Michigan State endowment buys majority stake in Fisher Building

**Airforceguy** · June-13-23, 02:33 PM

While not development news per se, MSU has brought a majority stake in the Fisher Building. In addition to buying this stake, the university also purchased tow adjacent surface parking lots and a parking garage. I could see the university developing these properties as residential or mixed use in the future.

Michigan State endowment buys majority stake in Fisher Building

In addition to buying the Albert Kahn-designed tower affectionately referred to as "Detroit's largest art object," the endowment has purchased two surface parking lots adjacent to the 441-foot tower as well as the Baltimore Garage previously controlled by Detroit-based developer and landlord The Platform LLC, which is run by Executive Chairman and CEO Peter Cummings.In an interview, Phillip Zecher, CIO for Michigan State, said the endowment paid $21 million for a 79% ownership of an entity that now owns the four properties. The deal, in discussions for more than a year, closed Monday.

The remaining 21% is now owned approximately 50-50 by The Platform and Michigan State University Federal Credit Union. The new joint venture between the endowment, The Platform and the credit union is taking out a loan from the credit union to retire existing debt and pay for exterior restorations, building operations and leasing activities like tenant improvements.

Southfield-based Bernard Financial Group arranged the financing.

Zecher said that since he joined the university in 2016, he has been "looking for ways that the endowment could participate in sort of the rebirth of Detroit." "It just seemed kind of obvious to invest in your backyard if there are good opportunities," Zecher said, noting that approval for the deal is not needed from the MSU board or the endowment board.

It's a major move for the East Lansing university's endowment and comes five months after MSU and Henry Ford Health further detailed plans for a $100 million to $150 million research center, which is one component of a planned $2.5 billion investment by the health system, MSU and Detroit Pistons owner Tom Gores to build a new hospital tower across from the existing hospital on West Grand Boulevard, as well as 500-plus residential units and commercial space in the surrounding area.

https://www.crainsdetroit.com/real-e...isher-building

**Danny** · June-13-23, 03:22 PM

Yay Let's go State... Let's go Green and White.

**Burnsie** · June-13-23, 05:31 PM

Hopefully any Sparty logos are kept very small on the exterior. Please no tacky signage directly above the main entrance.

**DetroiterOnTheWestCoast** · June-13-23, 07:43 PM

I’m glad I won’t be there in person to see the building degraded by being lit up in Spartan green.

**Gistok** · June-13-23, 08:07 PM

https://www.wxyz.com/news/msu-purcha...ZCIO4GdYTRiCiE

Wow... it is amazing the amount of money that is going to be invested between Downtown, Midtown, and New Center/Henry Ford Hosp., among the states 3 major universities, and billionaires... Ross, Gilbert, [cough] Ilitch, and Cummings [Fisher heirs], as well as Ford in Corktown/Michigan Central.

Add to that the money that came in from other rich families such as Taubman/Ford for College of Creative Studies, Wilson for the big Wilson Centennial Park, and Carhartts/Valade & Allessee for the WSU Dance/Jazz Center... it is amazing how Detroit City Center is abuzz in new developments.

For those of us who were on Detroit Yes back in the early 2000s, we would never in our wildest dreams believe what the future of Detroit has planned.

**Airforceguy** · June-16-23, 02:45 PM

MSU president on Fisher Building deal: ‘Stay tuned’ for more Detroit moves

Michigan State University is hoping for spin-off development and additional investment in Detroit's New Center area following its endowment's purchase of majority ownership of the iconic Fisher Building and more real estate in the neighborhood north of downtown.How precisely that plays out is anybody's guess.
But the East Lansing university has laid the groundwork — if it chooses — to be part of an even broader evolution of the area, rather than a semi-passive investor with $21 million invested into a 79% ownership stake of the Albert Kahn-designed gem plus two adjacent surface parking lots and a parking deck south of West Grand Boulevard. In the eyes of the endowment, it's an opportunity for return on investment down the road. That depends on a variety of factors, including the state of the still-COVID-shaken office market — which is far from recovered from the effects of the global health crisis — and what, if anything, ultimately gets built on the undeveloped land and other factors.

It has ramped up its holdings and could play a part in new multifamily housing, along with its developer partner The Platform LLC, or other uses on the surface parking.
"You'll have to stay tuned for what will be happening there," MSU Interim President Teresa Woodruff said in an interview with Crain's.

https://www.crainsdetroit.com/real-e...-detroit-plans

**royce** · June-26-23, 01:48 AM

So, during all of this time the Platform was not working on converting the upper floors of the Fisher Building into residential apartments? Did I miss the announcement that that had falling through?

**Gistok** · June-26-23, 02:10 AM

^I don't recall that ever being the plan. They did double the buildings occupancy as first class office space, as well as spending $30 million on improvements to the building.

**1953** · June-27-23, 05:21 PM

I love the Fisher Building, but, as investments go, I worry its not as pretty as its lobby.

**Gistok** · June-27-23, 06:16 PM

Originally Posted by 1953

I love the Fisher Building, but, as investments go, I worry its not as pretty as its lobby.

I know what you mean... but with huge amounts of money invested in Henry Ford Hospital complex, and other developments in the area, the business environment in New Center will hopefully pick up. Ditto for the Hotel St. Regis, which has never been as swanky as it was when GM [and to a lesser degree Burroughs Corp.] anchored the area.

**gratiotfaced** · June-27-23, 06:37 PM

Does anyone know when MDOT will unveil the final plan for the New Center multimodal station? I thought it was supposed to be sometime this year.

With all this development coming to New Center, and the possibility of more passenger rail service statewide, the design and integration of the new station could be a really important development for the city/region.

**Burnsie** · June-27-23, 07:05 PM

Originally Posted by gratiotfaced

Does anyone know when MDOT will unveil the final plan for the New Center multimodal station? I thought it was supposed to be sometime this year.

With all this development coming to New Center, and the possibility of more passenger rail service statewide, the design and integration of the new station could be a really important development for the city/region.

This answers your questions. https://www.michigan.gov/mdot/about/...modal-facility

Don't hold your breath for any new passenger rail service or additional trains on existing routes. Neither MDOT, nor Amtrak, nor the legislature have expressed any real commitment [[i.e. pushing for money) to the idea. Amtrak will passively go along with the new Detroit station because it's what MDOT wants. If it was up to Amtrak only, we'd be stuck with the current structure for 50 more years.