DETROIT—Promanas Group has just purchased 32432 Capitol St., a 203,100-square-foot industrial warehouse and distribution facility in suburban Livonia in Southeast Michigan, from Chicago-based First Industrial Realty Trust. Cushman & Wakefield executive director James Carpenter and senior director Michael Tenteris were the trust’s exclusive advisors on the transaction. The terms were not disclosed.
Promanas, an Ann Arbor, MI-based commercial real estate investment and management company, is typical of the large buyers in the region.
“Local investors have been the dominant source of equity seeking industrial investments in the Detroit market,” Tenteris says. “Confidence is gaining as the local economy becomes more diversified, and the automotive industry demonstrates consistent growth.”
JLL recently published an update on employment in the metro area and found that its employers added 14,500 net jobs over the past 12 months ending in December 2013. Meanwhile, the unemployment rate decreased 2.2% over the same time period to 8.0%, higher than the national average of 6.7%, but less than half the rate recorded in July of 2009 when it spiked at 16.9%.
“The auto industry, as well as its suppliers, is now operating at near-full capacity,” said Robert Kramp, vice president and director of research for the Midwest and Great Lakes regions for JLL.
This property, located one mile from I-96 and less than four miles from the I-96/I-275 interchange, is 100% leased by Classic Container Corp. a subsidiary of Pratt Industries, one of the largest corrugated packing companies in the US. Classic Container operates a converting division here, and takes sheets supplied from the Valparaiso, IN, and Grand Rapids, MI corrugating plants and converts them into packaging for automotive and aerospace manufacturers located across Southeast Michigan.