Leland_palmer Member Username: Leland_palmer
Post Number: 283 Registered: 08-2004
| Posted on Thursday, April 05, 2007 - 11:27 am: | |
BY JOHN GALLAGHER FREE PRESS BUSINESS WRITER One of Detroit’s landmark skyscrapers has gone dark. DTE Energy confirmed Thursday that it has shut off electrical power to the Book Tower on Washington Boulevard, a 1920s era office building that is one of Detroit’s landmark structures. The reason was non-payment of bills over a lengthy period of time, a DTE spokesman said. http://freep.com/apps/pbcs.dll /article?AID=/20070405/BUSINES S/70405023 |
Andylinn Member Username: Andylinn
Post Number: 351 Registered: 04-2006
| Posted on Thursday, April 05, 2007 - 11:34 am: | |
oh my god. this is really really really bad news. how the hell are they supposed to retain tenants if there isn't any f&$^#*& power? |
Club_boss Member Username: Club_boss
Post Number: 18 Registered: 12-2006
| Posted on Thursday, April 05, 2007 - 11:36 am: | |
They got generators for the elevators. |
Tetsua Member Username: Tetsua
Post Number: 1157 Registered: 01-2004
| Posted on Thursday, April 05, 2007 - 11:37 am: | |
This is so ghetto |
56packman Member Username: 56packman
Post Number: 1200 Registered: 12-2005
| Posted on Thursday, April 05, 2007 - 11:38 am: | |
This (normally)means that the basement fills with water. Way to go B-T mgmt. |
Crew Member Username: Crew
Post Number: 1191 Registered: 02-2004
| Posted on Thursday, April 05, 2007 - 11:38 am: | |
Do the individual suites still have power? Is the electrical shut down just the common areas like the elevators, hallways, exterior, etc? |
Leland_palmer Member Username: Leland_palmer
Post Number: 284 Registered: 08-2004
| Posted on Thursday, April 05, 2007 - 11:40 am: | |
Maybe, someone will run jumper cables over to the trolly plaza. |
Bobj Member Username: Bobj
Post Number: 1956 Registered: 11-2003
| Posted on Thursday, April 05, 2007 - 11:44 am: | |
So much for the plans of the new owners! |
Johnlodge Member Username: Johnlodge
Post Number: 354 Registered: 10-2003
| Posted on Thursday, April 05, 2007 - 11:52 am: | |
The building is owned by Ricardo Pagan, of the Pagan Organization. He purchased the building in 2006 with a loan from KSI Capital. Many people turned him down for this loan before KSI gave the money. Sounds like it must have been a risky venture to give that loan. Can't find any contact info for Pagan Organization. |
Eric_c Member Username: Eric_c
Post Number: 933 Registered: 11-2003
| Posted on Thursday, April 05, 2007 - 11:55 am: | |
This is how the Statler and Lafayette ultimately closed, keep in mind. |
Dougw Member Username: Dougw
Post Number: 1646 Registered: 11-2003
| Posted on Thursday, April 05, 2007 - 11:56 am: | |
I heard mixed things about the previous owner, but at least she kept the lights on. When did the transfer of ownership take place? Anyone know if the non-payment of bills are due to the new owners or the previous owner? (Edit -- Based on Johnlodge's response, it sounds like the fault of the new owners. Sounds eerily reminiscent of the mortgage fraud foreclosures happening with so many homes in the city, although that couldn't happen with a skyscraper... right?) (Message edited by Dougw on April 05, 2007) |
Johnlodge Member Username: Johnlodge
Post Number: 356 Registered: 10-2003
| Posted on Thursday, April 05, 2007 - 11:58 am: | |
Doug, Friday, August 11, 2006 - DETROIT-New York City-based the Pagan Organization has purchased the historic Book Tower from the former owner, local investor Susan Lambrecht. The purchase of the 36-story asset was facilitated by a $4-million loan. Ricardo Pagan says the most difficult part of the acquisition was simply obtaining a loan. After approaching several lenders and being turned down, Pagan met with Paramus, NJ-based KSI Capital. KSI, which focuses on commercial property acquisition and refinancing with loan terms ranging from one to five years, pulled together the financials within one week. Representatives would not disclose the purchase price. |
Apbest Member Username: Apbest
Post Number: 515 Registered: 03-2006
| Posted on Thursday, April 05, 2007 - 11:59 am: | |
there are rennovation plans |
Psip Member Username: Psip
Post Number: 1743 Registered: 04-2005
| Posted on Thursday, April 05, 2007 - 12:04 pm: | |
http://www.ksifunding.com/lend ing_Study.php?ID=20 nothing on Pagan Organization, tough name to search for. BTW, this is terrible news! |
Fareastsider Member Username: Fareastsider
Post Number: 320 Registered: 08-2006
| Posted on Thursday, April 05, 2007 - 12:06 pm: | |
plans...sure....nothing has been done since they bought it. In this city plans mean nothing I will believe it when I see it. I hope the doors dont close soon. |
