Continental Realty Corp. has sold Oakland Plaza, a 167,000-square-foot shopping center in Troy, Mich., on behalf of its Continental Realty Opportunistic Retail Fund I LP. RCG Ventures bought the property for $25.6 million.

Prior to this transaction, CRC also sold two Oakland Plaza outparcels for a combined $3.4 million, bringing the total sale proceeds to $29 million. This was the first property disposition on behalf of CRORF.

CRC had acquired Oakland Plaza, along with the adjacent Oakland Square, in 2021. The deal marked the firm’s entrance in Michigan and also CRORF’s first purchase.

Mid-America Real Estate Corp. Managing Brokers Ben Wineman and Daniel Stern worked on behalf of the seller and procured the buyer in the current transaction.

An improved retail property

Located at 268 John R Road, Oakland Plaza was completed in 1979 and underwent renovations in 1994 and 2014. TJ Maxx, Michael’s and Planet Fitness anchor the two-building property. The tenant roster also comprises Sally Beauty Supply and Vitamin Shoppe.

Under CRC’s ownership, the shopping center’s occupancy increased from 71 to 97 percent. New tenants included Kids Empire, Rally House and several restaurants across a combined 53,000-square-foot space. The former owner modernized the property, repainting the entire center and repaving the parking lot.

Oakland Plaza is across from the 1.5 million-square-foot Oakland Mall, in an area where the daily car traffic reaches approximately 32,000 vehicles. The shopping center serves more than 300,000 individuals within a 5-mile radius, with average household incomes north of $84,000. Interstate 75 is less than 1 mile away and downtown Detroit is some 16 miles south.

CRC currently owns and oversees more than 8 million square feet of commercial space across 12 states. The firm recently entered Utah with the purchase of a 630,000-square-foot super-regional shopping center in Salt Lake City, also on behalf of CRORF.

The post CRC Sells Metro Detroit Retail Center appeared first on Commercial Property Executive.

CFM Properties has obtained a combined $38.5 million for The Gateway Center, a 272,300-square-foot regional shopping center in West Bloomfield, Mich. Citibank and Red Oak Capital Holdings provided the financing.

The larger note, originated by Citibank, is a five-year, $24 million CMBS loan, according to CommercialEdge information. The interest-only note carries a rate of 7.7 percent.

The $14.5 million bridge loan issued by Red Oak is also interest-only, with a two-year initial term. Red Oak’s Stratos Athanassiades, Thomas Gorski and Jesus Martinez handled the financing proceedings. SF Capital Group’s Matt Shane was also instrumental in the deal.

The property’s previous debt included a $42.5 million financing package originated by Seven Hills Realty Trust in 2021. Of the total, approximately $5.1 million were earmarked for tenant improvements and capital expenditures.

Rethinking Gateway Center

Completed in 1999 on a 3-acre site, The Gateway Center was 95 percent leased at the time of closing. Retailers such as Whole Foods, Kohl’s, Walgreens and Dunham’s Sports anchor the property.

The bridge loan proceeds will refinance only part of the shopping center, the 115,491-square-foot portion that includes Kohl’s, Harbor Seafood, J. Alexanders Restaurant, four other in-line stores and a currently empty lot. The remainder will be refinanced through the CMBS note.

CFM Properties plans to retain the Kohl’s pad and sell all outparcels to pay back the Red Oak loan. The ownership also intends to either redevelop Kohl’s into a luxury residential community or renew Kohl’s lease and refinance the pad long-term. 

The Gateway Center is at 7130-7440 Orchard Lake Road, near U.S. Road 10. Downtown Detroit is some 23 miles southeast. 

The post CFM Properties Lands $39M for Detroit-Area Retail Center appeared first on Commercial Property Executive.

Four Springs TEN31 Xchange, a Delaware Statutory Trust, has purchased a 1.1 million-square-foot industrial asset in Monroe, Mich., for $139.5 million, according to S&P Global. FSXchange used $76.7 million in acquisition financing secured by Colliers. InSite Real Estate previously owned the asset that is fully leased to Ford Motor Co., CommercialEdge data shows.

Four Springs launched the industrial DST offering at $157.2 million in August. At the time, the required equity amounted to $80.5 million and was suitable for Section 1031 Exchange or direct investment alike.

The leverage ratio clocked in at 48.8 percent. The DST offering also included five five-year extension options and a 2 percent annual base rent increase.

READ ALSO: EV Battery Quest Super-Charges Demand for Sites, Facilities

InSite purchased the 97.8-acre development site and broke ground on the build-to-suit project two years ago. Completed this February, the facility features 36-foot clear heights, 100 loading doors—expandable to 150—and four grade-level doors, as well as 900 vehicle and 700 trailer and parking slots, respectively.

Ford Motor Co. fully occupies the property under a triple-net, 10-year lease. Ford has invested more than $70 million in the facility to maximize operational efficiency, which consolidated several older facilities throughout the Midwest.   

Ford will also use the facility to assemble and repackage vehicle parts. Additionally, the site includes an entitled lot that is shovel-ready for up to 450,000 square feet of future industrial and logistics development.

Located at 14741 Laplaisance Road, the building is 40 miles southeast of downtown Detroit, having direct access to Interstate 75. Additionally, the facility is about 11 miles away from Ford’s velocity parts distribution center, a 1 million-square-foot property in Newport, Mich., also developed by InSite.

Colliers Executive Vice President Jeremy Thornton and Vice President Lauren Smyle, together with Senior Vice Presidents Nicole Sayers and Andrew Gibson, arranged the financing on behalf of the DST.

Four Springs bullish on triple-net industrial

FSXchange is a subsidiary of Four Springs Capital Trust, a REIT that focuses on purchasing and managing single-tenant commercial properties including industrial, medical, office and retail assets with long-term, triple-net leases.

Last month, FSXchange fully subscribed its $150.5 million FSC Industrial Portfolio 27. The DST offering, which launched in April of last year, included an equity raise of $78.3 million and a 1031 debt placement of $72.2 million.

The portfolio consisted of 22 fully leased industrial assets encompassing 1.3 million rentable square feet across 13 states. The tenant roster included Domino’s, Columbia Gas and New York State Electric & Gas, among others.

Motor City industrial investment hits the breaks

Metro Detroit plays a crucial role in the U.S. auto industry through its interstates and railways, as well as the Detroit Metropolitan Airport and The Port of Detroit. However, industrial investment in the Motor City was tepid during the first three quarters of the year, a CommercialEdge report shows.

Year-to-date through September, the total industrial sale volume in Greater Detroit amounted to $226 million, the same source shows. Assets traded on average for $76 per square foot, nearly halving the national average of $130 per square foot.

Several Midwestern markets fared better, such as Chicago and the Twin Cities, their respective industrial investment volumes clocking in at $2.1 billion and $862 million during the same period, the report reveals. Despite the higher sales totals, properties still traded below the national average in Chicago ($98 per square foot) and Twin Cities ($94 per square foot).

Detroit’s vacancy rate stood at 4.6 percent in September. The metro became the tightest industrial market in the Midwest, surpassing Columbus, Ohio (5.1 percent) and Kansas City, Mo. (5.2 percent), but also Chicago (7.8 percent) and Indianapolis (8.3 percent).

The post Detroit Industrial Asset Drives $140M Deal appeared first on Commercial Property Executive.

PMAT Real Estate Investments has sold Waterside Marketplace, a 276,244-square-foot shopping center in Chesterfield, Mich. Octave Holdings and Investments acquired the asset through its Octave Realty Fund IX.

Mid-America Real Estate Corp. arranged the deal. The brokerage company had also represented PMAT in acquiring the asset in 2018, as reported by Rejournals.

Earlier this year, the New Orleans-based firm has also sold a 124,005-square-foot retail property in Downers Grove, Ill., with Mid-America brokering the $25 million transaction.

READ ALSO: Underserved Areas Are Grabbing Retail Investors’ Attention. Here’s Why.

Completed in 2007 on some 13 acres, Waterside Marketplace was 94 percent leased at the time of sale. Waterside Marketplace is anchored by TJ Maxx, Sierra, Burlington, Best Buy, Ulta, DSW and Old Navy, while Aldi, Lowe’s, Dick’s Sporting Goods and JCPenney shadow-anchor the property. The tenant roster also includes Carter’s, Rally House, Kid’s Empire, Five Below and Bath & Body Works, among others.

The shopping center is at 50753 Waterside Drive at the high-traffic intersection of Interstate 94 and 23 Mile Road in Detroit’s Warren – Sterling Heights submarket. The shopping center serves around 109,000 individuals within a 5-mile radius, with the average household income of approximately $112,000, according to Mid-America.

The firm’s Principal Ben Wineman and Vice President Emily Gadomski brokered the transaction, with Principal Daniel Stern representing the seller. Wineman also arranged the $15.4 million sale of Metro Centre, a 166,290-square-foot retail property in Peoria, Ill.

Detroit’s retail market sees strong activity

Despite the disruption which affected the industry in recent years, Detroit’s retail market has seen strong activity across all metrics in the second quarter of 2024, according to a recent Colliers report.

The metro’s investment activity totaled more than $92 million in transactions, while approximately 443,625 square feet of retail space—across 33 projects—were under construction in several submarkets at the end of June. The vacancy rate clocked in at 4.9 percent, marking a 20-basis point decrease from the previous quarter.

The post PMAT Sells 276 KSF Detroit-Area Retail Center appeared first on Commercial Property Executive.

Sartorius, a Germany-based life science research and biopharmaceutical company, has completed a $100 million, 130,000-square-foot facility in Ann Arbor, Mich.

The group broke ground on the Center of Excellence for bioanalytics at the Tech Loop at Research Park two years ago. Hobbs+ Black Architects was the project architect and J.S. Vig Construction Co. was the general contractor.

Providing highly automated bioanalytical solutions for the development of biopharmaceutical drugs, Sartorius currently has about 140 employees and expects to more than double its workforce within several years. The new company flagship at 3874 Research Park Drive will consolidate several existing sites and functions in Ann Arbor and Washtenaw County, and also provide space for future expansion.

READ ALSO: Life Science Prospects Are Looking Up

The company has been in the city for several years after acquiring Essen BioScience in 2017 and SoloHill in 2020. Sartorius, which has about 60 production sites and sales sites around the world, has about 2,600 employees at 12 sites in North America.

Strategic location

Company officials noted Ann Arbor is strategically located in close proximity to customers and renowned universities, including the University of Michigan with access to talent, technology and logistics.

READ ALSO: Office Debt – The Underwater Mountain

The Center of Excellence will serve several functions for the company. It will have a manufacturing and services area, biology labs, warehouse, office and training spaces as well as a Customer Interaction Center. Sartorius will develop and manufacture a range of bioanalytical instruments at the site with a focus on providing advanced solutions to help customers develop drugs that cure, prevent and halt the procession of diseases. The facility will also provide particle validation services and produce microcarriers used in cell culture processes.

Sartorius is seeking LEED gold certification for the property. Sustainable features include green energy supply from 200 kilowatt solar panels, 30 electric vehicle charging stations and Research Park’s first storm runoff pond to protect against flooding and erosion.

The post Life Science Group Opens $100M Center in Michigan appeared first on Commercial Property Executive.

Bedrock has topped out The Tower of the Hudson’s Site mixed-use development in Detroit.

Rising 681 feet, or 48 stories as reported by D Business, The Tower is the tallest construction in the metro over the past 50 years and will be the second-tallest building in Michigan. Completion is expected next year.

Upon delivery, Hudson’s Site will total 1.5 million square feet across the tower and an adjacent 11-story structure, connected through a walkable plaza and a 700-space underground parking garage.

The property is slated to include 400,000 square feet of office space, 31,000 square feet of retail and a 5-star hotel, as well as residential units. A 127,000-square-foot event hall and meeting center, together with an outdoor plaza and indoor gallery totaling 20,000 square feet, will also be in the mix.

READ ALSO: Here Comes the Neighborhood: Mixed-Use Projects’ Bid to Fit In

Developers broke ground on the $1.4 billion project in 2017 and topped out the mid-rise building, housing the office component and the event hall, in 2022. Baton Malow serves as general contractor; SHoP Architects, along with Hamilton Anderson, provided architectural services.

The 550,000-square-foot mid-rise is slated to include floor-to-ceiling windows, a central atrium, a fitness center, a spa and rooftop lounges. Developers also intend to obtain LEED Silver certification.

Located on 2.3 acres at 1200 Woodward Ave., Hudson’s Site is taking shape in the heart of downtown Detroit., on the former site of J.L. Hudson’s, once the tallest department store in the world.

Detroit’s office market struggles

As of February, Detroit had one of the lowest office construction pipelines in the U.S., with 524,000 square feet under construction, accounting for just 0.4 percent of existing stock, according to a recent CommercialEdge report. Economically, the metro’s office market faces significant headwinds, as it registered the highest vacancy rate nationwide at 31.3 percent, representing a more than 10 percent year-over-year increase.

One of the largest projects currently underway in Detroit is Newlab and Ford Motor Co.’s $950 million innovation hub. The mixed-use development is slated to span 1.2 million square feet. Last year the partners completed one of the property’s four buildings; it spans 270,000 square feet and includes an exhibition space, a robotics and prototyping facility, studio spaces, classrooms and conference rooms.

The post Bedrock Tops Out Detroit’s Tallest Tower in 50 Years appeared first on Commercial Property Executive.

Initially known as the Roosevelt Annex, and later the Roosevelt Warehouse, the building was completed in 1936, serving as a post office branch that handled mail that came by rail. After Detroit Public Schools acquired the building in 1961, the building was renamed The Book Depository and used for book storage. In the decades that followed, the property went through several stages of vacancy, with parts of it destroyed by fire in 1987, ultimately becoming a target for demolition.

The Art Deco landmark now houses Newlab’s Detroit headquarters. Image by Brian W. Ferry, courtesy of CIVILIAN

But brighter days were on the horizon for The Book Depository. In 2018, Ford Motor Co. acquired the building, along with Michigan Central Station. Two years later, the company unveiled plans for a 1.2 million-square-foot “mobility innovation center” at the site, an investment valued at $950 million. The project centered around four adjacent buildings: The Michigan Central Station itself, The Book Depository, Building West—a new construction—and The Factory, a repurposed former hosiery factory.

Ford Motor Co. unveiled plans for the transformation of the former Book Depository in 2020. Image by Brian W. Ferry, courtesy of CIVILIAN

As part of the first phase of the project, Ford began the transformation of The Book Depository in 2021, with work completed this year in April. Dubbed Newlab at Michigan Central, the building now houses the Detroit headquarters of Newlab, the  innovation company focused on next-generation solutions in mobility, founded by real estate developer Belt.

The building now encompasses 270,000 square feet and features 2,000 square feet of exhibition space, a 200-seat event space, an 11,000-square-foot robotics and prototyping facility, two open studio spaces with desks, lounge spaces, classrooms, as well as meeting and conference rooms.

READ ALSO: Corporate Relocations Are Up, But Experts Paint a Complex Picture

For this adaptive-reuse project to take shape, Ford Motor Co. and Newlab brought together an architectural team that had the ambitious task to repurpose a historical building for the needs of the 21st century user. One of the companies involved in the project was CIVILIAN, a New York-based firm that acted as architectural design consultant, overseeing the interior design for Newlab at Michigan Central. Previously, CIVILIAN collaborated with Newlab for its office spaces at Brooklyn Navy Yard and at 77 Washington St.

In an interview with Commercial Property Executive, CIVILIAN Co-Founder & Principal Nicko Elliott expanded on what it meant to bridge the gap between the past and the present to repurpose a space with such rich history.

What was the vision behind the adaptive reuse of Newlab at Michigan Central?

The interior architects created a mix of private offices, open studios and lounges on every floor of the building, according to Elliott. Image courtesy of CIVILIAN

Elliott: Our goal was to work in dialogue with the existing Albert Kahn-designed building and the corporate modernist design heritage of the region. We wanted to develop a design language that pays tribute to the building’s history while modernizing the space to celebrate the groundbreaking work done by the engineers, designers and entrepreneurs that now occupy its collaborative workspaces.

Tell us more about the team behind the redevelopment.

Elliott: We were really fortunate to work with an incredible group of partners on this project. First and foremost, it would be the whole team at Michigan Central who had the vision to create the growing innovation district of which Newlab is the first phase. Newlab came in to oversee the space and bring in their relationships and expertise within the startup community to bring in a diverse and exciting group of companies to the space.

On the design side, Gensler is the architect of record who oversaw the renovation of the core and shell of this historic building. Michigan-based firm Ghafari was our close collaborator as the interior architect of record. DBI Projects acted as Newlab’s owner’s rep, as well as the project managers at Ford Land.

Why was it important to you to keep some of the building’s original elements intact? What practical reasons influenced this decision, beyond aesthetics and historical preservation?

Elliott: Albert Kahn was an incredibly prolific and pioneering architect whose influence is so deeply felt throughout Detroit, and much of the American Midwest. His industrial buildings were admired for their rationally proportioned structures, lack of ornamentation, straightforward material expression, and oversized windows. All these features were in the design of the Book Depository so we were lucky to inherit a building that is uniquely well-suited to the type of work that is being done by the companies at Newlab.

The extensive shell of the building has been preserved, but now it incorporates more expansive spaces. Image by Brian. W. Ferry, courtesy of CIVILIAN

Architecturally, the building has been updated to create more expansive spaces but much of the existing shell has been carefully preserved. Its brick façade, heavily patinated concrete interior and grid of martini cap columns informed the spatial and material sensibility for the project. It was our job as interior architects to develop a floorplan that fostered both visual and programmatic connections between the production and workspaces, and to design a space that inspired collaboration and connection.

The building is an Art Deco landmark. How did you bridge the gap between its original features and the need for a contemporary, modern space?

Elliott: I think we achieved that through a series of interventions that were mindful of the building’s history while creating a contemporary space that supports the needs of the Newlab community.

One example is the event space which is separated from the robotics and prototyping facility by four 20′ x 15′ lift doors inserted to fit between the existing columns. These allow for a porous connection between two very critical but totally different parts of the building. Much of the locally fabricated custom pieces we designed—like the rosewood and pressed stainless steel reception desk and ash and laminate furniture— reference Kahn-era design and the influence of Fordist mass production.

We also sourced American design classics from Michigan-based furniture brand MillerKnoll throughout the project.

READ ALSO: We Also Need to Amenitize Industrial. Start With the Break Room

Could you expand on how you created a lucrative work environment?

Elliott: Newlab is a space designed around cross disciplinary collaboration, so for us it was very important to create a mix of private offices, open studios and lounges on every floor of the building.

The building is a mix of private offices, open studios and lounges. Image by Brian W. Ferry, courtesy of CIVILIAN

For example, on the ground floor, a cafe serves as a central meeting point for Newlab members and their guests. Given the incredible proportions of the space, we created a year-round interior tree-fern park with lounge seating and worktables in the double-height atrium. It’s a space that we hope fosters a sense of connection and wellbeing.

CIVILIAN’s portfolio spans various project types, including commercial and residential spaces, with three projects already completed this year. What other projects are you working on?  

Elliott: We are currently in the final phases of designing an office for a New York-based documentary film studio, a major live-work residential project for an artist in Queens, and the design of our first project in Los Angeles.

How do you envision the future of the adaptive-reuse trend going forward?

Elliott: There are so many successful case studies that show us the power of giving historic buildings a new life. I think what Newlab shows us is the importance of creating buildings that are not only flexible enough to adapt to today’s needs but also those of the future.

The post Inside Detroit’s New $950M Innovation Hub appeared first on Commercial Property Executive.

Pinnacle Logistics Park is now fully leased. Image courtesy of Friedman Real Estate

DTE Energy has signed a 528,340-square-foot lease at Pinnacle Logistics Park in Redford, Mich. CBRE negotiated on behalf of the tenant, which will use the property for equipment storage. Friedman Real Estate is the owner of the 826,240-square-foot industrial facility since 2004, according to CommercialEdge. The landlord was represented in house by Jared Friedman.

The deal brought the property to full occupancy. The tenant roster also includes Judson Center and Piston Automotive, the same data provider reveals.

Located at 12723 Telegraph Road and 24500 Glendale Road within Detroit’s Livonia submarket, the industrial facility features 12 drive-in doors, 39 dock-high doors, clear heights between 16 and 24 feet, a 12,000-square-foot office component, trailer storage and 413 vehicle parking spots. The property is also rail served, with four interior docks.

Situated on an approximately 48-acre lot, the distribution facility is close to Interstate 96 and U.S. Route 24, while being 12 miles from Farmington Hills, Mich., and from Detroit Metropolitan Wayne County Airport. The property is 14 miles from CSX Intermodal Terminal, 15 miles from Detroit and within 23 miles of Warren, Mich.

Recent deals in Detroit

All Midwestern markets recorded asking rents below the national average of $7.33 per square foot as of June, according to a recent CommercialEdge report. Twin Cities and Detroit were closest to the national figure, with asking rents of $6.50 and $6.66 per square foot, respectively. Detroit recorded one of the lowest vacancy rates in the Midwest, reaching 4.0 percent.

Earlier this year, Gladstone Commercial Corp. signed a five-year extension with Yanfeng International Automotive Technology in Monroe, Mich. The tenant will continue to fully occupy a 220,500-square-foot, Class A industrial property until 2028. Another recent deal includes Industrial Realty Corp’s inking of a 113,742-square-foot, long-term lease at Pontiac Centerpoint Campus West in Pontiac, Mich.

The post Friedman Inks 528 KSF Industrial Lease in Metro Detroit appeared first on Commercial Property Executive.

2200 Revard Road. Image courtesy of CommercialEdge

Gladstone Commercial Corp. has signed a five-year lease extension with Yanfeng International Automotive Technology in Detroit’s submarket of Monroe, Mich. Yanfeng, a tenant since 2008, will continue to fully occupy a 220,500-square-foot, Class A industrial property until late 2028.

