Richard Hosey – Developing Companies, People, as Well as Projects

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The career of Richard Hosey, owner of Hosey Development LLC, has spanned development, consulting, financing, and asset management of more than 75 projects in Detroit totaling over $2.5 billion in development costs.

His most recent undertaking is the renovation of the former Fisher Body 21 plant, a $134 million project that will preserve and redevelop the plant into approximately 435 rental apartments; 38,000 square feet of commercial space; outdoor and indoor amenities; and up to 139 interior and 646 adjacent surface parking spaces. At least 20% of rental units will be affordable for those earning no more than 80% of the area median income ($51,200 or less for a two-person household).

SBN Detroit spoke to Hosey about his work and his impact on sustainability in Detroit.

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HOSEY DEVELOPMENTS

Q: Tell us about Hosey Development.

A: I’ve been in real estate since 1996, and then I worked for Bank of America from 2005 to 2013 investing in urban development. That job brought me back to Detroit in 2008. I remember arguing with a city councilperson on why the Lafayette Building should not be torn down, and that it should be invested in and rehabbed. She said to me, ‘Would you do it?’ and I thought, yes, I need to stop complaining and start doing something. I started with the Kirby Center Lofts, which was an old Hebrew School in Midtown, and then it became a process after that.

Q: Talk about preserving affordable housing in Detroit and how you work to do this.

A: In 2008, the city was only building affordable housing, which created concentrated poverty.

On the other hand, as the market rate takes off, we need to ensure that it’s reasonably and rationally balanced so housing doesn’t become unaffordable. Revitalization tends to push out affordability, but the City of Detroit has an affordability requirement inside every project to ensure this doesn’t happen.

I love the work of the Detroit Land Bank. Affordable housing should not just be apartment living. With programs like Rehab and Ready, they are going into neighborhoods and driving change.

Q: You provide financing for your subcontractors. Can you tell us about that?

A: I focus on employing Detroiters. Detroit has plenty of construction talent, but there are not plenty of contractors with the capacity to carry a big job. There is an upfront economic load that comes with larger jobs, such as purchasing materials and paying for labor that many – most – construction companies in Detroit can’t shoulder.

For my first project – the Kirby Center – I started thinking what if I carry the job? I then met Mel Washington, a local developer who walked me through the process of doing so.

Now, my partner and I are using this same concept on the Fisher 21 project. We are using companies that have the skills and the organization to do a big job like this but can’t buy $1 million in HVAC equipment upfront and get paid later. So we do that part.

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FISHER 21 PROJECT EXTERIOR

It’s been great working this way. We get Detroit companies who do great work.

Q: How do you think sustainability plays into what you do?

A: As we build up the ecosystem such that our contractors in Detroit are getting the jobs, the economics go in a circle. Good-paying jobs mean the workers buy homes here, buy cars here, and spend their money here. That’s the ideal model.

For a lot of years, construction companies would come into the city, make their money, and go back to their homes in Oakland County or Macomb County. The key is to keep it in Detroit so the dollars stay in the community and circulate.

From an environmental standpoint, rehabbing a building versus tearing it down is much better for our planet. The challenge comes with being good to the tenant while being good to the planet. For example, we can put in huge beautiful windows, but how high is the electric bill going to be? We then need to find solutions for the most efficient furnace so the tenant isn’t impacted by a huge expense.

Q: The redevelopment of the Fisher plant is the largest Black-led development in the city. What is the importance of this?

A: I want this to become the everyday normal. So many processes focus on the idea that there is no talent or capacity in Detroit.

I hope to be able to show that larger projects can be handled by Black and Brown teams. We still have a long way to go. The Fisher project at $135 million is just 3% of the $5 billion in development announced in the last twelve months. But I hope to build a model for black funders and black talent to come together.

Q: What is the future of Hosey Development?

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FARWELL BUILDING

A: I will be in this market for the long run. I picture myself exclusively in Detroit except for one thing – mentoring new and existing developers. Again, I will feel more successful when more Black and Brown people and women are involved in development in the city.

And it’s happening. Many small and midlevel Black and Brown developers are coming into Detroit in ways you don’t see in other cities. Diverse developers are landing here because they can get a foothold. Preserving that should be a priority.

Removing barriers and growing talent based on ability as opposed to inherited wealth is one of the most important things we can provide in this market.

