Depressed Detroit: The Sale of the Pontiac Silverdome

by snuffysmith | November 19, 2009 at 03:04 pm

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I was living in Detroit in the 1970s when the Pontiac Silverdome was built, having moved there from California. The Silverdome was welcomed as a real shot in the arm to Detroit's economic morale as well as a fabulous athletic venue. How sad to see the facility being sold at below rock bottom prices. What a shame.

A yet-to-be identified Canadian family-owned real estate organization (from Toronto) has bought the Pontiac Silverdome $583,000. It will reportedly be used as an indoor soccer facility. The cost to build the 80,000 seat arena in 1975 was $55.7 million. That would be $227 million in 2009 dollars.

The sale price is less than the average home value (even after recent declines) in many upscale neighborhoods. The land area adjacent to the arena is 127 acres. The sale price is less than $4,600 an acre! Is that typical of prime commercial land in the Detroit area? If so, that is real depression.