The Guardian Building, known for its tangerine-colored facade outside and striking Pewabic-tiled ceiling inside was sold for an undisclosed amount, DTE officials confirmed. It is located on Larned between Woodward Avenue and Griswold.
The new owner, 500 Associates LLC, is a joint venture between New York Capital in New York and Sterling Group, a real estate firm here.
DTE decided to sell the 40-story, 750,000-sf tangerine brick structure last year after completing a merger with MCN Energy Group in 2001. MCN Energy, which moved to DTE Energy's headquarters at Michigan and Third, bought the Guardian in 1974 and used it for its central office.
Realty experts believe the biggest immediate challenge for 500 Associates LLC will be to secure tenants. The building has maintained a 14% occupancy rate since MCN Energy's departure. But several businesses are interested in office space, say owner's representatives.
Steve Ogden, VP of the Sterling Group, also remains hopeful, stating that his firm members "are strong believers in the continued strength and resurgence of the city," and excited about the challenges Guardian presents.
To make room for changes, the Guardian's three-story, barrel-vaulted lobby will be converted from office to retail space next year, Ogden says.
The Guardian Building was designed by SmithGroup in 1929 for the Union Trust Co. The SmithGroup still maintains some office space in the building and plans to move to upstairs offices when the lobby is altered, says Russ Sykes, the SmithGroup company's director of operations.
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