 

Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

Kim Kisner

Kim Kisner

With over 25 years of experience in the development and execution of strategic branding, content planning, and copywriting for brands such as Gatorade, Ford Motor Company, and Under Armour, and published by SEEN Magazine, The Jewish News, and countless health and lifestyle journals and blogs, Kim helps companies, brands, and people tell their stories.

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Rethinking Hydrogen Production

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Inside Michigan’s Environmental Justice Landscape

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The institutional leadership from Michigan State University and their director, Sandra Lupien, is positioning Michigan’s mass timber capabilities on a global level.   Connections are being established across the market from – architects, structural engineers, MI EGLE, code officials, business and economic development associations, workforce training leaders to contractors and suppliers.   Q: How could mass timber and life cycle thinking influence redevelopment in cities like Detroit, where adaptive reuse and reinvestment are central to the urban story?  A: Detroit has led in adaptive reuse for over 25 years, proving that reinvesting in existing buildings delivers cultural, social, economic, and environmental value. Mass timber and lifecycle thinking are the next steps, offering lower carbon pathways as the city continues to grow.  To make informed decisions, architects and clients need a full understanding of a material’s life cycle, from extraction and manufacturing to reuse and end of life. This is why circular economy thinking is so critical to future development. At Gensler, our Gensler Product Sustainability (GPS) Standards help guide this process by providing clear, industry-aligned criteria that accelerate the adoption of lower carbon materials in collaboration with the Common Materials Framework.  Q: In a region shaped by reinvention, how do you see sustainable materials and measurement tools contributing to the next chapter of Detroit’s built environment?  A: Detroit and Michigan have always thrived on reinvention. That same spirit of creativity positions the region to lead in the next wave of sustainable development. Our climate challenges, paired with the natural and industrial resources already here, create an ideal environment for adopting materials and strategies that will help Michigan thrive through future change.  The growing investment in next-generation technologies is especially exciting. As industries across the state push toward innovation, there’s real potential for that momentum to drive broader adoption of low carbon materials, mass timber, and performance-based design tools. If we want to attract new residents, businesses, and industries, we need to shape buildings and public spaces that reflect where Detroit is going – healthy, efficient, resilient, and future focused.  Q: As sustainability expectations continue to rise, what do you think will separate projects that genuinely reduce impact from those that simply meet minimum standards?  Minimum standards are steadily improving as energy codes tighten and reduce allowable energy use, which means operational carbon is no longer the primary differentiator. What will set truly impactful projects apart is a commitment to addressing embodied carbon as well. Conducting Life Cycle Assessments (LCAs) early in design gives clients and teams a clear baseline and empowers them to make more informed material choices.  Projects that are serious about reducing their overall footprint will also look beyond efficiency to incorporate clean energy—whether by purchasing renewables from their utility or integrating onsite solutions. Michigan is particularly well-suited for ground source heat pumps, with stable underground temperatures that perform reliably through freezing winters and hot summers, and a strong network of engineers and installers who understand the technology.  In short, the leaders will be the teams that measure comprehensively, design holistically, and pair low carbon materials

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Urban Tech Xchange and Detroit Smart Parking Lab