Built in 2003 on a 32-acre lot, the one-story, cross-dock building features 28- to 38-foot clear heights, HVAC heated systems and 221 parking spots, according to CommercialEdge information. Gladstone picked up the asset in 2015, in a $30.8 million portfolio transaction, the same data provider shows.

Located at 2200 Revard Road, the property is close to Interstate 75. The facility is 22 miles from Detroit Metropolitan Wayne County Airport and within 36 miles of downtown Detroit.

Detroit industrial market’s robust fundamentals

According to a recent CommercialEdge report, Detroit scored the highest rent growth in the Midwest, at 6.4 percent year-over-year as of April. However, the figure remained below the 7.3 percent national average. The metro also recorded one of the lowest vacancy rates among Midwestern markets, at 3.3 percent, followed by Twin Cities and Cincinnati, both at 4.2 percent. The market also remains among the most affordable in the region, with assets trading, on average, at $68.78 per square foot.

In April, Industrial Realty Group has signed a 113,742-square-foot long-term lease at Pontiac Centerpoint Campus West in Pontiac, Mich. Friedman Real Estate negotiated on behalf of the tenant, The Paslin Co.

The post Gladstone Inks Lease Extension at Detroit-Area Facility appeared first on Commercial Property Executive.

Huntington Tower. Image courtesy of CommercialEdge

The Herrick Co. has purchased Huntington Tower, a 421,481-square-foot office building in Detroit, for $150 million. Richards & Robbins sold the asset, according to CommercialEdge data. Huntington National Bank is the sole tenant, having signed a long-term, triple net lease for the entire building last year.

Huntington Tower came online last year and incorporates 192,500 square feet of rentable office space on floors 12 to 21. The ground floor has 7,500 square feet of retail, while the remaining 10 levels are parking. It also includes a rooftop terrace.

Located at 2025 Woodward Ave., the asset is in an Opportunity Zone. It is situated within the Foxtown neighborhood, in the metro’s Central Business District. A variety of retail, dining and entertainment options are nearby, including the Comerica Park and Ford Field stadiums.

Office transactions nationwide amounted to $9.4 billion year-to-date through April, at an average of $196 per square foot, according to a recent CommercialEdge report. Across the entire commercial real estate sector, sales volume in 2023’s first quarter has seen a 56 percent drop year-over-year, according to MSCI, as multiple factors continue to weigh on the market. The office sector seems to have been hit especially hard as sales were off 77 percent from the long-term average, the same source shows.

The post Herrick Co. Pays $150M for Detroit Office Tower appeared first on Commercial Property Executive.

Health Park South. Image courtesy of Friedman Real Estate

A private investor has acquired Health Park South, a 35,858-square-foot medical office building in Battle Creek, Mich., from Granger Group, Calhoun County records show. The property was subject to an acquisition loan of $3.4 million, provided by Team One Credit Union.

The previous owner received a loan of $2.5 million in 2019 for the Class B medical facility, according to CommercialEdge data. StanCorp Financial Group originated the financing.

Associate Andrew Bower with Friedman Real Estate represented the buyer in the current transaction. The sale included property and facility management services.

Originally completed in 1992, the three-story building sits on 4.9 acres and includes 163 parking spaces at a ratio of 4.3 spaces per 1,000 square feet, controlled access and one passenger elevator. The building is served by a zoned HVAC system with hot water boilers, separate electric metering and wet sprinkling. Ascension Borgess Hospital, Bronson Health Internal Medicine and Fresenius Kidney Care anchor the medical facility.

Health Park South is located at 2845 SW Capital Ave., near the intersection of interstates 94 and 194. The property is some 50 miles from Lansing, 75 miles from Grand Rapids and 120 miles from Detroit. Medical providers in the surrounding area include Cereal City Pediatrics and Bandeen Orthodontics. Battle Creek VA Medical Center is 10 miles away.

CommercialEdge data shows that four medical office properties traded in metro Detroit year-over-year as of June, totaling 252,548 square feet.

The post Granger Group Sells Detroit-Area MOB appeared first on Commercial Property Executive.

Costco Business Center. Image courtesy of Friedman Real Estate

Costco is one step closer to developing its first Michigan business center. The company acquired a 13.4-acre parcel in Southfield from Contour Cos., public records show. The upcoming 160,000-square-foot retail warehouse will differ from the firm’s existing consumer facilities and focus on the business component.

Costco’s Southfield business center was first announced last year in October. The retail warehouse will anchor Northland City Center, the mixed-use redevelopment of the former Northland Mall. At full build-out, the property will comprise office, retail, medical and residential space.

READ ALSO: Retail Leasing Trends to Watch in 2023 and Beyond

Costco Business Center will take shape at the corner of Northland Drive and Northwestern Highway, 13.5 miles from downtown Detroit. The development site has access to multiple routes, including interstates 75 and 696, as well as State Route 10.

Senior Vice President Alan Stern and National Director Rich Deptula with Friedman Real Estate represented the seller in the transaction.

From shopping mall to mixed-use development

The 1.4 million-square-foot Northland Mall, completed in 1954, stayed opened until 2015 when the City of Southfield took ownership of the property with plans to demolish it. Six years later, Contour Cos. acquired the 97-acre site for $11.1 million and proposed the $403 million mixed-use project currently underway.

Northland City Center broke ground a few months later, in October. As part of the development, the original J.L. Hudson department store building is redeveloped into a food and goods store called Hudson City Market. Michigan Economic Development Corp. provided $26 million in Brownfield tax credits for the project. The completion date is set for 2026 or 2027.

The post Costco Business Center to Anchor $403M Detroit Mixed-Use appeared first on Commercial Property Executive.

26711 Northwestern Highway. Image courtesy of Friedman Real Estate

Friedman Real Estate has signed a 37,111-square-foot lease with security company Guardian Alarm at 26711 Northwestern Highway in Southfield, Mich. Friedman Vice President Dan Verderbar represented the tenant in the lease agreement and also in the sale of the firm’s previous 66,000-square-foot office headquarters.

Guardian will be relocating from the intersection of 8 Mile Road and the Southfield Freeway to the 137,476-square-foot office building this summer. The move to the new location will enable Guardian to merge its administrative offices, which are presently situated in two different buildings.

READ ALSO: A Closer Look at Tech Layoffs’ Impact on Office Leasing

Guardian Alarm former headquarters. Image courtesy of Friedman Real Estate

The tenant used Friedman’s design and facilities management services at their former location, and it will continue to do so in their new space, as well. Completed in 1969, the 26711 Northwestern Highway underwent cosmetic renovations in 2012, the year the current landlord acquired the property. According to CommercialEdge, Friedman Communities, GRT Financial, Huron Law Group and Rex Club also have leases at 26711 Northwestern Highway

Guardian Alarm’s new offices will feature an alarm monitoring command center, upgraded training facilities, as well as an expanded customer care center. The new space will feature digital product walls, interactive displays and an improved training and onboarding process.

Southfield office vacancy on the rise

According to a recent report by Colliers, the Detroit office market experienced a negative net absorption of 599,202 square feet during the first quarter. The Southfield market was particularly impacted, with a negative absorption of 468,274 square feet.

The overall vacancy rate for the metro stood at 12.9 percent at the end of the first quarter, the same source reveals. Southfield ended the quarter with a vacancy rate of 21.6 percent, the second highest across all submarkets and up 2 percent quarter-over-quarter.

Earlier this year, Friedman represented The Paslin Co. in securing a 113,742-square-foot lease in suburban Detroit.

The post Friedman Inks Detroit-Area HQ Lease appeared first on Commercial Property Executive.

Gateway Industrial Center. Image courtesy of JLL

Innovo Development Group has completed the $125 million recapitalization of Gateway Industrial Center, a 1.4 million-square-foot industrial campus in Detroit.

Most recently, JLL Capital Markets represented Innovo in arranging $10 million in joint venture equity financing through the RealtyMogul crowdfunding platform. In June 2021, JLL arranged an $80 million financing package which included a $63.7 million loan from Mack Real Estate Group, set to mature in 2031, according to Wayne County records.

READ ALSO: Scarcer Debt for CRE Under Scrutiny

JLL Senior Director Stephen Van Leer, Managing Director Ed Halaburt, Managing Director Trent Niederberger and Director Ross Bratcher orchestrated the recapitalization process.

The story of a Detroit industrial campus

Innovo purchased the asset in 2020 for $36.2 million from DMS. The transaction was financed with a bridge loan of $25.4 million, provided by Franklin BSP Realty Trust, CommercialEdge data shows. Originally completed in 1948 as a manufacturing facility for Massey Ferguson, the 69-acre property underwent several transformations throughout the years.

In 2021, Innovo started a capital redevelopment process at Gateway Industrial Center, which included the demolition of obsolete buildings and updating the existing facilities. Following the revamp, the campus comprised two facilities totaling 1 million square feet, with 40-foot maximum clear heights and ESFR fire sprinklers, and included 745 car parking spaces.

The following year, Innovo started construction on a 421,000-square-foot speculative development at the property. The recently completed warehouse features 36-foot clear heights, 50- by 50-foot column spacing, LED lighting and offers 317 car parking spaces and parking for 100 trailers.

The campus, located in an Opportunity Zone at 12601 Southfield Freeway, is 14 miles from downtown Detroit and close to Interstate 96. Its tenant roster includes Houghton International Inc., NTS and Detroit Manufacturing Systems. Senior Vice President Sean Cavanaugh with JLL is handling leasing at the property.

As of March, Detroit’s industrial market registered a 3.7 percent vacancy rate, 20 basis points lower than the national average of 3.9 percent, according to the latest CommercialEdge report. Its supply pipeline consisted of 10.3 million square feet, representing 1.9 percent of stock.

The post Innovo Completes $125M Recapitalization of Detroit Industrial Campus appeared first on Commercial Property Executive.

660 S. Blvd. E. Image courtesy of Friedman Real Estate.

Industrial Realty Group has landed a new tenant at Pontiac Centerpoint Campus West in Pontiac, Mich. The Paslin Co., a design and build organization serving the automotive industry, has signed a 113,742-square-foot long-term lease.

Senior Vice President Phil Konopitski with Friedman Real Estate represented the tenant in the transaction.

Industrial Realty Group acquired the 538,251-square-foot building in 2015 from RACER Trust for $2 million, CommercialEdge data shows. The property was subject to a CMBS loan of $18.4 million in 2019, provided by Willmington Trust and originated by Wells Fargo Bank, with a maturity date set for 2029.

READ ALSO: Industrial Real Estate Outlook: An Economic Perspective

The Class B warehouse was completed in three phases between 1946 and 1986 and received a cosmetic upgrade in 2018. The one-story building sits on 12.2 acres and features 16-foot clear heights, HVAC climate control, loading doors, dock levelers and bumpers, exhaust fans and make-up air units, and offers 2,099 parking spaces. The tenant roster includes Posco Daewoo America, Penske Vehicle Services and Mahindra Automotive North America.

The property is located at 660 S. Blvd. E., 28 miles from downtown Detroit, providing easy access to Interstate 75. The Port of Detroit is roughly 30 miles Southeast of the property, and Detroit Metropolitan Wayne County Airport is within 36 miles. Companies in the surrounding area include UWM, Challenge Manufacturing, Woodworth and Ternes Packaging, among others.

Detroit registered a 5.9 percent rent increase on a 12-month basis as of March, lower than the national average of 7.1 percent, according to a recent CommercialEdge report. The market’s vacancy clocked in at 3.7 percent, slightly below the national average of 3.9 percent.

The post IRG Inks 113 KSF Lease in Suburban Detroit appeared first on Commercial Property Executive.

FANUC West Campus. Image courtesy of FANUC America

FANUC America, a leading supplier of computer numerical controls (CNCs), robotics and factory automation technologies, broke ground on a 655,000-square-foot facility that will expand the size of its Auburn Hills, Mich., footprint to nearly 2 million square feet. The ceremony included a FANUC CRX Cobot, which is built to work alongside people, that assisted in the groundbreaking.

The new facility in the Detroit suburb, to house manufacturing, engineering and R&D projects, will take shape on 67 acres of land that FANUC America acquired along with the former Thomas M. Cooley Law School campus. The new and existing structures will total 803,100 square feet at what will be called the West Campus.

READ ALSO: What’s Next for Industrial Development: Savills

The company, a subsidiary of Japan-based FANUC Corp., announced the $86 million investment in July and stated it was in response to the growing demand for automation solutions in the United States. General Development Co., which also built FANUC’s 461,000-square-foot North Campus, will be constructing the new facility. Completion is expected in spring 2024.

Located some 30 miles northwest of downtown Detroit at 2630 Featherstone Road, the development site is roughly 7 miles from Continental’s automotive headquarters for North America. In September, Continental, which manufactures parts for autonomous driving systems, completed a $110 million, 215,000-square-foot facility in New Braunfels, Texas, as part of its U.S. expansion.

Training center, expanded

Mike Cicco, president & CEO of FANUC America, said in a prepared statement that, since the company opened its North Campus three years ago, business has increased significantly and further expansion will enable the company to help more customers⁠—both large and small⁠—to achieve their production goals.

FANUC plans to move its Customer Training Academy to the former school once renovations are complete, making it the largest corporate automation training operation in the U.S. The redesigned facility will include more classrooms to provide better learner-to-instructor interactions, as well as increased lab space for hands-on training.

Cicco said a new Deloitte study found there will be at least 2 million unfilled manufacturing jobs within the next eight years, which is contributing to the rapid pace of automation. He said the new training academy will help companies upskill their employees and keep production running smoothly. It will also offer workers more career opportunities as they learn how to operate robotic and automation equipment.

The post FANUC America Expands Michigan Operations appeared first on Commercial Property Executive.

Detroit industrial center. Image courtesy of Sealy & Co.

Sealy & Co. has purchased a 713,796 square foot Class A distribution facility in Pontiac, Mich. Flint Development built and sold the property, which finished construction this year. A Fortune 25 Domestic Corporation currently fully leases the asset.

This purchase is Sealy & Co.’s second in the Detroit region this year, bringing its total holdings in the market to nearly 2 million square feet. The firm previously acquired AeroPlex One & Two, encompassing some 600,000 square feet of space.

Located at 2100 S. Opdyke Road, the property is situated in Detroit’s biggest industrial submarket. According to The City of Pontiac Michigan, in proximity are several automotive suppliers and manufacturers including United Motors, Jomar Performance, Irvin Automotive Product and General Motors. The asset has access to I-75.

READ ALSO: Industrial Sector Faces Supply Chain Challenges

The distribution facility features 36-foot clear heights, 153 dock doors, four grade level doors, LED lighting, ESFR fire protection and build-to-suit office finish. According to CommercialEdge data, the lot size is 44.5 acres.

Jason Gandy, managing director of investment services, and Davis Gibbs, director of investment services, led Sealy & Co. in the deal while John Hassler with Newmark represented the seller.

Detroit is one of the fastest growing industrial markets in the nation, with year-over-year rent growth at 6.2 percent as of July, only trailing major coastal markets that are heavily reliant on port traffic. Despite that, its construction rate and transaction volumes are near the bottom of the list, the most recent CommericalEdge national industrial report shows.

The post Sealy & Co. Buys 700 KSF Distribution Center appeared first on Commercial Property Executive.

Aerial view of 200 Walker St. Image courtesy of Bedrock

Detroit developer Bedrock has acquired The ICON, a 420,000-square-foot Class A multi-purpose development at 200 Walker St. that was formerly home to a UAW-GM training center, on Detroit’s East Riverfront.

The acquisition adds more than 18 acres and 880 parking spaces to the growing downtown portfolio of Detroit’s largest real estate developer.

The 200 Walker St. acquisition includes:

• 420,000 square feet in three buildings:

— West Building, an eight-story office tower and 375-seat, two-story auditorium

— Center Building, a three-story training center and warehousing space

— East Building, a single-story partial mezzanine and full-service cafeteria.

• 880 parking garage spaces.

The West Building also features a 360-degree outdoor terrace on its top floor.

Financials were not disclosed. A Bedrock spokesperson told Commercial Property Executive that the seller was M & M Iconic Venture LLC, a partnership between Moceri Cos., of Auburn Hills, Mich., and Monroe Associates.

READ ALSO: National Office Market Shows Mixed Signals

The sellers had purchased the campus for $34 million in November 2020, according to CommercialEdge.

Bedrock has not yet revealed its plans for the Walker Street campus, but says it’s considering sustainable infrastructure, mixed-income housing, dining, office, public spaces and other uses.

Return-to-office delays

200 Walker St. is adjacent to Bedrock’s recent acquisition of 300 River Place, a 500,000-square-foot Class A office building, cementing Bedrock’s commitment to the Detroit Riverfront, which was named the Best Riverwalk in the country in the 2021 USA Today Reader’s Choice Awards.

Class A space in the Detroit CBD office market currently has a total vacancy of 10.5 percent, with year-to-date net absorption of 0.8 percent on an inventory of 6.7 million square feet, according to a third-quarter report from JLL.

Overall, the metro area’s office market has been seeing a slowdown in leasing, because of the Delta variant and the resulting delay in employees returning to offices. Metrowide year-to-date net absorption is a negative 740,000 square feet, total vacancy is up, and rent concessions are expected to rise, but JLL also notes that “acquisitions by out-of-town investors could signal confidence in the region.”

The post Bedrock Expands Detroit Holdings appeared first on Commercial Property Executive.

Jeff Merritt, Head of Urban Transformation, World Economic Forum. Image courtesy of the World Economic Forum

The World Economic Forum is making a major move to address the growing economic chasm in local communities across the globe. The independent international organization has just announced plans to establish the new global Centre for Urban Transformation in partnership with Detroit-based real estate company Bedrock.

The Centre will be headquartered in Bedrock’s hometown and will promote public-private partnerships designed to support sustainable models of urban development.

READ ALSO: How Much Does Sustainability Matter in CRE Transactions?

The Forum points to a host of social challenges, from climate change to pandemic-induced hardships, as the impetus for the creation of the Centre. The new organization is the brainchild of Jeff Merritt, head of Urban Transformation with the World Economic Forum, and Kofi Bonner, CEO of Bedrock. After a series of discussions over the last year, it became evident that the two shared a common passion: A vision for helping shape more inclusive and sustainable cities.

“As the largest real estate developer in Detroit, Bedrock was able to bring significant assets and opportunities to the table and as the international organization for public-private cooperation, the Forum was also able to bring its network to the table. In short, there’s a been an incredible alignment of interests, vision, need and opportunity that helped forge the Centre for Urban Transformation,” Merritt told Commercial Property Executive.

Leading by example

Backed by the Forum and Bedrock and their combined resources, the Centre will be able to provide a solid foundation for cities to rely upon in their bid to rebuild their economies and craft stronger, more durable communities with the goal of incorporating inclusive urban development. It’s been done before, and The Centre will kick off by showcasing successful innovative models of urban transformation from across the globe.

Bedrock will serve as the inaugural host for the Centre’s work, acting as both a test center of sorts and a model for best-in-class concepts for next-generation urban living. Ultimately, the Centre will partner with Bedrock on its plans for the Gratiot Site, a 7.2-acre property that, once fated to be the site of the new Wayne County Jail, is now destined to become home of a mixed-use destination designed to spur economic transformation in the city’s Innovation District.

Beyond the bevy of projects around town, the City of Detroit itself is a model of reinvention. Having filed bankruptcy less than a decade ago, the metropolis is now experiencing a rebirth.

“Whereas Detroit is seeing a renaissance, there are still significant, deep-rooted challenges to address, which mirror many of the global challenges that we see in cities around the world,” said Merritt. “Detroit’s story, while unique, is also a global story of cities and it was a natural hub to anchor this work on urban transformation.”

The Centre will also conduct activities with the Forum’s offices around the world, including its headquarters Geneva, as well as in Beijing, Mumbai and Tokyo, and back in the U.S. in New York and San Francisco.

The real estate of it all

The change that the Centre will promote will inevitably lead to a host of new development and even the transformation of existing buildings to create more sustainable and resilient cities.

“This isn’t about thought leadership or an academic exercise but rather real-world, on-the-ground implementation and models for building vibrant communities,” Merritt added. “For example, we look forward to showcasing new models for better integrating commercial real estate within mixed-use communities, exploring new models for adaptive reuse, and accelerating adoption of best practices for healthy and sustainable workplaces.”

The Centre is on schedule to launch in October 2021.

The post Centre for Urban Transformation to Launch in October appeared first on Commercial Property Executive.

READ ALSO: Top 5 Markets for Office Construction Activity

The River Place portfolio consists of 500,000 square feet of office space, 735 parking spaces and about 4.4 acres of developable land.

In more detail, the acquisition encompasses:

• 300 River Place, a 500,000-square-foot, six-story Class A office building;
• the western portion of the River Place Parking Garage, totaling rights to 735 parking spaces;
• 2743 Wight and 2748 Franklin, totaling about 1 acre of undeveloped land; and
• 2615-2655 Atwater, totaling about 3.4 acres of undeveloped land.

The building features two six-story glass atriums, exposed brick walls, and traditional and loft-style floorplans. Its location is along the Detroit Riverwalk, only about a block from the Aretha Franklin Amphitheater and only three-quarters of a mile from Detroit’s central business district.

Current office tenants include the Associated Press, Belle Isle Conservancy, Michigan Minority Contractors and the General Services Administration.

300 River Place was last mortgaged in November 2016, for $22 million, and includes 14,000 square feet of retail space, according to CommercialEdge.

Anne Galbraith Kohn of CBRE represented the seller in the transaction.

Not strong yet

300 River Place was built in phases in 1928 and 1939 by Parke-Davis & Co., which had occupied pharmaceutical manufacturing and research facilities along the Detroit River since 1873. The entire site, including 300 River Place, was acquired by The Stroh Brewery Co. in 1979 and over the next 10 years renovated into a modern, mixed-use campus.

Last November, a 420,000-square-foot mixed-use riverfront campus quite near the River Place portfolio was sold by a joint venture of United Auto Workers and General Motors. The new owners, Moceri Cos. and 400 Monroe Associates, have renamed the facility The Iconic.

