The Young and Entrepreneurial: Austin Black of City Living Detroit

Jon Zemke | Model D

austin-black.jpg

Model D | Marvin Shaouni Photography

Austin Black’s love of Detroit goes deep.

“Detroit created my love affair with cities and urban planning,” says Black, a Cornell grad who grew up in and around the city. “I see what as I do now as giving back to a place that really influenced who I am today. Detroit is not dead. There are a lot of opportunities in Detroit.”

To him that means a chance to have real influence on a big city’s urban fabric.

After about a decade of working as a realtor for other firms, the Detroit resident recently struck out on his own to transform his City Living Detroitnonprofit — which promoted city living through newsletters and real estate tours — into a for-profit, full-time, full-service city-based brokerage.

Black says that City Living Detroit has already landed agreements to manage or be involved with the sales and marketing of several Detroit developments including: The Mack @Brush Park, Willys Overland Lofts, Brush Park Village North, and Centurion Place.

He spoke with Model D from his Willys office recently to talk about Detroit, the opportunities it presents and how best to take advantage of them.

Q. You’re starting a real-estate brokerage in what is considered the worst real-estate market in generations and in one of America’s poorest big cities. What goes through your mind when people ask if you’re crazy?

A. Ironically, I never get that question.

Q. Really?

A. A lot of people see a real opportunity in the city despite the negative stuff going on. Friends who have visited here really understand it. There is a real authenticity that people see. A couple of my friends have said, ‘Wow, I liked this a whole lot better than I thought,’ because there is a uniqueness in Detroit that can’t be replicated in other cities.

Q. You went to college at Cornell and have visited or lived all over the world. How important is this broader perspective?

A. It’s extremely important. When you live and experience different things you will look at things with a fresh perspective. You see other places have challenges. When I lived in Rome, that city had one of the highest crime rates in Western Europe. That didn’t stop me from walking around at night. If people here have that concern about crime, that perspective allows me to address it another way than if I had always been here. It helps me explain the real side of the story. It allows me to do my job to the best of my ability.

Q. Many Detroiters leave the Motor City soon after graduation. Why did you decide to buck this trend and come back here to start your business?

A. When I graduated in 2003, I did look at other cities, like New York and Washington, D.C. I wanted to have a meaningful career that gives me a sense of purpose. While D.C. and New York are great, I wouldn’t have that same opportunity to provide that impact. It wouldn’t be as fulfilling to me.

Q. What should Detroit do to attract more of your peers?

A. The city needs to market itself as an open place to ideas and people. It basically has to say, “You want to get involved in improving the city? We’ll welcome you. We’ll help you the best way we can.” … Detroit has a lot of corporations. They have to embrace Detroit. When they try to attract people, they need to sell Detroit hard. They can’t say you can work here and live anywhere but Detroit. That makes the region and the corporations look bad. A lot of places have come around to the idea that to attract the best and brightest you need a strong central city.

Q. Initiative programs like TechTown and the Creative Corridor are aimed at reinventing the city. What sort of impact do you see programs like these having over the next 5-10 years?

A. I participated in the FastTrac program at TechTown. It gave me the knowledge and confidence I needed to start my own business. There are several other entrepreneurs who have opened up in the neighborhood that went through the FastTrac program. Its shifting the idea of everybody works for someone to being your own boss and have my impact on my community. That has a tremendous impact on the way this area looks and what it will become. TechTown is a great resource for this area. The Creative Corridor could take the same spin but from a creative standpoint. Its appeal could go beyond entrepreneurship and be used as a tool to support existing businesses.

Q. You’re helping advise city leadership on how to reshape the city, a la Youngstown and Flint. Although Detroit shares a lot of similarities with those cities, it is still a much bigger place both physically and population-wise. Should we be following what those cities did in regards to land use or creating more of our own path?

A. We shouldn’t follow those other cities. We should study and understand them. Certain things they have done have been successful. Others have not. No plan is perfect. We can’t copy other places. If you do we’re bound to fail. Looking at Detroit as a unique situation, you’ll have to say in downtown this is going to work but it’s not going to work in Brightmoor. It’s all about having a vision and saying where do we want Detroit to be 5, 10, 15 years from now.

Q. What’s one of those things they have done that you’re skeptical would work here?

A. The idea of shrinking the city and abandoning large parts of it. You can’t look at Detroit long-term and say large parts are not viable forever. Some areas you might have to reinvent with more green space and urban farms. Detroit is a big city. It can accommodate all of those things.

