DETROIT — BEB Lending has provided a $6.9 million bridge loan for the acquisition of a 365,000-square-foot industrial property in Detroit’s Brightmoor neighborhood. Built in 1931, the property at 12640 Burt Road was renovated in 2012 and is located within 20 miles of both the Detroit City Airport and the Detroit Metropolitan Airport. The Class B, multi-tenant building is 89 percent leased. The loan features a two-year term and marks BEB’s first financing transaction in Michigan. The borrower was 1029 SFG Equities LLC.
By Ryan Nierman, Ph.D. and Bradley Meloche, Colliers The tumultuous events of the last two years have brought uncertainty into many aspects of Detroit’s office market. Even as companies emphasize their eagerness to return to the office, many questions remain regarding space designs, required square footage and buildout requirements. Tenant selectivity With increasing vacancy rates and negative net absorption throughout the metro Detroit office market, real estate experts are witnessing tenants becoming more selective in property occupancy. The result has been a slowing demand for Class B and C office product. Tenants have begun targeting Class A assets with improved visibility, signage, modernized color schemes, numerous amenities and flexible floorplan designs. As the need for larger office footprints goes down in reaction to post-COVID considerations, tenants have become willing to pay increased per-square-foot rents, for at or below preexisting rental budgets, due to decreased size requirements. The need for tenants to target Class A facilities has been compounded by the so-called “Great Resignation,” as employees are willing to demand more from their employers. As a result, employers know that a failure to invest in a more modern and amenitized workspace may result in poor employee retention and future talent recruitment. …
OHIO, MICHIGAN AND WISCONSIN — Lument has provided $87 million in HUD 232/223(f) loans for the refinancing of a portfolio of nine skilled nursing facilities located in Ohio, Michigan and Wisconsin. The properties total 691 beds. The operator, Atrium Centers Inc., provides short-term, post-acute rehabilitation and long-term nursing care. Each of the nine loans features a fixed interest rate. HUD 232/223(f) loans allow for the purchase or refinancing of nursing homes and assisted living facilities.
By Anthony Avendt, Cushman & Wakefield Like most markets in the U.S. and Canada, Detroit’s industrial sector has seen its ups and downs. Detroit’s always been a bit of an outlier though due to extreme volatility. What’s more, we’ve (hopefully) learned lessons from past downturns that well position the city and its commercial real estate regardless of continued strong demand and rent growth or any bumps in the road we may encounter. Detroit is a little different from similar-sized markets in the region. First, while it’s certainly part of the U.S. heartland, the city’s geographic position on a peninsula means it’s poorly suited for broad distribution to large swaths of the country. Second, of course, is the auto industry’s impact. The auto industry is widely dispersed across the U.S. now, but Detroit and Michigan remain its heart and brain. As the sector pivots to autonomous and electric vehicles, that is going to drive demand for industrial space. Ford already has announced an investment of $40 to $50 billion over the next decade-plus, including redevelopment of Michigan Central Station as anchor of its Mobility Innovation District. Stellantis, the parent of Chrysler, Jeep and Dodge, has announced its own $35.5 billion investment …
LANSING, MICH. — Greystone has provided a $48 million Fannie Mae green loan for the acquisition of Club Meridian in Okemos, an eastern suburb of Lansing. Constructed in 1989, the 406-unit apartment community consists of 17 garden-style buildings. Richard Kourbage of Greystone originated the loan on behalf of the borrower, a joint venture between Gray Capital and LRE Management. The nonrecourse loan features a 10-year term. The financing enables the borrower to make renovations to the property as well as complete the acquisition.
SHELBY TOWNSHIP, MICH. — Five Iron Golf, an indoor golf and entertainment experience, is scheduled to open in August in Shelby Township, about 30 miles north of Detroit. The 6,000-square-foot location at 70773 Corporate Drive will offer six TrackMan golf simulators, custom club fitting by The Fitting Lab, a putting green, full-service bar, widescreen TVs and shuffleboard. Five Iron Golf also plans to open a Detroit location later this year.
ADA, MICH. — Syndicated Equities has sold Stone Falls of Ada, a 210-unit luxury apartment complex in Ada, about 10 miles east of Grand Rapids. The sales price was $71.5 million. Syndicated acquired the property with Highgate Capital Group LLC in 2018 for $45.8 million. Built in 2008, the property at 330 Stone Falls Drive is comprised of 21 two-story buildings. Syndicated and Highgate invested $1.5 million in renovations, including upgrades to the unit interiors and clubhouse amenities. Village Green was the property manager. The seller was undisclosed.
GRAND RAPIDS, MICH. — Trinity Chiropractic has opened a 1,450-square-foot practice at 448 Leonard St. NW in Grand Rapids. Wesley Emert and Tina Emert of CityWide Real Estate Services assisted the holistic chiropractor in securing the space, which features two exam rooms, a waiting area and a kid’s area. The office is situated within a mixed-use building that CityWide acquired in August 2020. Other commercial tenants at the property include FURN on Leonard and Captain Bizzaro’s Treasure World.
BLOOMFIELD HILLS, MICH. — Monarch Behavioral Health PLLC has signed a 3,707-square-foot lease to open a new office in Bloomfield Hills. James Mitchell of Dominion Real Estate Advisors and Michele Rosenbloom of Lee & Associates represented the undisclosed landlord in the 63-month lease. Angela Thomas of Signature Associates represented the tenant. The property is located at 74 W. Long Lake Road.
MUSSEY TOWNSHIP, MICH. — Axiom Engineered Systems has signed a lease for a 123,000-square-foot flex industrial building at 14898 Koehn Road in Mussey Township, about 55 miles north of Detroit. The location will serve as the company’s first in the U.S. The automotive company was founded in Canada in 1987. Matthew Buslepp, Jacob Zammit and Jim Becker of Avison Young represented the tenant. Lee & Associates represented the landlord, an entity doing business as 14898 Koehler Capac LLC.