U-M Health to Buy Property at Former Kmart HQ Site in Troy for $4.4M

University of Michigan Health in Ann Arbor has agreed to purchase 7.28 acres of vacant land at the former Kmart headquarters in Troy for $4.4 million on which to build a multi-specialty clinical facility.
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Old Kmart HQ in Troy
University of Michigan Health will purchase 7.28 acres of vacant land at the former Kmart headquarters site in Troy and build a multi-specialty clinical facility. // File photo

University of Michigan Health in Ann Arbor has agreed to purchase 7.28 acres of vacant land at the former Kmart headquarters in Troy for $4.4 million on which to build a multi-specialty clinical facility.

The U-M Board of Regents on Thursday approved the purchase of the parcel from owner Forbes/Frankel Troy Ventures. It is located at 3100 W. Big Beaver Road, just west of Somerset Collection North.

The former Kmart fortress-like complex at the northwest corner of W. Big Beaver Road and Coolidge Highway has been vacant since 2006. Demolition started late last year on the three-story structure, one of the most inefficient buildings ever designed with its 23 circular, connected pods. It took 10 minutes or more to walk from one end to the other.

“We are thrilled to announce our plans for a long term-presence and commitment to patients in Oakland County, in keeping with our efforts to create a statewide network of care that allows Michiganders the ability to receive our world-class care close to home,” says Marschall S. Runge, CEO of Michigan Medicine, dean of the Medical School, and executive vice president of medical affairs.

“We are planning development of a facility that focuses on advanced specialty and diagnostic services. This is a starting point for a broader and deeper U-M Health presence in southeast Michigan.”

This is among multiple U-M Health projects expected to increase patient access in southeast Michigan. Others include the 12-story D. Dan and Betty Kahn Health Care Pavilion, set to open in 2025 in Ann Arbor, and the Ypsilanti Health Center in downtown Ypsilanti, set to open in late 2024.

“We believe this new investment will bring our U-M Health expertise to a whole new community of patients, providing easier access for metro Detroit residents to our nationally renowned clinical expertise and innovation,” says David Miller, president of U-M Health.

“We are excited to move into a prominent, easily accessible location in Troy, where we will continue to expand our presence. We expect this new facility will be a location for advanced and innovative clinical programs including multi-disciplinary cancer care.”

According to Michigan Medicine, this building will follow university guidelines regarding its Leadership in Energy and Environment Design program to minimize negative environmental impacts.

“I am thrilled about the University of Michigan Health’s acquisition of the old Kmart headquarters in Troy, which marks a significant step forward in expanding specialty clinical services in Oakland County,” says Oakland County Executive Dave Coulter. “Health care is our largest jobs sector employing one of every seven people in our workforce. This investment underscores our commitment to enhancing health care accessibility and innovation for our residents.

“Additionally, U-M Health’s commitment to achieving LEED certification at the site of the former Kmart headquarters reflects their dedication to sustainability and environmental stewardship, setting a commendable standard for health care facilities.”

Over the years, developers have unveiled unfulfilled plans for the site including the Pavilions of Troy, a $300-million walkable, outdoor-oriented mix of shopping, offices, residences, and entertainment shown in 2007. There would have been a public ice skating rink, a 3,000-seat theater, restaurants, a grocery store, and parking.

Local and state officials hailed the project and approved tax credits to support it, but the ensuing real estate bust and Great Recession was its undoing.

To read an award-winning DBusiness feature on the demise of Kmart Corp., called “Polyester Palace,” visit here.