Former Kmart headquarters could see multiple development projects

TROY — The site that previously housed the international headquarters of Kmart Corp. could see multiple land uses in addition to the initial plans for University of Michigan Health’s potential medical facility.

The former Kmart headquarters has been vacant since 2006, and the 40-acre property at 3100 W. Big Beaver Road was purchased by Forbes/Frankel Troy Ventures LLC, which also owns Somerset Collection, in 2009.

Demolition of the property began in November 2023 and finished this July. In March 2024, University of Michigan Health purchased 7.28 acres of the property for $4.42 million to build a health care center that would focus on specialty and diagnostic services.

“I have been talking to the University of Michigan for over six years,” Nathan Forbes, a managing partner of Southfield-based Forbes Co., said during a Sept. 10 Troy Planning Commission meeting. “They see over 200,000 people in from Oakland County up in Ann Arbor every year, somewhere between 150,000 and 200,000 a year, yet they don’t have a facility east of (Interstate) 275, and I used to always tell them that you do all the hard work, you make the investment in research, you make the investment in your brick and mortar up in Ann Arbor, you do all the hard diagnosis and then you’re giving away the medical practices, medical clinics, the treatment centers, the rehabilitation centers, the outpatient  surgery centers to the likes of the hospital network systems that service the peripheral of Oakland County. You need to have a brand in the center of Oakland County.”

During the Troy Planning Commission meeting Sept. 10, a representative with Forbes Frankel Troy Ventures LLC presented potential plans for a development project that could include 750 residential units, 500,000 square feet of office space, 300,000 square feet of retail space, and a 250-room hotel, as well as associated amenities and open space.

“Obviously, this is a transformative project on Big Beaver and one that many of us here in the city have been waiting a number of years to see and come to fruition,” Ben Carlisle, of Carlisle/Wortman Associates Inc., said.

Forbes presented the plans in order to receive feedback before submitting a formal conceptual development plan application. The plan could include the medical facility building, two retail/restaurant buildings fronting on Big Beaver, a hotel/restaurant building, two residential buildings, a retail mixed-use building, two retail/office/hotel/residential/parking mixed-use buildings, at-grade parking lots, two parking decks, plazas and sitting areas, and internal sidewalks among other amenities.

“This will be great for the local residential market in this area, and we’re going to tie it all together,” Forbes said. “We want it to be a place people come, they either get dropped off, they can walk, they can sit outside. There’ll be places to sit, have drinks, be entertained, and then the residences will also have those food and beverage options and a gourmet market by which to shop on a daily basis.”

As a part of these development plans, the applicant would seek to amend the concept development plan and the planned unit development agreement as the site, located at the northwest corner of Big Beaver and Coolidge Highway, is currently zoned under The Pavilions PUD.

A consent judgment originally entered in May 1973 between Sheffield Development and the city of Troy includes four contiguous parcels that total around 140 acres, states information included in the meeting packet in relation to the proposed Somerset West Concept Development Plan. “A portion of the 140 acres includes the 12-acre portion of the site north of Cunningham, but does not include the northwest corner parcel at Big Beaver and Coolidge of approximately … 28 acres,” the information states.

According to city information, while the 40 acres is controlled by the PUD, the 12 acres north of Cunningham Drive are part of a larger consent judgment. The development of the former Kmart HQ site, south of Cunningham, will not be affected by the consent judgment but will require amendment to the existing PUD.  The development of the 12 acres north of Cunningham Drive will require an amendment to the consent judgment.

For this project to come to fruition, the applicants will need approval of a conceptual development plan, a preliminary development plan, and a final development plan.

While members of the Planning Commission questioned Forbes on the residential unit, and parking lot sizes and placements, as well as potential connections to Somerset North, among other concerns, overall they mainly expressed positive reactions to this potential plan.

“I’m blessed to be from this area,” Planning Commission member Toby Buechner said. “I grew up at Somerset. My kids grew up at Somerset. My grandkids are going to grow up at this place. Great speech, nice presentation. … You said everything right. Love that you’re taking your time to do it right. I live nearby. I love what you’re doing here. I like where you’re coming from. I can’t say anything remotely even the middle of negative, because it’s good stuff.”

“Just the mixed use, the residential, the amenities, the walkability,” Planning Commission member Tyler Fox said. “I mean, it’s all absolutely fantastic. … You guys did your homework, and you did a great job of, like, hitting those points that we really are interested in and look for as a commission.”

The Planning Commission didn’t vote on anything related to this issue as the presentation was meant to serve as an introduction and opportunity to receive feedback on the plan. Once the applicants submit the proper paperwork, groundwork for this project could begin next summer, and it would be open around three years from now.

At this time there are no current updates to the University of Michigan medical center project.

For more information, visit uofmhealth.org or troymi.gov.