s kind of hit the sweet spot and remained there,” he said. “It’s been a

really good market at a really good price point.” There’s more space and more value to be had for buyers’ dollars, said Paul Harmon, president of the Livingston County Association of Realtors. As more people work from home on a more permanent basis, Harmon said they’re increasingly interested in the extra elbow room the county has to offer. “The pandemic opened the eyes of a lot of people,” he said. “What better time than now to get into that setting?” Laura Towns, an associate broker with Century 21 Affiliated in Howell, said she never feels like she has to sell the area — it sells itself. She’s lived there since her family moved in 1968, when she was 8 years old. Towns said others come because they’ve visited Howell for the Balloonfest, Brighton for its Jazz and Barbecue Blues Festival, Fowlerville for its Christmas parade or Pinckney for its lakes and end up appreciating the small-town atmosphere and the proximity to the bigger cities. Congestion is increasing, she said, and there are some frustrations that come with growth, like no longer knowing everyone in the grocery store. But Towns said most people are happy to see more restaurants and more activity come to the county. “Geographically, it’s just a great area,” she said. “Some people welcome it; some people hate it because their little town just isn’t a little town anymore.” Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

city of Brighton that’s zoned industrial,” Savoy said. Construction costs have also hampered new building, Savoy said. “If somebody gave me the land and said, ‘Here, it’s free,’ you still wouldn’t do it because the cost of the roads would have exceeded what you would have gotten for the land once the roads were in,” Savoy said. Kevin Hegg, a vice president in the Canton Township office of New York City-based industrial, warehouse and distribution center developer Ashley Capital, said two of the main drivers for a lot of the new building in Wayne, Oakland and Macomb counties are “ZIP code related” for e-commerce and distribution or “drawing a ring around a 15-minute drive time around any plant.” At some point, Hegg said, those will line up in Livingston County’s favor. “As population and infrastructure grows, availability of labor grows,” he said. “It’ll get there but it will likely take some time.” Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

The Town Commons development along M-59 in Howell offers a mix of single family homes and apartments. | DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS

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OBITUARY

Kelly Rossman-McKinney, trailblazing PR executive, dies at 67 Co-founder of Truscott Rossman had communications career in Lansing spanning decades BY CHAD LIVENGOOD

Kelly Rossman-McKinney, a trailblazing female public relations executive and powerhouse figure in state politics, died last Tuesday after a long battle with bladder cancer. She was 67. The co-founder of the Truscott Rossman public relations firm, Rossman-McKinney had a communications career in Lansing that spanned five decades, most recently as communications director to Attorney General Dana Nessel. Rossman-McKinney has long been regarded within the state Capitol as one of the most respected and accomplished strategic communications executives. “There will never be another Kelly Rossman-McKinney,” Nessel said in a statement announcing Rossman-McKinney’s death. In 2011, Rossman-McKinney, a Democrat, merged her Rossman Group public relations firm with Republican communications strategist John Truscott’s firm to form Lansing’s largest bipartisan PR firm, which is now headquartered in Detroit. “It was a pure joy,” Truscott said Tuesday night. “We could disagree and bicker like a married couple and then give each other a hug at the end of the day. She was just so special.” Rossman-McKinney’s longtime business clients included the Detroit Medical Center, Henry Ford Health System, DTE Energy Co. and Blue Cross Blue Shield of Michigan. Always outspoken, Rossman-McKinney approached every challenge in their business with tenacity and passion, Truscott said. “She was as head strong as anyone I’ve ever known,” he said. “But you could have a really honest, heart felt conversation and in the end everyone walked away really happy.”

Kelly Rossman-McKinney, co-founder of the Truscott Rossman public relations firm, speaks at the 2014 Mackinac Policy Conference. The longtime Lansing public relations executive died Tuesday following a long battle with cancer.| DETROIT REGIONAL CHAMBER

In the Lansing advocacy business, Rossman-McKinney excelled through years of relationship-building. When the Autism Alliance of Michigan was seeking legislation a decade ago to mandate that health insurance companies cover autism therapies for children, Rossman-McKinney and her team provided pro bono communications work for six years, said Dave Meador, vice chairman of DTE Energy and chair of the Autism Alliance’s board. Meador credits Rossman-McKinney’s involvement in helping the Autism Alliance win legislative passage of the autism insurance coverage mandate in 2012, in the face of oppo-

sition from the Michigan Chamber of Commerce and other conservative groups. “This is an example of Kelly always willing to fight for those who need the most help,” Meador told Crain’s. “With her relationships, tenacity and grit, we ultimately won and the legislation passed in 2012. This legislation was a monumental game changer and would not have happened without Kelly.” Rossman-McKinney retired from Truscott Rossman in 2018 to make an unsuccessful run for a state Senate seat in Eaton County. In 2019, Rossman-McKinney joined the Attorney General’s office, a capstone to a career that began in

1979 as an aide in the Legislature and later in the office of then-Gov. James Blanchard. She started The Rossman Group in 1988, long before Lansing had an established corps of public relations firms. “Her unmatched political instincts and razor-sharp wit shaped Lansing for decades,” Gov. Gretchen Whitmer said Tuesday in a statement. “It is hard to imagine this town without her, but Kelly’s timeless advice will continue to shape the work we all do.” Rossman-McKinney was known for dispensing career advice to many, especially for young women aspiring to get into PR or politics,

That mentoring came with many aphorisms, such as “have a high bar and don’t lower it for anyone,” Whitmer said. “She set a high bar for us all,” the governor said. “We will strive to meet it every day.” On the Truscott Rossman website, the firm has maintained a profile of its legendary co-founder. It includes Rossman-McKinney’s “Top 10 Tips to be a Successful Businesswoman” that read like they came straight from her tongue. “Have a high bar and don’t lower it — for anyone,” she wrote. “The people you work with will hate you for it at the time but also know it’s what makes your team the absolute best in the business.” One of the tips references Sen. Rick Jones, an Eaton County Republican who once likened her advocacy on behalf of a client to prostitution. Rossman-McKinney shot back, saying at the time that Jones had “surpassed his own record for political incorrectness, sexism and tastelessness.” “When your own state senator compares you to a hooker, don’t take it lying down, (so to speak),” Rossman-McKinney wrote. She also had a warning to women about how they would be viewed and treated in business. “Accept the fact that men will be called — and commended for being — aggressive, assertive, direct, decisive and powerful,” she wrote. “You will be called a bitch.” Rossman-McKinney had her own acronym for that disparaging description of a woman. “Remember that BITCH is an acronym for Boys I’m Taking Charge Here,” she wrote. Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

OBITUARY

Acclaimed Black architect Nathan Johnson dies at 96 Arriving in Detroit in 1950, he designed notable buildings and around Detroit BY KIRK PINHO