Although metro Detroit enjoys an unemployment rate of 5.2 percent, notably lower than the national average of 6.0 percent, the Detroit office market remains unsettled as the pandemic begins to ebb, according to a first-quarter report from Cushman & Wakefield.

Sublet space continues to rise, and the CBD has seen substantial negative absorption so far this year. Further, overall average asking rent declined a bit from the fourth quarter, from $20.88 to $20.80 per square foot, the first such drop in almost eight years.

The post Bedrock Acquires Detroit Riverfront Portfolio appeared first on Commercial Property Executive.

4400 Matthew Drive. Image courtesy of Sealy & Co.

Sealy & Co. has acquired a 407,500-square-foot distribution warehouse at 4400 Matthew Drive in Flint, Mich., for an undisclosed amount. The seller was Schostak Brothers.

READ ALSO: Partners Group Strikes $1B Industrial Deal

The 21-acre site is in Linden Creek Commerce Park, which is adjacent to Flint’s Bishop International Airport and close to the intersection of I-69 and I-75.

The property is fully leased to General Motors as a long-time tenant, which apparently uses the building as part of its truck manufacturing operations.

In a prepared statement, Sealy noted that the building is of a size that’s rare in this market and that it “far exceeds the typical product size of 180,000 square feet.”

The acquisition, Sealy’s first in the Detroit market, means that the company has expanded its holdings into 18 target markets across the U.S.

The transaction was facilitated by Sealy’s Investment Services team and JLL brokers Ed Halaburt and Sean Devaney.

In the statement, Sealy & Co. Chief Investment Officer Scott Sealy Jr. noted that 2021 marks the company’s 75th anniversary and that Sealy & Co. has now focused specifically on industrial investments for more than 60 years.

Recovering substantially

So far this year, the metro Detroit industrial market’s overall vacancy has increased to 4.9 percent, driven largely by new speculative construction, according to a first-quarter report from Newmark. Still, nearly half of the newly delivered product is already occupied, and much of the rest has leases pending.

The metro area’s unemployment is gradually falling from its high of 24 percent last May, to 5.4 percent in January. That’s in comparison to 4.3 percent before the pandemic’s onset, again according to Newmark.

Pandemic notwithstanding, Sealy has been a steady and significant purchaser of industrial assets across the country, having acquired a 1.2-million-square-foot industrial portfolio in Greenville, S.C., from Blackstone last August; a 1 million-square-foot distribution facility in the Metro East market of St. Louis in December; and most recently a 663,800-square-foot distribution warehouse in Houston.

The post Sealy & Co.’s First Detroit-Area Acquisition appeared first on Commercial Property Executive.

Image courtesy of Amazon

Keeping up with the pace of e-commerce demand, Amazon plans to expand its footprint in metropolitan Detroit with the addition of five new facilities. The company will add three fulfillment centers and two sortation centers at various locations in the Detroit area.

READ ALSO: How Automation Will Fill Supply Chain Gaps: Report

Amazon hasn’t disclosed all the details on the new buildings; however, one of the facilities will be an 823,000-square-foot fulfillment center in Detroit proper and will mark the company’s fourth such center in Michigan utilizing Amazon robotics to assist associates with picking, packing and shipping smaller items. The company will also open a same-day fulfillment center in Hazel Park and a sortation center in Plymouth. The final two facilities, a sortation center and an XL fulfillment center, will debut at Pinnacle Park in Huron Township on the site of a former Pinnacle Race Course, which saw its last horse races in 2010.

Amazon, which has been in the State of Michigan since 2010, has been quickly expanding its presence in metropolitan Detroit over the last year. The company currently operates 10 support, fulfillment, delivery and operations centers in the area, four of which opened in 2020.

Timely growth spurt

From its first fulfillment center in Iowa in February to its first fulfillment center in Louisiana in December, Amazon spent 2020 in expansion mode. It was all part of the company’s plan to increase its one-day delivery offerings, but the increase in e-commerce activity due to the pandemic certainly impacted its schedule. As Brian Olsavsky, CFO of Amazon.com Inc., said during the company’s third quarter 2020 earnings conference call on October 29, 2020: “The logistics team is really good at one way locking up long-term commitments on space and buildings, but on the other hand, being able to adjust the timeline in or out to match capacity and demand.”

The five new Detroit-area facilities will launch in 2021, bringing a total of more than 2,000 permanent and full- and part-time jobs to the region.

The post Amazon to Expand With 5 Facilities in Metro Detroit appeared first on Commercial Property Executive.

Rendering of Ford Motor Co. distribution center in Newport, Mich. Image courtesy of Associated Bank

InSite Real Estate LLC has received financing to construct a 1 million-square-foot build-to-suit industrial facility for the Ford Motor Co. in Newport, Mich., approximately 30 miles southwest of Detroit. The amount of the loan was not disclosed by Associated Bank, which announced the closing.

READ ALSO: Demand for Modern Industrial Facilities Fuels the Pipeline

Associated Bank was the lead arranger and administrative agent, working with Great Southern Bank and Trustmark National Bank. Krista Casper, a senior vice president with Associated Bank’s Commercial Real Estate division, handled the loan arrangements and the closing.

InSite acquired the 263-acre property at 8335 N. Telegraph Road in August and signed a long-term lease with Ford to build an automotive parts distribution center on the site of the former Nike Missile Base at Telegraph and Newport roads. InSite, which acquires, develops and operates industrial, office and retail investment properties nationwide, expects to complete the project in the fourth quarter of 2021. The building will feature a clear height of 36 feet and have 87 loading-level dock doors and four drive-in doors, with parking for 250 cars.

Ford is expected to lease the site for at least 10 years and create about 150 jobs, according to local media reports. On Oct. 1, Ford was granted a property tax abatement from the Frenchtown Township Board. The company will receive a 50 percent industrial facilities tax exemption that will cover eight years on the real estate and four years on investment in machinery and equipment, the Monroe News reported. The newspaper also reported Ford expects to invest $30 million in the site and pay about $20 million to lease the building.

Ford Detroit development

The automotive giant is also planning to build a 30-acre “mobility innovation district” in the Corktown neighborhood of Detroit. Last month, Ford unveiled the site plan for Michigan Central that will have at least four key buildings: The Michigan Central Station that has an 18-story office building; The Book Depository that is being revitalized into a maker space by Gensler; a new property to be called Building West and The Factory, a repurposed former hosiery factory that is already home to 250 employees of Ford’s autonomous vehicle business.

The post Ford Motor Co. Industrial Project Lands Financing appeared first on Commercial Property Executive.

READ ALSO: Coronavirus Puts Detroit Office Market to the Test

The new Detroit development centers on four key buildings:

• The Michigan Central Station itself, completed in 1914 as a sibling to New York’s Grand Central Station and featuring an 18-story office tower. The Beaux Art structure has been vacant since 1988.
• The Book Depository, formerly owned by Detroit Public Schools. The building is adjacent to the station and it is being revitalized into a maker space by architecture firm Gensler.
• Building West, a new construction building to the west of the station.
• The Factory, a repurposed former hosiery factory, which is already home to 250 employees of Ford’s autonomous vehicle business unit.

Helping to tie together these and other components are a “mobility platform” on the elevated train tracks behind the station and several new open spaces throughout the district’s 45 acres of vacant land.

The lead architect and strategic planner is Practice for Architecture and Urbanism, of New York. For all that Detroit is the Motor City, PAU’s plan for Michigan Central emphasizes walkability, such that the district can be walked in 20 minutes.

The plan also envisions a range of housing options alongside new public amenities like a grocery store and day-care facility. East of the station, Ford will build a 1,250-space parking garage and mobility hub at 14th and Bagley. It will feature bike storage, public parking on evenings and weekends, as well as electric charging. Overall, 5,000 employees will work in the new district.

A closer look

The Albert Kahn–designed Book Depository is being renovated into the district’s industrial center. Gensler has designed a mixed-use space that makes use of the building’s expansive floorplates, 20-foot ceilings and large windows. It will offer co-working space, hands-on labs and innovation studios, topped by a new rooftop space that will be available year-round for tenants and guests.

“The interiors will be highly flexible … where anything from walls and panels to furniture and fixtures can be flipped, moved or repurposed to support a multiplicity of uses,” Lily Diego, design director at Gensler’s Detroit office, said in a prepared statement.

Behind the train station, Ford will transform a set of abandoned elevated railroad tracks into a 7-acre “mobility platform,”—a versatile landscape where Ford and its partners can test emerging technology, including autonomous vehicles and micro-mobility initiatives. It will also provide shared paths for pedestrians and cyclists and gathering spaces for the community.

Landscape architect Mikyoung Kim Design, of Boston, working with Detroit-based livingLAB, will design the mobility platform and other open spaces around Michigan Central.

Michigan Central will also be a node on the state of Michigan’s proposed connected and autonomous vehicle corridor running from Detroit to Dearborn to Ann Arbor. Ford is one of the corridor’s founding partners, and one of the collaborators is Cavnue, which is developing infrastructure for CAVs.

Work on the Book Depository and Bagley Parking Hub will start in the first quarter of 2021, with both buildings expected to open in early 2022. Michigan Central Station is currently in the second, most labor-intensive phase two of its restoration, which focuses on fixing the steel structure and repairing 8 acres of masonry. Ford reportedly is on track to complete the station by the end of 2022.

The post Ford Unveils Plans for 30-Acre Detroit Redevelopment appeared first on Commercial Property Executive.

200 Walker St., View of Detroit River Walk and Belle Isle from outdoor terrace. Image courtesy of Moceri Cos. and 400 Monroe Associates

The UAW-GM Center for Human Resources in Detroit has gotten a new owner and will soon get a new future, courtesy of a change in ownership of the 420,000-square-foot waterfront campus. Moceri Cos. and 400 Monroe Associates have recently acquired the multi-use office asset at 200 Walker St. from a joint venture between the United Auto Workers and General Motors. The new ownership has rechristened the property the Iconic.

READ ALSO: Coronavirus Puts Detroit Office Market to the Test

Moceri Cos. and 400 Monroe’s new acquisition boasts a coveted location. “The Iconic campus fronts along The Detroit Riverfront Conservancy that connects a fun, safe and secure pedestrian/bicycle boardwalk to Belle Isle and the downtown central business district,” Dominic Moceri, partner with Moceri Cos., told Commercial Property Executive. The six-story building first opened its doors in 2001, developed primarily for use as a training center for the partnership between UAW and GM. In addition to office space, 200 Walker also features technical training areas, as well as such amenities as a 300-seat auditorium, conference center, fitness facility and café with full-service dining area.

200 Walker St. Image courtesy of Moceri Cos. and 400 Monroe Associates

UAW and GM tapped CBRE to market 200 Walker in February 2020 in preparation for the closure of the Center. With a non-disclosure agreement in place, all parties involved are precluded from disclosing specifics about the financial terms of the sale. However, as CBRE noted in a prepared statement upon announcing the marketing of the 18-acre property, replacement cost for a building of this quality would be significant.

A building’s next chapter

Moceri Cos. and 400 Monroe plan to reposition 200 Walker as a creative environment designed not only to accommodate a single or collaborative office user, but also to serve as an entertainment complex for showcasing events. “We have already invested an amount in the tens of millions,” Moceri said. “We are planning on exponentially increasing that investment.”

200 Walker St. Image courtesy of Moceri Cos. and 400 Monroe Associates

Before the COVID-19 pandemic, Detroit’s office market had been experiencing a rebirth, right along with the rest of the city. As noted in a first quarter 2020 report by CBRE, “Since Detroit’s bankruptcy and the release of ‘7.2 SQ MI’ in 2013, Greater Downtown Detroit has experienced a whirlwind transformation of its commercial real estate landscape. Corporate migration from the suburbs, new locations for regional and national retailers, and multimillion-dollar ground-up office, retail, multifamily, and hotel developments have solidified the city’s growth and resurgence.” Until the third quarter of 2020, Detroit’s office market had not recorded negative absorption since the fourth quarter of 2009, according to the latest CBRE report on the city’s office market.

The post Iconic Waterfront Campus Trades in Detroit appeared first on Commercial Property Executive.

Kofi Bonner, CEO, Bedrock. Image courtesy of Bedrock 

Bedrock has selected Kofi Bonner as the company’s next chief executive officer starting September 21st. Bonner will replace the currently acting CEO Bill Emerson, who will retain the role of vice chairman for both Rock Holdings Inc. and Bedrock. The latter teamed up last November with Related Cos. for a $300 million research and education center in Detroit.

Bonner joins the company from FivePoint Holdings where, as co-chief operating officer, he was responsible for entitlement and development of important projects such as the San Francisco Shipyard and Candlestick Communities, as well as for Treasure Island and the Concord Naval Weapons Station, communities managed for Lennar Corp. Last year, Bonner focused his attention on real estate development and technology ventures through his Bonner Enterprises in the San Francisco area and Ghana. He also invested in BC Pay and Techgulf, fintech firms that source technology operations and services to West Africa.

Before switching to real estate, Bonner served as executive vice president & chief administrative officer of the Cleveland Browns for seven years and was the first African American to hold the title within the NFL. He oversaw the business operations and development of the team’s Cleveland Browns Stadium and was instrumental in growing the team’s online presence by sitting on the NFL’s Internet Committee and developing the team’s website.

Bonner started his career as the affordable housing developer for Oakland Community Housing Inc. and spent the rest decade in different public servant roles. They included director of community and economic development and then interim city manager for The City of Oakland, chief economic advisor to Willie Brown and Mayor of San Francisco.

The post Kofi Bonner Joins Bedrock as CEO appeared first on Commercial Property Executive.

Image courtesy of DTE Energy

The Michigan Public Service Commission has approved DTE Electric’s Renewable Energy Plan. The plan includes keeping the electric rates unchanged until 2022, while also bringing online 353 megawatts of wind and solar projects.

Accounting for new solar projects in 2022, DTE’s solar capacity will be triple the current one. The company’s solar and wind projects will generate enough electricity to power 620,000 households. In addition, by 2021, 15 percent of DTE customers’ energy bills will be generated by renewable energy. Customers can opt-in for a greater percentage, up to 100 percent, through MiGreenPower, DTE’s voluntary renewable energy program.

The recently approved plan includes the retirement of the River Rouge coal power plant sooner than initially announced: The plant will stop commercial operation in early 2021 instead of 2022. Two additional coal-fired plants—Trenton and St. Clair—will shut down by 2022. DTE will build a $1 billion natural gas-fired plant in St. Clair County near its Belle River plant in East China Township, estimated to be finalized by 2022.

DTE’s commitment to clean energy translates into a $3 billion investment in solar and wind energy infrastructure and developments since 2009. Over the next four years, the company will invest an additional $2 billion in renewable energy assets and will more than double its renewable energy capacity.

The post DTE Electric’s Renewable Energy Gets the Green Light appeared first on Commercial Property Executive.

Woodland Estates. Image via Google Street View

RHP Properties has expanded its manufactured-home-community portfolio in Michigan. The 375-home-site Woodland Estates is part of Oakland County, Mich., and represents RHP’s 18th property in the state, bringing the company’s portfolio of manufactured housing communities to 260 nationwide. RHP plans to upgrade the existing amenities and reposition the property as an affordable alternative to the higher-priced single-family homes in the area.

Woodland Estates is located at 1441 W. Romeo Road, approximately 30 miles north of Detroit and 5 miles from the town of Lake Orion. The pet-friendly community features an array of amenities including a fitness center, resident garden, playground, sauna and volleyball court. RHP plans to expand this list by adding a business center. Residents also have access to a number of attractions and activities in the nearby area, such as Addison Oaks County Park, which is located across the street, and Bald Mountain State Recreation Area.

The demand for affordable housing has been growing in the area according to RHP’s CEO Ross Partrich, as the average price of single-family homes within a three-mile radius has been exceeding $350,000. Oakland County is among the nation’s highest-income counties with populations exceeding one million. It is also home to Oakland University and hosts the offices of some of the largest employers in the state, including General Motors, Ford and Chrysler. 

The acquisition brings RHP’s manufactured housing communities’ home count to more than 65,000 nationwide. The company owns and manages properties in 27 states.

The post RHP Properties Closes New MHC Deal Near Detroit appeared first on Commercial Property Executive.

Roseville Towne Center. Image courtesy of Mid-America Real Estate

Mid-America Real Estate has brokered the sale of Roseville Towne Center, an 89,883 square-foot retail property in Roseville, Mich. Principals Ben Wineman and Daniel Stern, along with Vice President Carly Gallagher Kelly, represented the seller, Viking Partners. Keystone Commercial Senior Sales Associate Ferris Hamama assisted the private 1031 exchange buyer.

According to public records, the transaction closed for $9.5 million and was subject to a $4.5 million acquisition loan. Located at 28804 Gratiot Ave., the Michigan shopping center is anchored by Marshalls, a drive-thru CVS, Five Below, Cato Fashions, Outback Steakhouse and Dollar Tree. A separately owned Walmart is also an anchor tenant at the property.

Roseville Towne Center is just off Interstate 94, within a dense trade corridor. This area includes Gratiot Plaza and Gratiot Center, which are within 2 miles of the property. Roseville Towne Center is 18 miles from downtown Detroit.

In July 2019, another Mid-America Real Estate team facilitated a full-building, 45,000-square-foot Chicago lease. The deal marked fashion retailer Primark’s first store in the Midwest.

If you’d like to be featured in Brokers’ Corner, simply fill in our short form or send your deal to deals@cpe-mhn.com.

The post Mid-America Real Estate Arranges Detroit-Area Retail Deal appeared first on Commercial Property Executive.

Patrich Jett, Senior Vice President at Colliers International. Image courtesy of Colliers International

Much like every other market in the country, Detroit, too, has entered an economic slowdown as a result of the coronavirus outbreak. After years of growth, which has put the Motor City on many investors’ watch list, the metro is under gloomy skies again. In mid-March, Ford, Fiat Chrysler and General Motors suspended vehicle production indefinitely, with statewide unemployment claims continuing to spike ever since. 

When it comes to the impact the pandemic is expected to have on the office market, Colliers International Senior Vice President Patrich Jett estimates the slowdown will be temporary, with more growth to follow. However, he remains cautious, and links a realistic exit from the current economic downturn to the length of the shutdown, its effects and the date a vaccine for COVID-19 becomes available. 

READ ALSO: How Coronavirus Is Impacting Office Leasing

Did Detroit’s steady growth in 2019 continue through the start of 2020?

Jett: The Detroit/Ann Arbor MSA continued to be very vibrant in the first quarter, with many new projects announced and strong market activity. One of the largest projects is Volkswagen’s plans to take over 250,000 square feet of office space at Galleria. The company is also building an adjacent 95,000-square-foot R&D technical center that would bring 1,800 new jobs to Southfield, which has long been considered the epicenter of Detroit’s suburban office market.

Dan Gilbert’s Bedrock Detroit is also continuing to push ahead with large projects, including the 190,000-square-foot Detroit Center for Innovation that will be operated by the University of Michigan. There’s also the Monroe Blocks project, an 847,000-square-foot development that will be the first office tower constructed in the city of Detroit in over a generation. We expect the MSA to continue to grow, as companies look to reduce real estate and labor costs and leverage Detroit’s engineering talent and educated workforce. 

What trends will shape the market in the coming quarters?

Jett: COVID-19 will, of course, have the largest impact over the next three quarters, as we expect continued shutdowns and layoffs over the next 90 days in almost every industry. The automotive industry will have the most significance in Detroit as we could see a 20 percent reduction in the local workforce. Detroit is also one of 10 international airport hubs in the U.S. for Delta Air Lines, and has two border crossings with Canada. This is one of the reasons why Amazon has invested in over 5 million square feet of existing or planned projects in metro Detroit, and we expect that this will have a large impact on local retail and travel.    

We will also continue to see the convergence of technology and the need for engineering talent, which has been making Detroit more relevant as a global player in the technology sector. Amazon has quadrupled its 57,000-square-foot Detroit-based tech hub—one of 18 in the U.S.—while Microsoft has expanded its Technology Center—one of 16 in the U.S.—and opened a new 80,000-square-foot office for LinkedIn, its first new market office in over 10 years. We expect to see more investments from tech giants over the next several years, as they continue to look for human capital and reduce real estate costs.

What are your expectations for the tech sector this year, and how it will impact the office market?

Jett: The state’s ecosystem of universities provides Michigan businesses with a strong pipeline of talent, and offers opportunities for current workers to further their skills in a world of fast-paced technological change. This is apparent by the advanced degrees offered in a range of high-tech innovation disciplines including mobility, artificial intelligence, data science, entrepreneurship, sustainability, cybersecurity, financial technology and more.

Ford Motor Co.’s new Corktown mobility innovation campus is a perfect example of how corporate companies are reinvesting in the metro and its wide array of amenities including the ability to develop, test and prototype this technology. Ford Mobility is now using the American Center for Mobility (ACM), a 500-acre test track at the historic Willow Run Bomber Plant originally built by Henry Ford, to test and validate its autonomous vehicles. ACM also has a 25-acre tech park that is located in an Opportunity Zone and is shovel-ready for R&D built-to-suit projects. 

READ ALSO: Construction Costs Continue to Rise in 2020

Over the last several years, we have seen the convergence of Detroit and California/Silicon Valley-based tech giants who have realized that they need the experience and engineering talent of Detroit to be successful. We expect this trend to continue as we see more tech-based companies establishing and expanding in the metro. Another interesting trend in Detroit is the “arsenal of health,” just like the “arsenal of democracy” in World War II, where the automotive industry, including GM, FCA and Ford, is using its unparalleled manufacturing prowess to help America respond to the COVID-19 crisis by making ventilators and face masks under the Defense Production Act. 

Automotive supplier Marelli recently signed a 200,000-square-foot lease in Southfield. Do you think this deal is indicative of increased activity in the suburbs this year? 

