Troy, Michigan – For years, anyone driving past Big Beaver Road and Coolidge Highway could see the hulking shell of the former Kmart headquarters, a local landmark left empty since 2006. This 40-acre site, once nicknamed “Fort Kresge” for its fortress-like design, sat as a reminder of Troy’s retail history and its dormant potential. Now, a dramatic transformation is underway. The Troy City Council has greenlit an ambitious redevelopment dubbed Somerset West, and a $40 million philanthropic gift from a prominent local family is jump-starting a state-of-the-art University of Michigan Health center on the property. This mix of public-private momentum has residents buzzing – and with good reason. The project promises to turn an empty office complex into a vibrant hub of health care, homes, shops, and community life. In the voice of a lifelong Michigander and Metro Detroit real estate watcher, let’s break down what’s coming and why it matters for Troy families and savvy locals alike.
University of Michigan Health-West, Facebook
Reviving a Landmark: From Vacant HQ to Somerset West Development
It’s hard to overstate the local significance of this redevelopment. The old Kmart headquarters at 3100 W. Big Beaver Road was more than just an abandoned office – it was part of Troy’s identity. In its heyday, the Kmart Corp. ran its retail empire from this site. But after the retailer left in 2006, the building languished, and attempts to repurpose the “massive complex” went nowhere. The Forbes and Frankel families – owners of the upscale Somerset Collection mall across the street – purchased the property in 2009, likely seeing the long-term promise of the location. Still, the vacant Fort Kresge stood for nearly 18 years as plans percolated. Finally, in late 2023, demolition crews started tearing down the three-story, modernist structure to make way for something new. By mid-2024 the site was cleared, and Troy’s leaders and residents could truly envision what comes next.
Somerset West is the name of the grand plan moving forward, and it aims to create a dynamic mixed-use community on the 40-acre parcel. At a June 9, 2025 meeting, the Troy City Council unanimously approved the concept development plan for Somerset West. This crucial vote signaled city support for the project’s broad strokes – from layout and land uses to public amenities – allowing detailed phases to proceed. For locals who have waited years to see this eyesore transformed, the council’s green light was a welcome milestone. Council members even negotiated an expanded 120-foot buffer between the new development and an adjacent neighborhood, to address residents’ privacy and traffic concerns. The extra buffer (wider than the initially proposed 100 feet) was a gesture to nearby homeowners on Cunningham Drive that the city and developers hear their concerns. As Councilwoman Theresa Brooks noted, the compromise will help “revitalize the Big Beaver corridor” while keeping neighbors happy – a win-win outcome that had everyone breathing a sigh of relief.
For those interested in making Troy their home, check out our guide on Living in Troy, Michigan: Everything to Know Before Your Move
What’s Planned for Somerset West? Homes, Offices, Shops and More
So, what exactly will Somerset West include? In short: a bit of everything. The development team (led by the Forbes family’s real estate venture) has outlined an ambitious mixed-use program to turn this former corporate campus into a new urban-style district in Troy. According to plans presented to the city, Somerset West could feature:
- Up to 750 Residential Units: A mix of apartments or condos (potentially even some townhomes) to meet housing demand in Troy. This means new options for people who want to live near shopping and jobs, including young professionals and downsizing empty-nesters. It’s a big deal for a city known more for single-family homes – adding modern housing right by Somerset Mall might attract those who crave an urban vibe in the suburbs.
- About 500,000 sq. ft. of Office Space: Room for corporate or medical offices, which could bring in new employers or give local companies a shiny new address. Even in an era of hybrid work, high-quality office space in a prime location (with mall and amenities next door) can be a magnet. This could further cement Troy’s reputation as a business hub in Oakland County.
- Roughly 300,000 sq. ft. of Retail and Dining: Think shops, restaurants, and entertainment venues. Being adjacent to Somerset Collection, one of Michigan’s premier shopping malls, any new retail will likely complement the mall – perhaps upscale restaurants, cafes, boutiques, or services that serve both residents and visitors. The developers even hinted at the possibility of a high-end grocer or other specialty stores in earlier discussions, recognizing that a built-in residential community will need convenient retail.
