Bedrock, a full-service real estate firm owned by Dan Gilbert, today announced it has acquired the former Sakthi Industrial Campus located along West Fort Street, west of the central business district, from Friedman Real Estate.
The acquisition adds more than 618,000 square feet of industrial real estate and 10.4 acres of developable land to Bedrock’s expanding downtown footprint. Demand for industrial space has been brisk in recent years due to a jump in manufacturing along with a steady boost in online purchases.
The nearly 37-acre acquisition includes approximately 529,000 square feet of industrial and manufacturing space, 89,000 square feet of office and flex space, along with more than 10 acres of developable land. The property is strategically located four miles west of downtown Detroit, adjacent and to the north of the Norfolk Southern Rail Line, and near the future Gordie Howe International Bridge U.S. Port of Entry (2023 planned opening).
“Acquiring this property provides us with a rare opportunity to capitalize on the growing demand for industrial space in Detroit,” says Sam Hamburger, vice president of acquisitions and leasing at Bedrock. “By investing capital into this industrial complex, we believe that Bedrock will be well positioned to strengthen the surrounding neighborhoods by delivering a site that will create local jobs and serve as a catalyst for broad economic development efforts in the City of Detroit.
“Given its unique location, the property offers us an opportunity to provide functional warehouse, distribution, and manufacturing space that is both close to downtown Detroit and attractive to regional and national companies that serve an international clientele,” Hamburger adds.
The acquisition will allow Bedrock to quickly and effectively bring industrial buildings to market that are equipped to meet the evolving demands of today’s industrial users, while reinvigorating industrial activity in Detroit which has already seen tremendous interest from major retailers and tech firms over the last few years.
“This development will effectively bridge the gap between the strong demand for and lack of suitable industrial space in the city,” says Lawrence McLaughlin, chief development officer at Bedrock. “We are excited to work with, and attract, new manufacturers and industrial users to the city.”
The property currently hosts one tenant, MOBIS, an automotive parts supplier for Fiat Chrysler Automotive and Hyundai.
The deal was facilitated by Kevin George, senior vice president of brokerage services, and Jared Friedman, director of opportunities at Friedman, in partnership with court appointed receiver Kevin English of Lark Advisors and counsel for the receiver, The Dragich Law Firm in Grosse Pointe.
Financial figures were not disclosed.
Bedrock specializes in acquiring, developing, leasing, financing, and managing commercial and residential buildings. Since its founding in 2011, Bedrock and its affiliates have invested and committed more than $5.6 billion to acquiring and developing more than 100 properties, including new construction of ground up developments in downtown Detroit and Cleveland totaling more than 18 million square feet.
Bedrock’s real estate portfolio consists of 210 office tenants and 125 retailers and restaurants in Detroit’s technology-centric downtown, the majority of which are new to the market. Key office tenants include Coyote Logistics, IBM, Microsoft, Quicken Loans, LinkedIn, StockX, Universal McCann, UBS, Ally Bank’s national headquarters and Fifth Third Bank’s regional headquarters. Key retail tenants include H&M, Plum Market, The Lip Bar, 6 Salon, Lululemon, Shake Shack, and more.
Bedrock is currently developing four large projects including the Hudson’s Site, Monroe Blocks, Book Tower renovation, and One Campus Martius expansion. Bedrock is also undergoing construction of City Modern, a community development in Detroit’s Brush Park neighborhood. Partnering with Detroit-based Shinola, Bedrock developed the world’s first Shinola Hotel on Woodward Avenue, which opened in early 2019.
Bedrock also seeks to create jobs for Detroiters and investing in job training. Over the last year, the company has invested in both the Randolph & Breithaupt Career and Technical Centers to build a pipeline of talent for Detroit’s growing economy.