Nathan Johnson, a trailblazing architect behind celebrated designs in and around Detroit, has died at age 96. Johnson was one of the city’s early Black architects, coming to Detroit in 1950 and working under Michigan’s first licensed Black architect, Donald White at the firm White & Griffin. He opened his own firm in 1956 on Grand Boulevard, unable to find office space downtown because of his race, he told The Detroit News in 2019. Throughout his career, Johnson, who was born in Kansas and graduated from Kansas State University in 1949, designed notable buildings in and around Detroit such as the Eastland Center shopping mall in Harper Woods when he was with Victor Gruen Associates; Stanley Hong’s Mannia Café in Detroit’s Milwaukee Junction neighborhood (which is now slated to become a new music and performing arts venue); Detroit People Mover stations; and the Bethel

Nathan Johnson

African Methodist Episcopal Church Tower and Townhouses at St. Antoine and Warren, according to an article by the Detroit Historic District Advisory Board posted at HistoricDetroit.org, which tracks Detroit buildings and architecture. He was widely appreciated for his talent and design of Black churches, among other buildings, said those who knew him. “It definitely has a distinct style, which means a lot for architects because there are not a lot of practicing African American firms that can say that,” said Saundra Little, principal

with architecture firm Quinn Evans Architects. “Once you start to see one, you’ll notice the characteristics in other ones across the city.” She and Karen Burton of SpaceLab Detroit spent years highlighting Johnson’s work and getting to know him as part of their Noir Design Parti tours. Burton noted that Johnson’s career came full circle. “He worked with the first Black architects in Detroit when he first came to Detroit, and then he employed that architect, Donald White, at his firm,” Burton said. He also did work on Shed 5 in Eastern Market, Wayne County Community College and Wayne State’s University Tower Apartments, the post says. Calling it a “loss for our community,” Rainy Hamilton, principal-in-charge and president/associate of Detroit-based architecture and planning firm Hamilton Anderson Associates, said Johnson was “a good man, a gentleman and an eternal optimist.” “He was a trailblazer as an African

American architect, practicing in an industry where minorities and women remain underrepresented,” Hamilton said. “Despite the roadblocks of segregation, Nate produced a body of work that continues to receive recognition. The local African American architects, of several generations, stand on his shoulders. “Nate was my friend, mentor, a wise counselor and again, a gentlemen always. His smile lit every room. He encouraged me to stay the course, and I will.” An interview with Johnson posted to Facebook says he was inspired by a teacher to become an architect. “I told her I wanted to be an artist and she started telling me about how architects are appreciated while they are living and artists are appreciated while they are dead,” Johnson said. Some of his work, like Stanley Hong’s Mannia Café and the Bethel AME property, are steeped in the Googie style of architecture, which adopted a futuristic look — as Smithsonian Magazine put it in 2012 — “built on exaggeration; on dramatic

angles; on plastic and steel and neon and wide-eyed technological optimism.” “We didn’t copy anything there — we wanted to be original,” Johnson told The News two years ago of the Stanley Hong’s design. Curbed Detroit reported in 2019 that Mayor Coleman Young hired Johnson to design the People Mover stations and Johnson in turn subcontracted “several stations to African American peers Aubrey Agee, Roger Margerum, and Sims and Varner” as a way of sharing the “opportunity.” According to the Historic Boston-Edison Association, Johnson retired in 2000 and received the American Institute of Architects Gold Medal in 2018. His work was featured in 2019 in a Michigan chapter of the Docomomo US tour along with other prominent Black architects. Docomomo is a nonprofit focused on the preservation of modernist architecture. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

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CRAIN'S LIST | MICHIGAN VETERAN-OWNED BUSINESSES Ranked by 2020 revenue COMPANY NAME LOCATION CONTACT INFO

MAJORITY OWNER(S)

REVENUE ($000,000) 2020/2019

PERCENT CHANGE

LOCAL EMPLOYEES JAN. 2021/2020

PERCENT VETERANOWNED

BRANCH OF SERVICE

YEARS SERVED

TYPE OF BUSINESS

WOLVERINE PACKING CO.

Jim Bonahoom president

$1,291.3

-2.5%

750 750

50.0%

Army

Wholesale meat packer and processor; wholesale meat, poultry and seafood distributor

POPULUS GROUP

Bobby Herrera CEO

$577.3

-3.9%

140 155

51.0%

Army

HR services/staffing

BARRICK ENTERPRISES INC.

Robert Barrick president

$319.7

-36.9%

16 16

100.0%

Army

Petroleum retailer and wholesaler

PETOSKEY PLASTICS INC.

Paul Keiswetter chairman and CEO

$163.0

8.7%

10 9

80.0%

Marines

Environmentally focused recycler and plastic film, bag, and resin manufacturer

CHEMICO LLC

Leon Richardson CEO, chairman, president

$158.0

-3.7%

89 108

100.0%

Marines

Chemical management and supply

MIDWEST STEEL INC.

Gary Broad CEO

$135.0

-20.6%

110 110

95.1%

Army

Structural steel contractors

HOSLER MECHANICAL INC.

Randy Hosler president

$134.5 1

64%

NA NA

Army

Mechanical contractor

LOAD ONE TRANSPORTATION & LOGISTICS

John Elliott CEO

$118.0

3.5%

586 573

75.0%

Army

Transportation and logistics solutions for customers

MULTI-BANK SECURITIES INC.

David Maccagnone chairman and CEO

$117.6

54.6%

60 60

62.0%

Marines

A broker-dealer that serves the investment and funding needs of banks, credit unions, municipalities and other institutional clients

JAMES GROUP

John A. James chairman; Lorron James CEO; John E. James president; Keri James head of John A. James Foundation

$117.0

-4.1%

260 174

50.0%

Army

Logistics and supply chain solutions

AVIS FORD INC.

Walter Douglas Sr. chairman

$112.9

-14.5%

119 104

24.0%

Army

Automobile dealership

BULLSEYE TELECOM INC.

William Oberlin chairman

$98.8 2

-0.2%

NA 175

60.0%

Army

Provides secured communications, communications networks and advanced technologies

MJC COMPANIES

Michael Chirco founder and president

$94.1

-5.4%

62 81

100.0%

Army

Real estate building, development and sales

MCL JASCO INC.

Louis James president and CEO

$90.5

35.1%

167 162

100.0%

Army

Provider of supply chain management services, global logistics, energy efficiency program design and management services, quality and containment leadership, restoration services, engineering/ economic analysis services, vegetation management and governmental restoration programs

TRILLAMED LLC

Frank Campanaro CEO

$68.4 2

-8.8%

NA 19

91.0%

Army

A distributor of medical, facility and new construction products

ARROW STRATEGIES LLC

Jeffrey Styers president and CEO

$59.0

99.4%

1062 371

100.0%

Marines

Staffing firm specializing in placement of professionals in the information technology, engineering, professional and health care services industries

COMMONEO LLC

Robert Jones CEO and Service Disabled Veteran managing member

$33.9 1

189.9%

NA NA

Air Force

Payroll service

NORTHERN WINGS REPAIR INC.