Quozl Member Username: Quozl
Post Number: 380 Registered: 07-2005
| Posted on Thursday, April 05, 2007 - 12:10 pm: | |
People Against Goodness And Normality I disagree Psip, not terrible news at all, just reality. You dont PAY, you don't PLAY. DTE should not be expected to provide electricity to a deadbeat operation like PAGAN. |
Johnlodge Member Username: Johnlodge
Post Number: 357 Registered: 10-2003
| Posted on Thursday, April 05, 2007 - 12:10 pm: | |
For those of you unfamiliar with this building:
I'm sure this is a tactic by DTE to finally get this Ricardo Pagan dude's attention. He's obviously ignored every other attempt of theirs to get paid. With the Book-Cadillac right next door, there's no way this building can be allowed to die. |
Thejesus Member Username: Thejesus
Post Number: 845 Registered: 06-2006
| Posted on Thursday, April 05, 2007 - 12:13 pm: | |
well, the good news is that Pagan, which obviously lacks the resources to own the building much less renovate it, probably won't own it for much longer... I also hope who ever gets control of it next will give it a bath... |
Psip Member Username: Psip
Post Number: 1744 Registered: 04-2005
| Posted on Thursday, April 05, 2007 - 12:13 pm: | |
It is terrible news because it speaks volumes about the management of the building. |
Llyn Member Username: Llyn
Post Number: 1786 Registered: 06-2004
| Posted on Thursday, April 05, 2007 - 12:17 pm: | |
posted without comment...
quote:Book Tower. Grand Rapids-based Northeast Commercial Services Corp. was granted a $3.5 million brownfield single-business-tax credit and state and local tax capture of $4.7 million for a $35 million redevelopment of the 13-story Book Building and the 36-story Book Tower on Washington Boulevard. Dating from 1918 and 1925, respectively, and now functionally obsolete, the two buildings are to be redeveloped into 175 condos and 108,000 square feet of commercial space, with the first two floors of both buildings converted into an atrium, fitness facility and restaurants. from: 8 Detroit redevelopments get more than $170 million in tax breaks By Bob Ankeny 4:10 pm, December 19, 2006 |
Harpernottingham Member Username: Harpernottingham
Post Number: 163 Registered: 04-2006
| Posted on Thursday, April 05, 2007 - 12:24 pm: | |
When I used to work there (2000-2002), we had all KINDS of problems there. We were on the 21st floor, and routinely had to take the stairs because the elevators would be out. And there were SIX of 'em. You'd think at least one would work. We'd routinely have no water, no heat, no air, or any combination of the three. Thankfully, we were all able-bodied, so climbing the stairs was feasible. Nevertheless, the building somehow managed to retain its charm. |
Sumotect Member Username: Sumotect
Post Number: 273 Registered: 08-2004
| Posted on Thursday, April 05, 2007 - 12:24 pm: | |
I wonder what powers the cell phone towers and microwave relay. Must be a totally separate service, I would think. |
Quozl Member Username: Quozl
Post Number: 381 Registered: 07-2005
| Posted on Thursday, April 05, 2007 - 12:32 pm: | |
I was thinking the same thing Sumo. |
Club_boss Member Username: Club_boss
Post Number: 19 Registered: 12-2006
| Posted on Thursday, April 05, 2007 - 12:34 pm: | |
"A crew from an electrical contractor was at the building Thursday morning running a generator to keep the elevators running, but otherwise the building had no power." What about heat, telephones? |
Swingline Member Username: Swingline
Post Number: 777 Registered: 11-2003
| Posted on Thursday, April 05, 2007 - 12:47 pm: | |
Does the shutdown affect Bookies too? Hopefully they are separately metered and billed. I know that occupancy in the building has dwindled to next to nothing over the past couple of years. Once it gets to a certain level, a building owner isn't even getting enough cash flow to pay common area utilities and taxes, much less a mortgage loan. You can only "plan" for so long until negative cash flow catches up with you. The lender will likely own this building very soon. Were the Pagan Organization principals crafty enough to avoid personal guarantees on the purchase money loans? It's unlikely, but you never know. (Message edited by swingline on April 05, 2007) |
Pffft Member Username: Pffft
Post Number: 1258 Registered: 12-2003
| Posted on Thursday, April 05, 2007 - 1:52 pm: | |
It's a double-edged sword, a lot of the tenants could rightly withhold rent when they didn't have regular heat, etc. |
Cman710 Member Username: Cman710
Post Number: 274 Registered: 07-2006
| Posted on Thursday, April 05, 2007 - 1:59 pm: | |
