TROY, MI-Miami-based Rialto Capital Management, a subsidiary of Lennar Corp., has purchased the 1.2-million-square-foot North Troy Corporate Park here for an undisclosed amount. The company has hired Friedman Integrated Real Estate Solutions to lease and manage the park, which is 29% occupied.
The property along Tower Drive, Corporate Drive and New King Street was once mostly occupied by automotive supplier EDS. After the firm was acquired by Hewlett-Packard and left, Emmes & Co. bought the buildings for about $80 million in 2008, but reneged on the $55.4 million loan, and lender Anglo Irish took the site back.
The Troy office market, with about 13 million square feet, still has one of the lowest vacancy rates at 30%, as the region’s auto suppliers were hit hard by the recession. However, David Friedman, president and CEO of the self-named firm, tells GlobeSt.com that the auto industry is on its way back up. The city did have positive absorption of about 200,000 square feet in the first quarter.
“I’ve already seen a resurgence,” Friedman says. “We’ve had a couple of projects along Big Beaver Road that we’ve leased from 30% to 90%, and several tenants are talking about taking 30,000 square feet to 40,000 square feet. There’s some pent up demand and no new construction.”
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