ZILWAUKEE, MI-Madison Group, LLC, a developer based in Ann Arbor, has purchased a 38,000-sf light industrial building in Saginaw County for $2.5 million, which was the original asking price.

The property was developed in 2003 as a build-to-suit for the tenant, a national lumber company, which still has eight years remaining on a triple-net lease, with options. Sources note that at the finish of second quarter rental rates for industrial property in the Detroit area was an average of $4.16 per sf. Absorption in the light-industrial property area still remains low, but this is anticipated to pick up later in the year.

Meanwhile, "the tenant is still leasing the property and is still following the original 10-year lease with options that was signed when the property was first built," says Marty Seltzer, a partner with Birmingham, MI-based CORE Real Estate Services, which brokered the entire action for the buyer and seller. He tells GlobeSt.com that the property sold quickly, within 30 days of listing.

Saginaw County itself is home to a variety of national lumber companies including the more localized Self Serve Lumber Co. and home improvement chains Home Depot and Lowes. In addition, the county is an overall manufacturing center, as it is home to foundries, gear plants and fertilizer factories. The name of the seller could not be obtained by press time.