Detroit Pistons Owner Tom Gores and Livonia-based Schostak Brothers & Co. have formed a joint venture to redevelop the Palace of Auburn Hills and the surrounding land. Terms were not disclosed.

The property has been acquired by PAH Real Estate LLC from the Gores-owned Palace Sports & Entertainment. Schostak Brothers will serve as the lead partner in the joint venture and will manage the future mixed-use development, which is expected to include corporate office, research & development and technology companies.

The Palace was the home of Detroit’s NBA franchise from 1988 to 2017. In 2016, when Gores announced the Pistons would return to Detroit, he emphasized the importance of transitioning The Palace to benefit the region long term.

"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," Gores said in a statement. "Partnering with a proven, well-respected developer like Schostak Brothers is an important step in delivering on that promise."

Gores said he retained a vested interest in the project because he believes strongly in the potential of the site.

"Auburn Hills has been a great home to our franchise for a long time,” he added. “This investment will allow us to stay connected in a way that will create new opportunities for people who live and work in the area."

Schostak Development President Jeffrey Schostak said he views The Palace property as one of the premier parcels of real estate in metro Detroit based on its location in a growing area of northern Oakland County and its excellent accessibility on and off I-75.

"Schostak Brothers is ready to take the lead and use our expertise in complex redevelopments to create a new and exciting next chapter for The Palace and its surrounding property," Schostak said in a statement. "We are looking forward to working with Tom Gores' organization and our partners at the City of Auburn Hills, Oakland County and the State of Michigan on this project, and we're excited about the prospects for this site."

A specific timeline for the development has not been announced. The Pistons organization is preparing to move its remaining team and business operations from The Palace to the new Henry Ford Detroit Pistons Performance Center in Detroit, which is on schedule to be completed this fall.

Auburn Hills Mayor Kevin McDaniel lauded the sale and subsequent partnership between Schostak Brothers and Palace Sports & Entertainment as a 'win-win-win' for the city of Auburn Hills, its business community, and its residents.