That action has prompted the owners of the 1898-era building to offer to sell the historic structure to the county for $26 million, but the county says that price is also too high for the 250,000-sf building located at Randolph and Congress.
David Farbman, a partner in the Old Wayne County Limited Partnership, says the offer to sell was made after the county rejected two lease offers the partners group made to the county.
"We've given them a proposal well under $8 a foot triple net," Farbman says, explaining the county is now paying $8.40 per sf. He adds the two proposals made offer differing degrees of landlord improvements to the property. "Where else can you go in the city for a building of this class and get in the $7s for space?" he asks.
One real estate insider close to the deal tells GlobeSt.com the county has suggested bathrooms and conference rooms not be included in square footage the county has to pay for. The county is the sole tenant of the building.
Farbman says the partnership spent $28 million in 1986 to renovate the 106-year-old structure.
Farbman says his group, which includes six general partners and 40 limited partners, has its offers on the table and is anxious to work with the county.
For its part, the county says its first choice would be to stay in the building. Sharon Banks, spokeswoman for Wayne County Executive Robert A. Ficano, says the county needs a better financial deal.
The county's lease at the county building runs through 2007. Farbman says he hopes a deal can be reached soon. "If interest rates move, the kind of deals that we can put on the table now, just aren't going to be possible in the future," he says.
A new county building, which would include up to 600,000 sf of space, according to the bid specifications, likely would cost well over $200 million, according to real estate sources. No location for such a potential new complex has been identified.
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