Jett: Yes, it is. There are very few existing properties available over 100,000 square feet that are located in core submarkets, so companies have limited options to combine a large footprint into one facility. The alternative is to look at greenfield/built-to-suit options, which can take up to 24 months to deliver and are considered very expensive due to high construction cost, but sometimes are the best option when looking for a long-term solution. There are over a dozen large projects in the Detroit/Ann Arbor MSA actively looking for large sites over 100,000 square feet.

There is also very limited office product in the Detroit CBD, or Corktown, that is move-in ready or in desirable areas with amenities, regardless of the size. Tenants looking to be in the Detroit CBD, or Corktown, want to be located in the urban core to take advantage of walkability to amazing restaurants and bars, and access to talent. 

What are the investment submarkets to watch this year in Detroit?

Jett: The metro does not have as many institutional investors as you might see in other institutional markets, but what we do have is much more attractive capitalization rates compared to the core institutional and coastal markets. Cap rates in the office market range from 6.5 percent to 8.5 percent, depending on credit and lease term, and there are deals available. The most active markets for single-tenant investments are Auburn Hills, the 275 Corridor—Novi/Farmington Hills—and Ann Arbor. Detroit is also very active as there is a lack of product and parking, but the entry level has become very expensive and is still speculative.   

Do you think the Federal Reserve’s recent rate cuts will affect Detroit’s lending climate for office investment?

Jett: Lenders will be watching their capital to make sure clients are able to survive, but they will also be conservative regarding new investments into the metro. While we believe the lending climate will remain favorable, we do not expect commercial rates to drop much lower than what we have seen over the last several years.   

How is the outbreak impacting Detroit’s commercial real estate sector?

Jett: It is hard to determine how COVID-19 will impact the market in the long term, but it is clear that people will be making big decisions and changing the format of how they’re currently running their business operations. We will continue to see people work from home, and technology that will change the way we interact, which, long term, could be negative for the office market sector as we see business adapt to this new model.

How will the $2 trillion stimulus package benefit Detroit’s office market?

Jett: Because its economy relies on the automotive industry, the MSA is among the markets that have been hit the hardest by COVID-19. The stimulus package will give the industry a lifeline to continue to operate, while reducing furloughs and permanent layoffs. It is too soon to understand the impact that this will have on the Detroit office market, but we expect it to reduce the severity of the pandemic’s impact in the region.         

Do you think the metro is prone to another downturn similar to the Great Recession?

Jett: We do not expect a long-term recession like what we had in 2008, but rather a 90-day cliff that will take time to recover from, as the economy rebounds and then charges ahead. Very similar to the 1918-1919 Spanish Flu pandemic, we expect the next five years to have tremendous growth. However, this is dependent on the length of the COVID-19 shutdown, if a vaccine will be available before Labor Day and how badly the market gets hit. Brick-and-mortar retail could be devastated, followed by the office market. Revenue is made in Detroit when we are manufacturing, and consumers are spending.

Tell us your goals and strategy for the months ahead.

Jett: First and foremost, we want all of our clients and families to remain safe and healthy. Without them, we do not have a reason to have business goals and strategies. We are preparing to help our clients succeed through this very challenging time by offering additional services at no cost, to help them survive and thrive. We are not taking time off or slowing down, so we expect 2020-2021 to be record business years for the Book-Jett team.          

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26555 Northwestern Highway. Image via Google Street View

Dembs Development has landed a tenant to anchor the long-vacant, approximately 360,000-square-foot corporate campus at 26555 Northwestern Highway in Southfield, Mich. The company has just signed Marelli, a global automotive supplier, to a 200,000-square-foot, multi-year lease agreement at the suburban Detroit property.

READ ALSO: Detroit Office Report – Fall 2019

Located roughly 15 miles north of downtown Detroit, 26555 Northwestern first opened its doors in 1967. The Giffels & Rosetti-designed property consists of three interconnected buildings on a 22-acre, expandable site. Dembs acquired the campus, which had been home to motor parts company Federal Mogul Corp., from Lexington Property Trust in a $3.5 million transaction in 2017. Dembs is now in the process of submitting the three-story property to an extensive renovation, with architectural firm HED spearheading the design.

Marelli, which is the product of the 2019 merger of Magneti Marelli and Calsonic Kansei, will consolidate its current local offices at 3900 Automation Ave. in Auburn Hills and 27000 Hills Tech Court in Farmington Hills to create a single North American headquarters at 26555 Northwestern. The automotive supplier’s new home will accommodate roughly 500 employees and feature 100,000 square feet of laboratory R&D space, as well as access to the campus’s 350-seat auditorium, cafeteria, fitness facility and ample indoor/outdoor meeting space. CBRE orchestrated the lease on behalf of the landlord. Marelli will relocate to its new home base at 26555 Northwestern in phases beginning in late 2020. The company expects to have completed the move by March 2021.

Detroit’s upward trajectory

Six years after emerging from the largest municipal bankruptcy in U.S. history, the City of Detroit is undergoing a renaissance and its office market is part of the rebirth. The office vacancy rate hit 24.5 percent in 2013, but has been on a steady decline ever since, dropping to 13.8 percent in 2019, according to a report by CBRE. Net absorption, which has remained positive for the last decade, totaled approximately 784,400 square feet last year. 

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3000 Lake Eastbrook Blvd. Image courtesy of Mag Mile Capital

Mag Mile Capital arranged a $23.7 million loan for a three hotel portfolio in Michigan. The portfolio included a Staybridge Suites by Intercontinental Hotels Group in Grand Rapids, Mich., a Homewood Suites by Hilton in Novi and a TRU Hotel by Hilton in Sterling Heights.

Senior Vice President Francisco Nacorda represented the borrower, Stellar Hospitality, in all three transactions, which featured a 10-year term and a 25-year amortization period.

According to Nacorda, closing the deals involved several challenges, including dealing with a condominium component part of one of the hotels as well as less than 12 months of operating history for the other two. The transaction was the sixth one that Mag Mile facilitated for Stellar Hospitality.

The Staybridge Suites hotel benefited from the largest loan—$9.4 million. Located at 3000 Lake Eastbrook Blvd., near the Shops at CenterPoint, the property encompasses 94 guest rooms. The 89-key Novi hotel (26150 Town Center Drive) received $8.5 million while the 98-key Sterling Heights hotel (36599 Van Dyke Ave.) received $5.8 million in financing.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.     

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The Westin Book Cadillac. Image via Google Street View

The Ferchill Group has refinanced The Westin Book Cadillac, a 488-key hotel in Detroit. Citigroup provided a $77 million, 10-year loan which features three years of interest-only payments. Berkadia secured the financing on behalf of the owner.

Located at 1114 Washington Blvd., the 33-story building first opened in 1924. In 2008, the owner completed a $180 million renovation on the property, following a vacancy that lasted more than two decades. The new loan will allow the historic building to undergo another major renovation, according to Berkadia Cleveland Director Dan Geuther, who negotiated the financing deal.

Situated in downtown Detroit, the property is within walking distance of Campus Martius Park, The Riverwalk Promenade, Ford Field, as well as Comerica Park. The hotel features 453 guestrooms and 35 suites. Amenities include a fitness facility, spa and heated indoor pool. Dining and entertainment options are also available on site.

Other developers are also busy in the metro’s urban core. Last November, Choice Hotels International broke ground on Cambria Hotel Detroit Downtown, half a mile west of The Westin Book Cadillac. Completion is anticipated for this year.

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Timberlands IV. Image courtesy of Transwestern

Transwestern Commercial Services has secured a new lease for FD Stonewater at the company’s Timberlands Office Park in Troy, Mich. The tenant, law firm Garan Lucow Miller, will occupy 13,285 square feet.  

Executive Vice President Bill Harvey, Senior Vice President Chuck Howard and Leasing Associate Neil Leising represented the landlord in the deal. The lease comes a few months after FD Stonewater tapped Transwestern to act as leasing agent for one of its Chicago-area assets, Evanston MetroCenter.

After 25 years at 1111 W. Long Lake Road, Garan Lucow Miller will relocate to 1450 W. Long Lake Road, just 0.4 miles from its previous location. The law firm will be occupying space in Timberlands IV, one of the three Class A office structures part of the Timberland Office Park campus. This will be Garan Lucow Miller’s eighth office in the Great Lakes region.

According to Yardi Matrix data, FD Stonewater purchased the 162,353-square-foot building in 2018 using an $8.7 million loan from Flagstar Bank. Currently, the property is undergoing renovations, which include food service upgrades, conference centers, tenant lounges and lobbies improvements, as well as the addition of outdoor seating areas with Wi-Fi.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.

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8411 Sylvester St. Image via Google Street View

Renovations undertaken at Detroit Prep Academy have officially been completed. Located in the former home of Anna M. Joyce Elementary School in Detroit’s Pingree Park neighborhood, the three-story school has officially opened its doors.

The first diverse-by-design public charter school in Detroit, Detroit Prep had been operating out of a church basement before its transition to the new 43,500-square-foot property at 8411 Sylvester St. The new location is less than 5 miles from the city’s downtown where Bedrock and Related Cos. are getting ready to break ground on the $300 million Detroit Center for Innovation. 

The $6.9 million project included upgrades to the 21 classrooms, a kitchen, cafeteria and gathering/performance space. Detroit Prep plans to expand to support kindergarten through eighth grade by 2025. By then, the property is also expected to include a playground and outdoor learning space.

The project was financed through a partnership of IFF, Capital Impact Partners and JPMorgan Chase & Co. Capital Impact Partners contributed $1.7 million to the project while IFF provided $2.8 million along with $6 million of new market tax credit allocation. Other donors that contributed with various grants were from pop singer and Detroit native Madonna ($100,000), Born and Raised Detroit Foundation ($10,000) and Grey Ghost Detroit ($175,000). 

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Cameron MacKellar, Managing Director, Savills. Image courtesy of Savills

Savills has named Cameron MacKellar as managing director in its Detroit office. His focus will be project management. Previously, he served as senior tenant coordinator at Dan Gilbert’s Bedrock. His new role will involve leading a team of tenant-focused brokers specializing in office and industrial leasing and providing consulting, strategic planning and similar services.

MacKellar has more than fifteen years of combined experience in real estate, architecture and construction. He has overseen Fortune 500 portfolios and has delivered specialty projects for golf courses, casinos, resorts and hotels across the globe. Before joining Bedrock, he was director of construction for Impact Fitness.

The newly appointed Savills manager has a B.A. degree in architecture from the University of South Australia, an M.A. degree in environmental design from Michigan State University and is currently pursuing an MBA in real estate from Florida State University. He is a member of the Australian Institute of Project Management, the International Council of Shopping Centers and CoreNet Global.

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Groundbreaking of Cambria Hotel Detroit Downtown. Image courtesy of Choice Hotels International

Choice Hotels International Inc. and developer Koucar Management have broken ground on the first Cambria hotel in Detroit. Completion is anticipated for next year.

Cambria Hotel Detroit Downtown will be built on the parking lot of the historic former home of WWJ studios, Detroit’s all-news AM radio station, at 600 W. Lafayette Blvd. Cambria Hotel Detroit Downtown will be two blocks from the TCF Center and a short drive from the headquarters of many car manufacturers such as Ford, GM and Chrysler, as well as the Quicken Loans headquarters.

READ ALSO: Is the US Hotel Market About to Hit a Wall?

“Cambria is expanding in key urban markets across the country, where there is strong consumer demand,” Janis Cannon, senior vice president of upscale brands for Choice Hotels, told Commercial Property Executive. “As such, Michigan’s rich history and ongoing economic growth make it an ideal market for the brand’s continued growth and expansion.”

Cambria Hotel Detroit Downtown. Rendering courtesy of Choice Hotels International

Cannon added that their latest Detroit hotel would appeal to the influx of business professionals and travelers visiting the city. The six-story luxury hotel is slated to include 158 keys, a rooftop bar with pool, a multi-function meeting room, a grand ballroom, a fitness center with spa amenities and an onsite restaurant by Fabio Viviani.

The property underwent an adaptive reuse to be repurposed, but the original plan was to convert the space into condos, according to Detroit Free Press. Eventually, the residential conversion was dropped due to lack of construction financing. Instead, developers Means Group Inc. and Koucar Management stepped in and announced their intention to convert the building into a hotel.

Creating more hotel choices

Cambria Hotel Detroit Downtown will mark the brand’s second location in Michigan, with the first being the 92-key Cambria Hotel Traverse City. The two developers are also working on another Cambria Hotel at 50741 Corporate Drive in Shelby Township, Mich., that will be opening in July 2020.

“We’ve been successful in moving our pipeline into groundbreakings and we work with the industry’s top developers to do so,” Cannon told CPE. “Based on how quickly projects are moving from ground break to opening, we anticipate this being our new normal.”

Outside of Michigan, nine other Cambria hotels opened this year, totaling more than 1,200 keys, including the brand’s first hotel in Houston. According to Cannon, Choice Hotels will also be opening Cambria hotels in Phoenix, Anaheim, Calif., and near the Mall of America in Minnesota by the end of the year. Cannon added that the Cambria hotel brand expected to open 50 hotels in 2019, which they are on track to achieve.

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Detroit Center for Innovation. Image courtesy of Kohn Pederson Fox

The downtown site of Detroit’s failed Wayne County Jail project will soon become home to the mixed-use Detroit Center for Innovation, which will count a $300 million research and education center as its anchor. As part of a public-private partnership with the City of Detroit and the State of Michigan, Bedrock and Related Cos. will develop the 14-acre DCI, and the University of Michigan will operate the 190,000-square-foot academic building.

READ ALSO: Detroit Pistons NBA Team Opens Performance Center

Architecture firm Kohn Pederson Fox is behind the design of the U-M research and education center at DCI. The academic building will ultimately accommodate as many as 1,000 graduate and senior-level undergraduate students seeking advanced degrees in a variety of high-tech innovation disciplines. The project will also bolster Detroit’s emerging identity as an innovation hub. Related Chairman Stephen Ross’s Stephen M. Ross Philanthropies is helping to finance development of the facility with a major grant, and Rock Ventures founder Dan Gilbert and other public and private sources are providing additional funding. The remainder of DCI’s first phase will feature residential units, a hotel and conference center and event space, as well as accommodations for business incubators and collaboration space for established companies.

The next step for DCI entails a project feasibility assessment and community meetings, which local officials and project partners will conduct over the next 90 to 180 days. If all goes as planned, construction of DCI will get underway in 2021.

Reinventing a city

Detroit continues its post-bankruptcy renaissance with a bevy of new projects, and Bedrock is spearheading many of them. The company is currently constructing Monroe Blocks, a 1.4 million-square-foot, mixed-use destination downtown, and it recently selected an architect to design the $313 million adaptive reuse of the historic Book Tower property, also downtown. Just weeks ago, in October, the NBA’s Detroit Pistons opened their new training facility, the $90 million Henry Ford Detroit Pistons Performance Center in the central business district. And even the ill-fated Wayne County Jail has been re-envisioned by the county and Rock Ventures as a $533 million criminal justice center at another location.

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Image via Pixabay

Innovative Industrial Properties Inc. has acquired a new industrial asset in Warren, Mich., growing its footprint as the demand for cannabis cultivation and processing facilities has continued to rise.

The REIT paid $19 million for the 156,000-square-foot property and concurrently entered a long-term, triple-net lease agreement with a licensee of LivWell Holdings. As stipulated in the arrangement, IIP will pay the tenant $23 million for future improvements, which will repurpose the warehouse to accommodate the firm’s needs. The agreement will bring the investment cost to a total of $42 million.

The acquisition brings IIP’s U.S. portfolio to 32 properties, which are located in 12 states and encompass a total of 2.3 million square feet. The company owns three other assets in Michigan, which are leased to Ascend Wellness, Emerald Growth Partners and Green Peak. 

LivWell is a licensed cannabis operator with most of its plants located in Colorado, but also in Oregon, Puerto Rico and Canada. Last year, the company launched LivWell International, following a series of transactions closed by Alberta-based affiliate 51st Parallel.  

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Henry Ford Detroit Pistons Performance Center. Rendering courtesy of Henry Ford Health System

Two years after breaking ground on their new training facility in Detroit, the Detroit Pistons NBA basketball team is ready to move downtown. The $90 million, 185,000-square-foot property built together with Henry Ford Health System has opened in the New Center area, as the largest of its kind in the NBA. The four-story property anchors a mixed-use development which also provides access to retail, grocery, restaurant and fitness options.

The Henry Ford Performance Center is situated approximately 2 miles north of the new Little Caesars Arena and is connected to the William Clay Ford Center for Athletic Medicine. The 100,000-square-foot training facility encompasses a player locker room and lounge, a full-service kitchen with personal chefs, weight room, film study room and positional meeting rooms as well as an advanced training room with three hydro pools and cryogenic treatment systems. The property will host youth basketball clinics and Pistons Academy basketball programs throughout the year. The Pistons’ corporate headquarters also includes a spacious lobby, second-floor skyway and event space, Rocket Fiber broadcast studio and media rooms as well as a parking lot accommodating up to 370 vehicles.

The other component of the property is the sports medicine, treatment and rehabilitation facility with services provided by Henry Ford Health System. Plum Market will provide food service for the team, with the firm planning to open a new café and retail store inside the development by the end of the year. The 15,000-square-foot fitness area, also scheduled for completion by year-end, will be managed by Blink Fitness.     

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1925 Breton Road SE. Image courtesy of Colliers International

Colliers International Associate Vice President Jason Webb has arranged a 7,000-square-foot office lease at 1925 Breton Road SE in Grand Rapids, Mich. The brokerage firm represented the landlord, Rockford Construction, which welcomed tenant Hubbell, Roth & Clark Inc. The engineering consultants firm will relocate from its 3,500-square-foot office in the American Seating building in Grand Rapids to the former medical office building on Breton Road, doubling its footprint.

The tenant leased the space as a large, open-concept layout with no walls or electrical. The company plans to add meeting rooms, workspaces and storage as well as improve flow throughout the office. A move-in date is planned for mid-October, after upgrades are finalized.

According to Yardi Matrix data, Rockford bought the vacant building from Promanas Group in 2016 for $1.6 million and has completely updated the property one year later. The building houses a total of 44,310 square feet of office space and 155 parking spaces and was 79 percent occupied as of August. The two-story building was completed in 1974 for medical office use.  

At the end of August, Colliers International | West Michigan, which also handles leasing for Shops at CenterPoint in Grand Rapids, represented Stonemar Properties in six new leases at the retail center.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com. 

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Book Tower. Image courtesy of ODA New York

Bedrock has tapped ODA New York to serve as design architect for its adaptive reuse of the Book Tower in downtown Detroit. ODA will spearhead the redevelopment of the approximately 487,000-square-foot historic property into a mixed-use destination.

The 38-story Book Tower and Book Building property stand linked together as one with the address of 1249-1265 Washington Blvd. Designed in the Italian Renaissance style by Louis Kamper, the Book Tower opened as a 241,000-square-foot office destination in 1917 and the 246,000-square-foot, 13-story Book Building made its debut in 1926. Bedrock came into possession of the asset in August 2015, when the company purchased the two adjoining buildings and the adjacent 30,000-square-foot community center.

READ ALSO: Detroit Office Market: Opportunities Lie Ahead

In 2017, Bedrock announced plans for the $313 million transformation of the Book Tower property into a live-work-play site with 95 residential units, 180,000 square feet of retail and office space and a hotel. However, ODA, which has put its stamp on such projects as residences at Washington, D.C.’s celebrated $2 billion The Wharf mixed-use waterfront development, will be overseeing a slightly different vision.

Book Tower atrium. Image courtesy of ODA New York

According to an article by Crain’s Detroit, the Book Tower project will now yield 200 to 220 residential units, 25,000 square feet of retail space, 40,000 to 50,000 square feet of office accommodations, a 120-key hotel and the reopening of an atrium with a Tiffany glass ceiling. Bedrock’s goal for the Book Tower is for the property to serve as a hub with both public and private space, including galleries and restaurants.

Bedrock has already completed the exterior restoration of the Book Tower and the ODA-designed interior project is on track to reach completion in 2022.

Detroit Rising Once More

Bedrock is playing a huge role in Detroit’s post-Chapter 9 renaissance; the metropolis emerged from the largest municipal bankruptcy in U.S. history in 2014. The real estate company is behind the $830 million Monroe Blocks, a 1.4 million-square-foot project that will deliver a mix of commercial and residential offerings.

Bedrock is also redeveloping the former Hudson’s Department store site into a 1.1 million-square-foot mixed-use project at a cost of $1 billion. The company is also in the midst of constructing an approximately $95 million, 300,000-square-foot addition to its One Campus Martius office tower. Bedrock announced all three projects, along with the Book Tower undertaking, as part of a $2 billion multi-project development endeavor in 2017. The projects are just a few among a bevy of Bedrock development pursuits in Detroit.

The post NYC Architect Tapped for $313M Detroit Adaptive Reuse appeared first on Commercial Property Executive.

Aerial perspective of Shops at CenterPoint. Image courtesy of Colliers International | West Michigan

Shops at CenterPoint, the 575,000-square-foot shopping center in Grand Rapids, Mich., has added six new retail tenants to its roster. Colliers International’s Vice President Mark Ansara and Senior Vice President Earl Clements arranged the leases on behalf of the owner, Stonemar Properties, bringing the center to 93 percent occupancy. For Ansara, the deal comes a few months after arranging the opening of two locations for The Donut Conspiracy, one of which was also in Grand Rapids.  

The deals total 21,500 square feet, the largest space being leased to Land’s End, a high-quality apparel retailers which is going to occupy the former 7,800-square-foot Dress Barn. The other incoming tenants are T-Mobile, MOD Pizza, Carhartt, European Wax Center and Vitality Bowls, the latter two opening locations in West Michigan for the first time.