Q. Detroit has a habit of frustrating the people who try to improve it. Has this happened to you yet? If so how did you respond to it?

A. In our recent political history there was so much stuff that if you picked up the papers or turned on the TV you would have thought we were going straight to Hell. I knew a lot of people who were just opening their businesses. They were excited and moving forward. Seeing those places open and become successful energized me.

Jon Zemke writes about startups for Model D. He conducted and condensed this interview in person. His last story was
“The Young & Entrepreneurial: Q&A with Elevator Building developer Randy Lewarchik.” Send feedback here.

Austin Black II Opens Doors to City Living Detroit Real Estate Brokerage

Dear Colleagues, Clients and Friends:

Over the course of my nearly decade long career, whether you knew it or not, you provided me with the encouragement and support that has given me the courage and strength today to write the next chapter to my career.  Thank you!

And that is why I wanted you to be one of the first people to know that I have made the decision to open my own real estate brokerage.

Originally founded as a non-profit to promote living in Detroit, City Living Detroit is now a full-service real estate brokerage. Our agents handle the sales and leasing of residential and commercial properties. We also manage the sales and marketing of new developments.

City Living Detroit is currently managing or involved with the sales and marketing of the following Detroit developments:

My passion for Detroit runs deep, and like you, I see so much opportunity for growth here.  I feel that by hanging my own shingle I will be able to continue to make a positive impact on our community by showcasing Downtown, Midtown, New Center, Riverfront, and the city’s historic neighborhoods as great places to live, work and raise families.

Please feel free to forward this information to others and do not hesitate to contact me to discuss how I can help with any of your real estate needs.

I look forward to contributing to the future of the city one resident at a time.

Sincerely,

Austin Black II, Realtor®

About City Living Detroit

City Living Detroit is a client-centered, full-service, boutique-style real estate sales and marketing firm that specializes in urban living, including lofts, condos, historic homes and apartments. The firm is based in Detroit’s historic Midtown near Wayne State University. To view all available listings visit CityLivingDetroit.com.  To make an appointment call 313-550-2307 or e-mail austin@citylivingdetroit.com.

Park Shelton Condo | Sale $134,900 or Lease $999/month

15 East Kirby #926, Detroit, MI 48201 | 1 bedroom | 2 baths | 988 square feet

This contemporary Art Deco themed condo at The Park Shelton in Midtown Detroit features stainless steel appliances, granite counters, hardwood floors throughout, custom closet organizers, views of the New Center skyline and the NEZ property tax break. Building features first floor retail, 24 hour security, community rooftop deck, fitness center, storage and easy access to the Cultural Center and Wayne State. Association fee includes electricity, gas and water.

Austin Black II, Associate Broker

313.550.2307 (cell)

austin@citylivingdetroit.com

CityLivingDetroit.com | UrbanLivingUpdate.com | RaisingCityKids.com

Just Listed: Three condos in Historic Brush Park

Three former builder’s models now available for sale in Historic Brush Park. Aggressively priced from $79,000 to $145,000.

34 Adelaide

2442 Woodward Avenue

2446 Woodward Avenue

2446 Woodward Avenue

34 Adelaide | 2 bedrooms | 3 baths | 2,002 sq ft | $145,000

2442 Woodward Avenue | 2 bedrooms | 2 baths | 1,753 sq ft | $125,000

2446 Woodward Avenue | 2 bedrooms | 1.5baths | 1,300 sq ft | $79,000

Austin Black II
313.550.2307
austin@citylivingdetroit.com
CityLivingDetroit.com | UrbanLivingUpdate.com | RaisingCityKids.com

What does $1,600/month buy in Detroit?

Spectacular furnished condo for lease at The Ellington in Midtown Detroit! Enjoy close proximity to the DMC, WSU, entertainment, culture, restaurants and downtown Detroit. This partially furnished home includes hardwood floors, granite countertops, floor to ceiling windows and a balcony. Enjoy a 24 hour fitness center, indoor parking and first floor retail featuring Starbucks.

The Ellington Exterior Corner

The Ellington Exterior Corner

  • Address: 3670 Woodward Avenue
  • Price: $1,600/month (furnished)
  • Square Footage: 1,226
  • Bedrooms: 2
  • Bathrooms: 2
  • Year Built: 2006

Foreclosures boost Southeast Michigan residential home sales in July

Crain’s Detroit Business | Dan Duggan

The number of residential real estate sales in Southeast Michigan increased in July compared to the same period in 2008, however most of the growth is in foreclosure sales.

