More and more commercial real estate developers are coming to Michigan to capitalize on the amount of properties for sale. Among the recent purchases and sales is the 108-acre American Axle & Manufacturing Inc. manufacturing complex in Detroit. It has been sold to Industrial Realty Group LLC. According to the president chairman of Industrial Realty Group, the California-based company, along with Industrial Commerce Ltd. in Ohio, plan to redevelop the land into an industrial park.
Industrial Realty Group owns properties in 25 states across the country, amounting to a grand total of over 80 million square feet. The manufacturing complex was listed for sale at $18.5 million, but the actual purchase price was not disclosed. The company apparently already has several people interested in leasing the property once it is redeveloped and is optimistic for the future.
American Axle & Manufacturing Inc. closed the Detroit campus in early 2012 and had been trying to sell the complex for over a year. As part of the sales agreement, it will finish the demolitions it started on the manufacturing space last summer. American Axle will retain 360,000 square feet of space, currently being used for storage, next to its headquarters, with plans to possibly develop it in the future.
The increase in commercial real estate transactions can also mean an increase in instances of title disputes, zoning issues and construction disputes as various companies and contractors vie for their piece of the economic pie. When a dispute does occur, a company that has a thorough understanding of commercial real estate law has a better chance at a favorable outcome in court.
Source: The Detroit News, “American Axle sells Detroit manufacturing complex to Industrial Realty Group” Melissa Burden, Feb. 14, 2014