Mixed-Use Development Could Have $141 Mil Price Tag

Liberty Property Trust, a real estate investment trust based in Malvern, PA,and with an office in Southfield, has created a proposed mixed-usedevelopment proposal for the City of Troy.The company’s study results call for a 100,000-sf convention/conferencecenter, a 200-room hotel, a 5,000 seat performing arts center and a 150,000-sf office building.Total development costs would be about $141 million, with the city payingabout 27% of the cost, and the rest coming from private investment.

Kevin Shea, Liberty regional vice president, told GlobeSt.com that the City askedthem to do the preliminary report as a way of finding out what to do withproperty next to the Troy Civic Center development, where the old Troy HighSchool was located.”The proposal, especially the price, is just something we put together forthe City. It’s still all talk. As the size of the components grow andshrink, so will the price,” he says.Shea guessed the price could go down as much as 50%, depending onwhat the City decides it wants on the property. City officials met Wednesday nightto discuss the project.

Liberty considered itself the master developer in the study, and also listedother members of the team. The convention center developer would be AcquestRealty Advisors, the architects would be Rossetti Architects, and the mastergeneral contractor would be the J.M. Olson Co. Shea says the hotel andperforming arts center developer slots were not filled yet.

Most of the companies chosen are already working on the Civic Center projectnext door.Shea says even though it was chosen to put together the study, it doesn’tmean the study will be used, or that Liberty will be involved.”It’s up to the city what it wants to do,” he notes. “We’re going to make ourpresentation, and give the ball to them.”Before the Troy meeting Wednesday, City officials indicated that the projectplan was desirable, but the price was not.