TROY, MI-The locally based Hayman Co. has purchased the 425,000-sf site dubbed the Troy Technology Park for about $30 million from ARCAP Special Servicing Unit, according to company officials. The property, which has a mix of office and R&D tenants, is about 65% occupied, and is just north of Oakland Mall.

The buyer will spend more than $1 million in capital improvements to the complex, says Andrew Hayman, executive VP with the company. The property had been built almost 20 years ago strictly for General Motors Corp., but the automaker vacated part of the park. A lender had taken the park from ARCAP, but the company bought it back in 2006. “We plan on getting the property stabilized to 90% occupied,” Hayman tells

He says he bought the park at 50% of replacement cost, in the $30 million range. “It’s got a good tenant mix, a lot of R&D, including hybrid engine development and electric car companies,” he says. DaimlerChrysler, BMW and GM are part of a joint venture in the park developing hybrid engines. Other tenants include Raytheon Professional Services, Hutchinson Automotive Extrusion and Compact Power, a division of LG.

The average lease rate for the property is $15 gross, Hayman says. “It’s hard to pinpoint the lease rate. We’ve got tenants that are 100% office, and some that are at least 70% R&D,” he says.

Even though the Troy office vacancy rate is at more than 25%, according to a second quarter CB Richard Ellis market report, Hayman says he’s confident that his company made the right decision to buy. “You buy something cheap enough, it has a higher potential to do well,” he says. “Sure, if you bought something in the area five years ago, you’re not a happy camper, but buying today, there’s a lot of opportunity.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.