The historic, troubled Leland House in downtown Detroit is on the auction block. The starting bid is $500,000 and bidding opens in five days, according to an online real estate listing.
The former luxury hotel was built in 1927 at 400 Bagley Street and has served as apartments for years. The operator filed for bankruptcy in November in U.S. Bankruptcy Court for the Eastern District of Michigan seeking to move ahead on financing to renovate the building and sell it to a new owner.
LoopNet, on online real estate marketplace, listed the Leland as a “nationally registered historic building, with endless upside potential for a savvy investor.
The Italian Renaissance-style building with a brick-and-terra-cotta facade was designed by Rapp & Rapp, the famed architect brothers who also created Detroit’s Michigan Building, according to Historic Detroit.
The Leland’s owner, Luis Ramirez, filed a motion Jan. 13 in the bankruptcy court to put the building and the attached parking lot up for auction in March for at least $3.5 million, “free and clear of all liens, claims and encumbrances.”
When it opened at the corner of Bagley and Cass, it was considered a four-star hotel, complete with air conditioning, a luxury at the time.
Over time, its reputation declined as the Leland became known as a criminal hangout. It was said to be the first place police check for Jimmy Hoffa when he want missing in 1975, per Historic Detroit.
In 2005 it joined the National Register of Historic Places.
In 2018, developers announced an ambitious $120 million renovation project to convert the Leland into affordable apartment with a 650-space parking deck.
The building became news again recently when former residents asked the bankruptcy judge to let them in to retrieve their belongings after they were forced to evacuate during a power failure in December. They also asked the judge to halt the owner from auctioning the building without first transferring apartment leases to the new owner. Some residents had lived in the Leland for decades.
Detroit fire officials deemed the building uninhabitable in December.
The listing calls the 22-story, 339-unit apartment building a “one of a kind investment opportunity.”
It says the building could be redeveloped for use as a residential, hospitality, condominium or mixed-use property.
The online auction runs from Aug. 27-29. The buyer will pay a transaction fee of 3%, or a minimum or $20,000.
This article originally appeared on The Detroit News: Leland House in downtown Detroit hits auction block
Reporting by Max Reinhart, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