Now in its fourth year of operation, Urban Tech Xchange (UTX) has become a living laboratory where emerging technology startups can test, refine, and validate smart urban systems in real-world conditions. Launched through a collaboration between Bedrock, Bosch, Cisco, and Kode Labs, UTX builds on the foundation of the Detroit Smart Parking Lab (founded earlier by Bedrock, Ford, MEDC, and Bosch) expanding its scope beyond parking into logistics, energy, building automation, accessibility, and freshwater tech. What differentiates UTX from other technology incubators and accelerators is its emphasis on real-world deployment. Rather than testing concepts in isolation, startups pilot technologies directly within Detroit’s streets, curbsides, buildings, and rooftops, allowing solutions to be measured against real constraints such as emissions reduction, infrastructure utilization, and resident impact. Over the past four years, that approach has helped deploy dozens of pilots and move some into active use. SBN Detroit interviewed Kevin Mull, Bedrock’s Senior Director for Strategic Initiatives, about how Southeast Michigan’s legacy industries are shaping the next era of sustainable urban logistics—and how incremental efficiencies can deliver meaningful environmental gains at city scale. Q: What factors help position Southeast Michigan to rethink how urban logistics can improve daily life in cities like Detroit? A: Southeast Michigan has been designing, building, and deploying mobility solutions for generations. What’s different right now is that we’re at a special moment where the relationships, the talent, and the physical space all align. We have room to test ideas, and we have strong public-private partnerships that allow us to deploy technology. Bedrock’s Detroit Smart Parking Lab (DSPL) and Urban Tech Xchange (UTX) give startups the ability to move beyond theory. Through platforms like the Michigan Mobility Funding Platform, we’ve been able to deploy a million dollars in grants to early-stage companies tackling real logistics and mobility challenges. Over the past four years, several of those pilots have become production-ready solutions now operating across Detroit—from curbside EV charging to streetlight-mounted charging systems. Q: How do wasted miles, underused infrastructure, or inefficient logistics affect urban environments and quality of life? A: Wasted miles translate directly into congestion, emissions, and frustration. Vehicles circling for parking, trucks idling in residential areas, or delivery vehicles double-parking because curb space isn’t managed well—all of that erodes the day-to-day experience of a city. Underutilized infrastructure is another big issue. Curbsides, loading zones, rooftops—these are valuable assets that often aren’t managed intentionally. At Bedrock alone, we process roughly 100,000 parking transactions per month. Every single one of those transactions is an opportunity to reduce friction or create value. We are focusing on solutions that remove friction. One example is IONDynamics, that’s working on automated EV charging. Another is HEVO – a wireless charging solution. Small improvements, repeated thousands of times, add up quickly. Q: How do smarter logistics systems change the way residents experience sustainability day to day? A: Sustainability becomes tangible when it improves daily life. Fewer vehicles circling means cleaner air and quieter streets. Better-managed loading zones mean safer sidewalks. More predictable deliveries mean less congestion during peak hours. One pilot we ran used a small autonomous robot to transport food scraps between restaurants and upcycling locations. Over the course of that project, it diverted more than 2,600 pounds of food waste and eliminated nearly 1,200 pounds of greenhouse gas emissions by replacing traditional vehicle trips. It also avoided the use of about 56 gallons of fuel. Those numbers matter, but what residents notice is the absence of friction—less noise, less traffic, and fewer large vehicles in tight residential spaces. Sustainability works best when it’s embedded into systems people already rely on. Q: How can improved last-mile logistics help reduce unnecessary driving and strengthen neighborhood connectivity? A: The last mile is one of the most important parts of the logistics chain and is often the most inefficient. A lot of energy is going into that space right now because it has outsized impact. Better coordination of curb space, smarter delivery scheduling, and multimodal solutions all reduce the need for unnecessary trips. When people can reliably park, receive deliveries, or access transit without friction, neighborhoods become more functional and connected. We focus on the edges—where parking garages meet transit, where delivery vehicles meet sidewalks, where people move between modes. Improving those interfaces creates meaningful gains without massive infrastructure investments. Q: Many of the technologies supported by UTX reduce congestion and emissions. How do you think about sustainability in this work? A: Sustainability is an outcome of better systems rather than the starting point. When you reduce wasted miles, idle time, and inefficient use of infrastructure, the environmental benefits follow naturally. If we can take miles off the street, shorten dwell times, or make curb space and parking more productive, we reduce emissions without asking people to change their behaviors. Across the Bedrock portfolio, we also think a lot about avoided infrastructure. For example, we’re exploring automated valet parking technology start-ups that aim to allow cars to park closer together and improve garage efficiency by an estimated 20 percent. That can delay—or eliminate—the need to build new parking structures, which has a significant embodied carbon impact. Another example is an automated robot charging solution from Ion Dynamics, which has a charging robot move to the vehicles require charging, which is a dynamic solution that avoids adding costly fixed charging infrastructure. The same logic applies to delivery drones, ground-based robots, and micro-mobility. Moving packages through the air or via small electric vehicles instead of gas-powered trucks reduces fuel consumption and congestion. Q: Where do you see the biggest opportunities for Southeast Michigan cities to improve logistics in ways that benefit both residents and businesses? A: The opportunities are everywhere, but they’re often measured in inches rather than miles. Smarter curbside management. Better coordination between delivery systems and transit hubs. More efficient use of shared infrastructure. Individually, these improvements may seem small. But in the aggregate, they have outsized impact. Through platforms like UTX and DSPL, we’re helping startups test those ideas, refine them, and scale what

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