I agree that this is awful news. It demonstrates that we need to keep pressure on public and private parties to preserve the historical buildings we have in Detroit. The Book Tower is a very unique, historical structure, but if the management runs it into the ground, it's tough for anyone to do anything about it. Let's hope that the current owner has to sell the property soon. |
Livernoisyard Member Username: Livernoisyard
Post Number: 2950 Registered: 10-2004
| Posted on Thursday, April 05, 2007 - 2:10 pm: | |
As it turns out, Detroit's final tenant won't need to turn the lights out when leaving. DTE will do it for him... |
Burnsie Member Username: Burnsie
Post Number: 934 Registered: 11-2003
| Posted on Thursday, April 05, 2007 - 2:37 pm: | |
Wouldn't the heat be unaffected, if it's steam bought from Detroit Thermal? |
The_fly Member Username: The_fly
Post Number: 82 Registered: 10-2003
| Posted on Thursday, April 05, 2007 - 2:43 pm: | |
The steam system may just be updated enough where the pumps are turned on electrically |
Crawford Member Username: Crawford
Post Number: 57 Registered: 10-2006
| Posted on Thursday, April 05, 2007 - 2:53 pm: | |
Maybe we can demolish the complex for a big parking garage for the Book Cadillac. Put a few floors of condos on top and you'll have the support of the Mayor, the Council and many DetroitYes forumers. |
Oldredfordette Member Username: Oldredfordette
Post Number: 1435 Registered: 02-2004
| Posted on Thursday, April 05, 2007 - 3:02 pm: | |
My union office was in the Book, the last couple months they was there it was excruciating. No or low power, low or no heat, sometimes elevators, sometimes now, no hot water in bathrooms, frequently no bathrooms. We didn't want to leave the city, but when we were offered a suite with everything for half the price, we jumped on it. I know more people who left that building for the same reason. What can you do? Sad. |
Crawford Member Username: Crawford
Post Number: 58 Registered: 10-2006
| Posted on Thursday, April 05, 2007 - 3:11 pm: | |
Brilliant respose, Gistok. Keep up the name-calling against anyone who disagrees with the company line. |
Stecks77 Member Username: Stecks77
Post Number: 338 Registered: 08-2006
| Posted on Thursday, April 05, 2007 - 3:13 pm: | |
Crawford: Were you not being sarcastic with your suggestion? |
Gistok Member Username: Gistok
Post Number: 4089 Registered: 08-2004
| Posted on Thursday, April 05, 2007 - 3:15 pm: | |
Sorry, but you do need to get over the demo'ing of the Commerce Building. By your response here, you apparently have yet to do so. (Message edited by Gistok on April 05, 2007) |
Crawford Member Username: Crawford
Post Number: 60 Registered: 10-2006
| Posted on Thursday, April 05, 2007 - 3:21 pm: | |
Yes, Stecks, I was being sarcastic. Gistok, I will keep my Commerce mourning to myself if it offends you so much. |
Gistok Member Username: Gistok
Post Number: 4090 Registered: 08-2004
| Posted on Thursday, April 05, 2007 - 3:26 pm: | |
OK Crawford... you do seem like a decent guy, I deleted my post. I don't begrudge you for having really liked the Commerce Building. In fact, I really wish there would have been a way to save the buildings beautiful Terra Cotta. But that stuff is cemented on, so removal would probably have been impossible. But that buildings first 2 floors were "horrendous" hatchet rehabs. |
Charlottepaul Member Username: Charlottepaul
Post Number: 743 Registered: 10-2006
| Posted on Thursday, April 05, 2007 - 6:57 pm: | |
Link to the Freep article changed by the way to: http://www.freep.com/apps/pbcs .dll/article?AID=200770405023 |
Leland_palmer Member Username: Leland_palmer
Post Number: 286 Registered: 08-2004
| Posted on Thursday, April 05, 2007 - 7:16 pm: | |
The original link still works. The News has posted its own article. http://www.detnews.com/apps/pb cs.dll/article?AID=/20070405/U PDATE/704050479/1003 Apparently, A notice was posted in February and nothing happened. Building management notified tenants Wednesday afternoon that there would be a three-day power outage. |
Queensfinest Member Username: Queensfinest
Post Number: 77 Registered: 08-2006
| Posted on Thursday, April 05, 2007 - 7:23 pm: | |
Amazing to think that something like this can happen in this day and age in a major American city. |
Bpjeff Member Username: Bpjeff
Post Number: 37 Registered: 01-2006
| Posted on Thursday, April 05, 2007 - 7:25 pm: | |
Yesterday, I noticed a shut-off notice posted on the Fine Arts Theater on Woodward in Brush Park. It looks like they are also not paying their bill. This was one of the first indications that Oslo was going under. |
Charlottepaul Member Username: Charlottepaul
Post Number: 744 Registered: 10-2006
| Posted on Thursday, April 05, 2007 - 7:26 pm: | |
