Developer Seeks Partner in $50M Mixed Use

ANN ARBOR, MI-Locally based developer Concannon Co. is looking for a partner in its $50-million, mixed-use project, the Gallery, going up on Main Street in Downtown. The project, at 305,222 sf, is in one of the best markets in the state, as its five minutes to the massive University of Michigan campus.

The company plans two buildings on the site. Building A will be an 11-story structure with 95 condominiums, as well as offices and retail, and 215 underground parking spaces. Building B will be four stories, with retail on the first floor and 18 apartment units on the third and fourth floors.

Robert Bender, an investment associate with Marcus & Millichap, says that attorney Michael Concannon would like another partner in the project. He's representing Concannon on the partner search with investment associate Pat Weibel. "They're looking for $5 million in equity from a joint partner, roughly half of the joint equity needed," Bender tells GlobeSt.com. Concannon is contributing the other $5 million in seed money. Though he says it will cost about $50 million to build the project, Bender says the stabilized value of the project after the condo sales is about $67 million.

It's taken two years, but Concannon has broken through the red tape of developing on Main Street in Ann Arbor, and is ready to start construction in the next few months, Bender says. "It's more than likely going to move ahead if a partner is found or not," Bender says. "But this is an opportunity to get in on a class A development." There has been some interest, he says, "but nothing binding. There's been conversation. This will likely go to a national or regional player."

The local condominium market is healthy, with several comparable developments that have pre-sold or sold out in the past 18 months, says Weibel. The project's retail space is 100% preleased.