18900 Michigan Ave
Dearborn, MI 48126
Fairlane Town Center - Hotel Development Site · Land For Sale · 1.05 AC

Robust Demand Generators As the world’s traditional automotive center, Metro Detroit serves as the headquarters to America’s “Big Three” automakers: Fiat Chrysler Automobiles (FCA), Ford, and General Motors (GM). Ford World Headquarters is located 1 mile east of the subject site. In June 2018, Ford purchased the vacant Michigan Central Station as part of its plans to transform Corktown into its new campus for mobile technology and software development. Just west of the subject site is the University of Michigan-Dearborn, a regional campus of University of Michigan. The university served over 9,000 students and employed roughly 1,100 faculty members during the academic year of 2017-2018. Enrollment has grown 6% over the last five years, as the university has continued to add new facilities and offer more degree programs. Vibrant Market Performance Based on an October 2018 STR Trend Report, consisting of seven hotels ranging from upper-midscale to upscale limited-service, select-service, and extended-stay assets, the submarket achieved occupancy and average rate (ADR) levels of 81.4% and $124.45, respectively, resulting in RevPAR of $101.28 through October 2018. This represents an impressive 14.4% increase year-over-year. Located Among Diverse Demand Generators The subject site is located within the parking lot of the Fairlane Town Center mall. The regional shopping mall has over 1.2 million square feet of retail space housing over 125 stores and restaurants, major retail anchor tenants, and AMC theatres. Significant Upside for Developer The subject site presents an opportunity for a developer to construct a limited-service, select-service, or extended-stay hotel in a major MSA, with an attractive exit capitalization rate. Following construction and stabilization of operations, this asset would be a desired investment for the comprehensive pool of area and regional investors interested in hotel products.