Ilitches plan $25M renovation of historic Detroit building — with big tenant coming

The Ilitch organization announced Thursday that it plans a $25-million renovation of downtown Detroit's long-vacant Women's City Club and has secured a major tenant to fill much of the historic building.

Switzerland-based IWG, an office space company, will lease the upper floors of the large six-story building, 2110 Park Ave., as its flexible office and co-working space brand, called Spaces.

The building's future street-level retail space is separate and not part of the lease deal.

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A spokesman for the Ilitch organization's Olympia Development said that more details of the project, including a timeline, could follow in the near future. Olympia reportedly purchased the property two years ago.

The renovation plans could improve public relations for the Ilitch organization, which has come under criticism for the slow pace of development in and around the new Little Caesars Arena.

Opened in 1924, the architecturally unique building occupies a city block and once housed one of the largest women's clubs in the world with more than 8,000 members. The building's interior features Pewabic tile and a now-drained indoor swimming pool. It is listed on the National Register of Historic Places.

“As we continue to expand the Spaces portfolio, we see Detroit as a strong market for coworking,” Michael Berretta, a vice president for IWG, said in a statement. "We’re excited about Detroit and there is no question that our brand is a perfect fit for the community.”

Detroit has seen numerous co-working spaces pop up in recent years, often in repurposed traditional spaces that were vacant, such as a former police station.

The Ilitch organization made national headlines this week when it announced that musician Kid Rock decided to not renew his licensing agreement for his Made in Detroit restaurant at the arena. The announcement came in the wake of a viral video showing Kid Rock onstage at his Nashville restaurant and apparently drunk, directing a graphic rant toward Oprah Winfrey.

Another empty Ilitch-owned downtown building, the United Artists Theatre Building at 150 Bagley St., is slated to undergo a $56 million redevelopment next year into 148 apartments. However, the building's long-deteriorated theater space would be demolished.

Contact JC Reindl at313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @jcreindl. Read more on business and sign up for our business newsletter.