Spectrum Health's new "consolidated offices" HQ's

[cstonesparty]

More on the Monroe North developments...

https://mibiz.com/sections/real-estate-development/gill-industries-explores-sale-of-downtown-grand-rapids-plant-to-spectrum-health

[GRDadof3]

3 hours ago, cstonesparty said:

More on the Monroe North developments...

https://mibiz.com/sections/real-estate-development/gill-industries-explores-sale-of-downtown-grand-rapids-plant-to-spectrum-health

Word on the street is that that Gill facility is bleeding money pretty badly...  

[Prankster]

4 hours ago, cstonesparty said:

More on the Monroe North developments...

https://mibiz.com/sections/real-estate-development/gill-industries-explores-sale-of-downtown-grand-rapids-plant-to-spectrum-health

Not sure why this article and the GRBJ article both say 706 and 725 Bond Ave. NW. there are going to be 2 buildings?

[joeDowntown]

4 minutes ago, Prankster said:

Not sure why this article and the GRBJ article both say 706 and 725 Bond Ave. NW. there are going to be 2 buildings?

Probably not, but they’re purchasing both properties. There’s a map in this thread. 
 

I’d assume parking in one lot, building on the other?

Joe

[arcturus]

7 minutes ago, joeDowntown said:

Probably not, but they’re purchasing both properties. There’s a map in this thread. 
 

This is a significant piece of news, that whole area is exploding.

Sightly disappointed more '601 Bonds' couldn't be developed on this parcel to extend the urban mid-rise canyon feel and densify the number of residents for a more active night life region (vs vacate after 5 pm).

$100 mil isn't anything to sniff at though.

[ironyisadeadscene]

Any chance this building will have decent height?

[MJLO]

9 hours ago, arcturus said:

This is a significant piece of news, that whole area is exploding.

Sightly disappointed more '601 Bonds' couldn't be developed on this parcel to extend the urban mid-rise canyon feel and densify the number of residents for a more active night life region (vs vacate after 5 pm).

$100 mil isn't anything to sniff at though.

$100 million dollars is significantly more money than the cost of building 601 bond.  I can't find the exact price tag, but initial news stories I can find had it listed for around $40 million.  There's not enough information thus far to even speculate on what will come, but research for similar sized facilities could put this building anywhere from 4-8 floors.  Medical office buildings typically use quite a bit more space per floor so this building/s will still probably add pretty good density to the neighborhood.  

My hope is that this facility will spur more apartments and other commercial activity in NoMo.  Hopefully we will see more underutilized, or empty industrial spaces turn into mid rises

[RegalTDP]

Plus if I understand correctly this will bring in employees throughout the region for training, right?  I feel like the Embassy Suites could not have wished for better news within their first year of opening.

As for the building itself, I'm not expecting much.  Just a larger version of Heart of the City with it's own ramp.  Let's see if I'm wrong...

[GR_Urbanist]

I'm not expecting it to be any higher than the hotel. The site is simply too big to warrant a tall structure.  I also think the architecture will be fairly pedestrian.

I am hoping more that the first two floors (of 5) are transparent and has entrances and  on at least 3 sides. Maybe even have some sort of retail component along one street.

[demhem]

58 minutes ago, RegalTDP said:

Plus if I understand correctly this will bring in employees throughout the region for training, right?  I feel like the Embassy Suites could not have wished for better news within their first year of opening.

As for the building itself, I'm not expecting much.  Just a larger version of Heart of the City with it's own ramp.  Let's see if I'm wrong...

As GR's largest employer, I'm hoping that they decide to make a bold statement with a pretty attractive building. We will see...

[grandrollerz]

I've heard "a little higher than embassy".

http://www.nbbj.com/work/ is the architecture firm.

Sent from my Acer Chromebook R11 (CB5-132T, C738T) using Tapatalk

[joeDowntown]

And now you see why the Gill property was available:

https://mibiz.com/sections/manufacturing/facing-insolvency-gill-corp-seeks-exorbitant-demands-customer-alleges-in-bombshell-lawsuit

Joe

[MJLO]

4 hours ago, joeDowntown said:

And now you see why the Gill property was available:

https://mibiz.com/sections/manufacturing/facing-insolvency-gill-corp-seeks-exorbitant-demands-customer-alleges-in-bombshell-lawsuit

Joe

WOW that’s ballsy of them!  Though I suppose they really have nothing to lose in basically extorting Benteler and the OEMs.  I guarantee it’s tremendously more expensive for an OEM to go down, vs pay to keep some piddly ass regional supplier temporarily afloat.  I hope Benteler pays the up front costs and then sues their pants off for breach of contract.  You can bet almost all of the tooling in those Gill facilities was paid for by whomever buys the product.  They are very likely holding other parties property hostage at this point.  Typically in this type of situation when a sub tier supplier runs into solvency issues, you pull your tooling faster than they can blink, and source it to whatever sucker is dumb enough to take it. 

I worked in automotive supply chain, and have managed quality systems.  I’ve never worked in finance at any level so I don’t understand how any of it works beyond very basic terms.  Is it possible there was a better way for them to go about this, or in issues of solvency is this the only way to stay afloat? I would put money on it that Benteler bullied them into virtually no margins, as Benteler is probably being bullied down on their end too. It’s just the nature of automotive.  Even if Gill manages to keep their doors open I don’t see how they stay in business.  There isn’t a tier 1 or OEM that will go anywhere near them after this. 