well i guess if you think about it, every building in Detroit that at sometime went vacant, had something similar happen... |
Jimaz Member Username: Jimaz
Post Number: 1833 Registered: 12-2005
| Posted on Thursday, April 05, 2007 - 7:38 pm: | |
Who run Bartertown? MasterBlaster run Bartertown. |
Danny Member Username: Danny
Post Number: 5747 Registered: 02-2004
| Posted on Thursday, April 05, 2007 - 7:52 pm: | |
Screw those N.Y.C. corporate firms who the Book Cadillac building. They just exploiting the city like they exploiting the historic building. |
Eastsidedame Member Username: Eastsidedame
Post Number: 51 Registered: 12-2006
| Posted on Thursday, April 05, 2007 - 8:19 pm: | |
This skyscraper is so important for many reasons. There aren't too many Italian Renaissance high-rises left in the US and this is a stunning example. Designed by Louis Kamper, it features sumptuous Corrado Parducci sculpture featuring caryatid cornice supports and a three-story high open lobby. Once upon a time, Washington Avenue was considered little more than Skid Row, and the Book Tower was among the planned structures to rehabilitate the area into one of Detroit's most beautiful avenues. It was constructed in accordance with the City Beautiful movement; we can learn a lot from our city's first efforts at beautifying downtown. I hope and pray for the Book Tower's success. It's certainly one of our most beautiful buildings and a treasure in our architectural trove. |
Pffft Member Username: Pffft
Post Number: 1259 Registered: 12-2003
| Posted on Thursday, April 05, 2007 - 9:32 pm: | |
What's eerie about the Book Tower is, if you wander around some of the floors (when the electricity's back on), you'll see offices that look like they were just closed up and abandoned. There's a travel office that looks like that. It's as if a tornado was approaching and they just took off. Many spaces were obviously occupied by dentists and doctors, too. It's not hard to look at these spaces and imagine what it was like in its heyday. |
Oldredfordette Member Username: Oldredfordette
Post Number: 1437 Registered: 02-2004
| Posted on Thursday, April 05, 2007 - 9:49 pm: | |
Residents of the Town Apartments were informed today that they have three days to vacate - water and electricity shut off. Everybody out. A disgrace. Maybe a crime. |
Eastsidedame Member Username: Eastsidedame
Post Number: 53 Registered: 12-2006
| Posted on Thursday, April 05, 2007 - 10:16 pm: | |
That quote that Llyn posted from another source, "functionally obsolete", in describing the Book bugs the hell out of me. As if some brutalist cracker-box would be so much better. And it's RIGHT THERE by the Westin Book Cadillac. How do you spell potential, again? For someone with money and vision, this is a once in a lifetime opportunity. (I only have one of those.) Does any one know if it is listed in the National Register of Historic Buildings, or the like? |
Wolverine Member Username: Wolverine
Post Number: 301 Registered: 04-2004
| Posted on Thursday, April 05, 2007 - 10:28 pm: | |
The lights were on in the Book Tower as of 8:30 pm when I passed by it. I expected the stairwell lights to be on (as required) but I noticed there was the usual sparse lighting of several offices throughout the tower. It looked the same this night as it does every night. If there are generators, they are producing a whole lot of power for nothing right now. |
Pffft Member Username: Pffft
Post Number: 1260 Registered: 12-2003
| Posted on Thursday, April 05, 2007 - 10:41 pm: | |
The Book isn't functionally obsolete, when they had a heating system operator (as required by city ordinance), it was maintained and heat was regular. When they cut that job to cut costs, the heating system faltered. Ditto with the elevators. It's a question of maintenance, and building owners who couldn't afford to keep a building that size in good shape. The bones of the building are beautiful, and in fact the offices are very gracefully laid out. |
Danjo444 Member Username: Danjo444
Post Number: 36 Registered: 02-2007
| Posted on Thursday, April 05, 2007 - 11:09 pm: | |
Sad News OldRed. I used to live in the Town Apts. #208 I think. It was my first post-divorce apt. Lots of cops in there then, before it went Section 8. Oh, if the walls could talk. >: ) I was working at Edison at the time...used to walk to work in about three minutes, less than a block, looked at my car as I walked by. Have a very long commute now. I helped an old guy move some stuff from Book Tower office to his car, and in return he gave me an orig. Thomas Edison Home phonograph that plays wax 2-minute cylinders the shape of drinking cups. He even gave me 10-12 records. It plays great, and sounds great to this day. Circa 1910 maybe? A real treasure. |
