Midwest

SOUTHFIELD, MICH. — Automotive supplier Marelli has signed a multi-year lease to relocate its North American headquarters to Southfield. The company will occupy nearly 200,000 square feet of the property located at 26555 Northwestern Highway. The mid-century building, which has been vacant since 2015 after Federal-Mogul relocated, is situated at the corner of Lahser Road and the John C. Lodge Freeway. The three-story building, which is undergoing extensive renovations, will feature modern workspaces for nearly 500 employees. It will include 75 conference rooms, an auditorium, cafeteria, fitness room and meeting space. Approximately 100,000 square feet will be dedicated to testing and lab equipment to support R&D activities for the company’s automotive lighting, electronics, exhaust, interiors, powertrain, ride dynamics and thermal solutions business units. Marelli is leasing the property from Dembs Development, which purchased the building in 2017 from a New York-based investment company. Marelli is planning a staggered move-in to begin in late 2020 with full occupancy expected by March 2021. The company currently has two locations in Auburn Hills and one in Farmington Hills. In May 2019, Magneti Marelli and Calsonic Kansei merged to create Marelli, one of the world’s largest independent automotive suppliers.

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DETROIT — Detroit Mayor Mike Duggan and his Housing & Revitalization Department (HRD) have created a new partnership to preserve affordable housing in the city while also improving its quality and preventing displacement. The partnership comprises the city’s housing department along with a number of housing experts, including Enterprise Community Partners, United Community Housing Coalition, a partnership between Cinnaire and CHN Housing Partners, Data Driven Detroit, Elevate Energy and Community Investment Corp. Enterprise Community Partners will lead the team and create action plans for preserving units. A primary goal of the new partnership is to identify apartment buildings that have low rents — not because they are required to, but because of their condition — and help redevelop those buildings in a way that preserves their affordability. HRD has established a goal of preserving 10,000 existing regulated affordable housing units in the city by 2023. This is in addition to the creation of new affordable housing in any new development that receives city funding or discounted land.

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CHICAGO — Berkadia has arranged a $76 million loan for the refinancing of 1407 On Michigan, an apartment building in Chicago. Located at 1407 S. Michigan Ave., the property features amenities such as a gym, indoor basketball court, sauna, yoga studio and outdoor pool deck. The Class A building includes 199 luxury apartment units and 41,498 square feet of retail space that is currently occupied by Rush University Medical Center. Chris Blechschmidt and Joel Kirstein of Berkadia secured the refinancing on behalf of the borrower, Illinois-based Russland Capital. Ares Management provided the loan.

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ROCHESTER, MINN. — Dougherty Mortgage LLC has provided a $23.8 million Fannie Mae loan for the refinancing of Red44, a 159-unit, market-rate multifamily property in Rochester. The five-story community was built in 2017. Amenities include an outdoor pool, grilling area, dog park, community area, pet station, rooftop terrace, fitness center and heated garage parking. The 12-year loan features a 30-year amortization schedule. Mayowood Commons LLC was the borrower.

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PEWAUKEE AND WAUKESHA, WIS. — Marcus & Millichap has brokered the sale of a two-property, 548-unit All Safe Mini Stor-It portfolio in Wisconsin for an undisclosed price. The self-storage facilities are located in Pewaukee and Waukesha. The properties, which are a mix of climate-controlled and non-climate-controlled units, span 76,484 square feet. Brian Kelly, Brett Hatcher and Gabriel Coe of Marcus & Millichap marketed the portfolio on behalf of the seller, a limited liability company. The team also secured the buyer, a limited liability company.

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CROSBY, MINN. — Kraus-Anderson Construction has completed a $17 million expansion of Cuyuna Regional Medical Center in Crosby in central Minnesota. The facility serves approximately 30,000 people in the Brainerd Lakes area. Designed by HDR Architects, the 52,376-square-foot project features a new outpatient Orthopaedics, Spine & Interventional Pain Clinic as well as a rehabilitation department. To make room for the new clinic, Kraus-Anderson consolidated underutilized areas of the care center and relocated the cancer care center. In addition, Kraus-Anderson added a new dining room, patio and activities center. Nurse stations, resident rooms and offices were remodeled.

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MILWAUKEE — Ross Innovative Employment Solutions (IES) has relocated from northwest Milwaukee to 7800 W. Brown Deer Road in Milwaukee. The 40,282-square-foot space will serve as the workforce development company’s new Milwaukee office. The building has been vacant since 2017 when Monster.com relocated downtown. Founded in the 1970s, Ross IES partners with state and local agencies to design and implement job readiness and workforce development programs. Ben Anderson and Jim Larkin of Colliers International represented Ross IES in the lease transaction. Mike Wanezek and Joe Moritz of Colliers represented the landlord, Hudson Americas.

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WARREN, MICH. — Art Van Furniture LLC officially filed for Chapter 11 bankruptcy Sunday night after announcing Thursday that it would close all of its stores. The Warren-based retailer filed with the U.S. Bankruptcy Court District of Delaware. In the filing, Art Van said it operates 169 locations, including 92 furniture and mattress showrooms and 77 freestanding mattress and specialty locations. The company expects to close the stores by May 31 and lay off all of its 3,100 employees. Multiple media outlets reported that the company has between $100 million and $500 million in both assets and liabilities.

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LAKE VILLA, ILL. — Avison Young has negotiated the sale of a 61,334-square-foot industrial building in Chicago’s Lake County submarket for an undisclosed price. The building is located at 436 Park Ave. in Lake Villa. Constructed in 2003, the building includes 5,256 square feet of office space, four exterior doors and four drive-in doors. John Hauser and Thomas Curtis of Avison Young represented the seller, Losch Realty, which operated its Fred W. Losch Beverage Co. out of the facility. Kelly Joyce and Brendan Green of Colliers International represented the buyer, Xttrium Laboratories. Xttrium is a family-owned and operated healthcare manufacturer and supplier.

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KALAMAZOO, MICH. — SRS Real Estate Partners has arranged the sale of a two-building retail property in Kalamazoo for $2.5 million. The freestanding buildings are home to Starbucks and Subway. Located on 9th Street, the Starbucks spans 2,085 square feet and the Subway totals 2,000 square feet. The two buildings were built in 2017. Michael Carter and Frank Rogers of SRS represented the seller, a Detroit-based private investor. The team also represented the buyer, a Kalamazoo-based private investor. The sales price represents a cap rate of 5.58 percent, one of the lowest ever for a two-tenant asset in the state of Michigan, according to SRS.

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