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GRDadof3

Steelcase Pyramid to become $5Billion Switch Supernap Data Center

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In an effort to clean up a "rumor-mongering" discussion started by yours truly, I inadvertently deleted the entire thread, which according to the site owner is something that cannot be undone. My apologies to everyone who contributed to that discussion before I took it off the rails.

Any new news on the project can go here.

 

 

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Anyone see or hear any updates on this? It's been pretty quiet since the storm.

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11 minutes ago, GRDadof3 said:

Anyone see or hear any updates on this? It's been pretty quiet since the storm.

Drove by the other day and noticed that there is some construction going on and dirt being moved around outside the pyramid.  I thought about taking some pictures but was afraid of getting caught by cloud security and I couldn't get a good shot from the street with my camera.

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2 hours ago, GRDadof3 said:

Anyone see or hear any updates on this? It's been pretty quiet since the storm.

Contractors are outfitting pyramid. Switch has met with a local (use to be at least) networking company. Plans are still as stated.

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The 200,000 sf on the lower level is in the process of being converted to data center space.  They are in discussions with other potential users for new data center buildings on the site.  It seems like all systems go, as they are spending a lot of dollars.

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I'm touring the datacenter in the pyramid with our technical team very soon but we have some limitations on what we can share (NDA).  My understanding from people not from Switch (or Supernap as the people I am talking with refer to themselves), is that it is moving along well and this company (Switch client) is still targeting July to start moving in equipment.

 

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Switch was at Haworth this month looking at products to outfit the Pyrimad.

 

Thought that was a cute anecdote. 

 

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I have hunch that Switch will trand form that area. Homes and shops, ect. Will build up from workers.

 

I'm sure this might be obvious to many of you.

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Posted (edited)

It always seemed strange that zero development has happened on that stretch of M-37 in the 15 years since the exit was built. Just Davenport, really, and even that is across the street from an existing office park.

Doesn't Meijer own property there, at one of the western corners of M-37 & 60th? Or am I making that up?

Edited by getemngo

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2 hours ago, getemngo said:

Doesn't Meijer own property there, at one of the western corners of M-37 & 60th? Or am I making that up?

Meijer owns the NE corner lot at Broadmoor & 68th Street.

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I wonder if it's going to be an Actual flagship Marriott, or one of their surrogate brands like Courtyard.  It'll be interesting to see if more development pops up in that area.  I don't think the traffic from switch alone can support a full service chain like Applebees.  It's still pretty far from retail corridors or neighborhoods. 

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There may be some market for restaurants with all the industry and office parks in Kentwood (and Davenport, and the giant Farmers Insurance complex on Kraft). The Arby's at Broadmoor & 44th and especially the Burger King at Broadmoor & 52nd make a killing during the lunch rush. This is also the same distance from the airport as 28th St is, and if I worked there and were given the choice, I'd head in the direction where traffic is less hectic.

I agree, though, that anything above fast food isn't a guaranteed success.

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6 hours ago, getemngo said:

There may be some market for restaurants with all the industry and office parks in Kentwood (and Davenport, and the giant Farmers Insurance complex on Kraft). The Arby's at Broadmoor & 44th and especially the Burger King at Broadmoor & 52nd make a killing during the lunch rush. This is also the same distance from the airport as 28th St is, and if I worked there and were given the choice, I'd head in the direction where traffic is less hectic.

I agree, though, that anything above fast food isn't a guaranteed success.

Fast food isn't even a guaranteed success. Remember McDonalds pulled out of the Arby's location in 2002.  That was back when Steelcase was still near it's production peak in the area.  Any Mcdonald's unit makes 2-4x on average in average sales compared to any other fast food competitor.  I was a general manager for Arby's in 2004 when that Broadmoor location opened.  I've been around McDonalds my whole life because of my parents, and I know the operator that exited that location.  I remember challenging the Arby's regional team that if McDonalds couldn't make it at that location why did they think they could.  It ended up opening as the least successful grand opening in their history at that time.  It's volumes are lower than a typical Arby's, while it's operating costs are substantially higher.  That building was built during an era that McDonalds was building Taj Mahal's to serve burgers out of.  I believe the only reason they keep it open is because  the restaurant so damn big,  they are able to house some administrative staff for the region in it.  

Any full service restaurant would struggle even at lunch because so many of those workers in that area are hourly and don't have time to go to an Applebee's.  In order for that area to be successful commercially it needs to be built up as a destination.  I'm not sure Switch can fill that gap with it's visitors alone.   I am anxious to see what Marriott brand goes into that area.  I don't see them putting a Marriott flagship there.  It's so far removed from established corridors and the core.  It's so awkward to get anywhere but the Kentwood retail corridor.  It would be struggle for them to attract conventioners and other events in the area because it's 20-25 minute drive to downtown.  

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2 hours ago, MJLO said:

Fast food isn't even a guaranteed success. Remember McDonalds pulled out of the Arby's location in 2002.  That was back when Steelcase was still near it's production peak in the area.  Any Mcdonald's unit makes 2-4x on average in average sales compared to any other fast food competitor.  I was a general manager for Arby's in 2004 when that Broadmoor location opened.  I've been around McDonalds my whole life because of my parents, and I know the operator that exited that location.  I remember challenging the Arby's regional team that if McDonalds couldn't make it at that location why did they think they could.  It ended up opening as the least successful grand opening in their history at that time.  It's volumes are lower than a typical Arby's, while it's operating costs are substantially higher.  That building was built during an era that McDonalds was building Taj Mahal's to serve burgers out of.  I believe the only reason they keep it open is because  the restaurant so damn big,  they are able to house some administrative staff for the region in it.  

Any full service restaurant would struggle even at lunch because so many of those workers in that area are hourly and don't have time to go to an Applebee's.  In order for that area to be successful commercially it needs to be built up as a destination.  I'm not sure Switch can fill that gap with it's visitors alone.   I am anxious to see what Marriott brand goes into that area.  I don't see them putting a Marriott flagship there.  It's so far removed from established corridors and the core.  It's so awkward to get anywhere but the Kentwood retail corridor.  It would be struggle for them to attract conventioners and other events in the area because it's 20-25 minute drive to downtown.  

Wow, thanks for the fast food business education.  Interesting stuff :thumbsup:

I always thought they would start building hotels closer to the M-6 / Kalamazoo exit, since there already is a commercial corridor there (including an Applebee's).

Maybe they are considering Davenport as an additional destination factor?  Not sure how many visitors it brings (let alone non-local students), but I'd think a viable college campus should have a hotel close by.  That campus really, really needs some local amenities.

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It really doesn't seem to far fetched to me that a sit down restaurant is in the future for this area.  Bailey's Grove, one of the Metro area's largest housing developments is a mile away.  Not to mention Kellogg's regional service center, Farmers/Foremost HQ, and Davenport are all within a mile, Oh, and the M-6 interchange itself is right there.  I guess time will tell.

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A full service Marriott would be a big deal since there are no flagship brands currently in the entire area. The nice thing is there is rarely a Marriott less than about 8 stories. The location is a little odd just because its not immediately adjacent to the highway or at the airport. An onsite airport hotel would be huge as well, hope that could happen! At the very least, with added development there, I hope they make some intersection improvements off east beltline and Patterson. 

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It was about a year ago that the rumors turned into news about Switch and the Steelcase Pyramid. I wondered if any work had picked up over there so I swung by while I was in the area. Doing Recon.

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The "ring" around the main pyramid building (that looks like it will be a high security fence) looked to be under construction:

 

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