- A Hotel with up to 250 Rooms: A proposed hotel on site (still conceptual) could make Somerset West a destination for out-of-towners as well. Imagine visiting shoppers or business travelers staying steps away from the mall and new offices. A hotel also signals the development’s upscale aspirations, possibly bringing a boutique or luxury flag to Troy that supports Somerset’s draw as a regional destination.
- Greenspace and Walkability: The plan includes parks or plazas and a pedestrian-friendly layout. Early concepts show an “urban park” of about 1 acre, plus walking paths and open areas integrated throughout. For a city often defined by driveable strip malls and office parks, Somerset West’s design aims to create a more walkable, community feel. The project team has emphasized that they exceed Troy’s open-space requirements, especially on the north parcel near the new health center. If done right, this could be a mini-neighborhood where you might stroll from your apartment to a café or walk your dog in a pocket park – a refreshing change for Troy.
Phasing is an important aspect of how all this will roll out. The developers plan to build Somerset West in multiple phases over several years. According to city documents, the first three phases will occur on the southern portion of the site (closer to Big Beaver Road) and will likely include much of the retail, offices, and the University of Michigan medical facility. A later fourth phase would develop the northern section of the land, across a small street (Cunningham Drive) that separates it from the single-family neighborhood to the north. By sequencing it this way, the most impactful pieces – like the health center and supporting commercial spaces – can get built and operational while giving flexibility to fine-tune the residential components in later phases.
If construction stays on track, some elements of Somerset West could be ready by 2027 and beyond. The University of Michigan Health center is slated to be one of the first pieces built (more on that in a moment), with major construction happening in 2025-26 and an opening by spring 2027. Other pieces, like the residential buildings or hotel, may come a bit later; the developers suggested that the initial phases will focus south of Cunningham (where the health center will go), while additional housing north of Cunningham might be phase four. As of the concept plan approval, five distinct phases are envisioned, though exact timelines for later phases are still being worked out. The key point for locals is that this won’t pop up overnight; Somerset West will gradually take shape, likely with new openings each year once it begins. Patience will be required with construction, but every new piece – a clinic here, an apartment building or restaurant there – will steadily add life to the once-empty site.
It’s worth noting that community response so far has been cautiously optimistic. The transformation from a defunct HQ to a mixed-use jewel has drawn praise from many who see it as a “bright future for Troy”. Real estate professionals are eyeing the project as a catalyst that could boost property values and spur other improvements along Big Beaver Road. City planners on Troy’s Planning Commission gave the initial concept a thumbs-up, citing the removal of the blighted Kmart building and the addition of diverse uses (especially U-M’s presence) as major positives. And while some neighbors were initially nervous about dense development next door, the combination of the buffer zone, thoughtful planning, and ongoing communication with the developer has helped earn trust. As Nathan Forbes (the developer) stated at a city meeting, this is an “iterative process” with the University of Michigan and the city, and they’re committed to representing the interests of not just their project but also Somerset Collection and Troy as a whole. In other words, the folks behind Somerset West know how important this site is, and they’re at the table making sure it benefits the broader community.
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University of Michigan Health-West, Facebook
A $40 Million Gift and a New U-M Specialty Care Center for Troy
One of the crown jewels of the Somerset West project – and the piece getting the most attention right now – is the planned University of Michigan Health Center for Specialty Care. This will be a 224,000-square-foot, four-story outpatient clinic operated by Michigan Medicine (the health system of U-M) bringing world-class medical services right into Troy’s backyard. Even before any buildings go up, this clinic has earned a name and a legacy: it will be called the Frances and Kenneth Eisenberg Troy Center for Specialty Care in honor of a generous $40 million donation from the Eisenberg family.
