Sold $12.2M - June 22 auction for Fisher, Kahn buildings

[Casual]

UPDATE: Sold for $12,200,000.

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Friedman Integrated Real Estate Solutions LLC has confirmed what’s been a pretty poorly kept secret for weeks: The Albert Kahn Building and the Fisher Building are heading to an online auction this summer.
The auction June 22 to 24 of the iconic office buildings in the New Center area includes more than 2,000 parking spaces spread out over two parking decks and three surface parking lots, according to the Farmington Hills-based company.
There’s likely to be a high level of interest in the 635,000-square-foot Fisher and 290,000-square-foot Kahn, built in 1928 and 1931, respectively.
On that list of possible buyers are Packard Plant owner Fernando Palazuelo and Dan Gilbert, the founder and chairman of Quicken Loans Inc. and Rock Ventures LLC.
Palazuelo told me during a February interview that he was going to make an offer on them, and Gilbert is under contract to buy a parking deck directly east of the Kahn.
The Fisher and Kahn buildings fell into default on a $27 million mortgage and Miami-based special servicer LNR Property Inc. took title on them, contracting with Friedmanfor management and leasing.
The registered agent of the previous owner, FK Acquisition LLC, is Farbman Group CEO Andy Farbman.
Southfield-based Farbman Group had handled property management and leasing prior to Friedman.
Barry Swatsenbarg, national director of investment and loan sale advisory services, and Rich Deptula, senior vice president of investment and loan sale advisory services, are representing LNR.
A minimum bid has not yet been set for the auction, according to Swatsenbarg.


http://www.crainsdetroit.com/article...kahn-buildings

[animatedmartian]

Could it really be possible for Dan Gilbert to get 4 big buildings all at once? Pretty amazing if he does.

[p69rrh51]

An interesting article from NPR on the auction.

http://www.npr.org/2015/06/19/415200...ntent=20150620

[Richard]

It would be interesting to figure out the correlation of the city's past and currant views on historic buildings and the prices they command.

In most cities when a historic property is up for sale it will command a higher price because of the history and how it relates to the cities history overall.

When one looks at the price per sqft foot sales of previous properties sold it is based on that period and not on the historical value or considered added value because it is considered an asset of historical significance.

I think the city is shooting itself in the foot by not embracing the protection of historic properties and in return is loosing the added value that they may bring.

As even seen on here,when a property is viewed as just another old building in the way others are priced and sold as such with the only comfort being to the buyer in being able to say that they have acquired a historic property for pennies on the dollar.

When the auction starts the bidding on this property will be based on sqft,price it will take to upgrade and or replace and the details of purchase of the 3 floors by the DPS,if they bought three floors,what are the terms and can they be counted in the overall big picture.

In theory take the total sqft and subtract the 3 floors and what you have left is what is up for bid.

The sad part is everything else about the buildings,who built them,what they look like,or what their history is will have nothing to do with anything because the city itself places little value or allows no return on investment as a direct result of its failure to recognize the value.

So off the cuff say it sells for 20 million and needs another 20 million in upgrades at minimum for a total of 40 million one has to ask what is available for the same price elsewhere move in ready.

Somebody made a bunch of money on the DPS deal and it may have hurt the future chances of the value of the building,but because the details are hidden it would be anybody's guess on whether is becomes an asset or liability.

The condition of the city has little to do with properties like this it is more of a attitude thing and how its value is perceived.

[MSUguy]

Could it really be possible for Dan Gilbert to get 4 big buildings all at once? Pretty amazing if he does.

I'm kinda hoping someone else gets them, it just seems like a bad idea to let one person monopolize all the prime buildings in the city . He wouldn't be the worst person, far better for him than a speculating jerks like DDI or Apop, but still it'd be nice to seem some diversity.

[Hypestyles]

so the auction starts today, curious.. How are the auctions conducted? In a big room? Do the bidders have to be present?

[ndavies]

Multiday auction, Done on the internet.

http://www.freep.com/story/money/bus...kahn/29118309/

[RickBeall]

I won! I won!

[RickBeall]

I can't believe I just won the Fischer building for $10,343! And you shouldn't either.

[Lowell]

Current Bid $8,100,000 as Tuesday at 3PM.

I'll guess $15M. [As Artworks they are worth at least ten times that]

Anybody else?

View Bids

[Richard]

I am guessing between 24 n 26 million.

[ekleezy]

Just 4.5 more hours! I'd guess 15-20 million.

[pocketchange]

Interesting, when I logged in said it only had a few minutes left and it was at 8.5 million. At around 1 minute left they keep adding 5 more minutes to the auction. Now up to 9.2 million.

[Richard]

Interesting, when I logged in said it only had a few minutes left and it was at 8.5 million. At around 1 minute left they keep adding 5 more minutes to the auction. Now up to 9.2 million.

Each last second bid increases time 5 minutes ,reserve is off.

[Lowell]

Fun to watch on this site particularly with the countdown time incrementing 3 minutes whenever a bid is raised. Prevents last second sniping.

Attachment 27166

View Bidding

[ekleezy]

Wow. 12.2 million. I thought it would go a bit higher

[Lowell]

Sold for $12,200,000. What a steal.

Attachment 27167

[gvidas]

That's $15.71/square foot. Or just a hair below the average annual per square foot price to rent office space in our fair city [[$15.89). To be clear, that's $1.33/sqft/month.

I agree that it seems like a steal, and I also hope that the buyer was someone other than Bedrock.

[emu steve]

Does this show why there isn't much of a market for new construction?

Why build new when prices are this cheap???

[TTime]

We have discussions seemingly weekly regarding the health of the local real estate market and we argue often over "rebirth" and whether or not this is a hot market. It will be interesting to see the spin job people put on this but how is this anything other than a massive reality check emphasizing the true demand [[or lack there of) for property in the city?

[Shai_Hulud]

That's definitely on the low end. However, most of the investment appeal seems to be based on partial residential conversion as New Center starts to warm up and that will be a long process.

Hopefully the winner is someone motivated to bring the best out of the area.

[3WC]

Lowell, "What a steal?" I respectfully disagree. There is no such thing as a bargain in real estate, especially real estate exposed to the world-wide market.

All of the interested and presumably qualified bidders, except one, thought the price was too high.

[Bham1982]

Does this show why there isn't much of a market for new construction?

Why build new when prices are this cheap???

This is one of the finest office towers ever constructed, anywhere . And they're throwing in the Kahn building, which is also pretty nice. All for the price of a small home in the Hamptons.

This is a good example why Detroit is still a long, long way from having any semblance of a non-subsidized real estate market. It still lacks the fundamentals. I mean, a minor renovation of the Fisher would cost far more than the sales price for these two buildings.

800,000 square feet of office space, thousands of parking spaces, and an iconic design worthy of a global landmark. Would go for billions if in a global city.

[p69rrh51]

An image of the Fisher Building from 1929 issue of Michigan Architect and Engineer.

[emu steve]

Yep, that price was crazy, maybe location, location, location... What if it had been in the CBD???

I think it shows the weakness in the area. Maybe the area is a number of years away.

When it comes to what 12M will buy: Ilitches pay 10M for a scoreboard at Comerica.

As far as the buyer, maybe if Gilbert would have bought it, he'd spend big bucks to build up the area to enhance his purchase.