December Issue: Spotlight on Detroit
- Dec 01, 2014
Now that a federal judge has approved Detroit’s plan to resolve the largest municipal bankruptcy in United States history, many in the city, including its commercial real estate sector, are breathing a sigh of relief and looking forward to rebuilding.
“We’re all excited. It’s not doom and gloom … The city of Detroit is about to come out and have a clean slate,” said Bill Harvey, senior vice president & head of Transwestern’s Detroit office.
But Harvey and others acknowledge there is still much work ahead as the city attempts to rebound from the largest municipal bankruptcy in the history of the United States. By the time Detroit filed for Chapter 9 protection, the once-shining star of U.S. auto manufacturing was $18 billion in debt and a symbol of urban decay. Gov. Rick Snyder appointed Kevyn Orr emergency manager to oversee the process and make deals with creditors, including retirees, pension funds, banks and bond insurers like Financial Guaranty Insurance Co.