Sticks Member Username: Sticks
Post Number: 245 Registered: 08-2005
| Posted on Thursday, April 05, 2007 - 11:13 pm: | |
Yeah, lights are still on as of 11pm. Doesn't one of the forumers have law-firm offices in the Book Tower? |
Kathinozarks Member Username: Kathinozarks
Post Number: 355 Registered: 11-2006
| Posted on Thursday, April 05, 2007 - 11:23 pm: | |
Too many problems in Detroit. This is horrible news to me. I have always loved the 'old' storybook look of this building. What is happening with Detroit? Sad. |
Eastsidedame Member Username: Eastsidedame
Post Number: 55 Registered: 12-2006
| Posted on Thursday, April 05, 2007 - 11:32 pm: | |
Thanks, Pffft: "The bones of the building are beautiful, and in fact the offices are very gracefully laid out." Further testimony to Kamper's genius. |
Psip Member Username: Psip
Post Number: 1750 Registered: 04-2005
| Posted on Friday, April 06, 2007 - 1:22 am: | |
Drove by at midnight. Bookies had lights, the lights were on at both entrance's but looked kinda dim. The B-C was lit up like the sun inside. |
Eastsidedame Member Username: Eastsidedame
Post Number: 65 Registered: 12-2006
| Posted on Friday, April 06, 2007 - 2:56 pm: | |
I found out the Washington Boulevard Historic District was added to the National Register of Historic Places on July 15, 1982. This encompasses the SE side of Washington Blvd. from Clifford to Michigan, plus 1201-23 Washington Blvd., the Book Building at 1249 Washington and the Book Tower at 1265 Washington. Thanks, Mom! |
Southen Member Username: Southen
Post Number: 119 Registered: 08-2006
| Posted on Friday, April 06, 2007 - 3:20 pm: | |
I cant imagine this building staying dark or in the Pagan organizations hands for much longer. Heres a shot of it: http://www.flickr.com/photos/s outhen/430644706/ |
Fnemecek Member Username: Fnemecek
Post Number: 2427 Registered: 12-2004
| Posted on Friday, April 06, 2007 - 3:35 pm: | |
I suppose this means that the exhibition at the DFC for tomorrow is cancelled since it's in the ground floor space of the Book Tower. (If anyone knows differently, please feel free to correct me.) http://detroitfilm.org/pages/e xhibitions.html |
Harmonie Member Username: Harmonie
Post Number: 695 Registered: 08-2004
| Posted on Friday, April 06, 2007 - 3:40 pm: | |
Bookies was open as usual last night...and Zef's was cranking out food this afternoon. They're not running on generators so is looks like you should be good for the DFC tomorrow. |
Fnemecek Member Username: Fnemecek
Post Number: 2429 Registered: 12-2004
| Posted on Friday, April 06, 2007 - 3:42 pm: | |
That's good news, Harmonie. Thanks for the tip. |
Harsensis Member Username: Harsensis
Post Number: 228 Registered: 07-2005
| Posted on Friday, April 06, 2007 - 5:13 pm: | |
I went by there this afternoon about 1 and there were lights on in the building. There were even some lights on the upper floors. |
Pffft Member Username: Pffft
Post Number: 1261 Registered: 12-2003
| Posted on Friday, April 06, 2007 - 5:15 pm: | |
The views of the river from the upper floors are breathtaking. You sit there and watch the freighters. And the roof of the Book Cadillac, LOL... |
Rhymeswithrawk Member Username: Rhymeswithrawk
Post Number: 633 Registered: 11-2005
| Posted on Saturday, April 07, 2007 - 2:15 pm: | |
There were lights on about halfway up last night at about 10 p.m. Not many of them, mind you, but it wasn't completely dark. |
Thejesus Member Username: Thejesus
Post Number: 900 Registered: 06-2006
| Posted on Thursday, April 12, 2007 - 11:15 am: | |
so has Pagan gotten DTE to put the plug back in yet? |
Rhymeswithrawk Member Username: Rhymeswithrawk
Post Number: 662 Registered: 11-2005
| Posted on Thursday, April 12, 2007 - 2:47 pm: | |
Looks like it. Lights were on on many floors. |
Thejesus Member Username: Thejesus
Post Number: 904 Registered: 06-2006
| Posted on Thursday, April 12, 2007 - 3:37 pm: | |
well that's good I guess...still, the simple fact that this happened at all leaves me doubtful that the building will get renovated anytime soon, or at least as long as it remains in the current owner's possession |
Club_boss Member Username: Club_boss
Post Number: 37 Registered: 12-2006
| Posted on Thursday, April 12, 2007 - 3:56 pm: | |
Some building owners are responsible and truly put their own “blood, sweat and tears” into the property, knowing that the property is an asset that needs to be maintained. On the other hand I have dealt with building owners that do nothing but collect the rent. I think many times building owners have the money and just don’t want to spend it. They may have paid that bill the day DTE cut the power. |
