William O'Connor and Paul Kerber, investment specialists in Marcus & Millichap's Detroit office, were named the listing agents. Ari-El Enterprises, a Southfield, MI-based investment partnership, is the seller. The sales price represents $100 per sf.
"This asset represents an investment opportunity with substantial upside potential," O'Connor says. "Located in a premier office/tech corridor in Oakland County, the property has a stabilized, sheltered cash flow with strong long-term appreciation potential through the Siemens vacancy re-lease."
The offering includes an additional 4.8 acres ideal for office, engineering or research and development.
The Siemens/Qualex building is located at 43043 W. Nine Mile Road. The offering includes 140,093 rentable sf on 14.12 acres. The property was developed in 1968 and refurbished in 2001. It is home to Qualex Photoprocessing Labs, a division of Kodak Films, and Siemens Dematic Corp.
Due to a merger, the Siemens space has gone vacant with the rental payments continuing until the company's option to terminate the lease in October 2007.
According to several recent reports by Detroit area commercial realtors, office vacancy was about 18.5 percent in the first quarter of 2004 in the Novi area, which is grouped together with a couple other suburbs as the I-275 corridor submarket by most agencies. Asking rent rates in the submarket, which features some 4.7 million sf of office space, are running just below $21 on average.O'Connor and Kerber are members of Marcus & Millichap's National Office and Industrial Properties Group, a division of the firm focused exclusively on the brokering of office and industrial investment properties.
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