Sky Group is a subsidiary of the Detroit construction and engineering firm Lakeshore Engineering Services Inc. The 244,400-sf eight-story office building will be renovated to accommodate banks, medical office space and some retail on the first floor with general office space on the floors above. Lakeshore also plans to consolidate its existing Detroit and Highland Park offices into the building and to bring some out-state office personnel into the building.
The state office of management and budget says it received two bids for the building. The other was from the Southfield-based Academy of America for $1 million.
The Labor Building has been vacated as the state has consolidated offices in Cadillac Place. The structure was built in 1913 for Henry Ford.
"Getting dormant state property back into use and onto the tax rolls can have a dynamic effect on economic growth, particularly in Michigan's urban areas," says management and budget director Mitch Irwin.
Sky Group has 90 days to complete due diligence and then will have 30 days to close the purchase, unless it purchases up to two additional months of due-diligence period, the state says.
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