Who are the Eisenbergs? Ken Eisenberg is a well-known Metro Detroit business figure – he led Dearborn-based Kenwal Steel Corp. for 50 years, following in the footsteps of his father Sol who founded the company in 1947. Under Ken’s leadership, Kenwal grew into one of the nation’s top steel service centers, supplying automotive and other industries. (It even ranked #33 on Crain’s list of largest private companies in Michigan as of 2024, with revenues over $800 million and hundreds of employees.) Ken and his late wife Frances have also been passionate philanthropists, particularly in healthcare and mental health. In fact, the University of Michigan’s Depression Center in Ann Arbor was renamed the Eisenberg Family Depression Center in 2021 after the family’s cumulative gifts of $30 million to advance mental health research. This latest $40 million gift continues that legacy. Roughly $25 million of it will go toward building the Troy specialty care facility, while the remaining $15 million is designated to further support mental health research and initiatives at the Depression Center. When U-M’s Board of Regents approved naming the Troy center after Frances and Ken, it underscored the impact of the Eisenbergs’ generosity – their total giving to U-M now approaches $80 million, a truly remarkable contribution to the state’s health system.
For Troy residents, having the University of Michigan Health set up shop in town is a huge deal. Michigan Medicine is a top-ranked academic medical center known nationwide; until now, if you lived in Oakland County and wanted U-M’s specialized care, you likely had to drive to Ann Arbor. With the new Eisenberg Troy Center for Specialty Care, patients in Metro Detroit’s north suburbs will have much closer access to U-M’s physicians and advanced treatments. The facility is described as a “multidisciplinary ambulatory center,” which means it will offer a range of outpatient services and clinics under one roof – almost a mini-hospital, but for day surgeries and specialist visits rather than overnight stays. Plans include:
- An Ambulatory Surgery and Procedure Center: Imagine operating rooms and procedure suites where surgeons can perform same-day surgeries (such as arthroscopic joint repairs or minor surgical procedures) without patients needing a hospital admission. This will take pressure off U-M’s main hospital ORs and offer convenience for patients in this area.
- Advanced Diagnostic Imaging: The center will house high-tech imaging like MRI, CT scans, X-rays, and more, so patients can get scans done on-site as part of their visit. Integrating diagnostics is key for fast and efficient specialty care – no need to schedule at a hospital days later, it can be done right there in Troy.
- Infusion and Clinical Therapies: For patients needing regular infusions (for example, cancer chemotherapy or IV treatments for chronic conditions), the Troy center will provide those services in a comfortable outpatient setting. This is a boon for local cancer patients who might otherwise travel far for each treatment session.
- Specialty Clinics: U-M Health has indicated the Troy center will focus on several key specialties: musculoskeletal care/sports medicine, reproductive medicine, and cancer care, among others. Musculoskeletal and sports medicine makes sense – Oakland County is home to many athletes (from high schoolers to weekend warriors) who could use U-M’s expertise in orthopedics and rehab. Reproductive medicine (including fertility services) will be valuable for families across Metro Detroit seeking advanced options without going to Ann Arbor or out of state. And cancer care close to home is something everyone appreciates; the center will likely be an extension of U-M’s Rogel Cancer Center, offering consults and some treatments right in Troy.
- Support Services and Amenities: The design includes administrative offices, a pharmacy, and even a café on site for patients and staff – making it a one-stop-shop for care. Plus, about 900 surface parking spaces will be available just north of the building for easy access (no parking structures to deal with in phase one). Michigan Medicine knows that patient experience isn’t just the doctor visit, but also parking, picking up prescriptions, and grabbing a bite if you’re there all day – so they’re building those conveniences in.
According to Michigan Medicine, construction on the clinic is expected to break ground in summer 2025, with most of the building completed by end of 2026. If all goes well, the grand opening should be in spring 2027 – meaning in just about two years, Troy could cut the ribbon on one of the largest outpatient centers in U-M’s network. For context, this will be Michigan Medicine’s first large facility in Oakland County, signaling a strategic expansion. Leaders like U-M’s CEO of Michigan Medicine (Dr. Marschall Runge) have talked about the need to “enhance access to care across Southeast Michigan” and create “destination centers” in growing markets like Oakland County. This Troy center fits that vision perfectly. It extends U-M’s reach into the metro area, closer to where many patients live, while also helping alleviate crowding at the main hospital in Ann Arbor (which has been running near capacity in recent years). Essentially, U-M is planting a flag in Troy to better serve the region – and the Eisenberg gift made it a no-brainer to move forward quickly.
