business & professional

>> on the cover / new center gems

New Center Gems

Redico expands portfolio with Fisher and Kahn buildings.

Adam Finkel I Special to the Jewish News

CONTINUED FROM PAGE 1

Redico has a growing collection of rare
buildings where deals not only get done, but
also where memories are made.
This summer, Redico and New York City-
based HFZ Capital Group won the auction
for two of Detroit's most historic buildings to
add to their portfolio: the Fisher and Albert
Kahn buildings located in Detroit's New
Center neighborhood. Both buildings were
auctioned for $12.2 million and last sold for
about $31 million in 2001.
Redico founder Robert Sosnick, who died
in March 2000, was noted as the foremost
office developer in Metro Detroit. By his
early 50s, he had developed more than 2.5
million square feet of office space in Oakland
County. He built Travelers Towers I and II
in Southfield, Top of Troy and the Palace of
Auburn Hills, measuring more than 1.5 mil-
lion square feet.
Robert's daughter, Karen Sosnick
Schoenberg, is a board member and prin-
cipal at Redico, with a
specific focus on the firm's
strategic direction. As a
vice chair of the Jewish
Fund (started in 1997
with proceeds from the
sale of Sinai Hospital)
and a board member
of City Year Detroit and
Karen Sosnick
the Jewish Federation of
Schoenberg
Metropolitan Detroit, she
is advancing two worlds
her family-first father prominently nurtured
outside Redico's steel-and-glass skyscrapers:
her city and that of the Detroit Jewish com-
munity.
Through her extensive commitments, she
has become one of the most influential lead-
ers making a difference in Detroit. She's a
businesswoman on the leading edge of devel-
opment both inside and outside of Detroit's
Central Business District as well as a philan-
thropist who has advanced the mission of the
Jewish Fund to offer vital support to dozens
of Detroit-based organizations, including
Summer in the City.
Even before the Fisher and Kahn build-
ings acquisition, Redico developed well
more than 3 million square feet in the city of
Detroit, including One Kennedy Square, the
Broderick Tower and the first Meijer store
to open in Detroit, located at the corner of
8 Mile and Woodward Avenue. It is also the
developer for 1 million square feet of the
157-acre State Fair development.
In an interview with the Jewish News,

The

Schoenberg said: "I am so excited to be
part of this renaissance and to bring these
cherished buildings back to glory. It's a com-
munity responsibility to bring some of the
magic to these buildings. We all take this
very seriously.
"I have early memories of walking through
tunnels from one building to another and
admiring the look of the lobby and ceilings.
There are a lot of memories here. I'd love to
see us building this asset forever. Looking at
our history, we do tend to hold on to things
at Redico.
"We really like what's going on in Detroit;'
she continued. "If the value is good, we'll
always consider other deals. Our goal, the
minute this deal closes, will be to move for-
ward on development. Very firm plans will
be developed over the next 18 months. This
deal is absolutely a joint venture with HFZ.
In addition, we've received interest from
quite a few investors:'

Redico included noted local developers
John Rhea and Peter Cummings on the
investment side as well. Schoenberg men-
tioned that Redico welcomes other limited
partners into deals; Rhea and Cummings are
two of the most prominent developers in the
Detroit development scene.

Seeing Opportunities
During the interview, it was clear that Redico
sees a lot to do in Detroit and a different
landscape for investment activity.
"Now there are more investors com-
ing to town, teaming with local partners:'
Schoenberg said. "It's telling to get to the
stage now where local partners are more
actively collaborating with firms outside of
Detroit to make things happen in the city. So
much has happened Downtown, yet there's
great opportunity in locations well beyond
the Central Business District right now, so
we're spotting opportunity and will continue

Fisher Building in the New Center area

spotting opportunity selectively as we see fit:'
Redico CEO Dale Watchowski and Chief
Investment Officer Dietrich Knoer were
actively involved in the acquisition process.
"Of all the things we've done, this brings
out the most pride and makes me think of
my father and the excitement that he would
have Schoenberg said.

HFZ Capital Group
The acquisition of the Fisher and Kahn
buildings is a joint venture between Redico
and HFZ Capital Group, a mega-developer
with a massive development portfolio
of luxury residential condominiums in
Manhattan. Formed in 2005 and led by Ziel
Feldman, the firm is currently managing and
developing more than 5 million square feet
of Manhattan real estate and bringing nearly
2,000 residential units to market.
Ziel's son, Adam Feldman, works on the
acquisition side of the business and is the

New Center Gems on page 16

14 July 23 • 2015