Palace of Auburn Hills

Exterior of the Palace of Auburn Hills. (Photo by Allen Einstein/NBAE via Getty Images) FILE

Palace Of Auburn Hills Sold, Set To Be Demolished

June 24, 2019 - 1:33 pm

AUBURN HILLS (WWJ) - The Palace of Auburn Hills has been sold, and will be torn down.

Demolition is expected to begin this fall on the former home of the Detroit Pistons, after sale of the massive venue was announced on Monday. 

Detroit Pistons Owner Tom Gores and Livonia, Mich.-based Schostak Brothers & Company said they will join together to redevelop the Palace property and the surrounding land for a  mixed-use development, which is expected to include corporate office, research and development and technology companies.  Financial terms were not disclosed.

"We promised the people of Auburn Hills and Oakland County that we would find a solution that would be good for the community and make a positive economic impact,” said Gores, in a media release. “Partnering with a proven, well-respected developer like Schostak Brothers is an important step in delivering on that promise.”

Officials did not disclose financial terms of the sale.  

Jean Jernigan, President of the Auburn Hills Chamber of Commerce, said she'd looking forward to seeing what the redevelopment will bring. 

"We work very closely with the Detroit Pistons and partner with them in a lot of different things and we still continue to do so," Jernigan told WWJ's Rob St. Mary. "So we were thrilled for them when we heard the news, and we were really excited about the opportunities for new business moving into the area."

Jernigan said the Palace redevelopment will happen as 1,000 news housing units are expected to be added in Auburn Hills over the next three years. 

Auburn Hills Mayor Kevin McDaniel lauded the sale and  partnership as a ‘win-win-win’ for the City of Auburn Hills, its business community and its residents.

“Recognizing the probability that the property would not continue as an arena, an internal planning activity took place within the city to establish the highest and best use for the land," said McDaniel, in a statement. "News of this joint venture with Schostak Brothers aligns with a future for the property that is beneficial to the city while fostering innovation and job creation. We are enthusiastic about the redevelopment potential and what is expected to be an outcome that provides for future expansion of the city’s corporate business community.”

The Palace opened in August of 1988 and held its final event in October of 2017. The Pistons moved out of the Palace and into Little Caesars Arena in Downtown Detroit after the 2016-17 season. 

MORE: Pistons Ownership Read And Schostak Brothers Form Joint Venture To Redevelop The Palace of Auburn Hills And Surrounding Land