UM Health Expands Its Presence in Southeast Michigan with New Facility in Oakland County.

The University of Michigan Health is set to make a major investment in healthcare in Oakland County by purchasing 7.28 acres of vacant land at the former Kmart Corp. headquarters in Troy, Michigan. The property will be used to build a multi-specialty facility that will focus on expanding clinical services and increasing patient access in the region.

Dr. Marschall Runge, CEO of Michigan Medicine, expressed excitement about the long-term presence and commitment to patients in Oakland County. He highlighted the university’s efforts to create a statewide network of care that allows Michiganders to access world-class care closer to home. The facility will mark the beginning of a broader U-M Health presence in southeast Michigan.

The new center will also include a clinical program for multidisciplinary cancer care, and it will adhere to university guidelines for Leadership in Energy and Environment Design (LEED) to minimize environmental impacts. The former Kmart Corp. headquarters opened in the early 1970s but has been vacant since 2006 following a merger with Sears Holdings Corp., and relocation of operations to suburban Chicago.

Demolition of the building and parking structure began last year, with Forbes/Frankel Troy Ventures funding the project. The windows on the rear of the headquarters were boarded up prior to demolition in 2023. Overall, this expansion represents a significant investment by UM Health in creating a healthcare hub for Oakland County residents.

The construction is expected to cost around $45 million, which includes land acquisition, site preparation, building design, construction materials and labor costs.

“We are thrilled about this opportunity,” said Dr. Runge.” “We believe this facility will help us better serve our patients in Oakland County and beyond.”