ANN ARBOR, MICH. — Michigan Medicine has unveiled an economic recovery plan in response to COVID-19. The health system says it is faced with projected financial losses of up to $230 million in the fiscal year ending June 30 and expects losses to continue into fiscal year 2021. The organization will delay capital projects that are not needed for safety or regulatory compliance. This includes construction of a new inpatient facility. The planned $920 million, 264-bed facility in Ann Arbor has been delayed for at least a year, not opening before fall 2025, according to Crain’s Detroit Business. The recovery plan also includes organizational restructuring and a combination of furloughs and layoffs totaling approximately 1,400 full-time employees. In addition, a hiring freeze will leave 300 current vacancies unfilled. Leaders across Michigan Medicine will also take a salary reduction. Marschall Runge, CEO of Michigan Medicine and dean of the U-M Medical School, will reduce his compensation by 20 percent. He has asked his direct reports, department chairs and other leaders to voluntarily reduce their compensation on a scale between 5 and 15 percent. Other expense savings include suspension of merit increases, employer retirement match, tuition reimbursement and reductions to supplies, consulting and …
MICHIGAN — Michigan Gov. Gretchen Whitmer has signed an executive order to enable the resumption of construction and real estate activities starting Thursday, May 7. Construction sites must adopt a set of best practices to protect workers from infection. These practices include designating a site supervisor to enforce COVID-19 control strategies, conducting daily health screenings for workers, creating dedicated entry points, identifying high-risk areas and controlling them for social distancing practices, and ensuring sufficient hand washing or hand-sanitizing stations at the worksite. The governor’s Stay Home, Stay Safe order remains in effect until Friday, May 15. Under this order, Michiganders must not leave their homes except to run critical errands, engage in safe outdoor activities or go to specified jobs in effort to reduce the spread of COVID-19. Citizens are also required to wear face coverings while in enclosed, public spaces.
OAKLAND TOWNSHIP, MICH. — RHP Properties has acquired Woodlands Estates, a 375-site manufactured home community in Oakland Township, about 30 miles north of Detroit. The purchase price was undisclosed. The pet-friendly community features a clubhouse, pool, fitness center, resident garden and playground. RHP plans to upgrade the amenities and add a business center. This is RHP’s 18th property in Michigan. The company now owns and operates 260 manufactured home communities nationwide.
MICHIGAN — Michigan Gov. Gretchen Whitmer has extended the state’s “Stay Home, Stay Safe” order through May 15. The new order will also require citizens to wear face coverings when they enter enclosed public spaces. Some restrictions on outdoor activities will be lifted. Landscapers, lawn-service companies and nurseries can return to work. Retailers that do not sell necessary supplies may reopen for curbside pickup or delivery. As of Sunday, April 26, there were 37,778 cases of COVID-19 and 3,315 deaths in Michigan, according to the state’s website.
ROSEVILLE, MICH. — Mid-America Real Estate Corp. has arranged the sale of Roseville Towne Center in Roseville, about 15 miles north of Detroit. The sales price was undisclosed. The 89,883-square-foot shopping center is home to Marshalls, CVS Pharmacy, Five Below and Dollar Tree. Ben Wineman, Carly Gallagher Kelly and Daniel Stern of Mid-America represented the seller, Cincinnati-based Viking Partners. Ferris Hamama of Keystone Commercial Real Estate represented the buyer, a private investor completing a 1031 exchange.
YPSILANTI, MICH. — Eastern Michigan University has unveiled plans to relocate the College of Business to its central campus. The move includes the selling of the Gary Owens Building, present home of the College of Business. The Board of Regents approved the sale of the 122,000-square-foot building to River Caddis Development for $2.7 million. Boone Hall will serve as the new location for the College of Business. The building will undergo a renovation beginning in April 2021, but the building’s size will remain at 45,210 square feet. The relocation will reduce utility, maintenance and transportation costs that the university currently incurs by housing the College of Business away from central campus.
BLOOMFIELD HILLS, MICH. — Agree Realty Corp. (NYSE: ADC) recorded $21.2 million in net income during the first quarter, up from $18.3 million the same period a year ago, a 15.7 percent increase. As of March 31, the retail REIT’s portfolio consisted of 868 properties located in 46 states totaling 16.3 million square feet of gross leasable area. The portfolio was approximately 99.3 percent leased. In regard to COVID-19, as of April 17, Agree received April rent payments from over 87 percent of its portfolio. All of the company’s investment-grade tenants paid April rent. Agree received short-term rent relief requests or requests for further discussions regarding rent from approximately 33 percent of its portfolio. Not all tenant requests will result in modification agreements, nor is the company forgoing its contractual rights under lease agreements. Approximately 81 percent of stores within Agree’s portfolio are currently open, 26 percent of which are operating on a limited basis. The remaining 19 percent are closed. Total acquisition volume for the first quarter of 2020, excluding acquisition and closing costs, totaled $227.7 million and included 51 assets net leased to off-price retail, auto parts, general merchandise, dollar store, home improvement, grocery and auto service retailers. …
DETROIT — Henry Ford Health System reported a net loss of $234.5 million in the first quarter due to the widespread COVID-19 pandemic. The Detroit-based company says it will furlough 2,800 employees across its six hospitals. In explaining the losses, the health system cited temporary closures, an increased need for caring for COVID-19 patients, and the postponement or cancellation of services and procedures. Additionally, the company expects losses in April and May to surpass the March total. The furloughed employees are those not directly involved in patient care and those from areas where workloads have been drastically reduced or operations have been temporarily closed. Henry Ford Health System employs more than 30,000 people. Executives at Henry Ford Health System will donate between 10 and 25 percent of their salaries to two funds meant to help furloughed employees. The two funds are the newly created COVID-19 Emergency Needs Fund and the Bob and Sandy Riney Helping Hands Fund, which was created in 2012 to help support employees experiencing unexpected hardships. The health system lost $43 million in net operating income (NOI) in March, and net operating loss for the first three months of 2020 was $36.2 million. The company had a …
SAGINAW, MICH. — Greystone Bel Real Estate Advisors has arranged the $4 million sale of The Poplars Apartments in Saginaw, approximately 75 miles north of Lansing. Built in 1964, the 105-unit apartment property is located at 4444 State St. The family-owned asset features a swimming pool, patio tables and lounge seating. Austin Hull of Greystone Bel represented both parties in the sale.
ROYAL OAK, MICH. — Beaumont Health says that the financial consequences of the COVID-19 pandemic has forced the organization to adjust its workforce after suffering significant losses during the first quarter. After Beaumont began caring for COVID-19 patients five weeks ago, nearly all inpatient and outpatient surgeries and other non-COVID-19 medical services had to be halted. As a result, Beaumont is temporarily laying off 2,475 of its 38,000 employees. It is also permanently eliminating 450 positions and cutting executive pay. CEO John Fox will take a 70 percent temporary pay cut to his base salary. The other members of Beaumont’s executive leadership team will also take temporary pay cuts up to 45 percent of their total compensation. Of the 2,475 layoffs, most involve hospital administrative staff and others who are not directly caring for patients. Most of the 450 position eliminations are part of the corporate staff or serving in other administrative roles. Beaumont will also pause or cancel some nonessential projects. For the first three months of 2020, Beaumont reported a net operating income of -$54.1 million, a $91.7 million decrease compared to the same time last year. The Royal Oak-based nonprofit hospital is Michigan’s largest healthcare system. It …