[joeDowntown]

11 hours ago, MJLO said:

WOW that’s ballsy of them!  Though I suppose they really have nothing to lose in basically extorting Benteler and the OEMs.  I guarantee it’s tremendously more expensive for an OEM to go down, vs pay to keep some piddly ass regional supplier temporarily afloat.  I hope Benteler pays the up front costs and then sues their pants off for breach of contract.  You can bet almost all of the tooling in those Gill facilities was paid for by whomever buys the product.  They are very likely holding other parties property hostage at this point.  Typically in this type of situation when a sub tier supplier runs into solvency issues, you pull your tooling faster than they can blink, and source it to whatever sucker is dumb enough to take it. 

I worked in automotive supply chain, and have managed quality systems.  I’ve never worked in finance at any level so I don’t understand how any of it works beyond very basic terms.  Is it possible there was a better way for them to go about this, or in issues of solvency is this the only way to stay afloat? I would put money on it that Benteler bullied them into virtually no margins, as Benteler is probably being bullied down on their end too. It’s just the nature of automotive.  Even if Gill manages to keep their doors open I don’t see how they stay in business.  There isn’t a tier 1 or OEM that will go anywhere near them after this. 

They won't. I've heard (from a very good source) that Gill is going under, properties are reverting (or have reverted) to the bank, etc. It's a shame as they seemed to be a pretty healthy company at one point. It's a multi-generational family owned business. Wonder if the 2nd generation didn't have the business acumen...?

Joe

[Raildude's dad]

Automotive has always been low margin stuff even 40 years ago. My dad was Supervisor of Tooling at American Seating.  He was doing business with most of the tool & die shops in town. The brass at AMSECO were talking about getting into the automotive seating business. After talking to the die shops, he told them they were crazy. Give the big 3 your best competitive price and they come back and tell you your taking less.  And then they will cut your compensation again when they want to.  Crazy business.

Gill has a contract thru 2038 to provide parts signed in 2010. Who signs a 20 year contract in manufacturing ? In their defense it looks like Spring & Wire did and they squired it with the acquisition but still.........

[Prankster]

3 hours ago, Raildude's dad said:

Gill has a contract thru 2038 to provide parts signed in 2010. Who signs a 20 year contract in manufacturing ? In their defense it looks like Spring & Wire did and they squired it with the acquisition but still.........

I work in automotive supply chain, and that is not unusual at all. 

Depending on on how long the part is in production (anywhere from 3 - 7 years), plus you are also required to provide another 15 years for any service requirements.  And the customer could add another 5 years service on top of it, so a part could have requirements up to 27 years. 

[Raildude's dad]

How do you price something 20 years out ?

[Floyd_Z]

I wonder if the UAW strike hurt them at all?

Either way... it's really interesting that an old automotive supplier factory will be replaced with a brand new healthcare building and down on Bridge street the Jesus building is being replaced with a brewery.... kinda speaks to the direction GR has been going and continues to go.

[Allison Slater]

26 minutes ago, Floyd_Z said:

down on Bridge street the Jesus building is being replaced with a brewery.... kinda speaks to the direction GR has been going and continues to go.

Hail Satan?

[Floyd_Z]

35 minutes ago, tSlater said:

Hail Satan?

well that and maybe all the bible thumpers are moving further west toward Ottawa county?  GR is certainly more secular than I remember growing up.  Just look at all of the churches being replaced with condos and townhouses.  It's not just GR, it's happening all over the U.S. and has been happening for decades in Europe.  Kind of a nice change IMO.

Although, it seems like there is probably a mega church every square mile in the western burbs.

[GR8scott]

On 10/26/2019 at 4:39 AM, grandrollerz said:

I've heard "a little higher than embassy".

http://www.nbbj.com/work/ is the architecture firm.

Sent from my Acer Chromebook R11 (CB5-132T, C738T) using Tapatalk
 

Let’s hope there’s a little separation from the hotel so they complement each other and not one big blob 

[mpchicago]

Spectrum has closed on the Gill Industries site in Monroe North.  The $100 million dollar building will be 300,000 square feet, about 100,000 square feet larger than the Doug Meijer Health Innovations Center.   I think Warner Tower is 290,000 square feet.   The question remains, with a 5 acre site, how will they configure the building and parking?   Construction won't begin till 2021.   

https://mibiz.com/sections/health-care/spectrum-health-closes-deal-for-gill-property-moves-ahead-with-building-plan

[Chisox]

When I moved to Grand Rapids I rode the SL quite a bit and learned from one of the transit cops there was a rail line proposal along this block. Does anyone see this correlating someway? Or even being a catalyst? Not necessarily the main reason for site selection, but I can't help, but point it out. 

[ironyisadeadscene]

2 hours ago, mpchicago said:

Spectrum has closed on the Gill Industries site in Monroe North.  The $100 million dollar building will be 300,000 square feet, about 100,000 square feet larger than the Doug Meijer Health Innovations Center.   I think Warner Tower is 290,000 square feet.   The question remains, with a 5 acre site, how will they configure the building and parking?   Construction won't begin till 2021.   

https://mibiz.com/sections/health-care/spectrum-health-closes-deal-for-gill-property-moves-ahead-with-building-plan

They'd be smart to not use the whole site and save some land for future development if need be.  Build up on half, maybe a ramp on the other with air rights.

 

Just build up. That's all.

[RegalTDP]

4 hours ago, Chisox said:

When I moved to Grand Rapids I rode the SL quite a bit and learned from one of the transit cops there was a rail line proposal along this block. Does anyone see this correlating someway? Or even being a catalyst? Not necessarily the main reason for site selection, but I can't help, but point it out. 

Probably talking about the Monroe Streetcar proposal: https://www.mlive.com/news/grand-rapids/2014/02/streetcar_plan_for_grand_rapid.html

Haven't heard any news about this since 2014.