Last week, much of the Grand Rapids real estate community was discussing a surprise sale; specifically, the sale of two prime downtown properties by the Chicago-base real estate development firm Franklin Partners. Franklin Partners have invested substantially in the Grand Rapids real estate market and West Michigan real estate market over the last few years, and some were worried that these sales indicated the influential firm was considering pulling out of the West Michigan markets.
Thankfully, nothing could be farther from the truth.
In 2012, Franklin Partners purchased the 12 story office building in downtown Grand Rapids located at 99 Monroe Avenue. Coming in at a total of over 200,000 square feet, the massive building is considered by many an important cornerstone of rental office space in the downtown area. In 2012, when Franklin Partners purchased the building, it was sitting at about fifty percent occupancy, meaning at least half of the units were sitting on the market, unleased and unoccupied. Just before the sale of the building, Franklin Partners reported that they building was now at ninety-eight percent occupancy, in no small part due to improvements and renovations made by Franklin Partners, which included a renovated lobby, exterior signage, a restaurant inside the building, and a new health club.
When Franklin Partners purchased the building, they paid $11.8 million for it, and then invested substantially in it. Originally, the building cost $16.4 million to construct, and sold for $23.2 million as recently as 2004. While the details of the recent sale, to a brand new local real estate firm called Vision Real Estate Investment, which also recently acquired the established firm Prim Property Management, have not been disclosed publicly, Vision Real Estate Investment must have made quite an offer, as the building wasn't even on the market at the time of the sale. Vision also purchased the property at 25 Ottawa Avenue, which wasn't on the market either.
Thankfully, the sale wasn't indicative of Franklin Partners pulling out of West Michigan but rather, simply being made an offer they couldn't refuse. In the days following the recent sales of the two downtown office buildings, Franklin Partners has moved immediately to invest in new properties in the downtown area, including unveiling plans for the Keeler Building, which is located at 56 North Division Avenue and was purchased in January. The seven story building, which is located by the intersection of Division and Fountain street, has stood mostly vacant for the better part of two decades, in desperate need of investment and an overhaul. Now, it appears it will be getting one soon, with completely new plumbing, electricity, mechanical systems, and an elevator. The outside will be getting a new facade, as well as streetscaping and improved sidewalks. There will also be a two-story lobby with retail spaces.
As always, when considering a real estate transaction, it's best to go with a team and a brokerage with up-to-date information about neighborhoods and upcoming investments in the local communities they serve. Pyxis Realy strives to offer its clients the best, most accurate advice along with white-glove service, making them one of the best options when looking for a Grand Rapids realtor or a West Michigan Realtor. Whether you're planning on buying or selling, consider giving them a call today!