N.Y. firm buys two downtown landmark office buildings

Excerpts from The Detroit News:

– Two downtown landmark office buildings — the Penobscot and First National buildings — were sold last week to a New York-based investment firm, following more than $500 million in recent investments in downtown Detroit’s emerging Campus Martius Park district.

– The two structures have received more than $40 million in upgrades in recent years, including high-speed Internet connections, heating and cooling systems, windows, along with new stores and restaurants. The buildings, which are each 65 percent occupied, were bought by New York-based National Investor GS Equities for an undisclosed sum.

– The Campus Martius Park district is drawing other investment as the city prepares to select a developer for up to 400 homes and retail and entertainment venues on the vacant Monroe block at Woodward Avenue and Cadillac Square from several proposals, while the former Hudson’s site is being considered for residential and retail uses.

– More than $500 million has been invested since 2002 around Campus Martius Park, a $15 million public square at Woodward and Monroe that opened last fall. Last week, the city completed the sale of the 12-story Vinton Building at Woodward and Congress.

– Every city block that borders Campus Martius Park has received new investment, including a $54 million office tower to be called One Kennedy Square by Southfield-based Redico. The 10-story glass structure, to be occupied by the accounting firm of Ernst & Young and the information technology group for automotive supplier Visteon Corp., among others, is scheduled to open in the spring.

– Source: The Detroit News