Molina ponders move to downtown Detroit

[illwill]

Troy-Based Molina Healthcare pondering a move downtown or possibly Southfield.

http://www.crainsdetroit.com/article/20131208/NEWS/312089950/molina-ponders-move-to-downtown-detroit

Molina Healthcare of Michigan may go from suburban living to city dwelling.

The state's third-largest Medicaid HMO, which has about 60,000 square feet in the two-building Liberty Center office complex at Big Beaver and Livernois roads in Troy, is exploring a relocation of its 300 employees to downtown Detroit, according to real estate sources.

Sources said one of Molina's top downtown prospects is the 415,000-square-foot Detroit Media Partnership building, home of The Detroit News and Detroit Free Press. The DMP announced in January that it would sell the building and move its 600 employees to another downtown location by next summer.

Southfield also is a possibility.

"We are considering our options. We have not decided where to locate," said Stephen Harris, CEO of Molina Healthcare of Michigan. "Our lease is up. We are trying to get to a decision as quickly as possible."

Molina's lease expires on Aug. 31, according to Washington, D.C.-based real estate information serviceCoStar Group Inc. The 139,000-square-foot building at 100 W. Big Beaver is 97 percent leased, according to CoStar.

A Molina move downtown would put it near one of its chief competitors, Detroit-based Meridian Health Plan of Michigan, which plans to move into a new, $111-million office building, construction on which is expected to begin by early 2015. Meridian would move in by early 2017.

The 320,000-square-foot Meridian building would be across from Compuware Corp. headquarters on the Monroe Block, bounded by Monroe, Bates and Farmer streets; Woodward Avenue; and Cadillac Square, less than a mile from the DMP building.

Molina is among the top Medicaid HMO plans in Michigan in terms of enrollment. The top three are Meridian, with about 295,000 members; United Healthcare Community Plan, with about 243,000; and Molina, with about 214,000, according to the 2012 Michigan Health Market Review.

Built in 1988, 100 W. Big Beaver is leasing for $21 a square foot, according to the website of Farmington Hills-based Thomas A. Duke Co., a part owner of the Liberty Center.

San Diego-based McKinney Advisory Group hired Bloomfield Hills-based Forum Group LLC to represent Molina locally.

Tom Lasky, the founding member of Forum Group, who is representing Molina, declined to comment.

Kirk Pinho: [[313) 446-0412, kpinho@crain.com. Twitter: @kirkpinhoCDB

Jay Greene contributed to this report.

[tkelly1986]

How likely is it that Molina would move to the DetNews building? I assume that needs a substantial amount of rehab to bring it up to Molina's needs. What about the Federal Reserve Building, or even the Madden which I head has space. It seems like there are others that make more sense.

[rb336]

Forum Group either owns or is the leasing agent for the American Commerce Center in Southfield

[Mackinaw]

Bump-- anyone know anything about this contemplated move?

[stinkytofu]

Bump-- anyone know anything about this contemplated move?

http://www.detroitnews.com/article/2.../BIZ/304220100

Sounds like they are primarily staying in Troy, but opening a satellite office downtown. Kind of disappointing...but happy at least some will be down here.

[Mackinaw]

Ah, missed that story, thank you much. I guess new jobs in the region and at least a few more souls downtown is a net positive.

[DetroitPlanner]

New jobs, not job shifts from one sub-community to another, good news!

[downtownguy]

They have had a sign at the top of the Dumouchelle Building on Jefferson at least as far back to 2007 [[according to Google Street View). I wonder how many people are employed there [[it's not that big a building) and why they don't acknowledge that they already have a presence downtown? Also, I wonder if they will consolidate this office with whichever new location they choose downtown?