David Goudreau president

$33.0 1

29.2%

NA NA

Marines

An AS9100 certified aerospace manufacturer and stocking distributor. Provides certified materials and parts for commercial and military aircraft programs

CONTRACT PROFESSIONALS INC.(CPI)

Steven York chairman and CEO

$26.8

-18.3%

426 438

78.0%

Air Force

Staffing company

CMAC TRANSPORTATION LLC

David Christie CEO

$26.5 1

-26.4%

NA NA

Air Force

Logistics company

ELLIOTT TAPE INC.

Richard Elliott president and CEO

$25.8 1

-19.2%

NA NA

Army

Automotive tape supplier

ONSTAFF USA INC

Patrick Allkins CEO

$25.0 1

-54.8%

NA NA

Navy

A recruiting, consulting and testing firm with professional technical and temporary divisions

IMPERIUM LOGISTICS LLC

A. Rocky Raczkowski president and founder

$24.3

-20.3%

NA NA

100.0%

Army

Logistics, distribution and supply chain services primarily operating in the automotive, medical and defense sectors.

ALDEZ NORTH AMERICA

Jeffrey Copek president

$23.0

15%

20 20

100.0%

Army

Supplier of manufacturing support services

TAG HOLDINGS LLC

Joseph B. Anderson Jr. chairman and CEO

$22.8

-4.6%

39 41

78.0%

Army

Manufacturing, modular assembly, warehousing and other value added services for customers across a range of industries

2535 Rivard, Detroit 48207 313-259-7500; wolverinepacking.com 3001 West Big Beaver Road, Ste. 400, Troy 48083 248-712-7900; populusgroup.com 4338 Delemere Blvd., Royal Oak 48073 248-549-3737; barrickent.com 1 Petoskey St., Petoskey 49770 231-347-2602; www.petoskeyplastics.com 25200 Telegraph, Suite 120, Southfield 48033 248-723-3263; thechemicogroup.com 2525 E. Grand Blvd., Detroit 48211 313-873-2220; midweststeel.com 10800 Galaxie, Ferndale 48220 248-399-4200; progressivemech.com 13221 Inkster, Taylor 48180 734-947-9440; load1.com

1000 Town Center, Suite 2300, Southfield 48075 800-967-9045; mbssecurities.com 4335 W. Fort St., Detroit 48209 313-841-0070; jamesgroupintl.com

29200 Telegraph Road, Southfield 48034 248-355-7500; avisford.com 25925 Telegraph Road, Suite 210, Southfield 48033 248-784-2500; bullseyetelecom.com 46600 Romeo Plank Road, Suite 5, Macomb 48044 586-263-1203; mjccompanies.com 7140 W. Fort St., Detroit 48209 313-841-5000; mcljasco.com

30100 Telegraph, Suite 366, Bingham Farms 48025 248-433-0582; trillamed.com 27777 Franklin Road, Suite 1200, Southfield 48034 248-502-2500; arrowstrategies.com

50170 Schoenherr Road, Utica 48315 248-413-0190; commoneo.net 6679 County Road 392, Newberry 49868 906-477-6176; northernwings.com 4141 W. Walton Blvd., Waterford 48329 248-673-3800; cpijobs.com

20450 Sibley Road, Brownstown 48193 734-281-6610; cmactrans.com 1882 Pond Run, Auburn Hills 48326 248-475-2000; egitape.com 2725 Airview Blvd., Portage 49002 269-385-8321; onstaffusa.com 700 E. Big Beaver Road, Ste F., Troy 48083 (248) 250-9410; goimperium.com 42463 Garfield, Clinton Township 48038 586-530-5314; aldezna.com 30260 Oak Creek Drive, Wixom 48393 248-822-8056; taghold.com

$1,324.0

$600.8

$507.1

$150.0

$164.0

$170.0

$82.0 1

$114.0

$76.1

$122.0

$132.1

$99.0

$99.5

$67.0

$75.0

$29.6

$11.7 1

$25.5 1

$32.8

$36.0 1

$31.9 1

$55.3 1

$30.5

$20.0 1

$23.9

SOURCE: NATIONAL VETERAN BUSINESS DEVELOPMENT COUNCIL | This list of veteran-owned businesses is an approximate compilation of the largest businesses in Michigan. Crain's collaborated with the National Veteran Business

Development Council to compile the list. Unless otherwise noted, information was provided by the companies. It is not a complete listing but the most comprehensive available. NA = not available. NOTES: 1. From National Veteran Business Development Council. 2. Crain's estimate.

Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data NOVEMBER 15, 2021 | CRAIN’S DETROIT BUSINESS | 21

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ATHLETES

of the few things that gets them competition with the chance to make big money (or flame out).

From Page 3

Real estate hall of fame

“It’s all about confidence. If you don’t have confidence, you could be the best ever, but if your confidence isn’t there, it’s just tough to get out there where the receiver knows where they are going but you don’t know where they are going.”

Playing the game In some ways, Steve Gordon is the professor emeritus when it comes to hiring high-level athletes. He views himself as Coach Gordon — or perhaps the player-coach — speaking in mantras about knowing when it’s practice time and game time, leaving it all out on the field, going the extra mile. Gordon, the head of Southfield-based Signature Associates Inc., says he has recruited more than 100 former athletes to his firm over the last several decades, although he has lost count of precisely how many have come through his doors following successful sports careers only to make their way in commercial real estate. Gordon is notorious in commercial real estate circles for keeping odd working hours. His days start at midnight in the office and he works into the afternoon, peppering some of the daylight hours with meetings as well as his own athletic activities, such as raquetball. Many of his executives start their days before dawn. “I’ve always looked for athletes with brains,” Gordon said. “We look at this like a sport. We get them trained. They learn the playbook ... I’ve always found that with the competitive nature of this business, that athletes do very well.” One of them is Peter Vanderkaay, a three-time Olympic swimmer who won gold at the 2004 Olympics in Athens, swimming on the 4x200-meter relay team that included Michael Phelps, Ryan Lochte and Klete Keller. He again took gold in 2008 in the 4x200-meter relay, as well as a bronze medal in the 200-meter freestyle race in Beijing and another bronze in the 400-meter freestyle race in 2012 in London. At 37, his competitive swimming days are now behind him, although he still hops in the pool and has offered commentary during the 2016 Rio de Janeiro games for WDIV-TV (Channel 4). These days, Vanderkaay is a broker specializing in east-side retail space, also dabbling in the industrial and office sectors. “It’s competitive, it’s a grind,” Vanderkaay said. “Swimming is similar to brokerage, in a sense. I’m a 1099 contractor and I think most agents are. What I put in is what I get out, in terms of training or work. They play similarly. If I’m not working hard for my clients, I’m probably not going to get great results.”

