The Michigan State Housing Development Authority (MSHDA) today announced that it has approved a Homebuyer Mezzanine Construction Loan, the first to be financed under the new program.

The Book Cadillac Hotel and Residences will be renovated in downtown Detroit resulting in 67 for-sale condominiums, as well as the completion of a 455-room Westin Hotel.

The renovation is part of the downtown revitalization plan of the City of Detroit through the Detroit Economic Growth Corporation.

“We are pleased to collaborate with the City of Detroit and the Detroit Economic Growth Corporation on this exciting project,” MSHDA executive director Michael DeVos said. “The Book Cadillac renovation is an integral part of the city’s efforts to revitalize the entire downtown, and by providing this loan, we are demonstrating our commitment to the redevelopment and success of Detroit.”

The Book Cadillac Residences will consist of 22 one-bedroom, 40 two-bedroom and five penthouse condominiums. Amenities will include hardwood floors, granite countertops in the kitchen and bathrooms, stainless steel appliances, and California Closet packages in the bedrooms. Additional upgrades and customization packages will be available.

Owners will have access to hotel services including concierge services, the pool, health club, maid and room service and others on a fee basis.

Under the Mezzanine Loan program, the maximum loan term is five years. The loan will be repaid with proceeds from the condominium sales. The Detroit Downtown Development Authority will provide a contingent loan commitment that will repay outstanding principal on the Authority loan at maturity.

The Book Cadillac, the tallest hotel in the world and the largest one outside New York City when it opened in 1924, was the city’s premier hotel for more than 50 years before falling on hard times and closing in 1984.

Initial occupancy of the Book Cadillac Residences is scheduled for August 2007.

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