Sale of closed Palace of Auburn Hills may be near
A Livonia-based real estate development firm may be close to buying The Palace of Auburn Hills, the massive former home of the Detroit Pistons, a source familiar with the situation said Wednesday.
No details were known of the potential sale of the now-closed 20,000-plus seat venue that sits on 103 acres.
Livonia-based Schostak Brothers & Co. are the potential buyers, the source said.
Company President Kevin Schostak declined comment.
The Palace closed in 2017 after owner Tom Gores decided to move the Pistons basketball team, also owned by Gores, to Little Caesars Arena in Detroit. A Bob Seger concert was the final public event at the venue.
Representatives for Gore's Platinum Equity firm would not comment Wednesday.
City of Auburn Hills officials have not been told of the potential sale, said Mayor Kevin McDaniel. "I know that a number of developers have expressed interest, including the Schostak Brothers company," he said.
The property was rezoned by the city to accommodate high-tech and research companies. The area around the Palace is home to a number of auto suppliers, manufacturers, and research and development firms.
Platinum Equity purchased the Pistons and the Palace for a reported $325 million in 2011.
The Palace opened in 1988 at a cost of $90 million — all privately funded by late owner William Davidson, who moved the team from Detroit to its temporary home at the now-demolished Pontiac Silverdome for a decade before settling in Auburn Hills for 29 years.
In 2016, Oakland County government rejected a $384 million offer to buy the facility.
Schostak Brothers & Co. was established in 1920 and is a fourth-generation family business. It operates commercial properties in 24 states.