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LIVONIA, MI-DJS Holdings, a wholly-owned subsidiary of Norwalk, CT-based GE Real Estate, has finished the first phase of its redevelopment of the 1.1-million-sf Allied Commerce Center here at Merriman and Plymouth roads. One of the four buildings had extensive renovations and another was demolished. A second phase will bring in a new 312,000-sf distribution facility.

Tony Avendt, associate VP of the industrial group for the Grubb & Ellis Co., says the property was functionally outdated, though it is 90% leased. The 630,000-sf Building One had the most work done, he says. “A 100,000-sf portion of the building was designed to be an interior truck well, but it’s an antiquated building, so it was designed for trucks smaller than standard trucks today” he tells GlobeSt.com. “It was too tight for the newer rigs, and it made the space very difficult to lease.” That space was removed and other work was done, including new tenant entrances and signage, a widening of the exterior truck court, the addition of up to 54 exterior truck docks and upgrades to the building systems.

The work has helped with leasing, Avendt says. AM General has taken its space to 200,000 sf with a recent long-term lease extension and a 50,000-sf expansion. Other tenants in the building include CHEP USA, Keller Transfer and Event Transportation Service. “We have strong interest from several parties in the remaining 129,000 sf,” he says.

The other two buildings are leased, he says. This includes the 230,000-sf Building Six and the 27,000-sf Building Seven. The next phase of the redevelopment will see the construction of the new building. “We don’t know the exact timing of when that will start,” Avendt says. He says he can’t comment on how much the renovation is costing the owner.

He says distribution space is one of the more active segments of commercial real estate in the area, particularly in the western and southern Wayne County area. “We’re optimistic that we’ll have the remaining space leased by the fourth quarter,” Avendt says.

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