November 22, 2013 --

A parking lot at Cass and Canfield in midtown Detroit will be turned into a 9-story mixed-use building under an agreement approved today by the Wayne State University Board of Governors.

The building will include approximately 248 market-rate apartments, 19,000 square feet of ground-floor retail space, a hotel with up to 120 rooms and a conference center with capacity for up to 300 people.

No commitments have been made as to what will exactly fill the retail slots, said Ned Staebler, WSU's vice president for economic development. WSU is leasing the land to the developer. Staebler declined to identify the exact amount being paid to WSU, saying the contract needs to be finalized.

Negotiations are ongoing for which hotel will come in, but Staebler said its likely to be a mid-level national flagship.

"In addition to providing much-needed housing and hotel and conference facilities, this project will enhance the connection between our main campus and our medical campus, as well as further promote Midtown as a walkable and bikeable neighborhood," said WSU President M. Roy Wilson said in a press release. "Wayne State remains committed to being a leader and catalyst for economic growth in Detroit."

Broder & Sachse Real Estate Services will develop the 1.5-acre site. The development is expected to cost more than $60 million. It's expected to open in 2016.

"Broder & Sachse Real Estate is very excited about partnering with Wayne State University in developing a groundbreaking, state of the art, hip, dynamic mixed use development in Midtown Detroit," said Todd Sachse from Broder & Sachse Real Estate in a press release. "The demand and rapid growth in Midtown and downtown Detroit makes the timing for this development optimal. We know this will be a great asset for the university and the community."

There is already a Zip Car car-sharing service located there. It's also near a proposed M-1 stop.

The project supports Wayne State's 2020 master plan by building upon the residential and commercial development in the South University Village District, the university said in a press release. The first phase of the South University Village District was completed in 2008. The first phase was the Studio One apartments development with ground-floor retail.

Contact David Jesse: 313-222-8851 or djesse@freepress.com