From a real estate and community perspective, having a major medical facility as the anchor of Somerset West is a smart move. It guarantees a steady flow of people to the site (patients, doctors, employees) weekdays and even weekends, which in turn will support the new restaurants, shops, and services that open there. It’s similar to what having a hospital or university campus does for a district – providing an economic engine and demand for other uses. For Troy, it also diversifies the city’s economic base: long known for automotive and financial office centers, Troy will now be a destination for health care excellence. This can spur more medical offices to cluster nearby and attract related businesses. Plus, for local families, there’s pride in knowing world-class care is coming to their city. Parents might take their injured child to a top sports medicine specialist without a long drive, or an expecting couple might visit a U-M fertility clinic minutes from home. Those quality-of-life improvements make Troy even more attractive as a place to live.
If you’re a current Troy homeowner, check out our insights on Troy Home Values: What Sellers Should Know.
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University of Michigan Health-West, Facebook
Local Insight: Why Troy’s Transformation Matters
To an outsider, Somerset West might look like just another development, but Michiganders know this is a big moment for Troy and the region. Troy is one of Metro Detroit’s most dynamic suburbs – a place known for its shopping (Somerset Collection), corporate offices, highly rated schools, and a melting pot of communities. However, one thing Troy hasn’t really had is a walkable downtown or central gathering place. City leaders have long sought to cultivate a more urban, pedestrian-friendly environment along Big Beaver Road, which is Troy’s main commercial corridor. Efforts like streetscape improvements and zoning for mixed-use have been in the works for years. The Somerset West project will be a huge leap in that direction. By incorporating residential, retail, offices, and park space all together, it’s essentially creating a new “downtown node” from scratch – something very exciting for a city that grew up in the car-centric 20th century.
- Engaging the Community: Throughout the planning process, the developers and city have kept residents informed and involved. Public meetings, planning commission reviews, and council discussions were opportunities for locals to voice concerns or suggestions. That’s how the 120-ft buffer came about – neighbors in the adjacent subdivision worried about the height of new buildings or noise, and the city responded with a requirement to keep development a bit further from the lot line. Additionally, certain potentially disruptive uses (like drive-thrus, auto repair shops, or standalone big-box stores) were removed from the plan’s allowable uses to ensure the project remains upscale and community-oriented. For example, the developers agreed to drop any generic drive-thru establishments except a possible bank, and focus on pedestrian-friendly retail. By narrowing the scope in this way, Somerset West is more likely to become the cohesive, high-quality district everyone wants, rather than a hodgepodge of random businesses. It’s a case of the city and developer being picky now to create long-term value.
- Traffic and Infrastructure: One question many locals have is, “What about the traffic on Big Beaver?” It’s true – Big Beaver and Coolidge is already a busy intersection, especially during holiday shopping season at Somerset Mall. Adding hundreds of residents and visitors could strain roads if not managed. The project will undoubtedly include road improvements and careful traffic planning (Troy’s traffic engineers will see to that). The mixed-use nature, however, might actually help mitigate peak traffic; for instance, residents who live there might walk to dinner or work on site rather than driving elsewhere, and office workers might use off-peak times at the retail. Also, the presence of the medical center means a chunk of traffic will be spread throughout the day with patient appointments rather than all at 5 p.m. rush hour. Troy has handled big developments before (remember, the Somerset mall itself draws thousands daily), so with coordinated stoplights, turn lanes, and perhaps new entrances, the area should adapt. In any case, the city will likely require the developers to conduct traffic studies as each phase comes for approval, ensuring adjustments are made along the way.
- Economic Impact: The Somerset West development represents a significant investment – the U-M clinic alone is a $250 million project, and when you factor in the housing, offices, and retail, we’re looking at many hundreds of millions more in private development. That means jobs: construction jobs in the near term, and permanent jobs once offices and shops open. The U-M center will employ a large staff of medical professionals and support personnel. New restaurants and stores will hire locals as well. Beyond direct jobs, think of the secondary benefits: local suppliers, increased hotel occupancy (once the hotel is built, plus existing hotels will get guests visiting the clinic or offices), and even Troy’s tax base will grow, which supports public services. This development basically takes a property that generated little since Kmart left and turns it into an economic engine for the city.