A shared goal Tori Manix knows who she wants to work with. In some instances, the principal in the Southfield office of Plante Moran REIA, a division focused on real estate investment advising, can tell without even meeting the person. Manix, who played volleyball at the University of Pennsylvania and was captain her senior year and won two Ivy League titles with the team, knew right away she wanted to hire Kristin Mixon as part of hers. “I didn’t even need to meet her,”

Plante Moran Principal Tori Manix at Plante Moran REIA in Southfield. Manix played volleyball at the University of Pennsylvania from 2009 to 2013. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

Vanderkaay

Plante Moran Senior Consultant Kristin Mixon at Plante Moran REIA in Southfield. Mixon played softball at the U.S. Military Academy West Point. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

Manix said. “I saw her resume. I was like, ‘There she is. I want her.’” That resume includes eight years in the U.S. Army, time she spent flying UH-60M Blackhawk helicopters and leading companies and assault platoons. She also graduated from the U.S. Military Academy at West Point, where she played softball, as well as the University of Michigan Stephen M. Ross School of Business. She started at Plante Moran REIA in June as a senior consultant. “Being part of a team and everyone working hard and having a shared goal and working to achieve that goal is something that I’ve always enjoyed, and I think that’s part of what led me to go to West Point,” said Mixon, a Dearborn native. “Being a Division I athlete at West Point has its own unique challenges because it’s already really challenging, it’s physically demanding. Time management is really challenging, and the academics are super challenging all the time every day, and it’s supposed to be that way. That’s part of the experience.” For Manix, the family real estate tradition — and athletic tradition — runs deep. Her father, Douglas Manix, is president of the Kirco Manix construction company. Her brother, Adam, played baseball at Kalamazoo College and is now director of corporate real estate for the firm. But Tori Manix has been blazing her own path in real estate and was a Crain’s Detroit Business 20 in Their 20s honoree in 2018 a few years after her athletic career ended and her professional one began. “They tend to have really good

work ethic,” Manix said. “They are used to getting up at 5 a.m. to go lift weights before going to class, and they are able to be organized and understand what it takes to get the job done. The other thing I’ve found is typically they have some sort of competitive element to them. They want to rise through the ranks, they want to get their name out there, they want to be good at their job and good at what they do.”

Win, lose or draw Signature and Plante Moran aren’t the only places that have had a string of former athletes on the payrolls. In the Southfield office of Colliers International Inc., which has its headquarters in Toronto, Managing Director Paul Choukourian has recruited a pair of former professional hockey players — he declined to identify them — plus plenty of other college athletes. “You just know they are driven, that they’ve got a good work ethic,” Choukourian said. “To be a college athlete, that takes drive and commitment and beyond, so that’s what always does it for me. It’s not a slam dunk, no pun intended. When you interview an athlete, they have to have the desire, the skill set and frankly, the passion for real estate.” The business isn’t for everyone, and a financial support system is often required to stay afloat during the first couple years in the industry — which is one of the reasons the industry remains overwhelmingly white and male. “You’re going to be working your

Guthrie

butt off, and you’re really not going to get much reward in terms of financially,” Choukourian said. He estimated the first couple years, brokers make between $25,000 and $50,000 and sometimes have to rely on what’s known as a “draw” — basically a loan made against future commissions, in the 5 to 8 percent interest range. In effect, that means that some brokers could finish their first year or two on the job essentially in debt to their employer just so they can make ends meet. Anthony Toth is one of Choukourian’s hires. Now a vice president, Toth played shortstop and second base at the University of Michigan from 2007-11, before a broken tibia two weeks before the Major League Baseball draft effectively ended any shot he had at going pro. “I quickly had to find something else to do, and got into commercial real estate right away,” Toth said. “A reason why student-athletes are so successful in brokerage is it’s a career where you truly get what you put into it. There’s no ceiling. In order to be a high-level athlete in any sport, the internal, insatiable drive to be successful and the best at what you do has to be there.” At Cushman & Wakefield in Southfield, a handful of staff are ex-athletes. Brian Piergentili, executive director of the local office, said he played football at Wayne State University and a handful of others on his staff played baseball, hockey and golf at the collegiate level. His company even landed former Detroit Red Wing Darren McCarty as vice president of business development for a spell in 2016. “This is such a competitive business with lots of pressure (and it’s) a high when you win,” Piergentili, who also coaches football at Livonia Stevenson High School, said in an email. “(Takes) a unique (sicko) to do this work, I guess. You have always seen athletes in sales historically, really. After their playing days, I think this might be one

A number of big-name professional athletes have gone on to big careers in real estate. Among them are Roger Staubach, the former Dallas Cowboys quarterback who worked as a commercial real estate broker during the off-seasons in the 1970s and eventually founded The Staubach Co., a brokerage house that ultimately sold to what is now Chicago-based JLL for $613 million. Another former Cowboy, Hall of Fame running back Emmitt Smith, began investing in real estate in the 1990s and ultimately formed his own company, having worked in brokerage and construction, according to a 2018 story in the Dallas Morning News. NBA Hall of Famer Earvin “Magic” Johnson, a Lansing native and Michigan State University and Los Angeles Lakers legend, has been involved in real estate investment throughout the years in Los Angeles and other areas. And Ndamukong Suh, the former Detroit Lion who is now with the Tampa Bay Buccaneers, has been accumulating a real estate portfolio since early in his career, sometimes turning to local adviser Gary Shiffman, the head of Southfield-based REIT Sun Communities Inc. (as well as Warren Buffet.) BisNow also noted in February the successful real estate investment careers of former NBA greats Shaquille O’Neal (he has been involved in affordable housing in Colorado and other real estate deals) and David Robinson (his REIT, Admiral Capital Group, has more than 10,000 apartments and 1 million square feet of office space), as well as MLB legend Alex Rodriguez (he owns thousands of apartments). Former NBA players Baron Davis, Anthony Tolliver and Josh Childress all became involved in commercial real estate, as well, BisNow reported.

A constant competition Jessica Guthrie is new to Michigan, having attended the University of Minnesota, graduating earlier this year with a degree in finance and risk management. But the former four-year Minnesota cheerleader is not new to the grind that comes with the commercial real estate industry. Guthrie, who is a new analyst in the Royal Oak office of JLL, said her time cheering on the Gophers — at football, basketball and hockey games and various other appearances on weekends — taught her valuable lessons about time management and hard work. “Also a drive to always be your best and put your best foot out there,” she said. In the next few years, she hopes to transition from her role, which involves things like preparing offering memorandums and broker opinions of value, into a brokerage position in either office or retail. “It’s also a constant competition,” Guthrie said of the industry. “You want to impress potential clients and you want to get them to go with you. So, (commercial real estate) was a really good fit and a really good transition from what I loved about college, cheer and being a student-athlete to be in the working world.” Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

22 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

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ISTOCK PHOTO

Banks jumping in this year to accept cannabis clients in Michigan include Citizens State Bank and Lake Trust Credit Union. | CITIZENS STATE BANK AND COSTAR GROUP

