In 2005, Steelcase tapped Grubb & Ellis|Paramount as its brokerage partner for the site. The company plans to retain ownership of its 385,000-sf global headquarters building, located at 901 44th St. SE, as well as its 60,000-sf Steelcase University Learning Center. The company also plans to maintain 55% of its manufacturing operations in Western Michigan.
Nancy Hickey, chief administrative officer with Steelcase, says evaluations of candidates were based on financial capability, experience in substantial redevelopments, and compatibility of the developer's plan with the needs of the community.
In turn, Ashley Capital's principal investment strategy involves the acquisition of under-utilized and/or physically obsolete industrial parks, bulk warehouses, big-box distribution properties, manufacturing facilities and office buildings, which present the opportunity to reposition and revitalize the asset to create substantial value. Although the purchase price of the land was not disclosed, Ashley tends to buy land that is significantly below replacement cost.
Ashley Capital has been an active player in the Detroit market in recent months. In January, the company acquired 57 acres of land at the intersection of I-94 and Route 23 in Ann Arbor, to create the Ann Arbor Business Center. Plans include 585,000 sf of warehouse and distribution space with construction set to begin in the spring of 2007. In November of last year, the company started construction on a 628,000-sf warehouse/distribution center at the Logistics Optimization Center in Lansing.
Meanwhile, earlier this month Ashley Capital and JPMorgan Chase closed on a $25-million line of credit secured by three assets in Ashley's portfolio. The properties are located in Atlanta, Georgia and Norfolk, VA. Three years in term, the loan is a revolving line with interest accruing on a floating rate basis. The loan gives Ashley the flexibility to finance both acquisition and development projects in new and existing markets.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