Lmichigan Member Username: Lmichigan
Post Number: 5351 Registered: 10-2003
| Posted on Thursday, April 12, 2007 - 4:37 pm: | |
I think it is quite an assumption, knowing nothing of the Pagan/North East Organization/Company (whatever the hell it's called) to readily assume that this means that they must not have the money. They can't be any less wealthy than Ms. Lambrecht was, so if one is to assume, anything, it should be that they probably aren't the best of property managers, not that they don't have the wherewithal to fix this thing up. |
Thejesus Member Username: Thejesus
Post Number: 907 Registered: 06-2006
| Posted on Thursday, April 12, 2007 - 4:51 pm: | |
"They can't be any less wealthy than Ms. Lambrecht was" they can't? |
Thejesus Member Username: Thejesus
Post Number: 908 Registered: 06-2006
| Posted on Thursday, April 12, 2007 - 4:54 pm: | |
On a side note... can someone educate me on what causes a building like that to get so dirty? What is the substance? How does it get like that in the first place? How expensive is it to clean and how expensive is it to prevent it from happening in the first place? (Message edited by thejesus on April 12, 2007) |
Gmich99 Member Username: Gmich99
Post Number: 180 Registered: 11-2005
| Posted on Thursday, April 12, 2007 - 5:12 pm: | |
Porous stone on the exterior of buildings absorb carbon from fossil fuel exhaust (cars, factories, etc). It is expensive to clean and requires sandblasting or similar. Reduce carbon levels in the air. |
Cambrian Member Username: Cambrian
Post Number: 979 Registered: 08-2006
| Posted on Thursday, April 12, 2007 - 5:18 pm: | |
"can someone educate me on what causes a building like that to get so dirty? " In the old days heating your business large factory, office building or home with coal was the norm. All houses had coal chutes and bins in the basement. This went on until the early 60s at least. Not to mention all locomotives were coal fired too. Diesel locomotives did not start taking over until the 50s. |
Lmichigan Member Username: Lmichigan
Post Number: 5352 Registered: 10-2003
| Posted on Thursday, April 12, 2007 - 5:36 pm: | |
Jesus, Despite it still being in pretty poor (unmodernized) condition, the former owner did make significant upgrades to the tower (new heating system, new elevators, minor exterior cleaning for part of the building, etc...), so I doubt very seriously the building was sold for any less than Ms. Lambretch got it for. I can't imagine them being any less wealthy than she. |
Gistok Member Username: Gistok
Post Number: 4117 Registered: 08-2004
| Posted on Thursday, April 12, 2007 - 5:49 pm: | |
From what I gathered... Consumers Power will come to you house or business requesting payment... moments before they turn of your power for non-payment... Whereas DTE will just send someone out to pull the plug without a last chance to cough up the past due amount... |
3rdworldcity Member Username: 3rdworldcity
Post Number: 597 Registered: 01-2005
| Posted on Friday, April 13, 2007 - 2:56 pm: | |
The lender has exercised its Assignment of Rents and notified the remaining Book tenants that they are now to send their rent to the lender. That's the first step and the mortgage foreclosure is next, if it hasn't been started already. Susan Lambrecht never got paid in connection with the "sale" of the building and she is now back involved in running the building. ______________________________ ___________________ I haven't seen anything on here about the demise of One Detroit Center. The owner, Hines Interests, gave the keys to the lender in a deed-in-lieu transaction last week and the lender is going to try and sell it. Good luck. That building was doomed for foreclosure before construction ever started. It lasted longer than I ever would have thought (if anyone has ever read my previous posts on the subject.)It's a shame though because these kinds of transaction spread like wildfire through the national real estate financing community and is another black mark for Detroit. "Build it and they shall come" doesn't work here. This deal will hurt everyone who may be trying to arrange large scale financing for a major Detroit project. (Message edited by 3rdworldcity on April 13, 2007) |
Brandon48202 Member Username: Brandon48202
Post Number: 165 Registered: 12-2004
| Posted on Friday, April 13, 2007 - 3:04 pm: | |
One Detroit Center- Comerica Tower?!!? Really? Wow! |
Mind_field Member Username: Mind_field
Post Number: 707 Registered: 10-2003
| Posted on Friday, April 13, 2007 - 3:39 pm: | |