Shops at CenterPoint is located at 3665 28th St. S.E. and opened in 1967 as Eastbrook Mall. It is now home to T.J.Maxx, Home Goods, Sierra Trading Post, Nordstrom Rack, Ulta, DSW and Planet Fitness, among other tenants. The shopping center is situated across the street from Woodland Mall and a few miles from Interstate 96. Downtown Grand Rapids is approximately 10 miles away. Daily traffic in the area counts more than 88,000 vehicles.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com. 

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7075 S. Dort Highway. Image courtesy of Stan Johnson Co.

Stan Johnson Co. has represented Covington Group in the sale of Waretech Industrial Park, a multi-tenant distribution facility in Grand Blanc, Mich. Director Rob Gemerchak and Managing Director BJ Feller arranged the deal, securing a purchasing price of $14.9 million for the building. The buyer of the 667,000-square-foot asset was Triyar Cos. 

The building is located at 7075 S. Dort Highway, close to the Interstate 75 corridor, 50 miles from downtown Detroit and less than 10 miles from Flint, Mich.’s Bishop International Airport. The property is fully occupied by JASCO International, Joshen Paper & Packaging and WGS Global Services. The facility is primarily utilized for product storage and regional distribution.

Earlier in August, Stan Johnson’s Gemerchak, along with two other colleagues, represented Industrial Commercial Properties in the sale of a recently completed office and distribution center outside of Cleveland.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.    

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Ryan Denomme, Director, Friedman Real Estate. Image courtesy of Friedman Real Estate

The level of confidence in the Detroit office market remains high at this point in the economic cycle. The metro closed the first quarter of 2019 on a strong note and continues to attract technology companies.

Commercial Property Executive reached out to Friedman Real Estate Director Ryan Denomme for insights into this unique market. With the city’s Central Business District almost at full capacity and several large projects in the early stages of development, Denomme advises developers to focus on other high-rent submarkets.

READ ALSO: Bedrock Breaks Ground on $820M Detroit Mixed-Use

With Detroit’s CBD coming close to full capacity, in what other submarkets do you see growth opportunities, for both developers and investors?

Denomme: Last year, we have seen strong activity in areas just outside of Detroit’s CBD, specifically in Midtown and Corktown, as well as in suburban locations including Birmingham/Royal Oak, along the Interstate 275 corridor, and in the Troy submarket, along Big Beaver Road. The most significant opportunities for investors in our market are infill and suburban locations that still have large blocks of available space. North Troy, Southfield and the areas just outside of Detroit’s CBD fit this criteria.

Office development has been slow in our market due to the high cost of construction and the relatively low rental rates that can be achieved in comparison. For new development to make sense, developers will need to focus on high rent locations such as Birmingham, Royal Oak, the Big Beaver Corridor and areas in and around the Detroit CBD.          

What are tenants’ biggest complaints about the Detroit office market, and what appeals to them most at this point?

Denomme: Rental rates, lack of parking and a shortage of nearby amenities are typically the biggest complaints of office users in our market. As the Detroit CBD has leased up, parking has become more expensive and increasingly difficult to find. Tenants with high parking requirements are now generally relegated to suburban locations. Additionally, tenants are increasingly seeking office space in walkable environments with access to amenities such as fitness centers, dry cleaning services, daycare, retail, bars and restaurants.

Due to the way that metro Detroit was developed, many of our prominent office developments lack access to walkable amenities. Much of the office supply in our market was developed in the late 1980s and many of these buildings were constructed within office campuses. Thus, landlords have been adding on-site amenities to office buildings located in campus settings in order to provide an environment that mimics buildings located in more urban areas.        

Tell us more about the possible risks facing Detroit’s office market during this late-cycle economic landscape, and how they can be navigated.

Denomme: Detroit is a very automotive-centric town due to the vast number of automotive companies, suppliers and ancillary service providers located in the area. Since the recession, the local economy has diversified somewhat, but the area is still very automotive driven. The largest risk to Detroit’s office market, and Detroit in general, is a pullback in automotive production. Investors and developers can look to mitigate this risk by leasing to companies with non-automotive-reliant, recession-resistant businesses such as financial services, health care and technology. 

Rents and property values in the office segment have increased exponentially during the past year. How do you see the trend going forward?

Denomme: We expect that rents and property values will continue to increase in the near future, but at a slower pace than in previous years. The recent reduction in interest rates has provided investors with access to even lower cost debt. This will push cap rates down and values up in the near term. Additionally, office assets located in walkable, amenity-rich environments will continue to be more popular and will generate higher rents and valuations than competitive assets located in areas with fewer services and conveniences.

How close (or far) are we to seeing Detroit turn into a tech hub?

Denomme: Detroit has done a great job of diversifying its employment base since the Great Recession. Due to the relatively low cost of doing business in Michigan, many technology-based companies have opened locations in the city. Quicken Loans, Google, StockX, Detroit Labs, Microsoft and Twitter are some examples. These employers have tried to attract and retain talent by investing in modern workspaces set in urban environments.

Ford’s redevelopment of the Michigan Central Station is another example. In addition to creating a cool place for its workers, Ford’s redevelopment of the site has had a very significant impact on property values in the area. It has also raised the bar on the types of facilities that employers will need to create in order to be competitive with younger, more tech-focused employees.

While there is still a good deal of work to do in order for the city to be considered a major tech hub, there is certainly a growing base of tech-focused companies that are leasing space in our market. I believe that this trend will continue as more companies learn about the opportunities and benefits afforded to them by doing business in metro Detroit.          

Tell us a bit about how Friedman is approaching the market and your plans for the future.

Denomme: The local economy continues to perform well as rental rates and occupancies have increased across all submarkets. At Friedman, we are optimistic that this growth trend will continue during the near future. Location, as always, will be important to the success of office projects. Also, the current inverted yield curve will allow commercial property owners to obtain long-term, low interest rate financing. This has presented an opportunity for current owners to refinance at low interest rates or to sell their properties into a low cap rate environment.  

The post Detroit Office Market: Opportunities Lie Ahead appeared first on Commercial Property Executive.

Turbines at DTE’s newest wind park, Pine River, which was commissioned earlier this year. Image courtesy of DTE Energy.

The Michigan Public Service Commission has provided conditional approval for DTE Energy’s proposed purchase of three new wind parks in the state, which would increase the company’s renewable energy portfolio by nearly 50 percent. The Commission made changes to DTE’s original plan and the company has 14 days to agree or deny the changes.

The MPSC decision clears the way for DTE to purchase Michigan’s largest wind parks—Isabella I and Isabella II—from Apex Clean Energy. Combined, the two projects total 383 megawatts and will be located in Isabella County. Apex will begin construction of the parks later this year.

DTE will also purchase the 72-megawatt Fairbanks Wind park from Heritage Sustainable Energy, a Traverse City-based wind developer. This wind development will be located in Delta County in the state’s Upper Peninsula.

The three new wind parks will be owned and operated by DTE and will add 455 megawatts of renewable energy to the company’s generation mix. This capacity produces enough electricity to power 107,000 homes. The facilities are scheduled for completion by the fourth quarter of 2020 and are part of the company’s commitment to reduce carbon emissions by at least 80 percent by 2040.

DTE plans to use at least two of the facilities to meet the renewable energy needs of its largest commercial and industrial customers, including Ford, General Motors and the University of Michigan—all enrolled in MIGreenPower, DTE’s voluntary renewable energy program. 

The post DTE Energy to Expand MI Wind Portfolio by 455MW appeared first on Commercial Property Executive.

1920 25th St. Image courtesy of Friedman Real Estate.

Friedman Finance’s Director Ryan Denomme has secured a new loan for a mixed-use building in Detroit. The broker, who has arranged financing for several suburban Detroit office assets this year, highlighted that due to the property’s location, it was initially challenging to find a lender.

The 14,000-square-foot asset is located at 1920 25th St. in the Mexicantown neighborhood in Southwest Detroit, close to interstates 75 and 90. The area has recently started to experience a growth in property value which is characterizing other parts of the city, which has made lenders cautious.

The owner of the property acquired it in shell condition and invested a substantial amount in upgrades. The asset provides retail and office space and is home to a number of tenants which include Southwest Housing Solutions and Michigan Lending Solutions. The nearby area also houses several dining venues, a Home Depot, a library and shopping opportunities, the latter being located along Vernor Highway.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.     

The post Friedman Finance Arranges Loan for Detroit Asset appeared first on Commercial Property Executive.

1776 Airport Park Court. Image via Google Street View

One month after adding 1.4 million square feet to its Ohio portfolio, Industrial Commercial Properties has acquired two other industrial facilities in Holland, Mich., and Bryan, Ohio. The assets belonged to Adient and total 470,000 square feet. Both properties are fully leased to Yanfeng Automotive Interiors.

The Bryan asset is located at 918 S. Union St. and represents ICP’s first acquisition in the market. The property encompasses 320,500 square feet and sits across the street from another facility leased to Titan Tire Corp. The tenant has access to State Route 127 while Williams County Airport and Interstate 90 are only a few miles away.

The second property spans 148,000 square feet at 1776 Airport Park Court in Holland. The asset is located off Interstate 196 and is very close to West Michigan Regional Airport. Following the acquisition, ICP’s Holland portfolio mounted to 1.5 million square feet. Last year in September, ICP bought from Adient two other industrial facilities at 1600 S. Washington totaling 665,000 square feet. In 2016, the company also bought a 750,000-square-foot multi-tenant, tech center at 701 S. Waverly.    

The post ICP Buys Pair of Midwest Warehouses appeared first on Commercial Property Executive.

Image via Pixabay

Morning Calm Management has added to its portfolio with the purchase of a 1.5 million-square-foot industrial portfolio in the Detroit area from Promanas Group for $83.7 million.

The nine properties are located in the suburban areas of Livonia, Auburn Hills, Redford, Saline, Lake Orion and Macomb Township. The deal marks the fourth acquisition by Morning Calm in the Detroit area over the past year, according to NKF, as the firm has focused on growing its footprint in the metro. Morning Calm most recently sold an office campus in Fort Lauderdale, Fla., to YMP Real Estate Management for $29.3 million. 

A Newmark Knight Frank team of Executive Managing Director Dan Labes and Senior Managing Director Tom Oldham arranged the deal on behalf of the buyer.

The industrial real estate sector has continued to show its strength over the past couple of years, as e-commerce growth and consumer spending increase. The most recent data suggests that industrial supply is finally catching up with demand, as the availability rate of industrial space in the U.S. hit 7 percent in the first quarter of this year.

The post Morning Calm Management Buys $84M Detroit Industrial Portfolio appeared first on Commercial Property Executive.

Andrew Exline and Susan Shipman, Senior Directors, Cushman & Wakefield. Images courtesy of Cushman & Wakefield

Cushman & Wakefield has expanded its Detroit staff the second time this year, having added seven new appraisers during the last round. Susan Shipman, Andrew Exline, Andrea Kujala, Joseph Calvaneso, John Hackmann, Ricardo Stewart and John Danielson are experts in commercial real estate valuation and consulting services and all of them have previously worked for Terzo & Bologna Inc.

Shipman and Exline, who are the new senior directors, bring nearly 45 years of cumulative experience to the office. Both of them were principals with Terzo & Bologna. During her career, Shipman also worked with Oetzel Hanton & Williams, Stout Risius Ross and the Gerald Alcock Co. Exline, who worked for almost 13 years for Terzo, has experience in almost all property types: vacant land, single and multifamily residential, subdivision and condominium developments, retail, restaurant, office, industrial and special use properties.

Kujala and Calvaneso, previously senior appraisers with Terzo, joined the company as directors. Hackmann and Stewart are the new associate directors while John Danielson, who has a background in commercial real estate and finance, serves as associate.

“Detroit is a very important market to our firm and we’re excited to bring on high-performing professionals that align with Cushman & Wakefield’s culture,” said President John O’Neill in a prepared statement.

A few days ago, Cushman & Wakefield promoted Gian Rodriguez to the managing principal position in South Florida. 

The post Cushman & Wakefield Adds 7 Appraisers to Detroit Team appeared first on Commercial Property Executive.

Tony Roberts, Senior Managing Director and Chris Maharg, Senior Vice President, Newmark Knight Frank. Images courtesy of Newmark Knight Frank

Newmark Knight Frank has added two new members to its Valuation & Advisory team in Detroit. Tony Roberts, who has worked for CBRE for more than a decade, will join the team as senior managing director, while Chris Maharg will serve as senior vice president & team leader in the Detroit office.

Roberts brings to his new position a vast experience in valuation, focused primarily on office, industrial, retail and multifamily properties. His experience also includes report preparation for financing, estate planning, collateral monitoring, acquisition, disposition and tax assessment appeal. Within the company, he will be responsible for business development, recruitment of top talent and oversight of NKF’s Michigan appraisal team.

Maharg will focus on valuations involving restaurants, automobile dealerships, medical office and LIHTC properties. He has more than 10 years of experience in a multitude of property types, from income-producing retail to office and multifamily. During his practice, he focused on single-tenant net lease retail and office assets to multi-tenant regional shopping centers and high-density CBD developments. He held previous roles with BBG and CBRE in Michigan and Ohio.

One of Newmark Knight Frank’s latest deal in the Detroit area is the $5 million sale of Lahser Center in Southfield. The brokerage firm represented the buyer, Foster Financial.

The post Newmark Knight Frank Expands Detroit Valuation Team appeared first on Commercial Property Executive.

Temple Detroit. Rendering courtesy of sbe

sbe and partner Byzantine Holdings will develop Temple Detroit, a $72 million project that will combine 100 hotel guestrooms, 70 residential units and three food-and-beverage venues in downtown Detroit’s Cass Corridor. The eight-story, 190,000-square-foot building dates to the 1920s and was designed by Albert Kahn—sometimes called “the architect of Detroit”—for the Standard Accident Insurance Co. The redevelopment is scheduled to open in June 2020.

Sited at 640 Temple St., across from Cass Park, the property reportedly will be the first in the luxury House of Originals brand, which was announced last month by sbe and Accor. Amenities will include DJ’s and live music in a subterranean club, a rooftop pool and lounge with skyline views of Detroit, a full-service spa, along with indoor and outdoor event spaces. The location is just two blocks from Little Caesar’s Arena, Comerica Park, Ford Field and about 1 mile from Detroit’s central business district.

The project’s includes partners Christos Moisides, David Sutherland and Gretchen Carhartt Valade, with Detroit-based Chemical Bank providing financing. Architect McIntosh Poris, Rockford Construction and Kravitz Design, Lenny Kravitz’s New York-based interior design company, are also involved in the redevelopment.

Ready for luxury growth

Last July, Accor and sbe reached an agreement under which Accor acquired a 50 percent interest in sbe. Together, the companies are developing The House of Originals as a new luxury global brand. The initial phase of properties is set to include—in addition to the Detroit project—the Sanderson and St. Martins Lane in London, 10 Karakoy in Istanbul and the Shore Club in Miami Beach, Fla.

The worldwide luxury hotel market, valued around $83.1 billion, is predicted to grow at a compound annual growth rate of 4.3 percent through 2025, according to a 2018 report from Grand View Research.

The post sbe, Byzantine Team on Downtown Detroit Mixed-Use appeared first on Commercial Property Executive.

Patrich Jett, Senior Vice President, Colliers International

The Detroit area is still a dense cluster of suppliers, engineers and assets, which makes the region well-positioned to capitalize on the past century of automotive manufacturing and sustain the new mobility industry. In line with the nation’s growing industrial market, Detroit is seeing increased demand for warehouse and distribution buildings, with automotive companies among its biggest tenants. Ford Motor Co. signed one of the largest leases in the metro last year—276,000 square feet in Van Buren Township, according to a recent Colliers International report. On the whole, the metro’s economy is diversifying, but the auto industry remains its backbone.

Considering the transformations in the business, Colliers formed a team of experts dedicated to the needs of operators in the segment. The Global Automotive Desk focuses on identifying specific solutions for domestic and international automotive clients, and is led by Patrich Jett, senior vice president for Colliers. Jett, who is based in Detroit, explains why the metro will continue to be a leading market in the mobility segment.

What are the automotive industry’s specific needs when it comes to industrial spaces?

Jett: Automotive companies are investing heavily in project due diligence before starting the site selection process to better understand labor availability and cost, supply chain and transportation models, and other regional and geopolitical risk factors. Although many Tier I suppliers are often contractually restricted to service assembly plants within a 20- to 50-mile region, we are seeing this impacted by labor constraints and suppliers going to Just In Time (JIT) distribution where much of the product is produced in other markets, e.g. China, Mexico etc.   

Name a few trends in Detroit’s automotive sector in the broader context of the metro’s industrial market.

Jett: Greater Detroit has very low vacancy rates and some of the highest industrial rental rates in the country—partially caused by lack of spec development and infill sites. So many clients need to be educated on how much activity there really is in Detroit, how much recovery has actually occurred including the CBD/Urban Core, but many clients still believe that Detroit has an abundance of product so they end up needing new construction, which can take 18 to 24 months to deliver. Detroit is a top 20 industrial market, but that is not the national or global perception or image clients have when they come into market.

Tell us about the specific needs of automotive tenants in Detroit. What type of spaces are they looking for? What submarkets are most sought after and why?

Jett: Automotive clients want to attract and retain talent. Specifically, Detroit has the most experienced pool of engineering talent anywhere in the country. To accomplish this, automotive companies need to understand where this employee base lives and have facilities that attract this talent to foster collaboration and innovation. Most are accomplishing this through technical centers focused on R&D in submarkets like Auburn Hills or the 275 Corridor (Novi/Plymouth Township) that have infrastructure to support testing and prototyping or innovation centers in urban Detroit/Ann Arbor to attract Millennial talent that wants to live in an urban CBD.

Besides industrial spaces, does the Global Automotive Desk team also facilitate automotive industry-related office leases? What can you tell us about the demand for office space coming from Detroit’s automotive industry?

Jett: Automotive requirements fall into a lot of different asset classes including assembly plants and JIT manufacturing/distribution to support these plants. But we are seeing many more office-centric requirements including regional headquarters, technical R&D centers and innovation centers in urban CBDs—specifically as we see more and more automotive companies becoming technology focused in markets like Silicon Valley, Detroit, Shanghai, Tel Aviv etc.        

Can you name a few (re)emerging auto industry markets?

Jett: Engineering and technology based talent in mobility and autonomous vehicles is driving centers of excellence in markets like Silicon Valley and Tel Aviv. But we are also seeing centers of excellence in secondary markets like Spartanburg/Greenville, S.C., Pittsburgh, Las Vegas and Barcelona due to shifts in manufacturing and where more innovative and agile automotive companies are locating. I would also say that we have seen an increase in CEE (Central & Eastern Europe) and Mexico due to labor cost and the need to build additional production capacity in automotive supply chains. There are also markets like Morocco that are supporting new investments by large OEMs like PSA Opel and all the part suppliers required to support these operations. Also, China’s electrical vehicle platform is on pace to outgrow the U.S. by a ratio of 5 to 1 over the next five years with the Chinese Government supporting this growth and infrastructure, and companies like NIO which are investing heavily in AI.

Image courtesy of Colliers International

The post Detroit Gets in Gear As Tech Drives Auto Sector appeared first on Commercial Property Executive.

5738 Eagle Drive SE

Colliers International has brokered a 73,905-square-foot lease for WAFUSA Logistics, which is relocating its Grand Rapids, Mich., business. The company moved from its current location at 5357 52nd St. SE to 5738 Eagle Drive SE, which allowed it to almost triple its space.

“Large warehouse spaces like this are becoming increasingly more difficult to find in West Michigan as the region’s distribution industry continues to grow,” said Senior Associate Tim Van Noord, the broker who arranged the deal, in a prepared statement.

The property is located in a coveted industrial area which extends from Patterson Avenue to Interstate 96, which is only a few miles from Gerald R. Ford International Airport. It features docks in the front and back. Prior to relocating to the new address, WAFUSA had to complete several upgrades to the building, including lighting.

The property’s tenant roster also includes names such as IDI Distributors, Surface Logistics and Grand Rapids Truck Loading. The nearby area is home to several distribution facilities including Fabory USA and Columbian Logistics.

Earlier this month, Colliers represented Schostak Brothers in acquiring a large distribution center in Grand Rapids. The 950,000-square-foot property is located at 1040 40th St. SE and houses Bunzl Retail Services.   

Image courtesy of Colliers International          

The post WAFUSA Logistics Relocates, Triples MI Space appeared first on Commercial Property Executive.

2305 Park Ave.

Mario Kiezi and Mike Abdulnoor’s firm Downtown Hospitality Detroit has bought The Royal Palm/Park Avenue Hotel, a 180-key hotel in downtown Detroit.

The previous owners, the Harrington family, operated the property since 1967. L. Mason Capitani CORFAC International’s Senior Vice President Al Iafrate represented both the buyer and the seller in the transaction. Although the final sale price was not disclosed, the asking price was $15 million.

The Royal Palm/Park Avenue Hotel is located at 2305 Park Ave. The Louis Kamper-designed building was completed in 1925 and stands 13-stories tall. In 1996, it was listed on the National Register of Historic Places.

The new owners are planning a complete restoration of the building, which is scheduled to begin later this year. The upgrades are expected to include two restaurants on the first floor and a rooftop bar.

Earlier this month, L Mason Capitani arranged the sale of an office building within the Butterfield Park Place office park in Troy, Mich.  

Image via Google Street View

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2250 Butterfield Drive

Two years after acquiring one of the two office buildings  that comprise Butterfield Park Place in Troy, Mich., California-based LSTC added its sister property to its portfolio.

Wilson Real Estate, the previous owner of the 28,364 square-foot multi-tenant asset, will continue to oversee leasing efforts for both properties. L. Mason Capitani of CORFAC International represented both the seller and the buyer in the transaction, which marks LSTC’s eleventh office acquisition in the state of Michigan.

The one-story office building is located at 2250 Butterfield Drive and offers its tenants proximity to the Somerset Collection shopping center, Somerset Inn and Somerset Park Golf Course. It is approximately 20 miles from downtown Detroit and can be accessed via Interstate 75 off Big Beaver Road. Butterfield Park Place features ample parking as well as a park-like setting with a pond and fountain. Liberty Property & Asset Management will manage the property.

