Derelict Building Investment

A business model focused on large-scale city revitalization through strategic property acquisition and community investment, demonstrated through Dan Gilbert's transformation of downtown Detroit.

Key Components:

• Strategic Property Acquisition:

  • Purchase derelict buildings in downtown areas
  • Target concentrated ownership (20-30% of downtown real estate)
  • Focus on landmark/significant properties
  • Buy at depressed prices in struggling areas

• Infrastructure Investment:

  • Establish private security firms to improve safety
  • Relocate major businesses to downtown area
  • Create employment hubs by moving thousands of workers downtown
  • Develop amenities like casinos to attract visitors/business

• Community Investment:

  • Pay off resident property taxes ($300M example in Detroit)
  • Create jobs through business relocation
  • Improve public spaces and downtown areas
  • Focus on long-term city development rather than quick profits

• Business Integration:

  • Move existing successful businesses to revitalized areas
  • Use business success to fund continued development
  • Create a virtuous cycle where business success feeds into city improvement

The model works by taking a holistic approach to city revival, using private capital to improve infrastructure, create jobs, and raise property values while simultaneously benefiting from the resulting appreciation in real estate values.