Former Kmart headquarters to be reborn as $250M University of Michigan Health complex

March 28, 2025

University of Michigan Health will spend up to $250 million on a new clinical facility in Troy, Michigan, designed to expand specialty services and improve patient access in Oakland County and the southeast portion of the state.

The U-M Health Board of Regents approved the schematic design and the plan to obtain construction bids, the university said.

The project involves repurposing the site of a former Kmart into a 224,000-square-foot, four-story building that will house a multi-specialty facility with diagnostic and therapeutic services, as well as a surgery and procedures center. The project also involves building parking lots to support the facility.

“We are making progress on the Troy Center for Specialty Care, a major addition to our statewide network strategy of bringing our world-class care close to home,” said Marschall S. Runge, CEO of Michigan Medicine, dean of the Medical School and executive vice president of medical affairs.

U-M Health is the clinical division of Michigan Medicine, the academic medical center of U-M.

The facility is expected to include an ambulatory surgery center; imaging services like CT, MRI and mammography; an infusion suite; and a linear accelerator used in cancer care. Programs housed in the new facility include musculoskeletal/sports medicine, reproductive medicine and cancer care.

The project is among several that U-M Health has planned to increase patient access, including the 12-story D. Dan and Betty Kahn Health Care Pavilion, set to open in 2025 in Ann Arbor, and the Ypsilanti Health Center in downtown Ypsilanti, set to open in May 2025.


Photo Courtesy
University of Michigan Health
Specialty Care proposed design

Miles Smith

Miles Smith has more than two decades of communications experience in the public and private sectors, including several years of covering local governments for various daily and weekly print publications. His scope of work includes handling public relations for large private-sector corporations and managing public-facing communications for local governments.

Smith has recently joined the team as a content writer for SPI’s news publications, which include Texas Government Insider, Government Contracting Pipeline and its newest digital product, Government Market News, which launched in September 2023. He graduated from Texas A&M University with a bachelor’s in journalism.

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