Stephen Ross steps away from his real estate company — but not District Detroit

Stephen Ross is stepping down as chairman of his New York City-based development giant, Related Cos. 

Ross, the billionaire developer who is a Detroit native and University of Michigan graduate, told the Wall Street Journal he is now concentrating his efforts in West Palm Beach, Fla., with a new company called Related Ross, and turning over the reins of Related Cos. to CEO Jeffrey Blau, also a University of Michigan graduate. President Bruce Beal and Chief Operating Office Kenneth Wong will remain at Related.

Ross, 84, has become increasingly involved in Detroit development in the last five years, and intends to remain that way, according to a person familiar with the matter who said Ross’s involvement with the District Detroit will continue through a joint-venture between Related Cos. and Related Ross. 

He is not involved in Ann Arbor, where Related Cos. affiliate Related Midwest last month received Ann Arbor Housing Commission approval to build a new mixed-income high-rise on the former Ann Arbor YMCA site, according to a source familiar with the matter. 

 

Together, Ross and the Ilitch family have proposed more than $1.5 billion in new and redeveloped buildings in the District Detroit area. So far, the only one that’s started construction is the University of Michigan Center for Innovation, a $250 million project being lead by the university.

Olympia and Related announced a series of 10 projects costing about $1.53 billion and, as envisioned, bringing 1.25 million square feet of office space, 695 residential units (with some affordable at rates as low as 50% of the Area Median Income), 467 hotel rooms and about 146,000 square feet of commercial/retail space. Of those 10, an office building at 2200 Woodward Ave. was to be the first, but the companies pivoted to focusing on residential first earlier this year. 

Olympia and Related sought and received various approvals on close to $800 million in public financing, the majority of which comes from a $615 million or so transformational brownfield package largely through various state tax captures. The developers say the projects couldn’t be built without the taxpayer funding.

The Wall Street Journal said Ross, through Related Ross, has in the last several years acquired some 3 million square feet of commercial space in West Palm Beach, where he has become the largest commercial landlord downtown.

The Related Cos. was founded by Ross 52 years ago and owns $60 billion worth of property nationally. 

Editor’s note: This is a developing story and will be updated. Aaron Elstein of Crain’s New York Business contributed to this report.

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