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Keeler Building - 56 North Division


joeDowntown

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  • GRDadof3 changed the title to Keeler Building - 56 North Division

6 hours ago, GRDadof3 said:

I don't know nothing bout nothin. :P

There may be some more news coming out today or tomorrow.

Okay....so in the same day, news comes out that both 25 Ottawa and 99 Monroe have been sold.

http://www.grbj.com/articles/84597-firm-buys-six-story-building-downtown

http://www.grbj.com/articles/84596-firm-buys-12-story-downtown-building

Is the the build-up to learning what's next in line for Franklin and the Keeler?

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On 2/24/2016 at 4:18 PM, GVSUChris said:

Okay....so in the same day, news comes out that both 25 Ottawa and 99 Monroe have been sold.

http://www.grbj.com/articles/84597-firm-buys-six-story-building-downtown

http://www.grbj.com/articles/84596-firm-buys-12-story-downtown-building

Is the the build-up to learning what's next in line for Franklin and the Keeler?

Perhaps. Tune in next week...

http://www.mlive.com/business/west-michigan/index.ssf/2016/02/despite_selling_two_big_downto.html

Sounds like they'll have more info on the Display Pack building as well. 

 

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On 2/24/2016 at 4:18 PM, GVSUChris said:

Okay....so in the same day, news comes out that both 25 Ottawa and 99 Monroe have been sold.

Is the the build-up to learning what's next in line for Franklin and the Keeler?

Let's pull together a couple pieces:  Franklin's outlook seems to be that these buildings aren't going to be worth an inflation-adjusted dime more than they are now for the foreseeable future.  Else, they wouldn't keep unloading them.  Now, turning to 99 Monroe, I've never seen an office building so aggressively marketed as that.  They quite literally had a team of sales guys running around town to existing office tenants dropping off brochures and wining and dining trying to entice tenants to come to the building.  Putting these two pieces together, my guess is that if the Keeler project goes forward, it moves at a breakneck pace with renovations and construction of a ramp on the Ellis or County lots (which seems to be the only feasible redevelopment option unless Franklin has hundreds of spaces hidden up its sleeve).  Then they'll market like crazy, load it up with tenants (possibly from buildings they just sold), and dump it if the market is still rolling along accepting crazy low returns on commercial property.  

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I think it has more to do with their strategy than with their outlook on the property values. They feel that they can get a higher return by fixing up and marketing buildings than they can by holding on to them. They'd rather not lock up capital in long-term investments when the short-term investments are so lucrative for them. That doesn't mean that the long-term investments aren't profitable—they found a buyer for them, after all.

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9 minutes ago, organsnyder said:

I think it has more to do with their strategy than with their outlook on the property values. They feel that they can get a higher return by fixing up and marketing buildings than they can by holding on to them. They'd rather not lock up capital in long-term investments when the short-term investments are so lucrative for them. That doesn't mean that the long-term investments aren't profitable—they found a buyer for them, after all.

This is much closer to the mark.  FP had numerous offers for 99 monroe without any public solicitation. They are in the business of property flipping, not being landlords. Selling these two buildings gives them the liquidity they need to move on to their next projects. 

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5 hours ago, x99 said:

Let's pull together a couple pieces:  Franklin's outlook seems to be that these buildings aren't going to be worth an inflation-adjusted dime more than they are now for the foreseeable future.  Else, they wouldn't keep unloading them.  Now, turning to 99 Monroe, I've never seen an office building so aggressively marketed as that.  They quite literally had a team of sales guys running around town to existing office tenants dropping off brochures and wining and dining trying to entice tenants to come to the building.  Putting these two pieces together, my guess is that if the Keeler project goes forward, it moves at a breakneck pace with renovations and construction of a ramp on the Ellis or County lots (which seems to be the only feasible redevelopment option unless Franklin has hundreds of spaces hidden up its sleeve).  Then they'll market like crazy, load it up with tenants (possibly from buildings they just sold), and dump it if the market is still rolling along accepting crazy low returns on commercial property.  

Wow. You make it sound like good salespeople are a bad thing. 

They've also been successful in bringing employers in fromy the burbs, with creative parking solutions.

 

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On February 26, 2016 at 9:21 AM, x99 said:

Let's pull together a couple pieces:  Franklin's outlook seems to be that these buildings aren't going to be worth an inflation-adjusted dime more than they are now for the foreseeable future.  Else, they wouldn't keep unloading them.  Now, turning to 99 Monroe, I've never seen an office building so aggressively marketed as that.  They quite literally had a team of sales guys running around town to existing office tenants dropping off brochures and wining and dining trying to entice tenants to come to the building.  Putting these two pieces together, my guess is that if the Keeler project goes forward, it moves at a breakneck pace with renovations and construction of a ramp on the Ellis or County lots (which seems to be the only feasible redevelopment option unless Franklin has hundreds of spaces hidden up its sleeve).  Then they'll market like crazy, load it up with tenants (possibly from buildings they just sold), and dump it if the market is still rolling along accepting crazy low returns on commercial property.  

I am not famialier with who the "team of sales guys running around town" refers to?  Care to enlighten us?

 

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http://mibiz.com/item/23385-franklin-partners-details-plans-for-keeler-building-redevelopment

Franklin Partners is also working with the city to come up with a “parking solution” for the building, which has minimal on-site parking. Shoemaker declined to provide any specifics of what the parking plan could entail. Grand Rapids-based Ellis Parking Co. owns a surface parking lot immediately to the south of the building at the corner of Division Avenue and Library Street.

Again, the logical thing to do would be to partner with Ellis to build a parking ramp on the Ellis lot next door.   I'm guessing Franklin doesn't want to get into the parking business, especially since they will likely off load this building when it's at 100% occupancy.  Maybe the city will partner will Ellis on a ramp, or maybe Ellis could pull it off on their own? 

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13 minutes ago, mpchicago said:

 

13 minutes ago, mpchicago said:

http://mibiz.com/item/23385-franklin-partners-details-plans-for-keeler-building-redevelopment

Franklin Partners is also working with the city to come up with a “parking solution” for the building, which has minimal on-site parking. Shoemaker declined to provide any specifics of what the parking plan could entail. Grand Rapids-based Ellis Parking Co. owns a surface parking lot immediately to the south of the building at the corner of Division Avenue and Library Street.

Again, the logical thing to do would be to partner with Ellis to build a parking ramp on the Ellis lot next door.   I'm guessing Franklin doesn't want to get into the parking business, especially since they will likely off load this building when it's at 100% occupancy.  Maybe the city will partner will Ellis on a ramp, or maybe Ellis could pull it off on their own? 

http://mibiz.com/item/23385-franklin-partners-details-plans-for-keeler-building-redevelopment

Franklin Partners is also working with the city to come up with a “parking solution” for the building, which has minimal on-site parking. Shoemaker declined to provide any specifics of what the parking plan could entail. Grand Rapids-based Ellis Parking Co. owns a surface parking lot immediately to the south of the building at the corner of Division Avenue and Library Street.

Again, the logical thing to do would be to partner with Ellis to build a parking ramp on the Ellis lot next door.   I'm guessing Franklin doesn't want to get into the parking business, especially since they will likely off load this building when it's at 100% occupancy.  Maybe the city will partner will Ellis on a ramp, or maybe Ellis could pull it off on their own? 

If I were Ellis, I wouldn't sign the paperwork to build a new ramp on that spot without some guarantees, which may be premature for FP. You're right in that it might be a good place for the city to partner.

I'm just spit-balling, not basing that on any background info.

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