CANNABIS

From Page 1

“The reason we decided to get into cannabis banking was twofold: The first piece of it is that we clearly saw there was a need, there was a lot of unbanked and underbanked cannabis businesses,” Zillgitt said. “In fact, on a monthly basis we would probably have to kick out two or three because we were not allowed to bank them under federal rules. And ... historically credit unions have banked unbanked and underbanked populations and communities so that was the right thing to do.” Lake Trust also wanted to help make the industry saf- Zillgitt er, he said. “Some of the stories we heard when we were interviewing these ... cannabis businesses was that they’ve got their employees walking around with backpacks with $50,000-$70,000 in there to go buy money orders to pay their bills. It was just absurd,” Zillgitt said. As the cannabis industry launched in Michigan, conflicting federal and state laws kept most banks and credit unions from participating in the upand-coming industry. This left many to deal in cash. Medical marijuana and adult-use grow facility New Generation Meds in Lansing is among cannabis operations that have been able to break away from cash. It started banking with Lake Trust in August 2020 after first starting to grow in February. “Now the majority of our transactions and even sales, they’re all done through (Automated Clearing House, or ACH), wire transfers or checks, so the cash aspect of it is not as big of a thing as it used to be because we are able to have a bank that provides us with services to where we don’t have to handle cash,” said Meghan Sweeney, office manager for New Generation Meds. “It’s kind of crazy ... but everything has just felt so normal.” The operation has 1,500 plants designated as medical, and recently secured an adult-use license that will allow it to grow 2,000 more plants. Sweeney declined to disclose finan-

cial specifics. “It was very hard for us to find a bank. I mean, even through construction, (financial institutions) ... were nervous,” Sweeney said. “Even though we weren’t doing anything with any sort of cannabis (yet) they were a little bit nervous. Then Lake Trust (came) right before we were going to do our sales and ... we’ve been blessed, I guess.” She said it’s been helpful navigating rules and regulations with Lake Trust’s private bankers. Meeting the bank’s requirements helps New Generation stay compliant with the annual financial statements required by the state’s Marijuana Regulatory Agency, she said. Patricia Herndon, executive vice president of government relations for the Michigan Bankers Association, said Lake Trust is among the bigger players she’s seen enter the ring. She estimates around 5-10 banks in Michigan work with cannabis businesses. The Michigan Credit Union League recently told MiBiz a similar figure: around 10 credit unions participating. Financial industry participation isn’t slowing down, Herndon said, and in the last six months to a year the bankers association has started working to connect businesses with financial institutions that have dived into cannabis. “The availability of financial services and banks that are engaging in primary, secondary, tertiary levels of cannabis banking continues to grow,” Herndon said. That means there are fewer businesses paying in duffel bags of cash nowadays. Others to jump on the green bandwagon include Frankenmuth Credit Union, an institution with $1 billion in assets and 60,000 members. It announced in July that it was launching a cannabis program called Envy. It did so as a partnership with a company that specializes in providing cannabis banking solutions and assisting with regulatory compliance in 32 states, Green Check Verified, according to a news release. Frankenmuth plans to add one or two new clients per month through the end of the year.

“It was important for Frankenmuth Credit Union to provide banking services to cannabis-related businesses, but it was also important that we did so in the right way,” CEO Vickie Schmitzer said in the release. “This meant conducting extensive research into what the industry needed and developing a compliant program around those needs.” Others jumping in this year to accept cannabis clients in Michigan include Citizens State Bank, with around $85 million in assets, which recently expanded from Ontonagon in the Upper Peninsula to a new headquarters in Royal Oak. There’s also Battle Creekbased BlueOx Credit Union, which partnered with Abingdon, Md.-based Safe Harbor Financial to create a cannabis banking arm called Solid Harbor of Michigan. Safe Harbor Financial first established cannabis financial services in Colorado in 2014. Farmington Hills-based Level One Bancorp Inc. also works with cannabis businesses and expects to continue to do so after being acquired by Muncie, Ind.-based First Merchants Corp. Even with growth in financial services for cannabis, it’s still risky and will continue to be without regulatory reform and, chiefly, federal legalization. An example can be seen with Live Life Credit Union, which told Crain’s in 2019 that it had doubled its assets in 10 months by pivoting to providing banking services to the state’s legal marijuana businesses. But Live Life was later the subject of a marijuana banking crackdown, getting slapped in February this year with a cease-and-desist order for failing to comply with reporting procedures and barred from opening new cannabis-related accounts until May. Focusing more resources on meticulous compliance with the complex regulatory process can reduce risk for financial institutions, but that raises costs that are often borne by the retailers and growers, Herndon said. Those banks and credit unions must complete extra due diligence with clients and file reports showing revenues from cannabis sales didn’t go to criminal activities and aren’t being used as a cover for any sort of trafficking of illegal substances, according to the American Bar Association. Gov. Gretchen Whitmer in April

“THEY’VE GOT THEIR EMPLOYEES WALKING AROUND WITH BACKPACKS WITH $50,000 TO $70,000 IN THERE TO GO BUY MONEY ORDERS TO PAY THEIR BILLS. IT WAS ABSURD.” — Ray Zilgitt, Lake Trust Credit Union

was one of nearly two dozen governors to sign a letter to U.S. lawmakers urging passage of the Secure and Fair Enforcement or SAFE Banking Act, which would allow financial institutions to bank marijuana businesses under federal law without fear of penalties. The SAFE Act passed the House of Representatives in 2019 and was reintroduced and passed again this year. It is awaiting a decision by the Senate and a “yes” vote is far from assured. Cannabis companies generally see the SAFE Act as a step forward, but not a full fix.

“Just the SAFE Act itself might give a few more banks some greater comfort in getting into that risk proposition, but you’re probably not going to see the whole flood gates open,” Herndon said. The Cannabis Administration and Opportunity Act, a measure with broader reach that would legalize cannabis at the federal level, has a longer path to approval. — Bloomberg contributed to this report. Contact: afrank@crain.com; (313) 446-0416; @annalise_frank

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LABOR

From Page 1

“We had some close calls as far as the amount of people we had to work overtime,” Tingle said. “The one thing you don’t do in the automotive industry is shut the customer down.” Bridgewater’s Warren plant, the largest of its three Michigan locations, was operating with around 1,100 employees over the summer, down from the 1,300 it usually employs. Hiring fairs were largely unsuccessful, drawing just a couple of applications per day, if any, Tingle said. So, the company began offering $3,000 bonuses for new hires and $2,500 for employee referrals, and it increased hourly starting wages by a dollar to $17.50 and increased nonday-shift premiums by a dollar. “We felt like we had to go above and beyond because there’s a lot of other employers out there offering incentives,” Tingle said. “You can almost go to McDonald’s and Walmart and places like that and their starting wages are $15 and getting closer to our starting wage in manufacturing.” Advertising for hiring bonuses has become a common sight, from banners outside of manufacturing plants to signs at fast-food restaurants and retail shops. Employer incentives have helped fuel the socalled Great Resignation that’s rippled through the workforce all the way up to the C-suite.

Competition for workers has threatened the ability of manufacturers like Bridgewater Interiors to keep production lines running. | BRIDGEWATER INTERIORS

Stowell

Tingle

The bonuses at Bridgewater brought a lot of interest. The company received 350 applications Oct. 8-15 and hired around 120, working its way toward the goal of 200 new hires. The company is monitoring costs related to bonuses and wage increases, Tingle said, but investing in employee recruitment is necessary.

