At 1.1 million sf, CB Richard Ellis, the broker on the deal, says this is the largest single industrial facility transaction ever recorded in the local market. However, the parties did not reveal a purchase price.
Ashley says the former engine plant, also known locally as Plant 5, will be converted into a sequencing and warehouse/distribution facility. Ryder System, Inc. has signed a long-term lease to occupy the entire facility and service General Motors' Lansing Grand River stamping plant and the new Lansing Delta Township assembly plant. Ryder will take full occupancy of the building on Jan. 1.
"The sale of this surplus property will put a prime piece of real estate in Delta Township to productive use," says Matt Cullen, GM's general manager for economic development and enterprise services. "We feel it is important for the communities in which we do business to be successful, and this project will benefit the community while supporting GM's Lansing-area production facilities."
Van W. Martin, president of CB Richard Ellis' Lansing office, corporate services advisor Jeff Barnes and Chicago office managing director Ralph Gilbertsen worked on the deal.
"CB Richard Ellis and General Motors have had a mutually beneficial business relationship for many years," Martin says. "To secure a single occupant for so much vacancy and effectuate the disposition in a single transaction is truly amazing given current market conditions. We're pleased to have played a part in this transaction."
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