well gee, how many MAJOR tenants is Comerica tower losing? Wasn't Ernst & Young a tenant there? They moved. Then JWT is moving, and now even Comerica Bank is leaving town....who is left? Unfortunate, but hardly shocking. |
E_hemingway Member Username: E_hemingway
Post Number: 1148 Registered: 11-2004
| Posted on Friday, April 13, 2007 - 3:39 pm: | |
Here is the Crain's story on One Detroit Center. One Detroit Center changes hands Tenants and office brokers reported last week that the One Detroit Center Building downtown is under new ownership. One Detroit Center L.P., led by Hines Interests, has turned the 500 Woodward building over to mortgage-holder iStar Financial Inc., the sources said. Parties directly involved in the deal could not be reached on Friday, but sources with access to information about the transaction said the deed in lieu of foreclosure means the property is expected to be held by iStar and an unspecified institutional investor. Management and leasing will likely shift to investment adviser Mayfield Gentry Realty Advisors. The building's vacancy has increased with move-outs by tenants such as Ernst & Young; Comerica Inc.'s regional headquarters lease runs until 2012. http://www.crainsdetroit.com/a pps/pbcs.dll/article?AID=/2007 0408/SUB/704060330 (Message edited by E_hemingway on April 13, 2007) |
Lmichigan Member Username: Lmichigan
Post Number: 5353 Registered: 10-2003
| Posted on Friday, April 13, 2007 - 4:57 pm: | |
One Detroit Center is the premiere Class A office tower, in the metro. It's not going to have much problem filling itself, even even it means doing what the most of the downtown office market has done (i.e. 'musical offices'. And, Comerica was the single largest tenant, but didn't they only take up 5-10 floors? So, the attraction aspect of the tower isn't really an issue. (Message edited by lmichigan on April 13, 2007) |
Thejesus Member Username: Thejesus
Post Number: 918 Registered: 06-2006
| Posted on Friday, April 13, 2007 - 5:04 pm: | |
here is the tenant directory for Comerica Tower... http://www.property-website.co m/sites/20/live/propertydirect ory/tenantsearchresults.jsp also, for those interested, here's a list of other properties owned/managed by Hines in Detroit... http://www.hines.com/property/ result.aspx?city=44 |
Lmichigan Member Username: Lmichigan
Post Number: 5355 Registered: 10-2003
| Posted on Friday, April 13, 2007 - 5:09 pm: | |
Ok, so it appears Comerica has 11 floors or its 43 floors. |
Rsa Member Username: Rsa
Post Number: 1105 Registered: 10-2003
| Posted on Friday, April 13, 2007 - 5:36 pm: | |
am i reading that right; there are only 31 (including ground) floors out of 43 occupied in one detroit center? hmmm, i didn't think it was that bad... |
Club_boss Member Username: Club_boss
Post Number: 42 Registered: 12-2006
| Posted on Friday, April 13, 2007 - 5:52 pm: | |
They don't show that many floors available for rent... Floor: 20------24694 Sq. Feet...Available Immediately 26------11081 Sq. Feet.....Immediately 28------18322 Sq. Feet.....Immediately 29------25084 Sq. Feet.....Immediately |
Sticks Member Username: Sticks
Post Number: 257 Registered: 08-2005
| Posted on Friday, April 13, 2007 - 9:39 pm: | |
I remember that Accenture (one of the larger(est?) computer consulting firms in the world) moved out a year or two ago. I had a brief stint with them after they moved and everyone I talked to complained about the building. Made it seem like they were in the Broderick tower or something. Not exactly sure why, however. Cost was one of the things that pushed them out. |
3rdworldcity Member Username: 3rdworldcity
Post Number: 598 Registered: 01-2005
| Posted on Friday, April 13, 2007 - 10:21 pm: | |
Somebody made a comment that the building will regain tenants via the musical chairs culture of Detroit. That's not going to happen in my opinion but if it does the problem is compounded because other downtown building will be harmed. One Detroit should never have been built. The major lender, Dresdner Bank (Germany) pulled out of the deal before construction commenced. That should have been the end of it. However, Mayor CAY twisted a lot of arms and convinced a few major corporations (MI Bell, DTE etc) to pre-lease much space at very high rates with the "promise" that when construction was completed they could sub-lease that space for a least what they committed to pay, Those idiots became "accomodation endorsers," who in effect became liable for paying a large percentage of the loan via their rent payments. With those leases in hand the developer got new financing. The building was completed but the original tenants couldn't sub-let for anything close to what they were obligated to pay, and most space remained vacant. They have been subsidizing the rent of those tenants