National City Closes on First Sale of a Condo Unit in the New Book Cadillac Hotel - Sets Benchmark for Residential Value of New Condos in Detroit

DETROIT, Oct 07, 2008 /PRNewswire-FirstCall via COMTEX/ -- National City has announced the closing of the first sale of a condo unit in the new Book Cadillac Hotel.

The 1,401 square foot unit sold for $463,550, which equates to $331 per square foot, a new appraisal benchmark for Detroit. The next closings are expected on October 9 by other lenders with six by National City to follow shortly thereafter.

David Boyle, president for National City in Michigan, said, "As the lead investor in the Book Cadillac renovation, with over $38 million invested, and as the presenting sponsor of the October 25 grand opening gala, we are proud to announce this milestone, which establishes a new residential value for condo sales in the city."

He emphasized, "Over the past 10 years, National City has been at the forefront in community development for downtown Detroit and the surrounding neighborhoods. We welcome our responsibility to lead the way as a partner in our city's renaissance."

National City provided the final sources of financing which made the Book Cadillac deal complete. The equity investment allowed the other pieces of financing to fall into place.

The National City CDC approved the purchase of a condo unit which made the project eligible for the bank's unique NCHAMP (National City Housing Affordable Mortgage Program) mortgage loan. NCHAMP provides for a conventional 15 or 30-year fixed-rate loan with no points and priced at one and one-half percent off the current interest rate.

Dick Buss, director of the National City CDC in Michigan, explained that National City was the key investor in the first "Chicago-style" loft project, The Canfield Lofts in the Midtown neighborhood. This was followed by current projects including: The Ellington (new construction at Woodward at Mack), The Vinton (a historic rehabilitation at Woodward at Congress), The Riverfront Condos (Tower 300, a conversion of apartments to condos), and The Willys-Overland Condos (an industrial loft rehabilitation project on W. Willis at Cass.)

National City has also been the first and the leading bank investor bringing the value of federal New Markets Tax Credits for commercial development to support housing in Detroit's neighborhoods. The National City CDC has approved more than $30 million of equity investments for eight projects as varied as Midtown's N'Namdi Art Gallery, the Mexicantown Welcome Center and Mercado, and Techtown's business incubator and coffee shop.

Boyle concluded, "National City formed the first CDC in the country in 1982. Under the extraordinary work of Dick Buss and our development teams, our CDC enjoys a strong record of equity investments that lead the way in revitalizing our neighborhoods by delivering quality residential options."

SOURCE National City Corporation