In addition to the Troy assets, LSTC also owns office buildings in other areas in Michigan such as Rochester Hills, Beverly Hills and West Bloomfield.

Image via Google Street View

The post LSTC Expands Michigan Office Portfolio appeared first on Commercial Property Executive.

Aerial view of Corktown neighborhood

Chicago-based Coyote Logistics has paved the way for its expansion to Detroit. The global third-party logistics provider recently committed to opening its new tech hub in 58,000 square feet of office space at The Assembly, a 160,000-square-foot, mixed-use development in downtown Detroit’s Corktown neighborhood.

“Detroit’s growing reputation as the Midwest’s hub for technology and innovation was a huge draw as we looked to expand Coyote’s operations,” John Perkovich, vice president with Coyote Logistics, said in a prepared statement.

The Assembly

Coyote will occupy the second and third floors of The Assembly, which is Bedrock’s new incarnation of a warehouse originally developed for dry goods and wholesale business Edson, Moore & Co. in 1913. The five-story building at 1700 W. Fort St. features a total of approximately 79,300 square feet of office space, 7,800 square feet of retail space and 32 apartment units.

Coyote will move in at The Assembly in the third quarter of 2019. The space will accommodate 500 employees, 350 of which will be new hires.

Tech town emerging

The Motor City continues to evolve from its roots as the country’s car capital as it focuses on other industries, including technology, and the office market is seeing the benefit.

“Detroit has become a hub for tech companies that are locating to our region due to our talent pool, affordability, low operation costs, the synergy with automotive, start-ups and tech related companies,” Amber Goodwin, senior research analyst with Colliers International, noted in a third quarter 2018 report.

Additionally, firms already based in Detroit will add to the city’s tech footprint in 2019. Per a survey from professional services firm Accenture, 86 percent of metro Detroit companies plan to expand their tech workforce this year, and 20 percent will increase their tech workforce by more than 50 percent over new additions made in 2018.

Images courtesy of Bedrock

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(left to right) Frank Rogers, Joseph Simon, Michael Carter

SRS Real Estate Partners has opened a new office in Detroit and has appointed Michael Carter and Frank Rogers as first vice presidents, and Joseph Simon as associate. The three new hires specialize in the acquisition and disposition of single-tenant and multi-tenant investment properties and will be part of SRS’s National Net Lease Group.

Carter brings seven years of net lease experience to his new position. Prior to joining SRS, he held the position of senior director at Fortis Net Lease, a local boutique firm in Detroit. Carter has experience working with national and regional developers, publicly traded REITs and private investors.

Similarly to Carter, Rogers also joins SRS from Fortis Net Lease, where he was a senior advisor. Rogers has more than five years of experience, including the management of clients’ real estate portfolios across the nation.

Simon represents both the buyers and sellers of single-tenant and multi-tenant net-leased properties. In his previous role as investment adviser, he was responsible for underwriting, property evaluation and market analysis of properties.

SRS’s National Net Lease Group recently facilitated the $3.5 million sale of Crestwood Crossing, a freestanding 19,129-square-foot retail center in Crestwood, Ky.

Image courtesy of SRS Real Estate Partners

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1260 Rickett Road

Oxford Commercial, a division of Oxford Cos., has arranged the sale of a 7,500 square-foot flex building in Brighton, Mich. According to PropertyShark, the former owner is Grand Venture Associates, an Oxford-sponsored investment partnership, which bought the industrial asset in 2007 as part of a portfolio of flex buildings in Washtenaw and Livingston counties. Oxford Commercial Associate Director Alex Perlman represented the seller in the deal.

Located at 1260 Rickett Road, the property is a few miles from the city’s downtown and can be reached via the junction between Interstate 96 and State Road 23. The corporate office of U.S. Mattress is across the street and Green Oak Village Place lies approximately 2 miles away. Built in 1987, the asset is in a commercial area that is home to several industrial facilities and corporate offices. At the time of the transaction, 1260 Rickett Road was fully occupied, with RAND Construction and Mutual Electric as tenants.

According to a recent CBRE report, metro Detroit’s industrial market fundamentals have been positive throughout 2018, with record lease rates and very strong absorption. Late last year, Gladstone Commercial Corp. acquired two industrial buildings in the Detroit submarkets of Auburn Hills and Sterling Heights. 

Image courtesy of Oxford Cos.  

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Lahser Center

Foster Financial has paid $5 million for Lahser Center, a two-building office campus in Detroit’s Southfield submarket. The seller, Interwest Capital Corp., owned the 173,500 square-foot asset since 2007, the year it purchased it from REDICO, according to Yardi Matrix data. Newmark Knight Frank’s Advisor Michael Valant and Executive Manager Director Daniel Canvasser represented the buyer in the deal.

Lahser Center is located at 26400 Lahser Road, off the interchange between Interstate 696 and John C. Lodge Freeway and near Lawrence Technological Institute. It was completed between 1969 and 1973 and underwent cosmetic renovations in 2007. The property encompasses retail space on the first floor and a parking lot accommodating up to 781 vehicles. At the time of the sale, the office campus had four spaces available accounting for nearly 70,000 square feet.

The nearby area is predominantly residential, except for a few office buildings occupied by the Michigan Orthopaedic Institute and Eaton Corp. According to a recent office report by Yardi Matrix, Southfield, Detroit’s largest office submarket, has been seeing increased interest from investors due to its assets’ high acquisition yields.

Image courtesy of Yardi Matrix

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According to Yardi Matrix data, Rialto Capital Management has owned the properties since 2012 working together with Friedman Integrated Real Estate Solutions as the buildings’ manager. The two assets are located at 700 and 800 Tower Drive, off Interstate 75 and within North Troy Corporate Park.  

The larger asset, 700 Tower Drive, received $14.5 million in financing. The 7-story building encompasses 241,580 square feet and parking accommodating more than 1,000 vehicles. Originally completed in 1989, the property underwent cosmetic renovations in 2014, according to Yardi Matrix. In January, it was more than 90 percent occupied.

The property at 800 Tower Drive received the remaining $12 million in financing. Completed in 1983, the 218,000 square-foot asset also includes a large parking lot for up to 1,177 vehicles. It was almost fully occupied in January.

According to a recent Yardi Matrix report, Detroit’s Troy submarket has been one of the most active areas for leasing and sales activity for several quarters. Some of the factors attracting investors include a generous office inventory, low office rents and large, recently-renovated buildings.  

Images courtesy of Yardi Matrix

The post Friedman Secures 2 Loans for Suburban Detroit Office Assets appeared first on Commercial Property Executive.

John Fricke, Executive Vice President, Colliers International (Image courtesy of Colliers International)

Detroit’s office market closed 2018 on a strong note, marking a peak for this stage of the city’s revival. More than 3 million square feet of space changed hands in the metro’s submarkets, according to Yardi Matrix data, pointing to a real investment buzz that was partly spurred by players in the auto industry. Last summer, Ford bought the abandoned Michigan Central Station and announced a three-phase, $740 million renovation plan, which started at the end of the year. Two months later, GM confirmed that it is bringing Cadillac closer to its Warren, Mich., technical center, a move that is expected to finalize this year.

The cranes that have been rising against the skyline since Quicken Loans’ Dan Gilbert launched his plan to revitalize the city’s downtown ten years ago, are here to stay. Several adaptive reuse projects involving iconic buildings such as Book Tower, the Sanders Building, the Grinnell Building and the Free Press Building are ongoing. Construction is also underway at the former Marquette Building across from Cobo Center, which is projected to bring more than 150,000 square feet of office space to Detroit’s downtown.

Rendering of Monroe Blocks (Image courtesy of Flaherty & Collins)

But it’s not only adaptive reuse projects that have been flourishing. New developments have also been launched. In December alone, developers announced two major projects in the city’s downtown. Bedrock broke ground on an $820 million mixed-use project—Monroe Blocks—expected to bring more than 800,000 square feet of office space to the downtown area as well as 480 residential units, 117,000 square feet of retail space and 1.5 acres of public open space. Around the same time, The City of Warren selected Flaherty & Collins as the developer for Warren Town Center, a $170 million mixed-use project that is scheduled to break ground in 2019.

An insider’s view

While development activity is concentrated in the city’s downtown area, where office demand is high, the suburbs are left with larger blocks of space to fill out, which can be problematic, according to John Fricke, executive vice president with Colliers International. Fricke shares his view of the Detroit office market in the four responses below, touching on challenges, top amenities, market performance and 2019 trends. 

What have been the main challenges that Detroit office investors had to overcome this year?

Fricke: Moderate office demand in the suburbs and rising tenant improvement costs. I would also add that demand for office space in the city of Detroit has been great for investors targeting urban submarkets but problematic for suburban office investors as a growing number of tenants migrate to the city and leave behind more suburban space.

What has been on top of tenants’ preferences in terms of amenities and location in 2018?

Fricke: Technology infrastructure. In other words, the highest-speed internet possible and common areas providing free Wi-Fi. Secondarily, I would say security and the existence of food service and fitness facilities on site. For locations, Detroit was in very high demand as were other urban/walkable districts like Birmingham and Royal Oak.

On a scale from 1 to 10, what grade would you give the Detroit office market in 2018 and why?

Fricke: I’d say a solid 7 or 8. There was almost 2 million feet of absorption and the overall vacancy level fell below 10 percent for the first time in over a decade due to about seven or eight years in a row of net positive absorption.

What are the trends to watch in 2019?

Fricke: First of all, it’s the level of continued migration to Detroit given rapidly rising rents and parking costs in the city. Then there’s tenant improvement construction costs, which have reached the highest level, and the impact on tenants’ willingness to relocate as well as on construction in general.

The post Top 4 Things to Know About Detroit’s Office Market appeared first on Commercial Property Executive.

777 E. Eisenhower Parkway

Oxford Cos. has added new tenants to its 10-story office asset in Ann Arbor, Mich., which the firm bought in the fall of 2018 for $29.5 million—the University of Michigan, United Automobile Workers (UAW) and Oxford Cos. With more than 150,000 square feet of space locked in new leases, the building’s occupancy increased from 38 to 96 percent. Oxford also plans to invest approximately $10 million in the property going forward.

The property is located at 777 E. Eisenhower Parkway and encompasses more than 290,000 square feet of space, making it one of the highest-profile office buildings in the area. It was completed in 1973 and is LEED Gold certified.

The University of Michigan will expand its 6th floor office, occupying the building’s entire 3rd, 4th, 5th, 6th and 10th floors. The UAW’s office will include part of the 8th and 9th floors, while Oxford Cos. will take on the rest of the 8th floor.  

“The Ann Arbor office market has been electric, and the State/Eisenhower area has seen the most activity of any submarket in the past year. Swisher’s latest vacancy report states that [at 90.3 percent] ‘south office area’ occupancy is at its highest level since 2000,” said Jeff Hauptman, CEO of Oxford Cos., in a prepared statement.  

Image courtesy of Yardi Matrix

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Chesterfield Village, a 156,000-square-foot regional power center in Chesterfield Township, Macomb County, Mich., has changed hands for $14.7 million. Cooper Commercial Investment Group, of Cleveland, brokered the transaction.

Neither the buyer nor the seller was disclosed, but Commercial Property Executive was able to confirm that Viking Partners LLC, of Cincinnati, was the seller. Through its Fund II investment vehicle, Viking Partners had acquired the asset for an undisclosed price in May 2013.

Chesterfield Village is situated on almost 19 acres at the intersection of Gratiot Avenue and 23 Mile Road, and was completed in phases between 1995 and 2003.

Shadow-anchored by Target, the center features a bevy of national tenants, including Applebee’s—under a ground lease, Panera Bread, Buffalo Wild Wings, Harbor Freight Tools, Famous Footwear, Dunham’s, Sally Beauty Supply, GNC, Cato, Advance America, Payless ShoeSource Superstore, Little Caesar’s, Staples and Anytime Fitness.

The purchase price represents an 8.8 percent cap rate, according to Dan Cooper, president of Cooper Commercial, in a prepared statement. The center is 91.6 percent occupied, a Cooper Commercial spokesperson told CPE.

Retail going strong

Retail space deliveries hit a nine-year high in metro Detroit this past year, with suburban home-improvement stores and supermarkets accounting for a disproportionate share of that space, according to a second-half 2018 report from Marcus & Millichap.

This high level of construction notwithstanding, the average overall vacancy decreased by 10 basis points and the average asking rent was expected to rise by 3 percent. Part of the reason, the report states, is that “the median household income set a new high, rising above $60,000 for the first time.” In addition, total employment was up and retail sales marked a 4.2 percent hike over 2018.

Images courtesy of Cooper Commercial

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Rendering of Warren Town Center

The City of Warren, Mich., has selected Flaherty & Collins Properties as master developer of Warren Town Center, a $170 million mixed-use project located in the city’s downtown.

The development is expected to encompass a 500-unit residential component, a high-end boutique hotel, 20,000 square feet of retail and dining space as well as a full-service grocery store spanning 30,000 square feet. The developer expects that the project will also include an office component and hopes to attract WeWork as a tenant. Construction is slated to start before the end of 2019.

General Motors, whose campus is located across the street from Warren Town Center’s site, will also take part in delivering the property. Another partner will be Acquest Realty Advisors, which will be involved in building the hotel. The plans to build the live-play-work community are in line with the overall office resurgence trend which started in downtown Detroit and has begun to spread throughout the state. 

“This is an important first step in achieving the City’s goal of creating a downtown that will draw visitors and new high-end businesses to our city,” said Warren Mayor Jim Fouts in a prepared statement. “The downtown concept has been a vision for city leaders since the 1960s.”

The upcoming development will be located on the site of the old city hall and directly across from GM’s Global Tech Center, which currently employs 25,000 people. Plans include a pedestrian bridge which will connect GM’s campus to the 200-key hotel.

Rendering courtesy of Flaherty & Collins

The post Flaherty & Collins to Develop $170M Michigan Project appeared first on Commercial Property Executive.

Silverado Plaza. Image courtesy of CBRE

Silverado Plaza

Location: 105 S. Houghton Road & 10352 E. Broadway Blvd., Tucson, Ariz.

Price: $8,500,000

Building Size: 77,686 square feet

Property Type: Retail

Highlights: The grocery-anchored center is almost entirely leased to Safeway and Wells Fargo and has no existing financing in place. This allows an investor to obtain a new loan at historically low rates. The Net Operating Income is estimated to grow nearly 33 percent through the lease up of vacant space.

Contact: Philip Vorhees (949-725-8521), Jimmy Slusher (949-725-8507) and Sean Heitzler (949-725-8468) of CBRE

39525 W. 14 Mile Road. Image courtesy of The Jonna Group

39525 W. 14 Mile Road

Location: Novi, Mich.

Price: $4,698,000

Building Size: 23,267 square feet

Property Type: Medical Office Building

Year Built: 2001

Highlights: The building is anchored by Henry Ford Health System and has another 10 more tenants signing the roster. It sits adjacent to Newberry Plaza and is minutes away from Henry Ford System’s West Bloomfield Hospital. The area offers dynamic retail activity and strong demographics, with 69,000 households. Among the nearby retailers are Costco, Home Depot, Target, Michael’s, PetSmart and CVS Pharmacy.

Contact: Simon Jonna from The Jonna Group. Tel. 248-415-2625

Pacific Plaza. Image courtesy of CBRE

Pacific Plaza

Location: 2550 S. Archibald Ave., Ontario, Calif.

Price: $7,242,000

Building Size: 20,259 square feet

Property Type: Retail

Highlights: Located immediately off the 60 Freeway, the property benefits from a high-traffic location and the presence of several other retailers nearby, including 24 Hour Fitness, Starbucks, Taco Bell, McDonalds, KFC and Arby’s. It is fully leased to 11 tenants of national and regional popularity such as Nutrition Zone, Sherwin-Williams Paints, Code Ninjas and Kumon Learning Center. No financing for the asset is in place.  

Contact: John Read (949-725-8606), Sean Heitzler (949-725-8468) and Jimmy Slusher (949-725-8507) of CBRE

SoKo Commons

Location: 2004-20 N. 5th St., Philadelphia

Price: $8,250,000

Building Size: 32 units

Property Type: Multifamily

Year Built: 2018

Highlights: The community is located in the South Kensington neighborhood, north of NoLibs, west of Fishtown and east of Temple University’s main campus. Residents can easily commute to downtown via the Berks Station of the Market Frankford line and have access to a number of restaurants and café shops in the area. Units feature hardwood floors, recessed lighting, granite countertops and stainless steel appliances as well as a green roof. The community is going to open in spring 2019.

Contact: Berkshire Hathaway; Tel. 215-338-3200

115 N. Jefferson St., Richmond, Va. Photo courtesy of One South Commercial

115 N. Jefferson St.

Location: Richmond, Va.

Price: $5,000,000

Building Size: 38,000 square feet

Property Type: Mixed-use

Highlights: The property is a value-add opportunity located in the Richmond Arts District. It offers potential for redevelopment as a multifamily, creative office or a mixed-use project. Developers could preserve the original Mission-style façade and demolish the structure, or retain the entire building. The site is a few blocks from Virginia Commonwealth University campus and the Institute for Contemporary Art.

Contact: Ann Riley (804-723-0446), Lory Markham (804-248-2561) and Tom Rosman (804-539-3017) from One South Commercial

All information is property of the respective brokerage firms or broker.

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Monroe Blocks, an $830 million mixed-use project in Detroit, has moved one major step toward realization. Bedrock has broken ground on the 1.4 million-square-foot development, which will play a key role in the ongoing revitalization of the downtown Detroit area.

Ultimately, Monroe Blocks will comprise 847,000 square feet of office space, roughly 482 residential units, 117,000 square feet of retail offerings and 1.5 acres of public open space. Bedrock has brought aboard Turner Construction to serve as general contractor and expects to complete the project in 2022. 

The first phase of Monroe Blocks, Block A, will encompass a 35-story office high-rise featuring approximately 814,000 square feet, carrying the distinction of being the first WELL Certified building in Detroit. Block A will also yield a 17-story residential tower with 148 units and 66,000 square feet of retail space. 

Designed by architectural firm Schmidt Hammer Lassen, the project will take shape on an approximately 3.6-acre, two-block site that once thrived as Detroit’s first theater district. The location had been home to historic structures developed as early as 1852 until the barren location was razed almost in its entirety in 1990. Today, the site consists primarily of a surface parking lot and the parcels where the demolished structures once stood. However, one piece of valuable architecture remains—the 107-year-old, Albert Kahn-designed National Theater, the facade of which will be incorporated into the Monroe Blocks project.

“For decades, it seemed like all we saw in this town were buildings going vacant and buildings coming down,” Detroit Mayor Mike Duggan said in a prepared statement. “Now there is historic preservation taking place everywhere you look and demand is so strong we have new skyscrapers about to rise.”

Bringing Detroit back

Bedrock’s groundbreaking on Monroe Blocks comes almost four years after the City of Detroit emerged from bankruptcy. Detroit is now on the road to recovery with a bevy of new and adaptive reuse projects. Bedrock is spearheading other major undertakings, having announced plans for $2.1 billion in developments in 2017.

In addition to Monroe Blocks, the company’s multi-billion-dollar development agenda includes the $900 million redevelopment of the former JL Hudson’s department store site, where the company will erect what will be the tallest building in the State of Michigan. Bedrock is also orchestrating the $313 million adaptive reuse of the historic Book Building and Tower, as well as the $95 million office expansion at the One Campus Martius site.

Other developers participating in the city’s renaissance include Ginosko Development, which will build a $108 million residential tower featuring 314 rental units and 60 condominiums in the Lafayette Park neighborhood on the site of Shapero Hall, the former Wayne State University pharmacy school. In June 2018, Ford Motor Co. acquired Michigan Central Station for $90 million and announced it would transform the landmark facility into the centerpiece of a $740 million, 1.2 million-square-foot innovation hub in Detroit’s Corktown district.

Images courtesy of Bedrock Detroit

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Greektown Casino-Hotel

VICI Properties Inc. and Penn National Gaming Inc. will soon become the new owners of the Greektown Casino-Hotel in Detroit. The partners inked definitive agreements to acquire the real property and operations of the casino-hotel from JACK Entertainment LLC for approximately $1 billion in cash.

Greektown opened its doors to visitors for the first time in 2000, offering 75,000 square feet of casino space. A renovation program completed in 2009 expanded the gaming space to 100,000 square feet and added a 30-story, 400-key hotel with 14,000 square feet of event space.

Today, Greektown holds the distinction of being the only casino located in the heart of Detroit’s downtown, where revitalization is underway. “Detroit is undergoing an exciting renaissance as a result of billions of dollars of new investments in the city’s residential, commercial, entertainment and cultural center, all of which are driving new residents, businesses, tourists and employment to the downtown area,” Timothy Wilmott, CEO of Penn National Gaming Inc., said in a prepared statement.

A new history

Like the City of Detroit, Greektown has had its financial challenges. After filing for Chapter 11 protection, the casino-hotel emerged from bankruptcy in 2010, four years before the city. In 2013, an affiliate of Rock Ventures, the predecessor company of Jack Entertainment, agreed to acquire a majority interest in the asset and proceeded to invest capital in a redesign and remodeling. Today, Greektown is a successful gaming property in a successful gaming town.

“The Detroit market has been steady the past several years, growing 1.1 percent in 2017,” Brent Pirosch, director of gaming consulting with commercial real estate services firm CBRE’s Global Gaming Group, told Commercial Property Executive. The numbers look even more promising for 2018, as casino revenue has increased year-to-date through October by 2.4 percent.

Changing of the guard

Per terms of the agreement with JACK, VICI will acquire Greektown’s land and real estate assets for approximately $700 million and Penn National will purchase the casino-hotel’s operations for $300 million. Penn National will ink a triple net lease agreement with VICI concurrent with the completion of the acquisition transaction. Annual rent will initially total $55.6 million under the 15-year lease, which offers the option for four five-year renewals.

