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Is The Former Packard Plant The Largest Abandoned Building in the World?

Many people still don’t realize the lucrative opportunity investing in abandoned properties. Abandoned buildings have normally been neglected and are often an eyesore on the community. The owner will probably be paying out each month on the mortgage, insurance and property taxes with nil income from the building or property in return.  The good news for potential investors is that the owner will usually be motivated to sell. It is not unlikely that the seller will be open to seller financing or some other creative strategy to rid the owner of the property. The chances of securing a under market deal and making money on an abandoned building are excellent.

One of the world’s largest abandoned property is the Packard former car making complex in Detroit, Michigan, USA. It is the legendary automobile factory opened in 1903 which employed thousands of workers during its time and produced some of America’s most luxurious cars. It has been described as ‘a rotting effigy of the Motor City’s economic collapse’.

The assembly stopped running back in 1956 and so virtually vacant for decades, the plant has been a dangerous playground for graffiti artists and scavengers eager to explore the site despite the risks.

The place is apparently huge!. The plant is located on 40 acres (16 ha) of land on East Grand Boulevard on the city’s east side. The developers have big plans for the largely abandoned and neglected part of Detroit. The scheme will require a cleanup of the site, reconstruction and renovation, all part of a $350 million transformation predicted to take anywhere from 10 to 15 years to complete. So far, about $2.5 million has been spent just on a cleanup and demolition of dilapidated buildings.

It appears that new owner Peruvian real-estate investor Fernando Palazuelo, who bought the former factory during a 2014 foreclosure auction for $405,000, was serious about developing the site. Crews began work back in October 2014 on restoring the dangerous eyesore and breathing new life into the decaying Packard automobile plant.

It appears that Palazuelo also has a lot more industrial space in the city under contract with plans for development of light industrial and office space.

These projects are a huge boost for the city of Detroit, a place that once vibrated and purred with industry. It will definitely benefit the neighborhood creating jobs for security, landscaping, architectural and construction teams for a start.

There are risky bets in commercial real estate but Fernando Palazuelo is a very special real estate developer. It appears that he specializes in taking on challenges in cities that have problems. In Spain, Mr Palazuelo made a fortune converting abandoned buildings into art galleries and apartments. Unfortunately he was only to lose everything in the recession of 2008. After filing for bankruptcy, he moved to Lima, Peru. He was drawn there by the abundance of cheap, available property in the Peruvian capital.

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