who did sub-let their space for years. Comerica. It announced it wanted to build a major HQ office building in downtown Detroit (LIE.) Then it said it couldn't find a site. CAY got involved. He said he'd get any site Comerica wanted. Comerica said it wanted to build on the river, on part of Hart Plaza, thinking there was no way that would be permitted. CY said "no problem." [Remember all of this?] Comerica did many studies and said it could not be done economically, and it was going to move its GQ to its Auburn Hills facility, where it had plenty of land to develop. CAY turned the screws again and shamed Comerica into taking the very cheap, below-market space (subsidized by MI Bell or whoever) in One Detroit Center, and even forced Hines to let the bank rename the building. Only in Detroit. (But, ya gotta love Coleman; he was one of a kind. For all his faults, I miss him. A very smart man and the best leader the city has had in many years. None of the nitwits since have come close.) . (Message edited by 3rdworldcity on April 13, 2007) |
Thejesus Member Username: Thejesus
Post Number: 920 Registered: 06-2006
| Posted on Friday, April 13, 2007 - 10:33 pm: | |
3rdworldcity: very interesting info...thank you for sharing... just curious...how is it that you know so much about the tower's history? |
Psip Member Username: Psip
Post Number: 1794 Registered: 04-2005
| Posted on Friday, April 13, 2007 - 10:44 pm: | |
3WC, here is something you might enjoy seeing. http://www.waltermediaworks.co m/video/76_14_12_001.mov |
Lmichigan Member Username: Lmichigan
Post Number: 5359 Registered: 10-2003
| Posted on Friday, April 13, 2007 - 11:21 pm: | |
Yes, very interesting insight, 3WC. What's your history with this property? You seem to know ALOT of the inner workings of its development. But, the tower, despite the problems with the original development has always posted relatively high occupancy numbers (even when taking into accounts the predictable exaggerations). It's modern class A space. Any problems that do exist don't seem to effect tenant attraction. It seems that turnover has always been very normal for a buildings of its stature. And, of course musical offices hurt other buildings. One Kennedy Square, another speculative project, stole Ernst & Young, away, but this looks like regularly the cannibalization present in stagnant office markets. Is there something out of the ordinary that I'm missing? Is there an impending downtown in the downtown office market? I don't see things getting a whole lot better for the downtown office market for a few more years, but I also don't see any impending doom for the market over the horizon. If anything, I think the suburban markets are going to continue to hurt, and maybe more than the downtown office market. |
Dialh4hipster Member Username: Dialh4hipster
Post Number: 2041 Registered: 11-2004
| Posted on Saturday, April 14, 2007 - 2:10 am: | |
A LOT |
3rdworldcity Member Username: 3rdworldcity
Post Number: 600 Registered: 01-2005
| Posted on Saturday, April 14, 2007 - 9:17 pm: | |
Most of the background on One Detroit is public knowledge. I do have some close friends in the mortgage banking business, one of whom was asked to assist in the initial financing, but could find no lenders among those he represented who were interested in looking at the deal after a cursory review. Since I'm an investor/owner of downtown Detroit real estate, as many others in the same business, pay close attention to these things. One thing I do is file Freedom of Information Act requests for every downtown Detroit deal in which the city or any other municipal body is involved. All info re: City/Ilitch deals is public, for example. |
Swingline Member Username: Swingline
Post Number: 796 Registered: 11-2003
| Posted on Monday, April 23, 2007 - 2:29 pm: | |
The One Detroit website indicates that less than 10% the space is available for lease. This cannot be even close to being accurate. An office building with 90% occupancy should not sink into foreclosure even if there have been huge tenant concessions. It's my understanding that several large tenants never used all of their space, but wasn't the rent still being paid? One Detroit should have been a significant beneficiary of General Motors' purchase and move to the Ren Cen. However, as their leases expired, far too many Class A tenants who were displaced at the Ren Cen skedaddled to Oakland and Western Wayne counties rather than to other Class A CBD space. This foreclosure is a sad case indeed. |
Wschnitt Member Username: Wschnitt
Post Number: 10 Registered: 07-2007
| Posted on Friday, July 27, 2007 - 9:51 pm: | |
Is there any new information about the Book Tower? |