The University of Michigan Health system is purchasing a portion of the vacant land at the former Kmart headquarters in Troy to build a multi-specialty facility, expanding its footprint into Metro Detroit and a city that is already home to two hospitals run by other health systems.
The UM Board of Regents on Thursday unanimously approved a motion to buy the 7.8-acre property for $4.42 million. The property is located on a 40-acre plot at 3100 West Big Beaver Road and was previously owned by Forbes/Frankel Troy Ventures LLC.
The new facility, which will focus on advanced specialty and diagnostic services, is a way to expand specialty clinical services and patient access in Oakland County, according to the news release. Michigan Medicine CEO Marschall Runge said it is a starting point for a broader and deeper UM Health presence in southeast Michigan.
“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,” said. Runge, who is also dean of the UM Medical School.
“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 UM Health presence in southeast Michigan.”
The former retail giant’s headquarters, which sits across the street from the Somerset Collection, has sat vacant for over 15 years and was slated for demolition last fall.
“We believe this new investment will bring our UM Health expertise to a whole new community of patients, providing easier access for metro Detroit residents to our nationally renowned clinical expertise and innovation,” David Miller, president of UM Health, said in a statement. “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.”
The expansion is a win for Troy, Oakland County’s largest city, and will only draw more people in and benefit the economy, Mayor Ethan Baker said Thursday.
Baker said it’s exciting to see “forward progress” on a redevelopment plan for the Kmart property, adding that most of the former structure has been demolished at the surface level. While the city was not aware of the identity of any potential purchasers of the property, the more options and access to health care in Troy the better, he said.
“They’re not buying the whole property, they’re just buying a portion of it, which will of course spark that continued redevelopment,” Baker said. “Our economy has diversified quite a bit to include a huge health care sector. Obviously, we have Beaumont Hospital in Troy, we have a (DMC) Children’s Hospital facility in Troy, and now we’ll have University of Michigan, so it’s very exciting to have all the best options in the state right here in the city of Troy.”
This development helps to make Troy a strong “regional hub,” he said.
The planned health care facility also will be close to two of Oakland County’s wealthiest cities, Birmingham and Bloomfield Hills
Two UM regents who live in Oakland County praised the purchase and development.
Regent Jordan Acker said UM has missed out on having Michigan Medicine in Oakland County. But this will provide, “incredible access for my neighbors looking for that Michigan Medicine experience without having to travel outside the county. This is a welcome, necessary and long-need addition to Michigan Medicine’s portfolio,” Acker said.
Regent Denise Ilitich added that she was also excited about the project and had high expectations.
“It’s going to be beautiful,” Ilitich said, “but, more importantly, we’re going to be able to offer services there. Being able to spread our wings and provide better, quality health services is a benefit to our citizens.”
The expansion follows Michigan Medicine’s merger with the Lansing-based Sparrow Health System, which was announced in 2022, as well as the combination of Beaumont Health and west Michigan’s Spectrum Health into the state’s largest health system called Corewell Health. Last year Henry Ford Health announced a joint venture with Ascension Michigan, combining all eight of Ascension’s hospitals and the health system’s related sites of care with Henry Ford’s acute care hospitals and facilities.
Michigan Medicine has two other projects. The D. Dan and Betty Kahn Health Care Pavilion for neuroscience, advanced imaging, and cardiovascular and thoracic care and the Ypsilanti Health Center in downtown Ypsilanti are set to open in 2025 and 2024, respectively.
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