Farmington Hills, Michigan (October 22, 2014) – Friedman Integrated Real Estate Solutions, one of the nation’s leading providers of commercial real estate services, recently sold a 187,000 square foot Class A office building in Troy, Michigan.
The property is located at 840 W. Long Lake Road in the Troy Corporate Center. Situated along I-75 at the corner of Long Lake and Crooks, the building is in close proximity to area hotels, restaurants, upscale retail, and across from Lifetime Fitness. Amenities at the building include: abundant parking including secured underground spaces; on-site storage availability; ENERGY STAR certification for maximum efficiency and low operating cost, and a campus-like landscaped environment.
Barry Swatsenbarg, National Director, Investment and Loan Sale Advisory Services and Rich Deptula, Senior Vice President, Investment and Loan Sale Advisory Services at Friedman represented both the buyer and seller in this transaction through Auction.com.
Earlier this year, Friedman sold the sister building to 840 W. Long Lake Road in the Troy Corporate Center. To accommodate their growing workforce and to expand their Midwest headquarters in Troy, Molina Healthcare of Michigan, a subsidiary of California-based Molina Healthcare, Inc. purchased a 185,000 square foot building located at 880 W. Long Lake Road. Molina moved into the newly acquired headquarters facility last month following significant renovations completed by Friedman’s Construction and Design Team.
In addition to the recent sales at the Troy Corporate Center, Friedman has negotiated numerous deals throughout the city of Troy, Metro Detroit’s third largest suburban office submarket with 170 buildings totaling over 16 million square feet. Due to its significant size and varied building profiles, the Troy submarket is often broken down into three distinct micro-markets – the Big Beaver Corridor, North Troy and South Troy. The North Troy micro-market is set roughly 2.5 miles north of Big Beaver. It includes numerous mid-rise buildings with larger floor plates, more substantial parking ratios, and encompasses both residential and commercial developments.
The North Troy micro-market has proven to be one the most desirable office locations for large corporate users in Oakland County. In recent years, vacancies have dropped dramatically and buildings that previously sold for $12/foot are currently selling for $104/foot. Some of the largest office complexes in Metro Detroit can be found within the North Troy micro-market.
Take North Troy Corporate Park for example. Located at the intersection of W. Long Lake Road and Crooks Road with close proximity to I-75, North Troy Corporate Park is a 1.2 million square foot development comprised of eight Class A buildings. Since Friedman, who at one time owned all eight buildings, began managing and leasing the properties in May 2012, the park’s occupancy rate has doubled. With significant re-branding, marketing, renovations and improvements, North Troy Corporate Park became a very attractive option for tenants and buyers looking for a modern office environment at reasonable rates.
Magna International Inc., a leading global supplier of technologically-advanced automotive systems, initially leased 117,000 square feet of office space at 750 Tower Drive in North Troy Corporate Park, with plans to add a technical center to the building. Magna moved into floors five, six and seven in September, 2013. Friedman’s Construction and Design Team then completed build outs on additional floors to accommodate the other divisions moving to the new headquarters. 750 Tower Drive now encompasses a total of 248,427 square feet and is the showcase property of North Troy Corporate Park. Through Friedman’s successful repositioning of this development, North Troy Corporate Park has been restored to its long-standing position in the community as one of the premier corporate office parks in the Troy submarket.
In addition to the Magna sale, Friedman also recently sold the following properties located within North Troy Corporate Park: a 95,000 square foot building at 5607 New King Drive, purchased by Dunham’s Sporting Goods to relocate their headquarters, and a 91,000 square foot building at 5750 New King Drive, purchased by Macomb Development, LLC. And, rounding out large sale transactions in Troy last year, Friedman sold a 306,720 square foot signature office building known as The Centennial, located at 100 E. Big Beaver, purchased by HCL.
Friedman’s properties in the North Troy corridor have had a significant economic impact on the surrounding community. They have helped to enhance the desirability of the Crooks and Long Lake interchange by creating increased demand for office space, housing, retail, and restaurants. Troy’s tax base has been positively affected with the influx of new businesses and sales of both residential and commercial properties. The resurgence of both the Troy Corporate Center and North Troy Corporate Park have served as a catalyst for additional development in Troy, evidenced by: an increase in building permits and inspections, a rise in occupancy rates, an uptick in construction, increased property values, proposals for new retail centers, recent improvements at area hotels, and a continued interest by investors throughout the city.
Leasing activity in North Troy has also increased tremendously due to the revival of the Troy Corporate Center and North Troy Corporate Park. Prominent tenants have been attracted to the modern office environment in these prime locations offering a wide array of area amenities, resulting in higher demand for restaurants, retail and parking requirements with a greater number of employees working in the area.
David Friedman, President and CEO, attributes the company’s recent success in the North Troy micro-market to several factors. “Buyers are taking advantage of the availability of high-end office buildings in prime locations with modern, updated space along with competitive market pricing.”
ABOUT FRIEDMAN INTEGRATED REAL ESTATE SOLUTIONS
Recognized as one of the largest privately-held commercial real estate organizations in the nation, Friedman Integrated Real Estate Solutions provides clients with a single point of contact for the full range of services it offers.
Friedman manages over 140 facilities encompassing more than 16M SF of commercial and 8,000 multi-family units across the country. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for over 25 years, Friedman understands what it takes to achieve results that maximize the client’s objectives.
For more information, please visit: www.friedmanrealestate.com.
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