The six-story buildings, at the corner of Civic Center Drive, I-696, Lodge and Northwestern Highway, were developed by the pension fund and locally based Redico LLC in 1999 and 2001. The side property is zoned for commercial or retail use and can hold a 160,000-sf office building, but will not be built on until a tenant is found, says Andrew Farbman, president and chief executive officer of the company. "You can't make money building speculative in Southfield," Farbman tells GlobeSt.com. The city has a 29% vacancy rate, according to a CB Richard Ellis fourth quarter market report.
Oakland Commons is about 50% vacant, Farbman says. "Comerica left its space, we knew that was coming." Current tenants include Bernard Financial Group and JPMorgan Chase Vastera, and the average lease rate is about $21.50 per sf. "We still think Southfield is the best consolidation location in Southeastern Michigan, these are the best floorplates, the best vacant space, in the market." Farbman negotiated the sale internally. Cushman and Wakefield, with Jeffrey Shell, John Ecclestone, Brian Nagle, John Gavin and Paul Lundstedt, represented TIAA-CREF.
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