The University of Michigan plans to buy part of the former site of Kmart’s old world headquarters in Troy and build a medical center there for the health care system.

The future Michigan Medicine center would be one piece of a broader 28-acre development planned for 3100 West Big Beaver, where the old headquarters stood from 1972 until its demolition last fall.

The UM Board of Regents voted Thursday morning to approve a tentative $4.4 million deal for 7.3 acres of land at the site. The seller is a joint venture of the Forbes and Frankel families, who have owned the approximately 40 hectare site since 2009.

The Forbes Co., which also owns the nearby Somerset Collection shopping center, would handle development of the overall site. A company representative declined comment Thursday on their grand vision for the location.

Kmart’s massive and architecturally distinctive headquarters had been vacant since 2006 and was demolished last fall.

The university’s health care system, Michigan Medicine, says it plans to build a “multispecialty center” that would include outpatient surgical services and certain cancer treatments. The specific specialties and services that will be offered have not yet been determined, officials said, and approvals through the state’s Certificate of Need process for new medical facilities are still needed.

Nevertheless, construction is expected to begin next year, with an expected opening in 2027.

The medical center in Troy would be the first of its kind for Michigan Medicine in Oakland County, officials said. It would be similar to the existing Michigan Medicine centers in Brighton and Northville, although the Northville center does not offer the outpatient surgical services planned for Troy.

“We plan to develop a facility focused on advanced specialty and diagnostic services,” said Dr. Marschall Runge, CEO of Michigan Medicine and dean of the UM Medical School, said in a news release. “This is a starting point for a broader and deeper UM Health presence in southeast Michigan.”

In an interview with reporters Thursday afternoon, Michigan Medicine officials referred all questions about future development plans for the overall site to Forbes Co., which declined comment.

More: Kmart’s architecturally unique headquarters in Troy will likely be the last of its kind to go down

More: Ascension hospitals in Saginaw, Tawas and Standish will become part of MyMichigan Health

Michigan Medicine has recently been expanding into parts of the state well beyond its base in Ann Arbor, and health system officials said that by opening a new medical center in Oakland County, they expect to recruit new patients and expand existing to increase convenience. patients already seeing physicians at Michigan Medicine.

The health care system plans to hire new health care providers and technicians to staff the center in Troy, officials said.

“We recognize that we need these types of partnerships to best serve Michigan. We need to expand our capabilities and meet patients closer to home and not expect everyone to come to Ann Arbor,” said Dr. Scott Flanders, Chief Clinical Strategic Officers for Michigan Medicine. , said.

After Kmart moved, the headquarters was to be redeveloped into “the Pavilions of Troy” with apartments, retail, offices and a hotel, but that proposal unraveled during the Great Recession. In 2009, an ownership group consisting of the Forbes and Frankel families purchased the approximately 40 acres for $17.5 million.

Forbes Co. founder Sidney Forbes later told Crain’s Detroit that their purchase was a “defensive move” after rival developer Grand-Sakwa Development began courting Somerset tenants for a project.

Michigan Medicine on the rise

Michigan Medicine has been expanding its footprint across the state, acquiring Lansing-based Sparrow Health System last year, a deal that increased Michigan Medicine’s statewide market share to more than 15%.

It also has a clinical affiliation and business partnership with Midland-based MyMichigan Health, which uses UM’s brand name and logo. MyMichigan Health announced this week that it plans to acquire three Ascension Michigan hospitals in Saginaw, Tawas and Standish, a deal still subject to antitrust approval.

(A separate proposed deal for Henry Ford Health to gain control of eight other Ascension Michigan and Genesys hospitals is still awaiting approval.)

At Thursday’s UM Board of Regents meeting, two regents who live in Oakland County said they were excited about the health care system expanding its footprint there.

“I just want to say that as an Oakland County resident, we have missed having Michigan Medicine in our backyard for a long time,” Regent Jordan Acker said. “This … will provide incredible access to that market, but also to my neighbors who are looking for that Michigan experience without having to travel out of county. This is a welcome, necessary and long-awaited addition to Michigan Medicine’s portfolio.”

Regent Denise Ilitch also expressed her approval.

“I am very excited about purchasing the property,” Ilitch said. “I think the project is going to be really beautiful. But more importantly, we’re going to be able to offer services in Oakland County. I live there too, but it is a real benefit to our citizens that we can spread our wings and provide better quality services in this area – healthcare.”

Contact JC Reindl: 313-222-6631 or Follow him on Twitter @jcreindl

Leave a Reply

Your email address will not be published. Required fields are marked *