SURVEY

general counsel and board chair for Ann Arbor-based Liberty Title, said job seekers are looking to maintain From Page 1 the balance they achieved during limiting interior cleans to its paid the pandemic, such as work-frommembers, said Bruce Milen, owner home opportunities. “The workforce is really redefinand president of the chain. Others aren’t so lucky. Unfilled ing things,” Richardson said. “A lot positions across the business land- of people are placing their lifestyle scape have resulted in reduced ahead of their career.” But Richardson believes that sales or eliminated revenue potential, according to 61 percent of sur- comes at a cost. “We have about 15 percent who are able to work from vey respondents. “(A) lack of drivers and other sup- home and those who went there port staff has forced us to turn down have stayed there,” he said. “They a significant amount of new busi- were usually more senior people. ness, as well as existing contracts, That just doesn’t work for less sedespite the fact that we have the nior employees, because they won’t available equipment to operate the have any career advancement. A lot business,” said one survey respon- of knowledge is gained with people dent. Many of the respondents indi- being together and asking quescated new hires would work for two tions.” Liberty Title, which employs 163 weeks then quit, many suspecting those employees were seeking un- at 12 locations, is hiring for roughly 12 open positions, Richardson said. employment benefits. The battle to maintain revenue Other respondents indicate the inability for new hires to pass a drug with fewer employees does take a test as a problem. It’s unclear toll, Milen said. “It’s very stressful for our managwhether those employers are testing for legal marijuana as a govern- ers and for our team members to be s h o r t h a n d e d ,” said. “They “THE WORKFORCE IS REALLY REDEFINING Milen have to work that much harder. A THINGS.” lot more overtime — Tom Richardson, Liberty Title is being paid out. Our team memment contractor or for other sub- bers are very dedicated. They understand what’s going on and work stances. Some respondents indicated that the overtime to get the job done.” Of those surveyed, 54 percent attracting talent is harder now that workers have been able to be re- said their employees are working mote and have a new set of require- longer than the standard 40-hour workweek. ments for jobs. As Milen noted, that translates “There still seems to be a perception that too many people no longer into a lot of overtime, but most comwish to work or only want to work panies aren’t paying out bonuses to on their own personal terms and get workers to work more shifts — conditions,” a respondent said Nearly 68 percent said they are not anonymously. “We are seeing that offering overtime incentive bonuses. On the other hand, wages are up. has some truth.” Tom Richardson,

“You look at that versus the cost of shutting down a customer and jeopardizing business, then you kind of just do what you need to do,” she said. Hourly production and skilled trade workers have been the hardest to find and hold onto, according to a recent survey conducted by the Original Equipment Suppliers Association that includes responses from 175 manufacturers based in Michigan. More than 70 percent of the companies surveyed said they increased wages to try to fill positions, while 46 percent offered signing bonuses and 20 percent boosted benefits. In August, Bureau of Labor Statistics data showed average nonsupervisory hourly manufacturing wages

reached $24.01, up from $22.87 in July 2020 and up from $20.55 in August 2016. “Lack of qualified candidates remains the top hiring constraint as quality labor remains scarce,” the OESA survey found. “Competition for other industries and wage demands remain prevalent… Offering retention and signing bonuses have been the most successful programs in offsetting the shortage of production employees.” Webasto Roof Systems Inc. is another supplier using wage increases to lure employees. The sunroof and convertible manufacturer, which has its North America base in Auburn Hills, bumped up hourly pay by more than 20 percent to a range of $17-$30, said Corey Stowell, vice president of human resources for Webasto Roof Systems Americas. “Across all locations in the U.S., we have struggled to find talent due to the competitiveness of the market; there is a shortage of labor across all levels, both salaried and hourly,” Stowell said in an email. “The most difficult positions to fill have been the ones with technical skillsets (robotics, mechanical, etc.). While it has made it more difficult, we have continued to operate.” The wage increases have worked for Webasto, as well. The company has hired 325 workers over the past few months for a total of 1,692 in Michigan. The company is still hiring for 400 positions as it prepares to launch production next year for a new plant in Plymouth Township and one in New Hudson.

LABOR WORRIES How 106 business owners and executives in metro Detroit responded to a recent Crain’s survey on the workforce picture: Do you consider your company short-staffed?

Has your company raised wages in response to staffing issues?

87.7% Yes

77.4% Yes

12.3% No

22.6% No

Are unfilled positions impeding sales opportunities?

Has your company added or improved benefits to help hiring?

61.3% Yes

33.0% Yes

38.7% No

67.0% No

Is your company’s current staffing situation better, worse or the same than it was three months ago?

Are you receiving more or fewer job applicants in the last three months than in the previous three months? More

Better 13.2% Worse Same

41.5% 45.3%

Fewer Same

14.3% 45.7% 40.0%

SOURCE: CRAIN’S SURVEY

More than 77 percent of those surveyed have raised wages in response to the staffing crisis. Jax Kar Wash has raised wages 30 percent since the start of the pan-

demic. The average raise of those surveyed was 18.1 percent. Liberty Title raised wages 5 percent on two occasions, Richardson said. But Milen and Richardson said

In addition to wage increases, Stowell said the company rolled out retention and referral bonuses. He said Webasto’s tuition reimbursement, training and development opportunities, and efforts to build a family-like culture have also helped it attract and keep employees. “While our efforts are currently focused on recruiting … moving from recruiting to retention is something we’re actively working toward as an organization,” he said. Retention is the next priority at Bridgewater, too. The company’s $3,000 bonus comes in two installments — the first $1,500 is paid after 60 days on the job; the rest is paid after an additional 60 days. Tingle said there is a chance that employees will quit after collecting the bonus. “That is a fear, and we are in discussions on how we handle that,” she said. She said she hopes the $2,500 referral bonus will help with retention. If an employee refers someone who gets hired, that employee receives $1,000 up front, then $500 after the new hire works for 120 days, then another $1,000 after they have served a full year on the job. “So basically, we wanted our employees to kind of be ambassadors or coaches to help bring in new employees, and also our strategy there was, if they brought someone in, they would hopefully encourage them to stay,” Tingle said. Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

there may be light at the end of the tunnel as the labor market seems to have improved, at least for some. Charles Ballard, an economist at Michigan State University, agreed there is reason to be hopeful, but how long it takes to return more workers to the market is contingent on behaviors during COVID-19. “With the strong jobs report from (earlier this month), the U.S. job market has now reclaimed more than 80 percent of the jobs that were lost in March and April of 2020,” Ballard said. “The biggest key to getting things back to normal is vaccination. Now that children as young as five are getting vaccinated, there is reason to believe that the recent reduction in infection rates will continue. If it does, more and more workers who have been sidelined because of health and child care issues will be able to get back to work.” However, not all those surveyed by Crain’s are seeing the upside with 45 percent saying they are receiving fewer applicants than three months earlier. Milen said the situation is improving at Jax Kar Wash. “We used to be down (workers by) 40 percent and now we’re only down 25 percent,” Milen said. “We are in better shape today. We feel it’s because the unemployment benefits have stopped. And people are now finding out they are better off coming back to work instead of just receiving their unemployment. I know there are so many businesses out there that have had to close down. But we do see it getting better.” “If they can just hang in there a little longer, I think the labor is going to be coming back.” Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

