The former 153-acre US Army tank plant in Warren, was closed by the military in 1996. A partnership of Carpenters and Crudo bought half of the land from the city two years ago, including in the 1.1 million-sf manufacturing building left by the Army. The other 75 acres went to other private developers.
However, the job was too big for Crudo to handle, says Dan Labes, senior vice president of Grubb and Ellis of Southfield. "They decided to part ways, there was no animosity, it was just a divorce," Labes tells GlobeSt.com.
He says he didn't know the financial terms but said Carpenter bought out Crudo's interest and hired Centerpoint Properties out of Chicago, which has handled renovation of military property, to be the development manager.
"It's a change for the positive," Labes says. "They're a Chicago-based real estate investment trust with 30 million sf of property. They're going to come in with a pretty aggressive renovation program immediately. Once people see the changes that will take place, they'll be more likely to lease space." Leasing has been difficult, especially with a restriction by the city that the building not be used for warehouse space, he says. Grubb and Ellis will continue to be the marketing and leasing agent, he notes.
Already, an interested party has signed a letter of intent to use 45 acres, including half of the large building. Labes wouldn't talk about the deal, but says it involves an automotive supplier. He hopes to have a contract signed within 45 days.
Kojaian Cos. of Bloomfield Hills has built a 30,000-sf build-to-suit facility for Johnson Controls on the site. The Macomb Community College is using some of the space for a vocational training center. The city of Warren is auctioning off 26 acres in bids due Jan. 31, and the Army retained about six acres.
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