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NOVI, MI-Following a year-long stint on the sales block, 125,143 sf of office/retail space at Main Market has been acquired by Main Street Partnership, LLC of Chicago.

The list price on the property, located at 42155 Main St., was $12 million. However, "it sold a lot less than that," comments Dave Richards, senior vice president and managing director of Grubb & Ellis Co.'s Southfield office, who with Thom Eames and David Smith, represented the seller, Wells Fargo Bank, c/o Archon Group LP, headquartered in Irving, TX. The buyer was represented by Grubb & Ellis' institutional investment group in Chicago.

Richards tells GlobeSt.com that the facility, built in the mid-1990s by a local developer, had been in financial trouble almost from the start. "It was originally designed to be 100% retail by the developer," he explains. "But when the retail component wasn't filled, the developer began leasing it out as office-space, but it didn't fit office parameters."

The developer at one point had obtained an RAL, with Archon and Wells Fargo servicing the loan. However, when the developer defaulted on the loan, the financial institutions took the facility.

Richards goes on to say that the buyer acquired the real estate for a fraction of what it cost to develop, and "they're planning on leasing it up, and maybe bringing more medical users to the site." Grubb & Ellis Co.'s Ray Husband is handling leasing activities. The facility was 68% leased at time or closing.

Instant Insights /

New Owner Plans to Revitalize 125,000-SF Main Market Development

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