Bachárd Lofts of Auburn Hills

Blackacre Management, LLC, led by Dalen Hanna & Maha Banno, is an experienced development and property management firm specializing in complex adaptive reuse projects, particularly in converting office buildings into multifamily residential developments. With over 600,000 square feet of premier real estate redeveloped, Blackacre has a proven track record of success.

Dalen Hanna, a licensed attorney and Maha Banno are both seasoned developers who have personally managed multiple high-profile projects, including most-recently a large multifamily redevelopment in downtown Pontiac, which faced significant planning and infrastructure challenges.

This experience makes Blackacre uniquely qualified to lead the 3551 Hamlin Road project, where zoning and logistical hurdles are expected to be more manageable. Blackacre is also spearheading a major conversion in Troy, Michigan, further showcasing their expertise in multifamily and mixed-use developments. In a 9-1 vote, the Troy project recently obtained new zoning for a similar conversion.

Blackacre Management, LLC operates as a full-service property manager and general contractor. The Blackacre Management team have successfully managed every aspect and detail of the construction and redevelopment of several projects. This in-house vertical integration keeps costs down, projects on schedule, all of which have resulted in higher returns on investment.

Each project is guided by three simple principles: 1) Always buy at the right price[1], leverage only when necessary, and NEVER lose money; 2) Mr. Hanna’s partnerships are by invitation only, and are offered to high-net worth individuals who qualify as Accredited Investors as defined by SEC Rule 501; and lastly, 3) The Blackacre team are solely, exclusively, and entirely in charge of the investments/projects from an operational and management perspective. These guiding principals have led to the successfully acquisition and development of nearly 600,000sf of premier real estate over the past few years. 

The Blackacre team completely devotes itself to every detail, on every project. Along with an in-house team of 25+ qualified and experienced staff, managers, and skilled-laborers, the Blackacre team has spent years building relationships with an equal number of third-party licensed tradesmen, contractors, engineers, consultants, and architects.

• Proximity to Major Employers: The property is located directly across from Stellantis (Chrysler) North America Headquarters and near other corporate hubs such as BorgWarner and Amazon. This makes it an ideal location for residential developments targeting employees of these companies.

• Nearby Educational Institutions: Less than a mile from Oakland University, which has over 19,000 students, the demand for student and faculty housing further supports the need for rental units in the area. Oakland Community College also has a large campus directly across Squirrel Road.

• Accessibility: The property benefits from excellent highway access via M-59 and I-75, making it attractive for commuting professionals from the East side through the West and Bloomfield areas.

• Existing Structure: 209,596 square feet of unoccupied office space on 12.77 acres, with 918 parking spaces, far exceeding the requirement for a multifamily conversion.

• Multifamily Conversion: Plans include converting the existing office building into 144 rental units with shared luxury amenities.

• Townhomes for Sale: The city has expressed their intent to require the construction of 40-60 townhome-style condos, with each unit sized at 2,000 ~ 2,500sf, with 3-4 floors and enclosed garages. These units will be for sale rather than for rent, providing an additional profit stream.

• Shared Amenity Clubhouse: The project will include a sizable clubhouse, pool, outdoor areas and lots of greenspace; serving both the apartments and the townhouse-condos. There will be an onsite management office and luxury amenities such as fitness centers, lounges, and other shared facilities.

The property is scheduled for auction from September 23rd through September 25th. The auction will be conducted on the TenX platform operated by CoStar. The starting bid is $800,000, with an expected final sale price between $2.25m and $2.6m. The target acquisition price is $2.4m, with a maximum purchase price of $3m, which equates to approximately $11~$14.35 per square foot.

Several local developers have previously placed this property under contract but walked away due to the rezoning challenges. This creates a unique competitive advantage for Blackacre Management, as they have already initiated discussions with the city and have significant experience in municipal relations and rezoning efforts. Blackacre Management has successfully navigated similar challenges in Troy, Pontiac, and Southfield, where they recently secured rezoning from office to multifamily use, providing a strong track record for overcoming such obstacles.

Located just off the M-59 and Squirrel Road interchange, with near immediate access to I-75, the centrality of this property cannot be overstated; especially with the local migration to Metro-Detroit’s northern suburbs. Blackacre plans to develop best-in-class amenity-rich luxury apartments and townhouses on the site. This development will offer market-rate residential rental units and for-sale townhouse-condos designed to attract a diverse range of tenants and residents. Within is an overview of the proposed finished development, organized by floor, amenities, and intended uses:

144 Rental Market-Rate Multifamily Units: The development will feature 144 residential units, spread evenly across four floors, with 36 units per floor. The design incorporates a mix of apartment sizes, ranging from studios to three-bedroom suites, catering to diverse tenant needs. These large and luxurious apartments will cater to the high-end segment of the urban/loft market. These units will meet a significant demand in northern Oakland County by offering a unique living experience in a marquis, historically significant property. The development will deliver an urban downtown environment combined with the premium amenities typically found in luxury hotels.

40-60 For-Sale Townhouse-Style Condos: The development will also feature between 40 and 60 for-sale ground-up townhouse-style condos, each with approximately 2,000 to 2,500 square feet of living space, including enclosed garages. These townhomes are designed to attract credit-worthy residents who will not only add value and equity to the community but also share in the operating expenses related to shared common area tenant amenities. The inclusion of these for-sale units will foster long-term resident stability while contributing to the overall maintenance of shared amenities.