LMS Leases 35,500 SF for North American HQ

Collins & Aikman, an automotive supplier, moved out to 14 Mile Road and Stephenson Highway in Troy in 2002, and has since moved again to Travelers Tower Two in Southfield in the second quarter 2006 after declaring bankruptcy. Mitchell Lipton, an EVP with Friedman Real Estate Group, says it's good to finally get a tenant in the 5755 New King facility. Lipton handled the LMS deal on behalf of the unnamed building owner. LMS is using the facility to house their expanded North American corporate headquarters.

Lipton wouldn't divulge the lease rate attained in the 15-year deal, but the lease rate at the building is $21 per sf, plus electric, according to the Friedman website. The property was built in 1999. Sources say New King LLC sold the property to an unnamed buyer for in August. The asking price had been $8.7 million.

The three office buildings in Troy once occupied by Collins & Aikman, totaling about 250,000 sf, have also been filled recently, Lipton says. His firm helped bring in Valeo North America to lease the 100 Stephenson. Of the other two buildings, 250 Stephenson was reportedly sold to Chimes Inc. for $6 million and 350 Stephenson was reportedly sold for $7 million to Kostal, headquartered in Germany.

Lipton says all these deals will help bring down the current Troy vacancy rate, which has hit up to 25% in the past year. The city has typically been one of the best office markets in the state, though Kmart's headquarters departure a few years ago was just a start of an office downturn. "Troy has seen some increased activity, which should apply some downward pressure on vacancy," he tells GlobeSt.com.