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Updated (11/23/09): A judge has ruled that the sale of the Silverdome for $583,000 will go through.

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Original post:

Last month, it was announced the Pontiac Silverdome would be auctioned off. The auction happened and the winning bid was… drum roll, please… $583,000.

$583,000!

Right, not a typo folks — $583,000 for an 80,311-seat sports arena, on 127 acres in Detroit Pontiac! According to the Detroit Free Press, the winning bidder is someone from Toronto who has plans for an indoor soccer team.

The clincher of this story?

In 2005, suburban developers offered nearly $20 million for the Silverdome, but the deal fell apart as the city delayed taking the offer. And last year, a $17.5-million plan to turn it into a horse racetrack, hotel and conference center also fell through.

Too bad Detroit’s Pontiac’s city execs failed to remember the mantra about the first offer being the best offer.

(Photo courtesy Detroit Free Press)

  • http://blog.livingonthehudson.com/ Walter Burns – Hoboken Real Estate

    WOW! Someone got a great deal!

  • http://arizonarealestatehome.com/ Steve Trang

    It is absolutely amazing that it could be bought for $583k. That is less than $5000/acre! It was good enough for an NFL team at one point. Absolute madness.

  • http://houstonhomesforsale.org/category/houston-neighborhoods/ Houston Neighborhoods

    This is just amazing to me. I think Detroit is a long, long, long way from a recovery. It will likely take Detroit a good 10 years longer to recovery than the rest of the nation, however, come on how does once prime real estate end up selling for less than 3% of what it was worth at its peak. Now that just seems nuts to me. I wish the guy in Toronto the best and hope the people of Detroit suffer as little as possible.

  • http://www.topofmind.com Mark Green

    There’s gotta be a catch here, right? I imagine the new owner will be on the hook for some steep property taxes… and maybe they also have to clean up the site… and maintain it? I wonder if the inside is trashed? This just doesn’t make any sense at all.

  • http://www.biglynn.com Barry Lynn Miller -REMAX

    If I was the guy that bought it, I would be selling to the horse track forget an indoor soccer team. Who watches soccer anyway. Was this a closed auction

  • http://www.knowcondos.com Ron Edwards

    I think MARK GREEN has a point…there HAS to be a catch in this. The first thing that comes to my mind is a few mil in taxes. This place could be in the verge of collapsing, needing a few million in repairs. Many people can afford to pay $600k for a small condo, let alone a stadium and 100+ acres that could theoretically be flipped for 3000%+ in profit. Something’s afoot…

  • http://www.topofmind.com Mark Green

    Ron – maybe there’s some sort of long term lease intact with the city? Certainly makes no sense on the surface. Diane, can you do any digging on this? Certainly is interesting :)

  • http://www.zillow.com/profile/dianetuman/ Diane Tuman

    Details on the purchase agreement haven’t been released yet — but I don’t think this is over.A developer who tried to buy it for $20 million a few years ago has filed a lawsuit blocking the sale: http://www.dailytribune.com/articles/2009/11/18/news/srv0000006858313.txt

  • http://www.topofmind.com Mark Green

    Diane, what a fascinating story – great job! I’ll definitely be keeping an eye on this one :)

  • wendy

    WOW!!
    Just wanted to clear one thing first off, The Silverdome is actually in Pontiac.
    I’m glad that the building got sold finally! the City of Pontiac has been dragging their feet for YEARS on this place! there were so many great opportunities and ideas for the place that the city let roll on by! and for what!? who the hell knows!
    I grew up in Pontiac and have sooo many fond memories of The Silverdome! I saw KISS and Elton John both there in the 70’s! I worked there for a year when I was 18 and got to see many Lions games and The Rolling Stones. So I would have cried real tears to see it get torn down. I hope the new owner pumps some life into it once again! the building needs and the area surrounding it needs it.

  • http://www.buynowcolorado.com Cherry Creek Realty Services

    I can’t believe how cheap they bought that for!!!

  • http://bankruptnooption.wordpress.com Bankrupt Nooption

    Hey Mark, Diane and Ron,
    They sure did get a good deal, it was bought outright with no strings for Half a mill. The stadium and it’s property are in pristine condition and there are other stadium outbuildings on the site also. It was used as of last year for different gatherings and it is still in opening day condition from what I saw. Immaculate! The only thing is that they will have to pay taxes on a city appraised property value of the site not on a purchase price (the same as in the housing market) and it used to be worth almost 20 mill. That is going to be a nice bit of change, but then you have to figure that if they threw down half mill for it and are wanting to bring in soccer teams, then they probably have the cash to throw around!
    Bankruptnooption.

  • http://Zillow.com Wayne Garren

    Do you have a picture of the Mayor, City Manager, and City Council of Pontiac? I’d love to see what the group looks like that are failing to look after the financial welfare of the city.

  • Dan

    Jeez,
    Maybe I should have forgotten about getting a house for my family and just bought a stadium. I could have had Detroit’s unemployed auto workers rent the box suites and hosted classic car shows to pay the bills.

    Someone (or a group of someone’s) got an amazing deal. Like everything else in the Big Three’s World…. something stinks.

  • Slap Yak

    I think that Canadian got robbed.

  • Rich

    I think the city officals sold it to a rich friend so they could all enjoy profits when the City throws them out of office. I mean really, how could anyone be that financialy inept. It does sound like typical government corruption.

  • Pingback: Pontiac Silverdome Sold for... - Tech Support Forums - TechIMO.com

  • http://www.accessavhomes.com Susan

    Wow, it really could have went for a lot more than it did!

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