Furthermore, Somerset West could draw people from across the region, not unlike how Downtown Birmingham or Royal Oak attract visitors for their mix of shopping and dining. With the prestige of Somerset Collection next door, this new district might become the place to spend a day – get a medical appointment done, enjoy lunch at a new café, do some shopping, and maybe attend a community event in the park. The Forbes family has experience in creating high-end destinations (they’ve made Somerset Mall a success and also have ties to developments in other cities). If they apply that level of quality here, Troy could end up with a standout gathering place that keeps folks coming on evenings and weekends, not just the 9-to-5 crowd.
- Maintaining the Local Character: A lifelong Michigander will tell you that each Metro Detroit suburb has its personality. Troy is often seen as a modern edge city – full of business, retail, and top-notch schools, but sometimes missing the quaint downtown charm of older cities. Somerset West won’t try to be quaint, but it will reflect Troy’s forward-looking character. Expect modern architecture, maybe even some skyline-defining buildings (perhaps a tall hotel or office tower in the plan’s future?). Because the site is so large, it will have its own internal streets and blocks – it could become an identifiable neighborhood within Troy, possibly earning a nickname of its own. And while it’s new and shiny, references to the history might sneak in: maybe they’ll incorporate some tribute to Kmart’s legacy or the Kresge name in public art or signage. After all, many locals either worked at Kmart or had family who did, and the story from Kmart’s rise and fall to this rebirth is part of Troy’s story. Keeping that local rooted feel, even as we build new, is what makes developments truly resonate with the community.
Troy continues to invest in its entertainment and lifestyle offerings, with updates like the new IMAX theater at MJR Troy.
A New Chapter for Troy (and How to Get Involved)
As Somerset West and the Eisenberg U-M Specialty Care Center move from blueprints to reality, keep an eye on that corner of Big Beaver and Coolidge – it’s going to change quickly. By spring 2027, you might be driving down Big Beaver and see patients walking into a gleaming new clinic where rubble once stood. Not long after, you might see residents moving into upscale apartments or grabbing coffee in a stylish new plaza across from the mall. The vision of a “thriving hub” in Troy is coming into focus, and it’s a source of pride for many in the community.
For residents of Troy and nearby suburbs, this development brings opportunities. Real estate-wise, new housing at Somerset West could offer a chance to live in a luxury setting with unbeatable convenience – imagine living steps away from Michigan’s most famous mall and having top healthcare next door. If you’re curious about these future residences (or how your own property’s value might be influenced by the influx of development), it’s a great time to start a conversation with local real estate experts. Projects like this often have ripple effects on home values, traffic patterns, school enrollment, and more, so staying informed is key. Pro tip: Monitor the City of Troy’s updates on Somerset West (the city website posts development progress) and consider attending community forums as the phases roll out.
The transformation of the old Kmart HQ site is more than just a construction project – it’s a story of Metro Detroit’s evolution. It shows how a community can honor its past (goodbye Kmart, thanks for the memories) while embracing the future (hello U-M Health and new neighbors!). It’s also a testament to the power of philanthropy and planning: a local family’s $40M gift turned a pipe dream into a concrete plan, and thoughtful city oversight made sure that plan fits Troy’s character. In the coming years, as we shop, dine, live, and heal at Somerset West, we’ll remember that it took a whole lot of vision and collaboration to get here.
Interested in learning more about living near Somerset West or how this project might benefit you? Don’t hesitate to reach out for local expert advice. Whether you’re a family looking for your next home, a business owner eyeing the new office space, or just a curious neighbor, this is the time to get engaged. Connect with a trusted Metro Detroit real estate professional who knows Troy inside and out – someone who can keep you updated on housing opportunities, property trends, and ways to make the most of the exciting changes coming to our area. After all, developments like this come around maybe once in a generation for a city, and you’ll want to be part of Troy’s next chapter. Here’s to seeing an old site reborn and watching our community grow stronger because of it!
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