24 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

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ESPORTS

From Page 3

“By Immortals coming to the Great Lakes (region), I think it underscores the fact that there’s tremendous demand, and very low supply,” Sherman said. “And now there’s a pathway to either engaging as a fan, as a player, as talent, or even just as an industry observer. Whereas before, you had to leave the state to do it.” Relocating to Michigan should also generate considerable cost savings for the company, he added. Sherman said the company is still seeking office space and visible ground-floor space in areas such as downtown Detroit, Royal Oak and Ann Arbor and expects to have its “hub” established in the coming months. Immortals also plans to open so-called “spoke” facilities in other cities and college towns around the region, including Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin as part of the initiative. To that end, the company rolled out an “Immortals Invasion Takeover” in Ann Arbor in early November. The invasions are video game-focused events at rented spaces around communities. “Immortals sees an opportunity for competitive gaming to be a driver of civic pride and economic growth in the (Great Lakes region), and we want to be the catalyst,” Ari Segal, the company’s executive chairman, said in a news release announcing the move. The company also boasts business executive Meg Whitman, former CEO of companies including eBay, Hewlett Packard and then-Southfield-based FTD, as a major recurring investor and board member. Whitman’s family office led a $26 million investment round into Immortals last year, according to media reports. The company has raised more than $56 million from investors that include Whitman and other high-net-worth family offices. Investment has been pouring into esports for a number of years. However, the industry still remains a fairly small segment — just more than $1 billion in total revenues, according to a joint report from venture capital firm

Esports organization Immortals Gaming Group seeks to plant roots in the Detroit area in the coming months. | IMMORTALS GAMING GROUP VIA FACEBOOK

BITKRAFT Ventures and research organization Naavik — of the overall $335 billion global gaming market. But the report’s authors expect the esports market — Blevins which struggled amid the pandemic — to grow. “(E)sports revenues are still relatively small in comparison to the broader gaming market. As we (hopefully) exit pandemic lockdowns, esports viewership — and by extension, revenues — could accelerate,” the report says. “This is also likely to be strongly correlated

with the success or failure of new gaming IPS (monitors). As new competitive games are introduced to the market, further esports ecosystems could develop around them, bringing in new fans, new events, and eventually new revenue streams.” While Detroit may be well known for the dismal Detroit Lions and the rest of the city’s currently rebuilding professional sports teams, the region has also grown several well-known esports personalities. Delane Parnell, a Detroit native and the founder of Los Angeles-based esports company PlayVS, has netted more than $100 million in venture capital investment for his growing company. Parnell has also increasingly been

HOME OFFICES

From Page 3

The room also has the printers, scanners and other technology for which one might normally go into an office. “It looks like another room in the house, but it’s functional like an office,” Rizik said. “I have a place that’s almost an extension of my office.” It’s particularly welcome after months in a rental space where he largely took meetings on an iPad, Rizik said. The Pophouse-designed home office makes it easier to participate in discussions with boards he’s on, keeps him from going downtown for work on the weekends and lets him take meetings in the morning before driving in. He’s shown off the space to friends and colleagues who have made their own requests of Pophouse for upgraded office space. “It’s convenient; my productivity is better,” Rizik said. “In my personal opinion, it’s more important than a dining room or a living room. It almost feels like I’m at the office.” Jennifer Janus, president of Pophouse design firm, said the group does most of its work in corporate settings but started to offer home office design last summer when it

A home office design from Pophouse | JOHN D’ANGELO

seemed clear that people were working from home for the long haul. Since then, her group has finished three projects, has three more in the works and has interest from others looking to spend $25,000 to $50,000 to make sure their workspace doesn’t feel like a spare bedroom. Much of the important work isn’t easily visible, Janus said — details like acoustics, power, heating systems, full-size printers and even security options like the safes that some executives have in their offices. Having a home workspace that’s as functional as an office environment — while still looking like a home — is valuable, she said.

“We do see the demand increasing,” she said. “I think the realization is this isn’t going away.” Specifically, there’s an increased demand for separate space, Janus said, and people want nice offices because they spend a lot of their time there. They want the commercial-grade furniture they’ve gotten used to at work and the accoutrements to make it a productive environment. “People are investing in their home environment because they spend that much time here,” she said. “From our standpoint, it’s just been really interesting to see the transition.”

making inroads in Detroit’s business community, as Crain’s has reported. Well-known video game streamers Ninja, whose real name is Tyler Blevins, and Nicholas Kolcheff, known as Nickmercs, also hail from the Detroit area. The two streamers have combined more than 8 million followers on Twitter. Blevins, in an emailed statement to Crain’s, noted his longtime connection to the Detroit Lions, and the football team’s connection to the region. Professional gaming has the same opportunity, he said. “The Lions are a part of the fabric of the city, with the fans,” Blevins said in the email. “It’s the same with esports, and gaming in general, it’s all about

fans and connecting with them. Obviously being in a city like Detroit brings a different connection to the fans there. I was just out in (Los Angeles) and doing some things with (esports organization) 100Thieves. They’re integrated into LA, into the city, and do (things) to connect with their fans there.” Given the celebrity status of the streamers who have come from the area, it’s only natural for a company like Immortals to put down roots here, according to Immortals chief Sherman. “We’ve known there’s talent here, but there’s no infrastructure,” he said.

Scott Jordan, owner of White Furniture in Wyandotte, said in the beginning of the pandemic, he couldn’t get desks fast enough. Now, there’s more supply available, but the demand is still up. Because many businesses still have not called people back to the office, Justin Coughlin, the owner of Inspired Closets Detroit, said he’s seeing IT professionals and others who can work remotely invest in a home office. His company opened this year, and Coughlin said the market has been “absolutely bonkers.” “We’re booked out with orders ‘til the middle or end of January,” he said. “We’re doing great. People are loving home offices.” Coughlin said he could use more installers, but the supply chain issues that have affected other materials aren’t an issue for his custom work, which is made from Canadian hardwood chips that are runoff from another manufacturer. On average, he said, people are spending $3,000 to $7,000 to outfit their space more permanently. “They’re going from an office where they had a full-sized desk or cubicle,” he said. “They want to find a space they fall in love with.” Detroiter Jessica Nabongo, a content creator who was the first Black

woman to visit every country in the world, bought a second condo in her building during the pandemic, moving into that one and turning the first into her home office. Nabongo estimated she spent $3,000 on the space — most of it on new technology — so she would have a dedicated place to work on her first book. Now, her commute is from the 14th floor of her Gold Coast condo to the 6th floor, and she moved her e-commerce wares to the unit as well, in addition to doing photo editing and taking Zoom meetings in the space. “It feels more grown up, even, more formalized,” she said of having the workspace. “I go to work, I sit at a desk. It makes me more productive.” Nabongo plans to be in Los Angeles next year to work on a television show, but said even if she sells or rents the second condo, the office is coming with her. She plans to have a two-bedroom apartment in California, to help her separate work life from home life, now that she knows the value of the dedicated space. “It just feels better,” she said. “If I didn’t do it, I don’t think I’d know how important it was.”

Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

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THE CONVERSATION

Dorrie Dils on why pandemic doesn’t stop organ transplants GIFT OF LIFE MICHIGAN: COVID-19 fueled so many health care catastrophes — temporary bed closures, financial pitfalls for hospitals and more deaths. But while the gap between those needing an organ or tissue transplant and the donations supply remains a bridge too far, COVID-19 did not exacerbate that crisis. Despite uncertainty during the start of the pandemic, organ and tissue donations remained strong. Dorrie Dils, CEO of Gift of Life Michigan, led the state’s efforts and returned transplant advocates to hospitals by May of 2020. The state finished the year ahead of 2019 and will exceed last year’s totals in 2021. | BY DUSTIN WALSH  How did the pandemic impact donations right away? Much like the pandemic, donations had cycles. We certainly experienced that at the beginning as well. In mid-March 2020, we began seeing significant impact. We shut down our administrative side and put people to work at home. Most importantly, our donor hospitals where we do the donation process were full of COVID patients and really restricting our ability to get in and see the patients and talk to donor families. Our donations did go down during that four-to-six week period. But we quickly pivoted and worked with our hospitals. While we couldn’t be there as often or as long as we typically were, we were able to be there when the conversation about donation had to be had. By May, things had returned to normal, mostly, and we ended up having another record-breaking year. Donations were up about 10 percent. This year, we’re seeing another 10 percent to 12 percent increase. While the pandemic did initially really impact things, I do think that in the end, Michiganders stepped up and when donor families were provided the option for donation, they chose to help someone else.  Can deceased COVID patients donate organs and tissue? Initially, just like the rest of the world, the transplant industry didn’t know what the risk to a recipient would be if we passed COVID along. We started

we talk to families about donation and overall authorization still hovers around 60 percent, which is lower than other states. We still have a lot of work to do.

testing donors early and donors that were positive were not allowed to proceed with donation. But by spring and summer of this year, as more was learned about COVID-19 and the potential impact to a transplant recipient, it became acceptable to recover certain organs of a COVID donor. Certain organs like the lung and often the heart are not able to be used. But the kidneys and the liver are routinely transplanted now and the outcomes are good. It’s believed the virus is not transmittable through the kidney or the liver. Plus, the majority of transplant recipients are vaccinated, further reducing their risk. Now we are doing COVID-19 patients.

 What were last year’s donation totals? Last year, we had 374 donors and from those donors we provided 1,047 donations. We also do tissue donation, like bone and skin. We had 1,574 individuals who were tissue donors. We’re on track this year for around 420 organ donors, which is ahead of last year, but not by much. But we’re going to do over 1,100 organ transplants this year, hopefully more.

 Why do you think donations increased even though there was a pandemic? I do think Michigan, as well as the rest of the country, has been on a trajectory of year-over-year increases. Some of it is the continued work of our agency and the community and making people aware of the need and to sign up for the registry. All of that work is continuing to be effective. But completely anecdotally, there was this public awareness of what was happening due to COVID and there was a desire to help someone else. We saw some record-breaking months for saying yes to donation. The more patients that we evaluated, the more likely we talked to families, the more likely they said yes. However, overall, the number of times

Dorrie Dils, CEO, Gift of Life Michigan

 Will the upward trajectory ever mean meeting the demand of transplant patients? I think, honestly, the need is so great the list will never completely go away. There are about 120,000 people in the U.S. waiting for an organ transplant. In Michigan, it’s a little over 2,000. The vast majority, about 80 percent, are waiting for a kidney. And we have millions of people on dialysis and the majority of them are not on the list. A good percentage of them could be helped by a kidney. But with what the future might hold — better technology, increased access and, possibly, organs routinely grown in the lab — maybe people won’t die waiting for an organ transplant. That happens, sadly, every day in the U.S. We have people who wait five, six, seven years for an organ.

READ ALL THE CONVERSATIONS AT CRAINSDETROIT.COM/THECONVERSATION

RUMBLINGS

Whale be seeing you: Temporary mural to adorn Broderick Tower THE ICONIC MURAL OF WHALES on the side of the Broderick Tower building downtown is being replaced — temporarily — with a new installation by a Detroit artist hired by Dan Gilbert’s Rocket Companies Inc. The mural by Phillip Simpson is being printed on vinyl that will be affixed to the eastern wall of the 35-story Broderick Tower building, which is owned by a 23-member investment group led by Detroit developer Michael Higgins. Higgins said Thursday that his Motown Construction Partners LP investor group has a long-term lease with California-based Detroit Media Group LLC that “prevents them from changing, damaging or doing anything to the existing mural and that will always be there.” Rocket Companies Inc. (NYSE: RKT) made the announcement of the temporary mural Thursday morning and said the installation will be unveiled Nov. 16. The whale mural, designed over six days in October 1997 by Madison Heights native and College for Creative Studies graduate Robert Wyland, who goes professionally by

The well-known whale mural on Broderick Tower in downtown Detroit will soon be covered by an advertisement banner. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

Wyland, has adorned the 1927 tower overlooking Comerica Park, home of the Detroit Tigers, since, although temporary advertising has sometimes taken its place. “We’ve had vinyls up there, through the same company over many years,” Higgins said. “We had Chrysler up there and a number of

major companies up there, for two or three months or so.” In December 2018, the Board of Zoning Appeals voted to allow an advertisement to be draped over the eastern Broderick Tower wall, Crain’s reported at the time. Crain’s reported then that the first large banner ad — for the Jeep Compass

— hung there in 2006 and that Verizon had recently had advertising clinging to the building. The mural, which spans 108 feet, can be seen nationally during Major League Baseball games broadcast from the stadium. “When we heard this property was going to be used as advertising space again, we saw it as a great opportunity to take control of the space and bring more art to downtown Detroit. Such a high-profile location — seen all around the world during Tigers’ home games — needs to be a place to display the work of Detroit artists,” said Casey Hurbis, chief marketing officer for Gilbert’s Rock Central marketing provider, in the release. The mural, which features 10 colorful faces under the phrase “Rocket Companies presents Detroit is Home,” does not cover the entirety of Wyland’s whale mural. In recent months, Gilbert’s Bedrock LLC has submitted various requests to the Detroit Historic District Commission to use walls on various buildings his real estate company owns downtown for advertising or signage.

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26 | CRAIN’S DETROIT BUSINESS | NOVEMBER 15, 2021

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* SOURCES: The Media Audit, ”Detroit MI Greater Metropolitan Area,” 2021; 2019 Signet Readership study.

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