Rocket Companies, Inc. (NYSE: RKT) – A look at how Dan Gilbert and Quicken Loans helped revitalize Detroit


Dan Gilbert’s plans to help support the economic recovery of the city of Detroit continued Thursday with the announcement of a $ 500 million investment to help revitalize neighborhoods in the city over the next 10 years.

What happened: Gilbert, owner of the Cleveland Cavaliers of the NBA and president of Rocket companies (NYSE: RKT), has been a major donor and investor in the city of Detroit.

Thursday’s announcement calls for $ 500 million to invest in Detroit over the next decade. The first $ 15 million will be used to cover overdue property taxes in the city and to pay taxes on approximately 20,000 homes.

The movement of Quicken Loans: In 2007, Gilbert announced that Quicken Loans would move its headquarters from Livonia to downtown Detroit.

After being unable to agree to construct a new building in downtown Detroit, Quicken Loans announced plans to move its corporate headquarters and 1,700 team members to the Compuware building, a move that was completed in 2010.

The building, now known as One Campus Martius, houses Benzinga’s head office.

“The move of Quicken Loan’s head office to Detroit is eagerly awaited. We welcome Quicken Loans and its staff to Detroit, ”said Detroit Mayor Dave Bing at the time.

Related Link: Dan Gilbert, Jay Farner on Rocket Companies IPO: Great Place to Start

Believe in Detroit: In 2013, the city of Detroit became the largest American city to declare bankruptcy. The city was suffering from an economic crisis and an unemployment rate of 28%, at the time three times the national average.

Gilbert has invested and trusted the city of Detroit through several donations and projects to help revitalize Detroit. Gilbert has said he wants to make Detroit a “muscle and brain” hub, CNBC reported.

At the time of Rocket Companies’ IPO in 2020, it was revealed in the company’s S1 how important the Detroit headquarters is to Quicken Loans.

Moving the company’s headquarters out of Detroit would require a combined vote of 75% of Rocket Companies’ common stock.

In 2020, Quicken Loans and Gilbert donated $ 1.2 million to the city of Detroit to help fight the coronavirus pandemic.

Gilbert and Miami Dolphins owner Stephen Ross each donated $ 5 million to Wayne State Law School in 2016. The donation from the school’s two former students was the biggest gift the school has ever had. never received.

Invest in Detroit: Rock Ventures, where Gilbert is president, has invested and acquired hundreds of properties and developments in the city of Detroit.

See also: Quicken Loans Review

With Ross, Gilbert is building the $ 300 million Detroit Center for Innovation on Gratiot Avenue at the east end of downtown. The space, previously known as the site of an unfinished Wayne County jail project, will be transformed into a collaborative space for graduate and undergraduate students.

Plans also call for the Detroit Center for Innovation to have residential units, a hotel, and a conference center.

Gilbert has been active in acquiring property in Detroit and bringing large companies and their workforce to the city.

The president of Rocket Companies aims to transform downtown Detroit into a pedestrianized urban center with public plazas and the Hudson Tower skyscraper.

With the move of Quicken Loans headquarters, investments and donations to the city of Detroit, Gilbert is on track to meet his goal.

© 2021 Benzinga does not provide investment advice. All rights reserved.

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