Farbman bought the eight-story New Center building and a 1,700-space parkinggarage for more than $11 million, said Todd Carmody of the Detroit EconomicDevelopment Corp.
The two sellers will repay the EDC almost $6 million for the parking garage,built by the EDC in 1982 and mortgaged to both GM and Trizec, said Carmody.The two owed the EDC about $7.6 million for the garage. However, theautomaker is paying $2.53 million, and Trizec is paying $3.3 million to theEDC for the property, Carmody said.
"We feel since Cushman and Wakefield valued the garage at less than $5million, fair market value, that the deal was fair," Carmody toldGlobeSt.com. "If the property was defaulted, we would have only been able tosell it to recoup the losses anyway."
Carmody said the 23-year-old New Center One building is only 33% occupied.The EDC said the two sellers have paid $12.3 million as a final payment toPrudential, their mortgage company for the office building, valued at $6.3million.
The office building is at 3031 W. Grand Blvd.Farbman officials have said they are excited to focus on Detroit, and theNew Center Area, and pointed out that the buildings have great access withthe nearby Lodge Freeway, I-75 and I-94.
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