VICI and Penn National must get the green-light from the Michigan Gaming Control Board to proceed with the acquisition. If all goes as planned, the transaction will close in mid-2019.

Image courtesy of JACK Entertainment

The post JV to Acquire Detroit Casino-Hotel for $1B appeared first on Commercial Property Executive.

610 W. Congress St.

Friedman Real Estate has completed a new office sale in Detroit’s Central Business District. The 26,600-square-foot property was appraised at $5 million in the first quarter of 2018 and sold at auction, according to the company’s website. Vice President of brokerage services Alan Stern and Senior Vice President of investment and advisory services Steven Silverman arranged the deal on behalf of both parties: Congress Real Estate Ventures as seller and 610 West Congress Partners as buyer.

The two-story building is located at 610 W. Congress St., near the Cobo Center on Congress St. and was previously the home of RR Donnelley & Sons Co. Completed in 1980 and renovated in 2015, the property features upgraded mechanical systems, new security and alarm systems as well as conference rooms and private offices. The on-site private parking accommodates up to 23 vehicles.

Detroit’s CBD has seen dynamic sales and leasing activity within the past quarters, with several companies migrating to the submarket. One of the most recent relocations was Chemical Bank, Michigan’s largest headquartered bank, which moved downtown from the Midland suburb.

Image courtesy of Friedman Real Estate         

The post Friedman Closes Detroit Office Deal appeared first on Commercial Property Executive.

Gladstone Commercial Corp. has acquired two industrial buildings in the Detroit submarkets of Auburn Hills and Sterling Heights for $21.3 million. The assets were purchased through an UPREIT transaction that was inclusive of assumed debt, at a 7.5 percent cap rate. 

Totaling 218,703 square feet, the portfolio is 100 percent leased, with an average term of 10.5 years. The building in Auburn Hills comprises 144,400 square feet and is occupied by Dana Driveshaft Manufacturing LLC, which currently has a 10.2-year lease. The company is a subsidiary of Dana Inc. The asset in Sterling Heights comprises 74,303 square feet and is leased for 10.9 years by TransForm Automotive LLC, a subsidiary of Mean Industries Inc. 

“This portfolio acquisition expands our industrial presence in the Detroit Area, where we now own five industrial assets totaling more than 900,000 square feet,” said Matt Tucker, senior managing director of Gladstone Commercial, in a prepared statement. “The Detroit Area industrial market fundamentals are favorable, with a vacancy rate below 5 percent, and long-term trends of positive absorption and rent growth. This investment should provide accretive, long-term returns to our investors, while increasing our industrial concentration and weighted average lease term for the Gladstone Commercial portfolio.”

In September, the company acquired an industrial property in Delaware, Ohio for $8.3 million, which was 100 percent occupied by Midwest Acoust-A-Fiber. 

The post Gladstone Acquires $21M MI Industrial Portfolio appeared first on Commercial Property Executive.

The Edge Fitness Club interior

Metro Commercial Real Estate Inc. has brokered new leases for Connecticut-based EDGE Fitness Clubs. The company plans to re-purpose two former retail stores in Farmington Hills and Sterling Heights, Mich., from where it plans to operate by the fourth quarter of 2019. The deals are part of EDGE’s larger strategy to expand its footprint into the Midwest and the Pennsylvania metro area.

The Farmington Hills property encompasses 37,000 square feet and was previously occupied by a Kohl’s store. It is located at 30150 Grand River Ave., off State Road 5. Nearby are a Target and a Dunham Sports store. The other building, located in Sterling Heights, was formerly occupied by a Kroger grocery store and provides 36,676 square feet of space.

The other leases closed around the same time were in Christiana, Del., Media, Plymouth and Warrington, Penn. The leasing team included Senior Vice President Brandon Anapol and Vice President Scott Benson. The Edge currently has a total of 21 locations across Connecticut, Delaware, Pennsylvania and New Jersey.

The transactions are another example of Detroit’s recent transformation into a destination city. According to James Becker, principal & managing director with Avison Young, both the urban and suburban areas are experiencing an “investment buzz“ as a result of appealing tax incentives and its growing inventory of top-of-the-line office and multifamily properties.

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CVS Pharmacy

2506 Niles Ave. Image courtesy of The Jonna Group

Location: 2506 Niles Ave, St. Joseph, Mich.

Price: $6,318,000

Building Size: 13,225 square feet

Property Type: Retail

Year Built: 2015

Highlights: The property features a long-term lease, with more than 22 years remaining of the contract, and a rent increase option at every five years. The building has been meticulously designed with brick and limestone upgrades to match neighboring developments. It is located in the central retail corridor of Saint Joseph, on the signalized intersection of Niles Ave. and Napier Ave. It is minutes from Lakeland Medical Center Campus and Whirlpool Corp. world headquarters. Retailers in the immediate vicinity include Walgreens, Taco Bell, Starbucks, McDonald’s and Dunkin’ Donuts.

Contact: Simon Jonna & Raymond Jonna from The Jonna Group; Tel. 248-415-2625 and 248-415-3018

Ambience Lofts

The Ambience Lofts. Image courtesy of One South Commercial

Location: 1714-1716 Summit Ave., Richmond, Va.

Price: DBT

Building Size: 50,034 square feet

Property Type: Multifamily

Year Built: 1900

Highlights: The community is located in an opportunity zone in Richmond’s Scott Addition neighborhood and preserves several historic elements such as a grand common atrium and interior balconies. Its units are fully renovated and feature stainless steel appliances, washer and dryer and polished concrete floors. Rents are expected to increase by 5 percent annually. Ambience Lofts has several local restaurants, breweries and coffee shops within walking distance and provides convenient access to interstates 64, 95, 195 and the Powhite Parkway.

Contact: Justin Sledd & Tom Rosman from One South Commercial; Tel. 804-539-3017 and 804-307-4060

4643 Quail Lakes Drive

4643 Quail Lakes Drive. Image via Google Street View

Location: Stockton, Calif.

Price: $5,575,000

Building Size: 24,077 square feet

Property Type: Office

Year Built: 1985

Highlights: The two-story building sits on a 2-acre parcel which also encompasses a parking lot accommodating up to 104 vehicles. The property fronts Interstate 5 and is almost entirely leased to four tenants with The Internal Revenue Service anchoring the building. The tenant has recently extended its lease until 2026. The property’s Cap Rate averages 7 percent

Contact: Randy Getz & Brian Peterson from CBRE; Tel. 916-446-8287 and 209-476-2907

Fresenius Medical Care

2978 Mattox St. Image via Google Street View

Location: 2978 Mattox St. Tupelo, Miss.

Price: $3,332,925

Building Size: 17,152 square feet

Property Type: Medical Office

Year Built: 2009

Highlights: The property was built-to-suit for Fresenius in 2009 and features a double-net lease for the next 6.5 years. A 10 percent rent increase at every five years is included in the lease contract. The building encompasses 50 dialysis stations and it also houses a peritoneal dialysis clinic and kidney care 365 classes. The parking lot accommodates up to 70 vehicles.

Contact: Valerie Cook & Sean Sharko from Marcus & Millichap; Tel. 630-570-2222 and 630-570-2238

3633 Mentone Ave.

3633 Mentone Ave.

Location: Los Angeles, Calif.

Price: $7 million

Building Size: 16,900 square feet

Property Type: Multifamily

Highlights: The property offers a mix of one-, two- and three-bedroom apartments, with 12 units offering separate balconies. Front gate is open by remote control. The parking lot provides space for 30 vehicles: 7 single stalls and 12 tandem. The cap rate averages 3.6%

Contact: William Weatherby of Weatherby Realty; Tel. 310-909-5050

All information is property of the respective brokerage firms or broker.

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Warner will occupy the entire third floor of the five-story Class A office building and plans to have 55 attorneys working from the new location. The office is expected to include conference rooms, collaborative work spaces and a lounge overlooking Woodward Avenue.

Olympia’s five-story development is one of the several projects which are currently transforming Detroit’s office landscape. It will be located between Little Caesars Arena and the new Mike Ilitch School of Business at Wayne State University and will provide approximately 127,000 square feet of medical, office and retail space. The initial proposal was for the development to function as a Detroit Medical Center sports medicine facility for the Detroit Red Wings and Detroit Tigers. That plan has not been completely shut down as The Ilitch family, the parent company of Olympia, still plans to have part of the building operate as a sports medicine institute.

The post Warner Inks Lease for New Detroit Office appeared first on Commercial Property Executive.

777 E. Eisenhower Parkway

Oxford Cos. has added a new asset to its office portfolio in Ann Arbor, Mich., by purchasing the 777 Building from Equity Commonwealth. The 10-story high-rise encompasses approximately 290,400 square feet and is one of the highest-profile office assets in the area. The transaction closed at $29.5 million, according to real estate data provider Yardi Matrix.

The Class A building was completed in 1973 at 777 E. Eisenhower Parkway and is LEED certified to the Gold level. Since its latest renovations were completed in 2006, Oxford announced it will invest $10 million in upgrading the first floor and adding several other improvements.

The asset offers some of the largest contiguous office spaces in the city as well as great views of the area. It is located approximately 3 miles from downtown and the University of Michigan and can be accessed via Interstate 94. Its tenant roster includes a mix of financial, technology, legal and health firms such as Amica Mutual Insurance Co., Medstat Systems Inc. and Northwestern Mutual.

“We see an opportunity to improve the entire State-Eisenhower corridor to become more pedestrian-friendly and less car-centric—transforming Ann Arbor’s south side into the alternative to downtown,” said Jeff Hauptman, founder & CEO with Oxford Cos., in a prepared statement.

Image courtesy of Yardi Matrix  

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36455 Corporate Drive

Friedman Real Estate together with Savills Studley have represented Harman Becker Automotive Systems in a lease transaction in Farmington Hills, Mich. The tenant will occupy 40,263 square feet at Farmington Hills Corporate Center, a 153,500-square-foot office building located approximately 30 miles west of Detroit.

The brokers working on behalf of the tenant were Steve Eisenshtadt, senior vice president with Friedman and Marcus Arredondo, corporate managing director at Savills Studley. The landlord, Farmington Hills V Corporate Investors, was represented in-house.

The four-story garden-style office property is located at 36455 Corporate Drive and was completed in 2002. It comprises two buildings and a 691-vehicle parking lot, according to real estate data provider Yardi Matrix. It can be reached via Interstate 696 and it is part of an enclave where companies such as Panasonic Automotive, Dell EMC and North American Lighting also operate offices. Earlier this year, about 5 miles away from this location, Friedman arranged another lease for Meritus Property.

Image courtesy of Yardi Matrix

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James Becker, principal & managing director, Avison Young

Detroit has come a long way during the last few years. The metro is experiencing a renaissance, adding office-using jobs and modern downtown apartments in redeveloped historic buildings. Major projects such as the $900 million Little Caesars Arena, completed in September 2017, have sparked investor interest for further development in the area.

Landmarks such as the former J.L. Hudson flagship department store, the former Detroit Police Department headquarters or the Michigan Central Station are undergoing renovation work, contributing to the city’s growing status as an innovation hub.

James Becker, principal & managing director with Avison Young’s Michigan office, told Commercial Property Executive that Detroit is in the midst of an “investment buzz.” Several regional employers are relocating to the city core to attract young professionals who are starting to see the benefits of staying in Motor City.

What are the advantages of leasing office space in a market like Detroit right now?

Becker: From a national perspective, rent is still relatively low when compared to other major markets which have had an ongoing cycle of new development. Rents for existing Class A space in Detroit are just pushing to $30 gross. As new construction has been introduced, new space in Detroit like what has been completed in The District, surrounding Little Caesars Arena, has allowed the landlords to push rents through the $40.

New construction proposed by Bedrock for delivery in 2022—the Monroe Block project— is being quoted at $45 gross, which still puts it well below other major markets. From a local perspective, downtown offices are becoming an attraction tool for a younger workforce that is finding reasons and employment opportunities to stay in Detroit, a market that historically exported its college graduates to other cities.

Which are the metro’s emerging office submarkets?

Becker: Corktown, Rivereast, New Center Downtown and Royal Oak as well as Birmingham are the suburban markets fueling new development.

What should we expect from Detroit’s suburban office market within the next quarters? 

Becker: Markets should be relatively stable with limited new development.

When it comes to investment, which type of office assets do you predict will offer higher long-term yields—urban or suburban? 

Becker: The investment buzz is definitely around the downtown market where rents have been rapidly rising for office space. Additional investor interest in downtown residential projects is also pushing values to record highs.

What are your predictions regarding the metro’s office rents going forward?

Becker: Suburban rents should be pretty stable for existing stock. There is still a lot of Class B product that will anchor rents in Troy and Southfield. Downtown rents will continue to inch up as new proposed construction raises the tide for existing stock of Class A and B space.

What can you tell us about downtown redevelopments in the context of increased new office supply in Detroit?

Becker: Clearly, the corporate sponsorship by Ford is making a project of that magnitude work. Conversely, Adient, an automotive supplier, just scrapped their plan to move into a 150,000-square-foot building on Congress Street and Washington Boulevard—the former Marquette Building—after a couple of tough financial quarters and a leadership change. New leadership looked at the overall cost and pulled the plug on the project mid-renovation.

The redevelopments for the most part are delivering loft-style office space geared for the younger tech workplace. New supply being proposed is more conventional Class A office space that will attract Fortune 1000 type companies willing to pay the required rent.

How are tech companies influencing the city’s office market?

Becker: Very positively, mostly from an employee attraction perspective, while at the same time fueling the already active retail and residential markets. LinkedIn just committed to 80,000 square feet in another (Dan) Gilbert redevelopment on Woodward Avenue, between Grand Circus Park and Campus Martius.

Image courtesy of Avison Young

The post A Closer Look at Detroit’s Office Market appeared first on Commercial Property Executive.

Rendering of Chemical Bank HQ, Detroit

Chemical Bank, Michigan’s largest headquartered bank, has relocated to downtown Detroit. The Midland-based financial company plans to increase its employee count by 500 people following its appointment as the City of Detroit’s primary banking partner for managing operating deposit accounts. While the move is expected to consolidate several offices, Chemical Bank will maintain staff in Midland and several other markets, where it currently operates.

“Detroit is the financial hub for advanced manufacturing and mobility as well as a growing nexus for young entrepreneurs looking to leverage the city’s rich history of innovation and hard work,” said Thomas Shafer, president & CEO of Chemical Bank, in prepared remarks.

With an employee count of more than 500 people, Midland will continue to be Chemical Bank’s corporate operations center.

An Upcoming, Brand-New HQ

The downtown office, located at 333 Fort St., is set for renovations as it will expand to accommodate personnel growth. This will be a temporary location for the bank, as Chemical Financial Corp.—the holding company for Chemical Bank—plans to develop a 20-story building at the corner of Woodward Avenue and Elizabeth Street. According to The Detroit News, construction costs for the mixed-use development will amount to roughly $60 million. The new building will include approximately 400,000 square feet of office, retail, parking and luxury residential space.

This will be the bank’s second major investment in Detroit over the past four years. Following the merger with Talmer Bancorp Inc. in 2014, Chemical Bank became a partner in the City’s plan to revitalize the Marygrove neighborhood, which Talmer was sponsoring. The $1 million commitment translated into $25,000 in forgivable grants over five years.

Image courtesy of Chemical Bank

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Canton Townplace, Canton

Friedman Real Estate has brokered the sale of Cantown Townplace, a 36,600-square-foot retail property located in Canton, Mich. Midwest 8 sold the asset, which is fully leased to ABC Warehouse and Petco, to Deuter 31:6 LLC of Ann Arbor.

“The multi-tenant property is currently 100% leased on a long term NNN basis. The purchaser was able to achieve an above market yield on an A+ retail property located in one of the most robust commercial markets in Southeast Michigan,” said Associate Steven Silverman, the buyer’s broker, in prepared remarks.

The property is located at 43473 Ford Road, a few blocks from the interchange at Interstate 275 and Ford Road. It is part of a larger retail corridor on Ford Road, with a Target store, Boston Market and an Applebee’s restaurant across the street. The center also serves one of the densest residential areas in the Canton Township.  

Image courtesy of Friedman Real Estate

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3401 Martin Road

Friedman Real Estate has arranged the lease of a 30,000-square-foot industrial space in Detroit, Mich. The landlord, 3401 Martin Properties LLC, has leased the space to Flor-Dri Supply Company. The new tenant is a Michigan-based family-owned business that packages and distributes industrial ice melters and cleaning products throughout North America.

Located at 3401 Martin Road, the industrial property is close to major thoroughfares such as Interstate 94, which is within a five-minute drive, and  Interstate 75, also within 10 minutes of the property. Downtown Detroit is less than five miles away, while the Detroit Metropolitan Wayne County Airport is no more than a 20-minute driving distance.  

Phil Konopitski, senior vice president of brokerage services at Friedman, represented the tenant in the transaction. The company has recently arranged the sale of a 22,000-square-foot industrial building in Madison Heights, Mich. Ajax Real Estate Holdings purchased the property previously known as Madison Athletic Club.

Image courtesy by Friedman Real Estate

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Jim Koman, managing principal, ElmTree Funds (Image courtesy of ElmTree Funds)

ElmTree Funds, a St. Louis-based real estate private equity firm and fund manager, has expanded its portfolio by more than 2 million square feet through acquiring six fully leased single-tenant properties in Alabama, Michigan, Missouri and South Carolina. The firm spent approximately $300 million on the assets, which consisted of three office, two industrial and one health-care properties.

“We continue to identify compelling net lease acquisition opportunities and seek transactions in the marketplace,” Jim Koman, managing principal at ElmTree Funds, said in a prepared statement. “These transactions represent ideal purchases for us as the properties are located in fundamentally strong markets with tenants under long-term leases.”

Jacobs Building (Image courtesy of Yardi Matrix)

The largest of the properties is a 1.2 million-square-foot build-to-suit industrial property located in the Southwest leased to a confidential investment-grade tenant. Another highlight is a 375,466-square-foot build-to-suit industrial development in Valley, Ala., leased to WestRock Co., a paper and packaging company.

The largest of the office assets acquired is a 210,126-square-foot property leased to Jacobs Engineering Group Inc. in Greenville, S.C. The two- to three-story building is located at 1041 East Butler Road on 22.5 acres and was sold by The Simpson Org. to ElmTree, according to Yardi Matrix data. Built in 1990, the asset previously traded in August 2014, when Highwoods Properties sold it to The Simpson Org. for $20.1 million, the data provider shows.

The other assets are:

• a 115,000-square-foot build-to-suit office property in Detroit leased to Hella KGaA Hueck & Co., a German automotive parts supplier;
• a 100,000-square-foot build-to-suit property in metro Detroit leased to Tenneco Inc., a global supplier of ride performance and clean air products and systems;
• a 15,720-square-foot build-to-suit health-care property in Kansas City, Mo., leased to Baxalta Inc., a biopharmaceutical company.

Growing portfolio

Since its founding in 2011, ElmTree has acquired, developed or financed more than $6 billion in office, industrial and health-care properties. The firm targets investments in secondary and tertiary markets in the U.S. leased to investment-grade tenants on a long-term basis.

Nearly a year ago, ElmTree sold a portfolio to IRA Capital Advisors for $127.5 million, encompassing three industrial facilities—including one in Florence, Ky., leased to Smithfield Inc.—two office properties and a health-care asset.

In May 2017, the firm recapitalized its ElmTree Net Lease Fund 11 portfolio with a $950 million investment from a wholly owned subsidiary of China Life Insurance Group, one of China’s largest insurance corporations. China Life bought a 95 percent stake in the 5.5 million-square-foot portfolio, which had 48 single-tenant assets across 20 states, comprised of 56 percent industrial, 29 percent office and 15 percent health-care properties when the transaction was completed.

The post ElmTree Makes 6 Acquisitions for $300M appeared first on Commercial Property Executive.

400 Galleria Officenter

Hospice of Michigan has leased 21,157 square feet of office space at Galleria Officentre in Southfiled, Mich. A team of brokers from Friedman Real Estate represented both the tenant and the owner, Taconic Capital. The lease involved suites 400 and 405 within the fourth building of the business center.

Completed in 1989, 400 Galleria Officenter includes 257,000 square feet of office space, half of which is currently unoccupied, according to Yardi Matrix. Taconic Capital bought all four buildings from Nemer Property Group in 2016, financing the deal via a $48 million loan secured from Starwood Capital Group. One year later, the assets received cosmetic renovations.

Galleria Officenter provides convenient access to Interstate 696, Northwestern Highway, John C. Lodge Freeway as well as a variety of restaurants located in the area. Completed between 1983 and 1989, the four buildings encompass 1,021,288 square feet which includes, besides the office component, a full-service cafeteria, banking facility, convenience store, executive covered parking garage within buildings 100 and 300 as well as plug and play space. Tenants can also use the on-site generators and amphitheater with Star Theaters.

Executive Managing Director & CEO David Friedman, Real Estate Specialist Robert Gagniuk and Leasing Associate Marc Hames represented both the landlord and the tenant in the transaction. Friedman and Gagniuk worked on several deals in the past, including the sale of 141,464-square-foot North Troy Corporate Park in Troy, Mich.

Image courtesy of Yardi Matrix

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1985 W. Big Beaver Road, Troy, Mich.

Encore Development Group has acquired 31,000 square feet of office space in Troy, Mich., from Cooke Properties. The asset is located at 1985 W. Big Beaver Road and includes a retail component occupied by Japanese restaurant Benihana.

The buyer company’s founder, Jason Hamama, plans to redevelop the building and convert the first-floor into retail space leasable to a restaurant. The new tenant will be right next to Benihana and will benefit from the Big Beaver signage, input in the building design and façade as well as an outdoor patio.

The asset is situated along the Big Beaver Corridor, a preferred location for companies and retail businesses alike. It provides quick access to Interstate 75 and to the Somerset Collection shopping mall.  Senior Vice President Gary Grochowski and Associate Bryan Barnas of Colliers International’s Detroit office represented both the seller and the buyer in the deal.

