The Temple Hotel in 2009. (Elizabeth Conley / The Detroit News)
The Temple Hotel, probably the last of pay-by-the hour hotels in Detroit’s Cass Corridor, has been sold to DTE Energy.
DTE Energy didn’t say how much it paid for the building at 72 Temple St. across the street from the planned multipurpose arena that will be the new 18,000-seat home of the Detroit Red Wings.
The asking price for the four-story flophouse, between Woodward and Cass avenues just north of downtown, was $3.7 million, which is about $3.6 million more than any other publicly listed sale made on the block.
A DTE spokesman said the building is likely to be demolished. The property was bought mainly for “infrastructure improvement,” according to the utility, which has an electrical substation next to the building.
The hotel was bought in 1987 for $70,000 by brothers Basil and Robert Rayis. Toward the end, rooms could be rented for as low as $5 an hour or $350 a month.
The low-income neighborhood near the Masonic Temple is likely to be recast as a $650 million entertainment district that is to include retail, housing and office space.
It’s within easy walking distance of Ford Field, home of the Detroit Lions, and Comerica Park, home of the Detroit Tigers, owned by Mike Ilitch. He also owns the Red Wings. The project borders are Woodward on the east, Cass to the west, Temple on the north and Interstate 75 on the south.
The arena will be the anchor of a 45-block area, described as an “entertainment district,” which will include retail, office and residential space, a hotel and parking buildings. It generally reaches from Grand Circus Park to Charlotte between Woodward and Grand River.