GM Reaches Preliminary Agreement with Developer for 13 Acres of Detroit Riverfront

DETROIT – General Motors announced today that it has reached a preliminary agreement with Detroit River East Partners, LLC (DREP) to develop the River East project. The River East development consists of approximately 13 acres along the Detroit River, immediately east of the GM Renaissance Center. Plans for development include mixed-use commercial, residential, retail, office, entertainment and special use opportunities.

The River East development will be financed and constructed by DREP, which was formed as the local development company by principal members Mesirow Stein Real Estate, Inc. (Mesirow Stein) and Morningside Equities Group (Morningside Group), both of Chicago.

Matt Cullen, general manager of GM’s Economic Development and Enterprise Services said, “The developers have significant experience in the Detroit metropolitan area as well as urban markets in and around Chicago. We are excited about this opportunity to build on Detroit ’s riverfront experience that includes the GM Renaissance Center’s shopping, dining, theaters and retail stores.”

Detroit Mayor Kwame Kilpatrick stated, “The City of Detroit will benefit from the development of one of its most treasured assets, the riverfront. We see this as another important step in realizing the full potential of the riverfront and in moving our great city forward.”

“We view this development as an opportunity to help shape a key area of Detroit and maximize all the features of its riverfront. A grand vision was formulated, many have come forward to bring that vision to reality and we are excited to participate in that effort,” said Development Manager Nico Schultz, of Morningside Group.

The property designated for mixed-use development is bounded by Franklin Street to the north, Rivard Street to the east, the Detroit River and RiverWalk to the south, and Beaubien Street to the west.

Mesirow Stein has extensive project experience executing large, complex, urban developments. Examples include two expansions totaling $1.5 billion for McCormick Place Convention Center, development of the 1.6 million-square-foot AT&T Corporate Center and the urban residential developments, State Place (243 condominiums) and 58-acre University Village (900 town homes, condominiums and lofts), all located in Chicago.

Morningside Group specializes in mixed-use and multi-family development in urban markets and operates offices in Chicago and metropolitan Detroit. Local projects exceed $95 million of development in Royal Oak (SkyLofts Royal Oak, SkyLofts MarketSquare, and Main Place Royal Oak ) and Ann Arbor (Liberty Lofts).

DREP has started due-diligence at River East, and is expected to obtain necessary zoning designations within approximately six to eight months. A date for announcing specific development plans, and construction schedules, has not been determined.

General Motors Corp. , the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company’s history. GM’s global headquarters are at the GM Renaissance Center in Detroit. More information on GM can be found at www.gm.com.