Earlier this month, the real estate scene in the Detroit area got an exciting boost when Cardinal Health officially opened the doors to its new distribution center right near the center of the city. The new building, a 275,000 square foot marvel located at 6000 Rosa Parks Boulevard, will not only bring jobs to the Detroit area, but was also the work of a nearby real estate development and construction company: the Troy, Michigan-based firm, KIRCO Development.
Before we delve any deeper into the building itself—a real beauty, to be sure—here’s a brief history lesson on Cardinal Health’s history in southeast information. Based in Dublin, Ohio, Cardinal Health is a Fortune 500 company that specializes in numerous different branches of the healthcare services industry—particularly in the distribution of pharmaceuticals and other medical supplies.
With Obamacare changing the landscape for health care services and reimbursement, hospitals in and around Detroit have recently been struggling with supply chain issues. To respond to shortages and hefty costs, the local Henry Ford Health System—along with the Detroit Medical Center—negotiated a collaborative contract with Cardinal Health. The goal was to cut down on supply chain costs and other related issues. The solution was to build a massive medical supply distribution center right in the heart of Detroit.
Several years and $30 million later, the distribution center finally opened for business in mid-June.
While Cardinal Health is obviously at the epicenter of the project, the spotlight here is also being shone upon two local entities. The first, of course, is KIRCO Development. The Troy-based company has gone above and beyond the call of the duty with their work on the Cardinal Health center, quietly and steadily chipping away at the project over the past few years. The second is the Henry Ford Health System, which bankrolled the Cardinal Health project as part of a larger development and revitalization effort in Detroit.
Indeed, the hope at the Henry Ford Health System is that this $30 million distribution center will merely be the first piece of a $500 to $750 million “master plan.” The revitalization effort will span 300 acres in an area that KIRCO Development described as “blighted,” and will include new medical and educational facilities, an “environmental remediation,” and an eventual expansion for the Cardinal Health building. The ultimate goal is to spur a renaissance in both residential and commercial development for this part of Detroit.
It’s unclear exactly what the next step could be for the revitalization now that the Cardinal Health center is officially complete and open for business. In any case, it’s likely that KIRCO will be involved in projects going forward. The Troy company will actually retain possession of their 275,000 square foot building, and will merely be leasing it to Cardinal Health. That fact, coupled with the planned expansion for the distribution center, will likely keep KIRCO in the loop as an ongoing partner for the Henry Ford Health System master plan.