Some projects come together in two years. The Hive on Russell took nine, and the people who stuck with it were the first to say so at the ribbon-cutting.
Develop Detroit and the city of Detroit celebrated the opening of The Hive on Russell, a new $23.9 million affordable apartment building at 2033 Russell St., on Oct. 1. According to the city's announcement, the building brings 78 affordable homes to a previously vacant 0.66-acre site at Russell Street, Gratiot Avenue and Service Street, between the Eastern Market and Lafayette Park neighborhoods.
"The fact that this project started in 2017 and is now opening its doors speaks to the commitment of the people and organizations that stayed with it," said Sonya Mays, president and CEO of Develop Detroit. "There were moments when the market changed, the pandemic changed the circumstances, and the original plan had to change with it."
What got built
The Hive has 39 studios, 33 one-bedroom apartments and six two-bedroom apartments. All 78 are rent-restricted under the Low-Income Housing Tax Credit program for households earning 30% to 60% of area median income.
Amenities include a fitness room, a business center, a community lounge and a terrace overlooking downtown, an automated dog wash and turf dog walk, a bike repair station, secured bike parking and storage lockers, and podium parking plus more off-street parking.
The city's announcement credits MHT Construction Management with leading construction. Continental Management is the property manager.
The location is a big part of the pitch. Residents can walk to Eastern Market and the Dequindre Cut, with Lafayette Park, transit, restaurants and businesses nearby.
"Since 1891, Eastern Market has been a place Detroiters rely on to shop for fresh, healthy Michigan-grown produce and meats, start businesses, access jobs and experience the vibrancy and culture of Detroit's oldest active food district," said Katy Trudeau, president and CEO of Eastern Market. She said the 78 affordable homes fit that legacy.
How the money came together
Like most affordable buildings these days, The Hive took several layers of financing. According to the city, the stack included:
- City ARPA money: $4 million in American Rescue Plan Act funds from the city of Detroit.
- City housing fund: $445,000 from the city's Affordable Housing Development and Preservation Fund.
- Tax credit equity: LIHTC equity from PNC Bank.
- State financing: money from the Michigan State Housing Development Authority.
- Developer and sponsor contributions.
Cinnaire served as a lending partner on the deal, and Develop Detroit also credited Bedrock for its contributions.
Mays said the pandemic interrupted the original vision for the site. "We overcame those challenges by being creative, flexible and in strong alignment with our project partners," she said. "Most importantly, we were able to preserve the part of the vision that matters most — creating quality, affordable housing in a place where people want to live."
Mayor Mary Sheffield called The Hive "exactly what we want to see more of in Detroit," pointing to apartments open to Detroiters earning as little as 30% of area median income.
"It's rewarding to see our federal Low-Income Housing Tax Credit investment work with other partner funding to bring this project to life," said Amy Hovey, CEO and executive director of MSHDA.
Develop Detroit, founded in 2014 and led by Mays, says it has developed more than 500 multifamily units in the city.
Why it matters for Contractors
The Hive is a reminder of how long affordable projects can take from first sketch to finished building, and how much the plan can shift along the way. For contractors, that means the jobs that do reach construction are often built on tight budgets assembled from many sources, with tax credit and public-funding compliance riding along. A 78-unit building with podium parking is a solid package for concrete, structure, MEP, roofing and interior trades, plus the site work that comes with building on a vacant urban lot. MHT Construction Management delivered this one, and with Develop Detroit, Cinnaire and MSHDA all active in the city, contractors who perform well on buildings like this put themselves in line to work with the same partners again. Detroit's push to put affordable housing near job centers and neighborhood anchors like Eastern Market means more sites like this one are likely to come up.