Discuss Detroit » Archives - July 2007 » 7 Mile Home Depot For Sale « Previous Next »
Top of pageBottom of page

Hybridy
Member
Username: Hybridy

Post Number: 127
Registered: 08-2006
Posted on Tuesday, August 07, 2007 - 10:42 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

hope they don't close this one in the event it can't be sold. i love my ghetto home depot

http://www.loopnet.com/xNet/Ma inSite/Listing/Profile/Profile SE.aspx?LID=15274960&linkcode= 10850&sourcecode=1lww2t006a000 01
Top of pageBottom of page

Urbanize
Member
Username: Urbanize

Post Number: 2163
Registered: 02-2007
Posted on Tuesday, August 07, 2007 - 10:44 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^^^It would suck too if the reason they did close it wasn't the lack of profit.
Top of pageBottom of page

Brandon48202
Member
Username: Brandon48202

Post Number: 178
Registered: 12-2004
Posted on Tuesday, August 07, 2007 - 12:29 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

They are not closing, this is a "sale leaseback" offering. Homes Depot will sign a "long-term lease: 25 yr base with ten 5-yr options" with the new owner of the building.
Top of pageBottom of page

Iheartthed
Member
Username: Iheartthed

Post Number: 1313
Registered: 04-2006
Posted on Tuesday, August 07, 2007 - 12:32 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Damn, Home Depot costs more than the Guardian Building.

ETA: My 1-313 post!

(Message edited by iheartthed on August 07, 2007)
Top of pageBottom of page

Brandon48202
Member
Username: Brandon48202

Post Number: 179
Registered: 12-2004
Posted on Tuesday, August 07, 2007 - 12:48 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

You could buy 2 Book towers for the price of 1 Home Depot!
Top of pageBottom of page

Urbanize
Member
Username: Urbanize

Post Number: 2170
Registered: 02-2007
Posted on Tuesday, August 07, 2007 - 12:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Funny, Crap in Today's Society is worth more than Architecture and Importance.
Top of pageBottom of page

Charlottepaul
Member
Username: Charlottepaul

Post Number: 1372
Registered: 10-2006
Posted on Tuesday, August 07, 2007 - 1:18 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Long-Term Lease: 25 yr base with ten 5-yr options"

Sounds like Home Depot isn't planning on going anywhere. Is interesting though that someone would want to sell a fully leased site.
Top of pageBottom of page

Swingline
Member
Username: Swingline

Post Number: 877
Registered: 11-2003
Posted on Tuesday, August 07, 2007 - 1:30 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Isn't Hartford Memorial Church the seller?
Top of pageBottom of page

Track75
Member
Username: Track75

Post Number: 2563
Registered: 10-2003
Posted on Tuesday, August 07, 2007 - 1:33 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It's actually very common for triple-net leased real estate to change hands. NNN leases to high-quality lessees like HD are akin to a corporate bond, note the relatively low cap rate of 5.75%.
Top of pageBottom of page

Titancub
Member
Username: Titancub

Post Number: 66
Registered: 08-2006
Posted on Tuesday, August 07, 2007 - 7:43 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I would speculate there's nothing too funny with it. May perhaps just wants to cash out its investment in the property by selling it off rather then taking in the lease payments for 25 years. Probably will go put their money to work somewhere else now.
Top of pageBottom of page

Davetroit
Member
Username: Davetroit

Post Number: 6
Registered: 03-2007
Posted on Wednesday, August 08, 2007 - 4:58 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yes, Hartford Memorial owns the Home Depot, as well as a lot of other property in that area.
Top of pageBottom of page

Viziondetroit
Member
Username: Viziondetroit

Post Number: 1094
Registered: 11-2003
Posted on Wednesday, August 08, 2007 - 8:42 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yeah, it would be a wise decision for Hartford to sell the property and invest elsewhere.

I used to work at that location from grand opening until 2/06 and they have had much success.

It took a while for them to overcome the shrink and associate turnover, but they have the right management in place and have had a stable 24 months after a few rocky years.
Top of pageBottom of page

3rdworldcity
Member
Username: 3rdworldcity

Post Number: 849
Registered: 01-2005
Posted on Thursday, August 09, 2007 - 5:55 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Very interesting post. I'd be interested to know how a church ended up owning this property.

My guess is it will sell for around $18,500,000 in order to yield a touch more than 7%. Some very good, AAA corporate bonds are yielding 7% or more (or were the last time I checked recently.)

My concern as an investor would be the threat from Lowes, which is going head-to-head with Home Depot, and mostly winning. Is there any more developable land around this store? Home Depot built a store at 12 Mile and I-75 and it was the best performing store in the chain. Lowes built a new store right next door and is going gangbusters. Lowes was a very high priced deal because it had to purchase a relatively new manufacturing plant and tear it down in order to build next door to HD.
Top of pageBottom of page

Charlottepaul
Member
Username: Charlottepaul

Post Number: 1375
Registered: 10-2006
Posted on Thursday, August 09, 2007 - 8:09 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

No there really isn't all that much land around. It is basically a four block site in the middle of a neighborhood breaking a row of small shops along 7 mile. All around it are blocks of homes. Really the only 'open' space around is Mary Grove College, but they are doing well and prob. would not sell off any of their land.
Top of pageBottom of page

Viziondetroit
Member
Username: Viziondetroit

Post Number: 1095
Registered: 11-2003
Posted on Friday, August 10, 2007 - 2:36 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yeah that is one location where Lowes is not a threat, there is NO area immediately around the HD location. The neighborhood is very dense in that area..


The church bought the land when it came available like 20 years back... it was a hospital location and then a vacant lot for the longest until the city council approved development for it to be a Kmart location... and that took years to approve.

It became a Home Depot in 2003....
Top of pageBottom of page

3rdworldcity
Member
Username: 3rdworldcity

Post Number: 851
Registered: 01-2005
Posted on Friday, August 10, 2007 - 11:22 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Smart church. Good for it.
Top of pageBottom of page

Jams
Member
Username: Jams

Post Number: 5706
Registered: 10-2003
Posted on Friday, August 10, 2007 - 11:56 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

3rdworldcity,
Check out this from their website.
http://www.hartfordchurchdetro it.org/html/who/vision.html

I spent a great amount of time there on a contract job one year (very unusual for a Caucasian to be hired), I came away with a great admiration for that Church and its Pastor.
Top of pageBottom of page

Bumble
Member
Username: Bumble

Post Number: 300
Registered: 11-2004
Posted on Friday, August 10, 2007 - 12:23 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Lowes built a new store right next door and is going gangbusters.



I'm a regular at both of these places at this location and Lowes is always dead.

Add Your Message Here
Posting is currently disabled in this topic. Contact your discussion moderator for more information.