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DETROIT-The Farbman Group has purchased the historic Fisher and Albert Kahnbuildings in the New Center Area from TrizecHahn Properties for $35 million. In June, Ken Szady, senior vice president of investment sales and finance for the Trammell Crow Co.’s Chicago office and the broker of the deal, denied the Farbman Group of Southfield had been secured as the buyer of the buildings along with an East Coast-based opportunity fund (now identified as the Lubert Adler Real Estate Fund of Philadelphia).

Trammell was retained by TrizecHahn as exclusive agent to market the two buildings.

Szady also had said the buildings, with almost one million sf between them, would fetch about $55 million when sold.

However, Andrew Farbman tells GlobeSt.com that his company bought both buildings for slightly less than $35 million.

The Kahn Building is 315,000 sf and about 90% occupied and the Fisher Building is 723,000 sf and around 75% full.

“This purchase will allow us to recommit our focus on Detroit,” Farbman says. “We’re very focused on the New Center Area, and the buildings have great access with the nearby Lodge Freeway, I-75 and I-94.”

He said his company owns about 400 condominiums and loft projects around the area, as well as the Detroit Drug Enforcement Agency headquarters and the Wayne County headquarters.

Farbman says the new locations across the street from the former General Motors headquarters, soon to be filled by 2,500 State of Michigan employees, will definitely benefit the buildings and their retail stores.

Major tenants of the Fisher Building include the Fisher Theater, UAW-GM Legal Services, law firms and radio stations. Albert Kahn Associates Inc. occupies most of the Kahn Building.

The two buildings have been owned by TrizecHahn since 1974. The Fisher Building, located at 3011 West Grand Boulevard, consists of a 28-story tower and two 11-story wings. The Albert Kahn Building, named for its acclaimed architect, is an 11-story mid-rise office building located at 7430 Second Ave. and is directly across from the Fisher. The two Detroit buildings are considered class B for their lower office rents of about $16 per sf.

TrizecHahn sold the properties, along with other 28 other office and industrial holdings in other major cities, as part of a plan to gain $1 billion for the creation of telecommunications hotels.

Other TrizecHahn properties up for sale are located in Los Angeles, Atlanta,Kansas City, Memphis, Washington DC and Stamford, CT.

Farbman says his company will soon roll out an expanded marketing plan forthe two buildngs.

“We will be repositioning these assets as the status symbols in which theywere made,” Farbman adds.

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