Image via Google Street View

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1875 Stephenson Highway

Newmark Knight Frank has represented National Print and Mail in selling a 22,000-square-foot warehouse in Troy, Mich. The buyer is SourceHub, an online distributor of warehousing and facility equipment. The firm is relocating from 2200 Stephenson Highway as it requires additional space to expand operations. Moving date was set for July 2018. Senior Managing Director Geoff Hill and Associate Paul Gyarmati brokered the deal.

The distribution facility is located at 1875 Stephenson Highway, close to Interstate 75. Completed in 1965 in a dense industrial area, the property spans 2 acres and includes 1 acre of outdoor, paved and secured storage space. In addition to warehouse space, the facility encompasses an office component and features LED lighting.

For several quarters, the industrial real estate market in Troy has seen an increased interest from both local and out-of-state investors and businesses as a result of the rise of the automotive industry. The e-commerce sector, led by Amazon’s repeated expansions, has also boosted leasing and transaction activity.  

Image courtesy of NKF

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Jason Kopp, The Walsh Group

The Walsh Group has appointed Jason Kopp as vice president of Michigan operations. His responsibilities will include client relations and monitoring project progress, as well as supervision and review of management systems and staff. The operations run by the company’s Detroit office focus on healthcare, education, science and technology, automated manufacturing, multifamily, water and wastewater, federal, mission critical, aviation, and hospitality. Kopp will provide leadership over all commercial building projects. He will be taking over from Sam Bahou, who will focus on federal as well as water and wastewater markets.

Kopp brings more than 25 years of construction industry experience, including five years with The Walsh Group. Prior to joining the company, he held the role of senior vice president at Skanska USA Building Inc. for nearly 13 years. He provided leadership on more than 80 Michigan-based projects, including Northwestern University’s Ryan Fieldhouse, Walter Athletics Center and Mudd Hall, the Walsh Family Hall of Architecture at the University of Notre Dame and 505, a 45-story residential high-rise in Nashville.

Image courtesy of The Walsh Group

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2 Ajax Drive, Madison Heights, Mich.

Friedman Real Estate has arranged the sale of a 22,000-square-foot industrial building in Madison Heights, Mich. The previous owner, Kam Kam Holdings, sold the property to Ajax Real Estate Holdings, both of them being LLCs. The listing price was $949,000 or $43.1 per square foot, as shown on Friedman’s website.

Previously known as the Madison Athletic Club, the property used to operate as a full service gym. “It is now fully repurposed for specialty food manufacturing and distribution space,” said Associate Steven Silverman, one of the brokers who represented the seller in the transaction, in a prepared statement. The other broker involved in the negotiations was Joel Kestenberg, also an associate with Friedman.

Located at 2 Ajax Drive, the facility was completed in 1978 on a 1.7-acre lot and has direct access and exposure off John R Road. The asset features 20-foot ceilings and a parking lot accommodating up to 65 vehicles.

Image via Google Street View

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Cottage at Brook Lodge Hotel & Conference Center, Augusta, Mich.

CBRE|Martin, a CBRE affiliate office serving Mid-Michigan, has facilitated the sale of the iconic Brook Lodge Hotel & Conference Center in Augusta, Mich., on behalf of Michigan State University. The property, which has been part of the University’s Housing and Food Service Division since 2000, sold to an out-of-state buyer for the full asking price, $950,000. It currently encompasses 48 keys in eight distinctive cottages totaling 66,603 square feet. The estate spans approximately 83 acres.

Prior to being donated to MSU by Pharmacia Corp., Brook Lodge served as a conference center for Upjohn Co. Built in 1895 at 6535 N. 42nd St., the property was initially a 40-acre dairy farm. The outside pool, which was part of the hotel grounds, had been removed and replaced with a gazebo, according to information available on MSU’s website.

Upon entering the University’s portfolio, the original paintings, sculpture, historic furniture and artifacts were securely stored and replaced by new furnishings and decorations. Brook Lodge closed for the public in 2012.

The team of brokers arranging the deal was made up of CBRE|Martin’s Chairman & CEO Van Martin and Associate Stephen Hershfield.

Image via Google Street View

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Bloomfield Professional Center

Scottsdale Properties LLC has sold Bloomfield Professional Center, a 34,598-square-foot, multi-tenant medical office property in Bloomfield Hills, Mich., located at 43494 Woodward Ave. The Grunberger Diabetes Institute currently occupies the building.

Friedman Real Estate Brokerage Services Senior Vice President Glenn DesRosiers represented the seller, while Senior Vice President Todd Hawley and Senior Associate Rick Kaplan represented the buyer, Acore Group LLC.

The property offers easy access to W. Square Lake Road, S. Telegraph Road and W. Huron Street. Cardiology and Vascular Associates, FedEx Office Print & Ship Center, Covenant Academy and St. George Greek and Hellenic Orthodox Church are located nearby.

In another recent deal, Friedman Real Estate facilitated the sale of Holiday Office Park— nine one- and two-story buildings ranging from 80,420-120,683 square feet—in Lansing, Mich. The firm represented the seller, Holiday Park Realty, as well as the buyer, Durga Property Holdings Inc.

Photo via Google Street View

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Holiday Office Park, Lansing, Mich.

Friedman Real Estate has facilitated the sale of Holiday Office Park in Lansing, Mich. The firm represented the seller, Holiday Park Realty LLC, as well as the buyer, Durga Property Holdings Inc.

The property comprises nine buildings, according to Yardi Matrix, that make up Holiday Office Park. The structures range from 80,420 to 120,683 square feet across one to two stories. The buildings are located at 920, 940, 1000 and 1021 Long Blvd., 6545, 6546, 6520 and 6500 Mercantile Way, and 1048 Pierpont Drive. The last recorded owner was Namdar Realty Group, which purchased Holiday Office Park in September 2010 as part of a portfolio sale, funded by a 1.8 million loan held by Liberty Mutual Group.

Steven Silverman, associate of Investment Advisory Services at Friedman represented the buyer and the seller in the transaction. Earlier this year, Friedman negotiated a 20,045-square-foot lease for Meritus Property Management within the Tri-Atria Office Building in Farmington Hills, Mich.

Image courtesy of Friedman Real Estate 

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42 Watson St., Detroit

BBG has relocated its Detroit office from the city’s western suburbs to the Brush Park historical district. The company will operate from a two-story, 9,000-square-foot building at 42 Watson St., becoming the first national commercial real estate valuation firm in the city’s Midtown District. The Detroit office is one of more than 25 BBG offices nationwide.

“Our strategic move to Midtown reinforces our ongoing commitment to become part of the continuing redevelopment of Detroit,” said Senior Managing Director Marc Nassif, in a prepared statement.

The live-work property was once the site of a 100-year-old auto garage. The first floor offers parking and updated office space, while the second floor comprises several residential units with updated bathrooms and kitchens, as well as laundry services.

The other tenants sharing the building are two commercial real estate companies. Together, they are expected to bring more than 100 jobs to Detroit’s urban area. In addition to the three businesses, the first floor will also host The Second Best Bar, which will transform 2,300 square feet into restaurant space.

Image via Google Street View

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SpringHill Suites by Marriott room

A new SpringHill Suites by Marriott hotel has opened in the Grand Rapids, Mich., area. The 100-key asset is located at 4274 Parkway Place in Grandville and offers convenient access to Rivertown Crossings Mall, Van Andel Arena, Grand Rapids Art Museum and the Frederick Meijer Gardens & Sculpture Park.

The hotel features larger-than-average rooms, a fitness center with new cardiovascular equipment, a meeting room, electric car charging stations, free Wi-Fi and complimentary breakfast, just like the SpringHill Suites in Cincinnati, which Marriott opened last summer. In addition, visitors have access to several golf courses and spa service businesses located nearby.

The asset can be accessed via the interchange at Gerald Ford Freeway and 44th St. S.W. Gerald Ford International Airport is accessible within a 20-minute drive, while downtown Grand Rapids is approximately 10 miles from the hotel.

“As a brand opening a new hotel every 10 days on average, we are delighted that the SpringHill Suites Grand Rapids West is the latest addition to our growing number of properties across the United States and Canada,” said Callette Nielsen, vice president & global brand manager of the SpringHill Suites brand, in prepared remarks. 

Image courtesy of Marriott

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Wayne County and Rock Ventures announced a tentative agreement to build a $533 million criminal justice center as a solution to the Gratiot jail project, blocked since 2013. Costs will be shared between the two parties: The county will invest $380, while Rock Ventures will be responsible for $153 million plus potential overruns. The project is expected to break ground in October, according to Detroit Free Press, with completion scheduled for 2022.

The four-building development will be located on a lot bounded by the Interstate 75 Service Drive and East Warren Avenue. The land is being acquired from the city of Detroit, but the transaction is pending approval from the Wayne County Commission and the Wayne County Land Bank, which owns the property. The justice center will include the county’s 2,280-bed jail, sheriff and prosecutor staff and administrative offices, criminal courthouse and juvenile detention facility.

5-year halt

As part of the agreement, Wayne County will transfer to Rock Ventures the existing Division I and II jails, juvenile detention facility and Frank Murphy Hall of Justice. Once the deal is approved and executed, these properties will be leased back to the County for $1 per year until the criminal justice center is complete and the County has transitioned to the use of the new facilities. Barton Malow Co. will serve as the general contractor for the new justice center and Hellmuth, Obata & Kassabaum Inc. will act as the architect.

“I’m pleased that building the new jail will allow us to close the County’s three existing jails, leading to improved efficiency, cost savings and addressing the long-standing poor conditions,” said Wayne County Executive Warren Evans, in a prepared statement.

In a separate transaction, Rock will purchase the lot where the unfinished Gratiot jail is located. The half-built facility will be replaced with a mixed-use downtown urban development estimated at more than $1 billion. Rock Ventures will soon begin design and planning work for the project. Bedrock, Rock’s sister company, broke ground on a similar $1 billion downtown redevelopment in December last year.

The agreement comes after five years since the funding for the Gratiot jail ran out, leaving the structure half built. Initially, Wayne County partnered with the city of Detroit for the objective.

Image courtesy of Wayne County

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St. Mary’s of Michigan Medical Office Building

BGL Real Estate Partners (BGLREP)—a subdivision of Brown Gibbons Lang & Co. (BGL)—has sold an 87,843-square-foot medical office building in Saginaw, Mich.

A subsidiary of Ascension Health, St. Mary’s of Michigan Medical Office Building is located roughly one-quarter mile from affiliated St. Mary’s of Michigan Medical Center. St. Mary’s is also a teaching affiliate of the Michigan State University College of Human Medicine, as well as Central Michigan University. In partnership with Michigan Cardiovascular Institute, St. Mary’s occupies approximately 94 percent of the building with a primary focus on cardiovascular care.

BGLREP’s National Healthcare Real Estate Group served as the exclusive advisor to the seller in the transaction.

Back in August 2017, BGL opened an office in San Diego, representing the company’s fifth location after Chicago, Cleveland, San Antonio and Philadelphia. Managing Director Christopher Stai and Associate Joshua Rees are running the San Diego office.

Image courtesy of BGL Real Estate Partners

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1300 Beaubien, Detroit

Bedrock has partnered with Pike Pointe Holdings LLC—a subsidiary of Syncora Guarantee Inc.—to redevelop the former headquarters of the Detroit Police Department. The exact planning and timeline of the project are in the works, but the developers will preserve the iconic building’s historic nature.

“We are excited to work with Syncora to revive a priceless piece of Detroit architecture,” said Bedrock CEO Jim Ketai, in a prepared statement. “Greektown and its neighboring districts have experienced tremendous growth and have several new transformative developments coming out of the ground in the near future, making this the perfect opportunity to begin this building’s next chapter.”

Architectural gem

Aerial view of 1300 Beaubien, Detroit

Located at 1300 Beaubien, in the city’s Greektown neighborhood, the structure was designed by “architect of Detroit” Albert Khan. Construction work started in late 1921 and just one year later, the DPD’s traffic unit was the first to move in. The building has been vacant since June 2013, when the city’s police department moved into the Detroit Public Safety headquarters at the intersection of Third Avenue and Howard Street.

This is not Bedrock’s first project involving a historic building in Detroit. The company founded by local businessman Dan Gilbert, recently purchased the Buhl Building at 535 Griswold St., right in the heart of the city’s financial district.

Images courtesy of Bedrock via Google Street View

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32255 Northwestern Hwy. Farmington Hills, Mich.

Friedman Integrated Real Estate Solutions has negotiated a 20,045-square-foot lease for Meritus Property Management. The space is located within the Tri-Atria Office Building in Farmington Hills, Mich. Jordan Friedman, an associate broker with the company, negotiated the agreement on behalf of the tenant.

The Tri-Atria Office Building is located at 32255 Northwestern Highway and is owned and managed by Sterling Group, according to Yardi Matrix data. The company in charge of leasing is Signature Associates.

The two-story building was completed in 1986 and encompasses approximately 120,000 square feet, of which 3,000 is for retail use. The most recent renovation was in 2011. The property is approximately 30 minutes from downtown Detroit. Nearby are a Home Depot and several restaurants and retail stores.

Just 10 miles away from this location, Friedman arranged another transaction at the end of 2017 which involved a 53,486-square-foot mixed-use property.   

Image courtesy of Friedman Integrated

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Consumers Credit Union has relocated to a three-story, 92,000-square-foot new building within The Groves Engineering Business Technology Park in Kalamazoo, Mich. HOK, the designer of the new headquarters, strove to provide the company’s 150 employees—previously operating from four different locations on Stadium Drive—a state-of-the-art office.

“Designed to promote communication, the open, collaborative workplace recognizes its unique surroundings through its placement on the (22-acre) site and the access to daylight and views afforded by the thoughtfully-designed plan,” said Peter Ruggiero, design principal within HOK’s Chicago office, in a prepared statement.

Close to nature

The office features an open floor plan and expansive glass windows providing views of the nearby forest. The center of the construction is occupied by a glass atrium with a grand staircase, which connects all areas of the building. Amenities include modern workstations, informal common spaces, a learning lab, on-site café, coffee bar, fitness center and running trail as well as an outdoor patio. HOK, who has also been working on a trophy office building in Washington, D.C., designed the building as Phase I of a three-phase prospective project which could offer a total of 200,000 square feet of office space if needed. 

The Groves Engineering Business Technology Park in Kalamazoo is half-way between Detroit and Chicago and spans on 248 acres. It can be accessed from Interstate 94 via 9th St. and Elm Valley Drive. 

Images courtesy of HOK

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23255 Commerce Drive, Farmington Hills, Mich.

International Wheel and Tire owns a new industrial facility in Farmington Hills, Mich. The 53,486-square-foot asset belonged to Korean-based Wooshin North America and features a 21,000-square-foot office component. Friedman Integrated Real Estate Solutions brokered the deal on behalf of the seller.

The multi-tenant property is located at 23255 Commerce Drive and was listed for $3.9 million, according to the property brochure available on Friedman’s website. It was completed in 1999 and features 28-foot clear heights, ESFR fire suppressors, two loading and four grade doors, a five-ton bridge crane, as well as a 158-vehicle parking lot. The site is part of a larger industrial park, which can be easily accessed via interstates 275 and 96. The Detroit Metropolitan Wayne County Airport is approximately 30 miles away.

Senior Vice President Phil Konopitski of Friedman represented Wooshin in the transaction. He has arranged several other transactions in the area, including a 78,065-square-foot industrial property located at 23300 Haggerty Road. 

Image courtesy of Friedman Integrated Real Estate Solutions

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Little Caesars World Headquarters Campus Expansion (PRNewsfoto/Little Caesars)

Little Caesars knows how to commit. Currently developing a new $150 million headquarters expansion in Detroit, the largest carryout-only pizza chain in the U.S. is keeping it local. Little Caesars has awarded $56 million in contracts to Detroit-based companies for the development of the new 235,000-square-foot office building, which broke ground in September 2016. 

“As a Detroit company achieving global growth, we’re committed to a Michigan Made, Detroit Built project that creates significant business opportunities in the place we call home and brings jobs to the local workforce,” Christopher Ilitch, president & CEO of Ilitch Holdings, professional services provider to Little Caesars, said in a prepared statement.

Ninety-nine percent of the business for Little Caesars’ new headquarters tower—which is rising at the intersection of Woodward Ave. and Columbia St. in the $1.2 billion The District Detroit mixed-use development—has gone to Michigan-based firms, but Detroit companies are the big winner. Sixty-nine percent of the contracts for the project have been awarded to entities based in the Motor City. The group that’s been amassed for the undertaking includes construction manager Brinker-Christman; Midwest Steel; Blaze Contracting; Ben Washington & Sons Plumbing; and Denn-Co Construction. Dearborn, Mich.-based Great Lakes Mechanical is also on the list of contract recipients.

A taste of what’s to come

With a full team of contractors aboard, Little Caesars is making strides in bringing its new headquarters tower to fruition. Construction just commenced on the façade of the nine-story building, which was designed by Detroit-established SmithGroupJJR, the oldest continually operating architecture and engineering firm in the U.S. The structure’s east-facing exterior will take on the appearance of a giant assemblage of pizza servings, with 102 pieces of 14-foot-tall triangular glass resembling a slice.

Ypsilanti, Mich.-based National Enclosure Co. is tasked with making the giant pizza party a reality, and expects to complete the job in mid-January 2018. The unique façade will be the first of its kind in the world and will, as David Scrivano, president & CEO of Little Caesars, said in a prepared statement, “make our mark on Detroit’s skyline.”

Rebuilding Detroit

Little Caesars is hardly alone in its commitment to Detroit and the city’s revitalization. The city emerged from bankruptcy in December 2014, and has since seen a resurgence of development and corporate interest.

In September, commercial real estate firm Bedrock announced a $2 billion, multi-project plan that will bring millions of square feet of office, residential, retail and other commercial offerings to Detroit. Automotive products company Flex-N-Gate broke ground on its $95 million manufacturing facility in April, a project that marks the largest investment by an auto supplier in the City of Detroit in more than 20 years.

Little Caesars’ expansion project is on track to reach completion in the summer of 2018. The property constitutes the first newly-constructed, multi-story corporate headquarters tower to be erected in Detroit in more than 10 years, and the seventh such structure to be built since 1950.

Image courtesy of Little Caesars

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Mini U Storage Livonia, MI

KeyBank Real Estate Capital has originated $12.5 million in CMBS, first mortgage loans for a three-property self-storage portfolio totaling 185,172 square feet in Colorado and Michigan. KeyBank arranged the loans with 10-year terms, five-year interest-only periods and 30-year amortization schedules. Loan proceeds will refinance existing CMBS debt.

The portfolio includes Mini U Storage Denver, a 65,660-square-foot facility that received a $4.3 million loan. Built in 1976, the asset comprises 12, one-story buildings, featuring 484 units and a leasing office.

Mini U Storage Livonia, a 73,875-square-foot facility, comprising 603 units in Michigan, also received a $4.3 million loan.

The third asset, Mini U Storage Highlands Ranch in Colorado received a $3.9 million loan. Built in 1984, the 430-unit property consists of two, one-story buildings and features 16 RV/boat storage spaces and a leasing office. All three properties underwent capital improvements between 2014 and 2017.

John Loshbaugh of KeyBank’s Commercial Mortgage Group arranged the loans. Earlier this year, KeyBank’s John Hoffmann shared his bird’s-eye view of commercial real estate lending and the forces that shaped the industry throughout the year. 

Image courtesy of KeyBank

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Bedrock Detroit has broken ground on its $1 billion downtown redevelopment of Detroit’s former Hudson’s Department Store. The two-building, 1.1 million-square-foot development is expected to take, at minimum, three years to complete. Bedrock is working with SHoP Architects and Hamilton Anderson on designing the project.

Located on the east side of Woodward Avenue between Grand River and Gratiot avenues, the development site is within half a mile of interstates 75 and 375 and is immediately adjacent to a station on Detroit’s driverless People Mover public transportation system. The development will include a mix of residential, retail, office and exhibition space. The 58-story residential tower will become Detroit’s tallest, at 800 feet in height, containing between 330 and 450 units, depending on the project’s final design. A multi-story observation deck will sit atop the building. The second, 12-story building will include a ground-floor market with offices and a large conference space on the upper floors. The two buildings will share parking in a 700-space garage below the property.

“Ever since Hudson’s closed its doors in 1983, Detroiters have waited and wondered what would come next and what could possibly live up to the incredible history of that block,” said Detroit Mayor Mike Duggan, in a prepared statement. “It’s taken nearly 35 years to get that answer, but when people watch this incredible new building rise and see all of the jobs and opportunity it brings, it will have been worth the wait.”

Earlier this year, Bedrock announced plans to bring a number of rehabilitation, redevelopment, expansion and adaptive reuse projects, valued at more than $2 billion, to the downtown area.

Images courtesy of Bedrock Detroit

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888 W. Big Beaver Road, Troy, Mich.

Friedman Integrated Real Estate Solutions has facilitated an 8,230-square-foot office lease at City Center, a central location in Troy, Mich. The company, which has been recently appointed manager of the historic Ford Building in downtown Detroit, worked on behalf of the tenant, Somerset Pain Clinic.

The Class A office building is located at 888 W. Big Beaver Road along the Big Beaver Corridor and is owned by Unicorp National Developments, according to Yardi Matrix. Completed in 1979, the 13-story property encompasses approximately 330,000 square feet of office and retail space, as well as a parking lot accommodating up to 1,300 vehicles.

The asset is in close proximity to the interchange between Interstate 75 and Big Beaver Road, the Hampton Inn & Suites Detroit–Troy and a number of restaurants. The Detroit Metropolitan Wayne County Airport is approximately 40 miles away.

Senior Vice President Steve Eisenshtadt of Friedman arranged the deal on behalf of the tenant. According to Yardi Matrix, CBRE is in charge of leasing services at City Center.

Image via Google Street View

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