X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WARREN, MI-Minneapolis-based Welsh Cos. LLC has purchased a former Macy’s furniture storage warehouse here for about $7.5 million and has already found two tenants to lease up the vacant building. The 211,750-sf warehouse at 25295 Guenther Rd. was sold by Macy’s East Inc.

Brose North America has signed a lease for 96,250 sf, and Oakley Industries will take 137,650 sf, in moves that will require the expansion of the building. “Macy’s moved out and tried to lease and sell the building for no success for about a year,” says Tom Schoenberger, regional real estate director for Welsh. “This was a value-add buy, we started the purchase process and the local market picked up enough that we were able to get these two tenants.” He would not reveal the exact leasing price, but said the lease rate is close to between $4.50 and $5 per sf.

Schoenberger tells GlobeSt.com that his company mostly concentrates its Detroit-area holdings around the airport in Romulus. “The industrial market there is surprisingly steady, given the economy,” he says. “Newer big box buildings near the airport have less than 9% vacancy, and last year we had more than 60 deals over 60,000 sf.” He says he’s working on leasing up a 296,000-sf spec building that Welsh is building at Romulus and Cogswell roads. Wayne County, where Romulus is located, has been offering generous tax incentives of a 50% tax abatement for five years. “There’s been very strong activity, there’s not that many spec buildings going up around there. We should be complete by Nov. 1 with the Aerotropolis Business Center.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.