  Billk Member Username: Billk Post Number: 178 Registered: 09-2005 |
http://www.crainsdetroit.com/a pps/pbcs.dll/article?AID=/2007 1203/SUB/712030328/1070/-/-/se cond-try-for-guardian-vote County to vote again on Thursday 12/06/07. | ||
Genesyxx Member Username: Genesyxx Post Number: 824 Registered: 02-2004 |
As much as I'd love to see 1001 occupied, I still think this is a bad deal. | ||
Thejesus Member Username: Thejesus Post Number: 2928 Registered: 06-2006 |
“What if rent gets jacked up by $100 per month when Quicken is taking all the spaces in town? That would cost us a lot of money.” Oh brother...Ficano really wants the Guardian for some reason... I hope the end up moving into 1001 Woodward... | ||
Spiritofdetroit Member Username: Spiritofdetroit Post Number: 762 Registered: 11-2006 |
Agreed. The Guardian is doing alright as it is.... Occupancy has risen from 2% to 55% in just a couple of years. Fill up 1001 Woodward and that area of downtown will really be humming.... CMP completed, One Kennedy Sq. 100% leased, Compuware and its nearly 100% retail leased, the first national building adding tenants, and the Guardian continuing to march forward.... A vibrant little city within the city... | ||
Rbdetsport Member Username: Rbdetsport Post Number: 422 Registered: 11-2005 |
CMP is not complete until we see a high-rise condo tower on the Monroe Block. | ||
Spiritofdetroit Member Username: Spiritofdetroit Post Number: 763 Registered: 11-2006 |
Sure, that is the missing component. But, this would nearly fill up everything around the area - perhaps creating a demand for something on Monroe Block | ||
Cgunn Member Username: Cgunn Post Number: 156 Registered: 01-2004 |
1001 Woodward | ||
Gnome Member Username: Gnome Post Number: 421 Registered: 08-2007 |
 think how nice the Guardian lobby will look with an xray machine | ||
Gnome Member Username: Gnome Post Number: 422 Registered: 08-2007 |
Maybe Bob could just give out his patented xray specs. I hear they're a blast at parties. He sells them on-line, found this at ficanoSeesAll.com  | ||
Gistok Member Username: Gistok Post Number: 5852 Registered: 08-2004 |
Not only that Gnome... think of how wonderful the county is at maintaining buildings!  | ||
3rdworldcity Member Username: 3rdworldcity Post Number: 983 Registered: 01-2005 |
Spiritofdetroit: Do you really believe the Guardian Bldg. "is doing alright as it is" just because the occupancy has risen over 2 years to 55%? It's a big loser and the chance that occupancy will increase from this point forward is nil. Why do you think the owner is desperately attempting to dump it on the County? Owners can't operate buildings at 55% occupancy. As a WC taxpayer, I hope the Commission does the right thing and buys 1001. | ||
Bobj Member Username: Bobj Post Number: 3128 Registered: 11-2003 |
I question the County's ability to maintain the Guardian - do they have the money, will they spend the money, will the bldg eventually look like crap | ||
Sharmaal Member Username: Sharmaal Post Number: 1252 Registered: 09-2004 |
My vote is for 1001. They will only screw up the Guardian. | ||
Bobj Member Username: Bobj Post Number: 3131 Registered: 11-2003 |
I agree, most government bldgs look like crap after awhile | ||
Spiritofdetroit Member Username: Spiritofdetroit Post Number: 764 Registered: 11-2006 |
3rdworld, From the discussions I have had, it appears that the building is reaching the point at which it can sustain itself. Money was spent on infrastructure and other improvements which have made the building more marketable. I would think that the reason the owners are interested in selling to the council is because they can turn a profit on it. I believe they only paid 5 million for the building just a couple years ago, and can now flip it for 15. Also, isnt it true that the company purchased Chase Tower? Clearly the group feels as though they can be profitable in Detroit. I am sure that the county would find some way to destroy the Guardian, and should do the smart thing financially and work out a deal with 1001. | ||
401don Member Username: 401don Post Number: 107 Registered: 11-2007 |
Unfortunately, the boss in these type of deals usually gets his way. If he's only one vote short I'm sure there will be some combination of favours and/or arm twisting and the vote will go through. It also seems like 18 months to re-hab 1001 Woodward may be too long to wait. Why is the County waiting until their leases are almost up to make a decision? | ||
Charlottepaul Member Username: Charlottepaul Post Number: 2081 Registered: 10-2006 |
Funny thing is, that Ficano is concerned about needing to lease some parking spaces in the adjacent deck if the 1001 project goes through. he has been pushing for the Guardian. Where will they park if they buy the Guardian instead? Seems as though that would be yet another issue to not have to worry about if they went with 1001 instead. P.S. Sounds like it was a good thing that the City-County building was renamed a few years ago. County's moving on out. | ||
Gnome Member Username: Gnome Post Number: 423 Registered: 08-2007 |
gistok- yeah, remember those plastic jungle gym toys on the lawn of the County building? tasteful | ||
Tkelly1986 Member Username: Tkelly1986 Post Number: 439 Registered: 01-2004 |
I still advocate the county looking into buying the MCS from Manny with hopes of consolidating county offices around Roosevelt Park and in a renovated MCS. This area could host the new police station ect….And a new jail complex. | ||
3rdworldcity Member Username: 3rdworldcity Post Number: 984 Registered: 01-2005 |
Spiritofdetroit: Because the Guardian is privately owned by very private people no outsider - you and I et al - have access to the financials. We operate on rumor and apply our own experiences to an analysis of what's going on financially. I've heard they paid less than $5 million for the building. Sterling Group has very little of its own money in the deal. It's foreign money according to rumor (by people I trust, for whatever that's worth.) The owner spent several million on upgrades and did a really great job. However, it made significant rent concessions - that I know for a fact - to induce folks from other downtown buildings to move over there. Their operating expenses are very high - heat being an operating expense killer. It's extremely expense to heat the atrium level, costs that can't be passed on to the first floor tenants who benefit most from the atrium ambience. And heating 45% of the building where there are no tenants is the real killer. Based on relatively low rents, extraordinarily high operating costs, and the low prospects of getting more tenants, I still believe the building is a big loser. But, we'll probably never know for sure unless we have access to the books. | ||
Spiritofdetroit Member Username: Spiritofdetroit Post Number: 770 Registered: 11-2006 |
Thanks 3rdworld. Of course, my conversations were with management who would spin it in their favor anyway. However, I think that there is not doubt that the prospects have certainly improved. Regarding rent, they were still more expensive than a few of the surrounding buildings - at least for what I was discussing. Their group did buy Chase tower though, correct? They also own the Fort Washington Plaza which is 80% leased. |
