Redico to Manage 10 Michigan Properties

SOUTHFIELD, MI-Redico has been tapped to manage, market and lease about 2.5 million square feet of properties in Michigan. The facilities, including office, industrial, and land parcels, had been owned jointly by Lehman Brothers Holdings Inc. and Michael Kojaian, chairman of Santa Ana, CA-based Grubb & Ellis. Kojaian split up the venture, taking more than a dozen buildings and leaving Lehman with the rest.

The properties include high-profile office buildings in the Detroit area, such as Travelers Tower I and I in Southfield, One Woodward in Detroit and Maple Corporate Center in Troy. Also included are Wixom Technology Park in Wixom, Northville Technology Park in Northville and Romulus Crossing in Romulus. Grubb & Ellis had managed the properties before the split.

Philip Cyburt, CEO with the Lehman restructuring firm and managing director with Alvarez & Marsel, said in a statement that the Redico hire demonstrates a focus on maximizing the value of the properties for the benefit of stakeholders. “The investments and alliances we are making to help ensure the long-term success of these properties underscore our commitment to our current and future tenants,” Cyburt said.

The rest of the Detroit-area properties include 1350 Hamlin Rd. in Rochester Hills, Cherry Creek Corporate Park in Utica, 27555 Farmington Rd. in Farmington Hills. The local market is still one of the worst-performing office markets in the country, with an overall vacancy rate of about 24.6%, about 30% for the Detroit CBD, according to Kojaian’s firm market reports. Redico will also handle the Grand Rapids Pontaluna Road property in Norton Shores, on the state’s west side.