U-M Health Breaks Ground on $250M Troy Campus at Former Kmart Site

A New Era for the Former Kmart Headquarters

The former home of the Blue Light Special is set to become a hub for medical innovation in Oakland County. On August 6, leaders of the University of Michigan Health celebrated the groundbreaking of an approximately $250 million outpatient services and surgical center. This new facility will be built on the site of the old Kmart world headquarters located on Big Beaver Road, just across from Somerset Collection mall.

The four-story complex, spanning 224,000 square feet, is expected to open in 2027 and will be named the Frances and Kenneth Eisenberg Troy Center for Specialty Care. The project is part of a larger vision for the roughly 40-acre former Kmart HQ site, which could eventually include a mix of residential, retail, hotel, and office spaces.

A Legacy of Generosity

The Eisenberg family, known for founding and still owning Dearborn-based Kenwal Steel, has been instrumental in supporting the University of Michigan. Frances and Kenneth Eisenberg have contributed over $80 million to U-M through the years, with a recent $40 million gift that includes $25 million specifically for the Troy complex. Their generosity reflects a deep commitment to healthcare and education.

The U-M health complex will serve as an anchor for the future mixed-use development on the site. This ambitious plan includes up to 750 housing units, a 250-room hotel, 300,000 square feet of retail space, and 500,000 square feet of office space. The development is a joint venture between the Forbes and Frankel families, who own nearby Somerset Collection. Troy City Council approved the development plan in June.

A Vision for the Future

Nathan Forbes, managing partner with the Forbes Co., mentioned that while the timeline for the broader development is still being finalized, they hope to begin work on some portions within 12 months. The initial phase could involve residential development and food and beverage businesses.

The medical complex will be the first of its kind for Michigan Medicine in Oakland County, offering specialties such as orthopedics, sports medicine, advanced cancer care, and reproductive medicine. It will also feature operating rooms and imaging services for mammograms, MRI, and CT scans, but no hospital beds for overnight stays, as everything will be done on an outpatient basis.

Expanding Healthcare Access

Michigan Medicine has been expanding its reach beyond Ann Arbor, aiming to bring greater convenience to existing patients and attract new ones. The new complex is expected to play a key role in this expansion. Approximately 150 people attended the groundbreaking ceremony, held in a white event tent in one of the former Kmart HQ’s massive parking lots.

Dr. David Miller, CEO of Michigan Medicine, emphasized that the new complex aligns with the organization's goal of creating an academic health system that serves the entire state, focused on providing the right care at the right time. Kenneth Eisenberg, who attended the event, shared his personal connection to the project. His wife, Frances, passed away in November at age 82, and he reflected on their shared values and dedication to healthcare.

Transforming the Kmart Site

Troy Mayor Ethan Baker highlighted the significance of the U-M health complex and the planned mixed-use development as one of the most exciting projects in the state. He noted that the abandoned Kmart headquarters complex, which was torn down in late 2023 and early 2024, had long been a source of curiosity among residents.

The architecturally unique Kmart HQ building, dating back to 1972, had been vacant since 2006 when Kmart relocated to suburban Chicago following its merger with Sears. In the late 2000s, the Forbes and Frankel venture purchased the property for $17.5 million, with plans for a development called the Pavilions of Troy that ultimately did not materialize due to the Great Recession.

Nathan Forbes expressed his excitement about the current project, noting that he had waited 17 years for this opportunity. While the team initially considered reusing the former Kmart building, they found it too limiting for modern use. However, they did explore the possibility before deciding on the new development.

The university has acquired about 11.5 acres of the site for just under $7 million, marking a significant step in transforming the former Kmart headquarters into a vibrant community hub.