DETROIT, Michigan — Tom Gores chairman and CEO of private equity firm, Platinum Equity and owner of the Detroit Pistons NBA franchise announced today the formation of a joint venture to redevelop the Palace of Auburn Hills and its surrounding land.
Livonia, Mich.-based Schostak Brothers & Company will serve as the lead partner and manage the future mixed-use development, which is expected to include corporate office, research & development and technology companies. Financial terms were not disclosed.
The Palace is to be demolished sometime this fall, according the Detroit Free Press.
“We promised the people of Auburn Hills and Oakland County that we would find a solution that would be good for the community and make a positive economic impact,” said Mr. Gores. “Partnering with a proven, well-respected developer like Schostak Brothers is an important step in delivering on that promise.”
The Detroit Pistons organization is preparing to move the last of its business operations out of The Palace and to the new Henry Ford Detroit Pistons Performance Center in Midtown Detroit, which is on pace to open later this year
“Schostak Brothers is ready to take the lead and use our expertise in complex redevelopments to create a new and exciting next chapter for The Palace and its surrounding property,” said Mr. Schostak. “We are looking forward to working with Tom Gores’ organization and our partners at the City of Auburn Hills, Oakland County and the State of Michigan on this project, and we’re excited about the prospects for this site.”
Schostak Brothers & Company, a fourth-generation family business, has held a development footprint in Michigan for nearly 100 years.
“We want to work with people who are truly invested in the community and are committed to maximizing the potential of the site,” said Mr. Tellem. “Schostak Brothers is a strong, recognized name in the local real estate landscape. They also have national reach and a strong track record of delivering results, which makes them the ideal partner.”
A specific timeline for the development has not been announced.
Auburn Hills Mayor Kevin McDaniel lauded the sale and subsequent partnership between Schostak Brothers & Company and PS&E as a ‘win-win-win’ for the City of Auburn Hills, its business community, and its residents.
“There has been great cooperation and collaboration with the Pistons organization since the team announced it was moving to Detroit,” said Mayor McDaniel. “Recognizing the probability that the property would not continue as an arena, an internal planning activity took place within the City to establish the highest and best use for the land. News of this joint venture with Schostak Brothers aligns with a future for the property that is beneficial to the city while fostering innovation and job creation. We are enthusiastic about the redevelopment potential and what is expected to be an outcome that provides for future expansion of the City’s corporate business community.”