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Serrano Lofts and Division Park Apts


GRDadof3

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Why? Do you think independent tire stores are the wave of the future? Do they create other growth around them? Revitalize a neighborhood?

I agree with twoshort in that they would be much better served at the location where they are moving. They may even increase business and become more efficient in a more modern facility. Plus, 2/3's of their buildings on South Division are virtually vacant (as I read the article). I don't see how this is anything but a good move all around.

I think the Count is refering to commerce in general. Market rate commerce is the key to revitalizing a neighborhood.

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At present the most expensive property on the CAR website for commerical/industrial properties is 446 Grandville Ave SW. Its only 665k sq ft. sitting on 4.9 acres. It has an asking cost of 6.75 million. Now for something a little smaller we have 820 Monroe NW that is running at 5.95 million with 2.7 acres and 152k sq ft. So going from that I can see 5 million being about right although I would need to see some stats on building size and property size. But considering the enviroment who knows except one poster here. :P

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Why? Do you think independent tire stores are the wave of the future? Do they create other growth around them? Revitalize a neighborhood?

I agree with twoshort in that they would be much better served at the location where they are moving. They may even increase business and become more efficient in a more modern facility. Plus, 2/3's of their buildings on South Division are virtually vacant (as I read the article). I don't see how this is anything but a good move all around.

Fact is, most people have no idea what's been going on at RHD for the last (35) years. I'm trying to think of any other building in that area that has been employing people and paying taxes as long as they have been.

Which was the point of my original post. To suggest that a business like RHD is not "exciting" is short-sighted. Again, I'd take (20) more of them.

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Fact is, most people have no idea what's been going on at RHD for the last (35) years. I'm trying to think of any other building in that area that has been employing people and paying taxes as long as they have been.

Which was the point of my original post. To suggest that a business like RHD is not "exciting" is short-sighted. Again, I'd take (20) more of them.

But you have to admit that they aren't drawing other businesses to the area, like other redevelopment might. Would I like twenty more vibrant independent retailers/businesses providing employment on South Division? Sure. How do we get there?

As far as estimated price, rough math* puts the 3 story building on Division at about 16,700 sf, the 2 story next door at about 12,500 sf, and the warehouse on Williams at about 12,600 sf. The entire land area is about an acre. Based on that, I think I could gander at an asking price.

* not actual square footages

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As far as estimated price, rough math* puts the 3 story building on Division at about 16,700 sf, the 2 story next door at about 12,500 sf, and the warehouse on Williams at about 12,600 sf. The entire land area is about an acre. Based on that, I think I could gander at an asking price.

I think I've figured out an equation that should help people figure this out:

(Top Dollar + No hurry) = (inflated asking price + long vacancy). It seems that no body should be in a hurry to see anything come out of this soon.

I'm no real estate guru but I"ve seen this before with people near me.

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Fact is, most people have no idea what's been going on at RHD for the last (35) years. I'm trying to think of any other building in that area that has been employing people and paying taxes as long as they have been.

Which was the point of my original post. To suggest that a business like RHD is not "exciting" is short-sighted. Again, I'd take (20) more of them.

If we had 20 more just like RHD, that would mean 60 more boarded up store fronts with no general knowledge about what goes on inside. It would mean some increase in tax base (maybe), but it would also mean an increase in the apperance of blight and less incentive for development (as GRDad has stated). The time has come for those buildings and that location to be put to a different use. Not better, just more appropriate for the location and the present re-development climate.

It's obvious that RHD recognizes that fact. The location is worth something again and is thus selling and moving (though not out of the city - fantastic!).

Now if you want to qualify those "20 more of them" in locations like RHD's new location, then fine - let's have 20 more...

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looking at the current inventory I think if it sells for under 2 million RHD gets screwed. That site is worth at least 3 to 5 million.

The site is only worth what someone is willing to pay for it. the good thing for the rest of us is that by holding out for top dollar and not being in a hurry means that when it finally is sold, we will get something big because nobody is going to spend 5 million dollars on a mission. we just have to be prepared to wait for the market to catch up with the asking price.

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The site is only worth what someone is willing to pay for it. the good thing for the rest of us is that by holding out for top dollar and not being in a hurry means that when it finally is sold, we will get something big because nobody is going to spend 5 million dollars on a mission. we just have to be prepared to wait for the market to catch up with the asking price.

:rolleyes:

So... you're saying that the site is worth $5 million..we just have to wait for the right buyer to come along? I see no problems with that.

Sorry, I just hate the "worth what someone is willing to pay for" stuff, especially when dealing with Real Estate..

It's already been pointed out that similar sized properties have sold or are selling for around the $3-5 million price which essentially makes this property "worth" that based on comps.

If I offer $100,000 for it and that's the only offer he gets for a year does that mean his property is worth $100k? I don't think so.

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:rolleyes:

So... you're saying that the site is worth $5 million..we just have to wait for the right buyer to come along? I see no problems with that.

Sorry, I just hate the "worth what someone is willing to pay for" stuff, especially when dealing with Real Estate..

It's already been pointed out that similar sized properties have sold or are selling for around the $3-5 million price which essentially makes this property "worth" that based on comps.

If I offer $100,000 for it and that's the only offer he gets for a year does that mean his property is worth $100k? I don't think so.

When people say that, they mean that you have a ready, willing and able buyer and seller, who come to an agreed upon price. If you offer $100,000, don't point a gun at his head, and he accepts it, and doesn't get sued by a partner or family member, then that's what the property is worth. Comps are only tools to help formulate asking prices, that's all. Especially when you have a unique property like this that might be difficult to find comps.

One thing that seems to be consistent downtown: old buildings in need of extensive repairs, priced at $50/sf and higher, seem to be sitting for a long time. Maybe I'm wrong, but I can think of at least 4 buildings like that which have been sitting for years and years, vacant. Some of those have parking issues, but at least two I can think of do not.

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what comps do you really have. some properties have sold for very high amounts but every situation is unique and a difference of 4 blocks may make or break the value of a property. all that property along michigan ave. that sold for millions of dollars doesn't really relate to another property that is on the other side of town. your sample size is extremely small and there is no way to draw meaninful conclusions from the sale of a handful of properties.

BTW if the only offer that a person gets in a year is a 100,000 dollars then the property is probably worth only 100,000. if it is worth much more than that then higher offers will be made. it is slightly more compicated when you have such a large piece of property because there are few people with the ability to develop something of that size but so often owners kid themselves about the actual worth of their property. even though it may be cliche a property is absolutely worth only what someone is willing to pay.

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  • 7 months later...
  • 1 year later...

Well, a year and a half later we have sumin maybe going into the RHD buidling :) p.s. regardless of what people think of metropolitan park apartments I lived there and they were AMAZING, excited to see what they do with this place!

http://www.mlive.com/business/west-michigan/index.ssf/2010/02/former_rhd_tire_site_on_south.html

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Well, a year and a half later we have sumin maybe going into the RHD buidling :) p.s. regardless of what people think of metropolitan park apartments I lived there and they were AMAZING, excited to see what they do with this place!

http://www.mlive.com/business/west-michigan/index.ssf/2010/02/former_rhd_tire_site_on_south.html

That's great news! The developer, Karl Chew, also did 101 S. Division. Occupancies at his two projects must be pretty good if he's ready to take on another 42 apartments.

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  • 2 weeks later...

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