Dearborn Sells its Florida Apartment Building
Purchased in 1967 for $1.1 million, Dearborn sold its Florida apartment complex for $6.25 million.
Nearly two years after putting its Florida apartment building for retirees on the sales block, Dearborn has inked a deal to sell the 52-year old property for $6.25 million.
The sale of the apartment building, when final, will close a chapter in Dearborn’s history books.
It was the late Dearborn Mayor Orville Hubbard who led the charge to purchase the eight-story, 88-unit property back in 1967 for $1.1 million.
The purchase of the building, which Hubbard renamed Dearborn Towers, was billed as the first attempt by a U.S. city to own property outside the state.
The opportunity for Dearborn retirees to rent in Florida, at costs below market rates, for some or part of the year made Dearborn Towers immensely popular in the 1960s through the 1990s, and added to Dearborn’s reputation of providing one-of-a-kind services for its residents. A one mile walk from the beach, the complex included a heated pool, organized poker nights and other activities.
As times changed, so did Dearborn residents’ ideas about retirement, and the traditionally long waiting list to rent an apartment in Dearborn Towers disappeared.
The city put the Dearborn Towers on the sales block in May 2010, announcing it in a press release that it was seeking buyers as a way to ease the city’s mounting financial challenges. The decision to put the Dearborn Towers on the sales block came nearly three years after voters approved a 2007 ballot measure to give elected city officials permission to do so.
Last week at a special meeting, the Dearborn city council approved the sale. But this time the city did not issue a press release that the Dearborn Towers had been sold.
In 2007, the 52-year-old Florida property was valued at between $8 million and $8.3 million, according to one informal appraisal. Another appraisal in March 2008 put the value of property at about $5.6 million.
So $6.25 million is a good price, considering today’s real estate market. The city in September 2010 said it had an offer for the apartments for $6.7 million but that deal never materialized.
The new winning bid was from Alchemy Management, via a broker the city hired in February. After brokerage fees, Dearborn will net just over $6 million from the sale when the deal closes, which is expected in about a month.
The apartment building is located near Clearwater Beach, which Dearborn says has consistently been named one of the best beaches in the country. The property sits on a 2-acre waterfront site on Clearwater Bay, and is near the Gulf of Mexico and downtown Clearwater. It has a private fishing dock, marina and pool.
Constructed in 1960, the apartment building has 40, one-bedroom and 48 two-bedroom units.
March 18th, 2012 at 6:54 pm
Now that Bubba O’Reilly sold the Towers how will he deal with the influx of new money? Maybe some other dud investmennts, that will lose money, or he can simply pay for the outstanding lawsuits that he and his pal Somers have lost — then again he can continue going to get some WHOPPERS, or BIG MACS for the rest of his term of office.
March 19th, 2012 at 7:01 am
Do the math. O’Reilley lost the City TWO MILLION dollars by waiting 3 years after the ballot approval to put the property on the market. WAKE UP Dearborn. Remember this at election time. Time to replace the Mayor and the ENTIRE City Council.
March 19th, 2012 at 8:35 am
If the sale goes thru as planned it will not impact the 2012-13 budget. The 6 million that will be gained has already been built into the 2011-12 budget. Now how you put monies into the budget that you didn’t even have is beyond me.
March 19th, 2012 at 11:13 am
This another example of Dearborn Policy. Selling in a poor economy is not a great decision.
Have the residents of the complex been protected by the City of Dearborn? I don’t think so, but let me know if I am wrong.
March 19th, 2012 at 12:09 pm
i heard the current residents proposed to purchase the property for a price of the average of the top three values, on a land contract sale. mayor mccheese declined this offer because his high priced incompetent finance puppet said no. is $6 mil not $6 mil. i hope these people register to vote in Dearborn next election.
March 20th, 2012 at 4:58 pm
The Big Boy has always been an astute investor, that’s why he has cost the City a ton of money.
March 25th, 2012 at 10:39 am
Nothing but another way for our ineffective mayor and council to have some additional monoply money to screw around with, enjoy the ride, as there will be changes upcoming.
May 5th, 2012 at 6:46 am
It is sad to watch what continues to be the destruction of the high reputation Dearborn had for many, many years. As a third generation of a Dearborn family, I am sorry to say I am the last of my family to remain here and that is only because I can’t afford to take the loss on my home, which is underwater.
Dearborn was once the envy of all the suburbs. We had excellent schools, nice shopping areas, neighborhood pools, low taxes, outstanding services, low crime rate, Camp Dearborn and Dearborn Towers. Even if you didn’t live in Dearborn Towers, it was nice to know you had the option if someday you chose to do so. It was a nice asset that didn’t cost the city any taxpayers dollars.
What is left to attract people to move here? Nothing, absolutely nothing unless you want to live in the same neighborhood as your other mideastern immigrants. I am tired of hearing how diverse our city is when in actuallity Dearborn has become known as the Arab city and that is the real reason poeople don’t want to move here. Take off the blinders city hall.
Do something for the residents instead of thinking of new ways to attract businesses that aren’t interested in the Dearborn market anyway. The new train station, a convention center, new city hall? What will that do for residents? Personally, I believe if you maintained what we have we would be better off.
I know there are no clear cut answers and we are a victim of the bad economy like other cities but come on do something! Better yet, step aside and let others take over that may have some better ideas on what to do with our decaying city. This Mayor and council have proven they can’t do it. It’s time for a change. NOW!