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