Richard Kaye, an EVP with Hilco, tells GlobeSt.com that thelarge properties will be offered as turnkey operations. However, ifthere are no takers, the equipment and sites will be soldseparately. Intellectual property will also be included among theKenosha plant assets.

|

The Detroit plant, a 48-acre site at 6700 Lynch Rd., waspurchased by Chrysler in 1928 and produced rear drive axles, frontdrive axles and differentials. The 109-acre Kenosha plant at 555530th Ave. was an American Motors Corp. property until Chrysleracquired it in 1987. Both plants were not included in the FiatGroup SpA takeover of Chrysler.

|

It's unclear if the properties, both built in 1917 and likelyfacing environmental issues, have any potential users. "There'sbeen a lot of interest," Kaye says. His company is handling severalother automotive plant sales since Chrysler and General Motorsdeclared bankruptcy, including 16 GM plant properties, he says.

|

The automotive business decline has contributed to a loss ofproperty values in Detroit, says Mathew Fenster, executive directorof Paragon Corporate Realty Services Inc., based in Troy, MI. "Witha shrinking employment and population base, we now have a glut ofoffice, industrial, retail and residential real estate. We haveseen values plummet as a result as a result of the surplus," hesays.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.