In July, there were 6,452 residential sales, up 18.7 percent compared to 5,436 sales in July, 2008, according to data from the Farmington Hills-based MLS Realcomp II Ltd.

More than half of the sales — 3,275 — were foreclosures; upping the number of foreclosure sales in the region by 75 percent compared to July 2008.

For the month of July, there were 111 non-foreclosure sales in Detroit, a 64.5 percent drop year-over-year; 425 in Macomb for a 6.2 percent drop; 842 in Oakland for a 6 percent drop; and 817 in Wayne for an 18.5 percent drop.

The median price on all sales dropped 38.1 percent from $105,000 in July, 2008 to $65,000 in July, 2009.

One of several bright spots in the numbers was that the non-foreclosure, median sale price for homes in the city of Detroit grew by 100 percent from $11,000 in July, 2008 to $22,000 in July, 2009.

For all of Wayne County, the number increased as well from $96,950 in 2008 to $100,000 in 2009.

In areas like Midtown and the University District, there seems to be more interest in sales right now, said Austin Black II, a Realtor in the Birmingham office of Max Broock Realtors who specializes in Detroit sales.

And those properties seem to be selling at higher prices, he said.

“Last week, I put in an offer for a client on a home in Palmer Woods and there were multiple offers on the house,” he said. “I haven’t seen multiple offers in a while.”

Black also said that some of the homes purchased dirt cheap in foreclosure are now being fixed-up and sold at market rate, perhaps driving the increase.

Also considered a positive indicator, the amount of time required for homes to sell decreased in July.

A home spent an average of 103 days on the market as of July, compared to 118 days as of July 2008. The inventory of unsold homes also reduced to 48,831 marking the lowest inventory number since March, 2006.

Black, however, noted that there are less people listing their homes.

“It appears that a lot of people are guessing that they won’t get what they’re asking for their homes, so they’re just not listing them,” he said.

Crain’s Communications  2009

Westin Book Cadillac Developer changes Broker and reduces prices

Image courtesy of Starwood Hotels

Image courtesy of Starwood Hotels

One of Detroit’s high-profile residential developments has changed Brokers and reduced prices.

When the Westin Book Cadillac Residences started sales in 2006, it was planned to take residential living in downtown Detroit to a new level. Amenities such as a 24 hour fitness center with swimming pool, residential concierge, Westin hotel services and the conveniences of being located in a landmark downtown Detroit building.

The first day of sales, nearly 50 of the 67 units were pre-sold.

When the Book Cadillac opened October 2008, the nation was in the middle of an economic meltdown. Mortgages became harder to qualify for and down payment requirements went up. Many purchasers had planned on selling their existing homes to purchase at the Book. As a result, fewer than 12 units have closed since the opening.

The developers have decided to make some major changes. Replacing their listing Broker after three years on the job and lowering the prices of some units to as low as $199,000 – down from $299,000.

If you have not had a chance to visit the Westin Book Cadillac Residences, I encourage you to take a look. This property offers some of the most unique condominium residences commonly found in New York City and Chicago.

For additional information on available units contact me (Austin Black II – Detroit Residential Specialist | 313.550.2307 | austin@citylivingdetroit.com)

MSHDA Offers $20,000 Down Payment Assistance for Willys Overland Lofts

The Michigan State Housing Development Authority (MSHDA) is now offering $20,000 in down payment assistance for qualifying home buyers at Willys Overland Lofts in Midtown Detroit. 37 lofts at Willys Overland qualify for the program. Currently, there are 5 $20,000 grants available.

For more information, contact Austin Black II, austin@citylivingdetroit.com or 313.550.2307.

$7,500 Down Payment Assistance Now Available from MSHDA

The Michigan State Housing Development Authority (MSHDA) has just announced a new down payment assistance program that will allow qualifying home buyers to get up to $7,500 in interest free loans. Funds can be used towards down payment, closing costs, prepaid and property tax escrows. The loan does not have to be repaid until the property is sold, refinanced or the first mortgage has been paid off.

In order to qualify for this program, the purchase prices of the home can not exceed $224,500 and there are income restrictions based on the location of the home and household size.

The incentives to buy a home have never been better! When combining the $8,000 First Time Home Buyer Income Tax Credit,  the $7,500 MSHDA down payment assistance, historical low interest rates and low home prices, it is truly a buyer’s market.

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online