DETROIT, May 28, 2020 /PRNewswire/ -- As Michigan businesses begin to open their doors, Bedrock (downtown Detroit's largest commercial real estate company) today announced "Bedrock Relaunch," which will offer enhancements to the rent relief program that began in March with three months of rent abatement.
Through Bedrock Relaunch, Bedrock will provide all eligible, operating restaurant and retail tenants the option to temporarily amend their lease to reflect the following:
All rent and fees waived for the month of June, as a grace period for ramping up their business as government restrictions begin to loosen
Base rent waived in favor of paying 7 percent of gross sales
Tenant's security deposit may be applied toward re-opening costs and costs associated with space modifications/reconfigurations via reimbursement.
The temporary lease amendments will span the remainder of 2020.
"It is becoming clear that even when all businesses are able to reopen, it's unlikely their sales volume will immediately return to pre-pandemic levels, and we want to make sure that rent payments aren't a barrier to success," said Matt Cullen, Bedrock CEO. "Dan Gilbert founded Bedrock 10 years ago on the principle that a landlord should be an invested partner with each tenant as well as a responsible corporate citizen. We are committed to doing everything we can to make sure we all come out of this together, including looking into experiential initiatives that will help drive traffic back to storefronts."
Bedrock Relaunch is part of an ongoing effort to help position Bedrock's tenants for a safe and successful reopening following the outbreak of COVID-19, and government guidelines for community safety that forced so many otherwise prosperous businesses to shutter. Bedrock's relief program began in March, which offered small business and restaurant tenants rent abatement for the months of April, May and June; along with the implementation of a small business resource page on bedrockdetroit.com. That stage was meant to help our tenants weather the uncertainty of these last few months. Now that businesses are beginning to reopen, Bedrock Relaunch is meant to help them be successful.
While this temporary lease amendment is scheduled to expire December 31, Bedrock's commitment to downtown's success does not end there, and rent relief is just one lever the real estate developer is pulling toward the goal of getting the lights back on in downtown Detroit. Sidewalk and street closures to increase safe dining capacity, converting parking lots to drive-in movie theaters, and special shopping events are just a few of the ideas being considered for future phases of Bedrock Relaunch.
"Real estate leaders, entrepreneurs, and municipalities will need to come together to find creative solutions for a safe reopening of local economies," continued Cullen. "I believe Main Streets across America will look different for a while yet, but if we all work together, reopening can still be successful."
Since March, Bedrock and the Rock Family of Companies has committed millions to building up the resilience of local businesses, through rent relief, personal protective equipment (PPE) procurement and grant funding. Earlier this month, Bedrock helped launch Detroit Mayor Duggan's Detroit Means Business program, which offers any Detroit-based small businesses access to a Playbook for reopening safely, financial resources, PPE, and webinar content sourced from industry experts.
Small business has been at the heart of Bedrock's retail strategy ever since Dan Gilbert spearheaded the purchase of his first building, The Madison, 10 years ago. In the years since, Bedrock has continued to invest in Dan's vision of supporting small business through programs like the seasonal Downtown Detroit markets, and a general retail strategy that places local retail concepts next door to some of the world's most popular brands.
While several businesses have either been mandated to cease operations or made the difficult decision to temporarily close during this unprecedented time, many downtown businesses remain open and have rolled out innovative adaptations to continue serving the community. Bedrock continues to support and encourage tenants work through some of these operational challenges and come up with creative ways to persevere.
A full list of Bedrock tenants whose doors remain open and services remain available as of today has been compiled here. This list will continue to be updated.
Eligibility for Bedrock Relaunch is evaluated based on the below criteria:
Tenant must be currently operating as a retailer, or food and beverage purveyor or a new tenant that opens before 12/31/20
Tenant must be in good standing as it pertains to their lease agreement prior to the pandemic business disruption
Detroit-based Bedrock is a full-service real estate firm specializing in acquiring, developing, leasing, financing and managing commercial and residential buildings. Since its founding in 2011, Bedrock and its affiliates have invested and committed more than $5.6 billion to acquiring and developing more than 100 properties, including new construction of ground up developments in downtown Detroit and Cleveland totaling more than 18 million square feet.
Bedrock's real estate portfolio consists of 210 office tenants and 125 retailers and restaurants in Detroit's technology-centric downtown, the majority of which are new to the market. Key office tenants include Coyote Logistics, IBM, Microsoft, Quicken Loans, LinkedIn, StockX, Universal McCann, UBS, Ally Bank's national headquarters and Fifth Third Bank's regional headquarters. Key retail tenants include H&M, Plum Market, The Lip Bar, 6 Salon, Lululemon, Shake Shack and countless others.
Bedrock is currently developing four transformational projects including the Hudson's Site, Monroe Blocks, Book Tower renovation and One Campus Martius expansion. Bedrock is also undergoing construction of City Modern, a community development in Detroit's Brush Park neighborhood. Partnering with Detroit-based Shinola, Bedrock developed the world's first Shinola Hotel on Woodward Avenue, which opened in early 2019.
Bedrock is dedicated to creating jobs for Detroiters and investing in job training. Over the last year, the company has invested in both the Randolph & Breithaupt Career and Technical Centers to build a pipeline of talent for Detroit's growing economy.
Creating unique experiences through real estate is Bedrock's mission. To make this a reality, Bedrock and its affiliates continuously invest in significant public art installations and placemaking initiatives throughout the city.