FLAT ROCK, ROMEO AND WAYNE, MICH. — The Michigan Strategic Fund board has approved performance-based grants and State Essential Services Assessment Exemptions to support Ford Motor Co.’s investment of approximately $2 billion in the automaker’s Flat Rock, Wayne and Romeo assembly plants. As part of the agreement, Ford will create approximately 700 new jobs at its Flat Rock Assembly Plant and approximately 100 new jobs at the Romeo Engine Plant. Ford plans to invest approximately $1 billion at its Flat Rock plant to build a data center and transform the plant into a manufacturing innovation center capable of producing electrified and autonomous vehicles, in addition to the Ford Mustang and Lincoln Continental. Ford expects to begin producing the first of these vehicles in 2020, including an all-new fully electric small SUV engineered to deliver an estimated range of at least 300 miles and its first fully autonomous hybrid vehicle for commercial application. The company will invest $1 billion in its Romeo and Wayne facilities, primarily to support Ford Ranger and Ford Bronco production.
DETROIT — Bernard Financial Group has arranged a $5.2 million loan for the construction of Baltimore Station in Detroit. The 22-unit luxury apartment complex will also feature 8,100 square feet of retail space. TCF Bank provided the loan. Dennis Bernard and Kevin Kovachevich of Bernard arranged the loan on behalf of the borrower, Baltimore Station LLC.
ST. LOUIS — Dougherty Mortgage LLC has arranged a $5.2 million HUD loan for the refinancing of the Downtowner Apartments in St. Louis. Originally constructed as a hotel in 1963, the 95-unit affordable housing property was renovated and converted into apartment units in 2007. In addition to the rental units, there is approximately 5,652 square feet of retail and restaurant space on the first floor. Dougherty’s Minneapolis office arranged the loan, which includes a 35-year amortization schedule. Washington Avenue Apartments LP was the borrower.
MILWAUKEE — Dakonte Products Group Inc. has signed an 8,734-square-foot industrial lease in Milwaukee. The manufacturer of vinyl products will occupy the space at 6615 West Mill Road. GFG Chicago Industrial ML LLC owns the building. Samuel M. Dickman Jr., Samuel D. Dickman, Zach Hansen and TJ Huenerbein of the Dickman Co. Inc. brokered the transaction.
UNIVERSITY PARK, ILL. — Associated Bank has provided a $13.6 million loan for the acquisition of a 455,870-square-foot distribution center in University Park. The building, developed by Dermody Properties, is located at 425 University Crossing Drive. Edward Notz of Associated Bank managed the loan for the borrower, DPIF IL 3 University Park LLC.
LEMONT, ILL. — CBRE has arranged two industrial lease renewals for Salco Products Inc. totaling 128,339 square feet in Lemont, about 28 miles southwest of Chicago. The manufacturer of railcar parts renewed a lease for 96,360 square feet at 1385 101st St. and a lease for 31,979 square feet at 20W267 101st St. The smaller facility will allow for overflow space for the projected growth of Salco’s tank and hopper car parts business. David Prioletti of CBRE represented Salco in the lease transactions.
HARTLAND, WIS. — Heritage Senior Living has opened a new 125,000-square-foot senior living community in Hartland, about 25 miles west of Milwaukee. Heritage Lake Country is located at 2975 Village Square Drive. The community includes 45 independent living apartments, 16 assisted living apartments, 27 enhanced assisted living apartments and 36 memory care suites. Amenities include three dining rooms, a library, movie theater, fitness center, therapy pool and barber shop. Heritage Lake Country also features a multi-sensory “Snoezelen Room” to help ease anxiety for residents with Alzheimer’s and dementia, by using light, music, touch and scent to initiate sensory stimulations in the brain.
WAUKESHA, WIS. — Kirby Built Products has signed a 116,176-square-foot industrial lease in Waukesha. The furniture maker will occupy the space at 901 Northview Road. Waukesha Northview LLC is the landlord of the building. Roger Siegel and TJ Huenerbein of the Dickman Co. Inc. brokered the transaction.
OTTAWA, OHIO — Marcus & Millichap has arranged the sale of a 7,000-square-foot retail building in northwest Ohio for $1 million. The building is net leased to Advance Auto Parts, which has approximately 10 years remaining on its lease. The property is located at 255 Meadow Glen Drive. Nathan Coe and Dan Yozwiak of Marcus & Millichap marketed the property on behalf of the seller, a developer. Marcus & Millichap’s San Diego office secured and represented the buyer, a limited liability company.
I am heartened to see that my projections for 2016 in the Midwest hotel marketplace — particularly Chicago, my home market — held up fairly well. In a column that I authored for Heartland Real Estate Business this time last year, I pointed out “the question of whether supply will outpace demand is changing from if to when in many of these markets.” That trend line has continued, although the momentum of it in some markets has, to some extent, delayed the inevitable. The demand side of the equation exceeded expectations in the fourth quarter of 2016 and so far in the first quarter of 2017. This has helped markets absorb the additional supply. I also wrote in last year’s column that “perhaps the single most important factor to watch with regard to the Chicago hotel market in 2016 is whether and to what extent strong leisure demand will continue to offset the influx of new hotel properties.” Sure enough, we saw strong leisure demand during the traditionally busy part of the year, and Chicago welcomed a record number of visitors during the first three quarters of 2016. Strong leisure and group segment performance during this period helped overall demand …