Discuss Detroit Archives - January 2008 Penobscot could be sold or re-financed? Previous Next
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Digitalvision
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Username: Digitalvision

Post Number: 509
Registered: 11-2003
Posted on Tuesday, January 22, 2008 - 10:08 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Interesting...

Just heard a report on WDET (sorry, no link) and it looks like that company who's putting together the grand new development across Campus Martius is investigating either selling or re-capitalizing the Penobscot building.

I wonder if they're going to use that cash to do the new development. I've heard some interesting rumblings about the new project, but I'm thinking positively, because they are rumblings.

WDET cites a freep article that I can't find online - I may go out and get a print edition at lunch.

Penobscot is gorgeous, the only thing against it is that it doesn't have connected or included parking.

Parking is a real deal breaker for almost all office space decision makers - even those who would like to be downtown - it's why I think 1001 will be a great success if executed properly. The Penobscot rates are reasonable for what you get, but the additional parking charge per employee is a bear, especially in a not-so-great regional office market.

The real estate gurus in here could illuminate the hows and whys they're doing this more than I. I just know what I know :-)
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Tetsua
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Username: Tetsua

Post Number: 1394
Registered: 01-2004
Posted on Tuesday, January 22, 2008 - 10:13 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

http://www.freep.com/apps/pbcs .dll/article?AID=/20080122/BUS INESS04/801220341
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Thejesus
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Username: Thejesus

Post Number: 3259
Registered: 06-2006
Posted on Tuesday, January 22, 2008 - 10:21 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

"In the statement, Alex Dembitzer, Northern's principal and managing partner, said that Northern Group continues its strong commitment to Detroit, including its planned $150-million Cadillac Centre project."

There you have it, folks. The Cadillac Centre project is dead. Anytime the head of a development project starts talking like that, it's bad news.
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Livernoisyard
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Username: Livernoisyard

Post Number: 4902
Registered: 10-2004
Posted on Tuesday, January 22, 2008 - 10:35 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

The four-year "completion" date on essentially a high-rise project said wonders too.
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Higgs1634
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Username: Higgs1634

Post Number: 286
Registered: 10-2005
Posted on Tuesday, January 22, 2008 - 10:55 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

"In the statement, Alex Dembitzer, Northern's principal and managing partner, said that Northern Group continues its strong commitment to Detroit, including its planned $150-million Cadillac Centre project."

There you have it, folks. The Cadillac Centre project is dead. Anytime the head of a development project starts talking like that, it's bad news.



I would have expected getting to the ground breaking at least before talking like this. Usually this type of backpedaling is well after all the ribbon cutting and gold shoveling.
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Livernoisyard
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Username: Livernoisyard

Post Number: 4905
Registered: 10-2004
Posted on Tuesday, January 22, 2008 - 11:06 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Consider what has been stated before. Northern said that they would capitalize the Cadillac Centre themselves. Yet a short time later, they are looking around to sell or recapitalize their largest local asset--the asset they were using for their own prestige.

Maybe they want to sell the P because they suspect that its future prospects are dimming in a troubled industry. The US economy is way too dependent upon consumer spending instead of manufacturing and vital services sought after globally. At some point, consumer spending won't be (isn't or wasn't?) enough to sustain the economy.
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401don
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Username: 401don

Post Number: 222
Registered: 11-2007
Posted on Tuesday, January 22, 2008 - 12:25 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Little off topic but I've never understood how on the one hand the country, both gov't and individual, are in massive debt and everyone's quick fix is more gov't debt and consumer spending.
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Lefty2
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Username: Lefty2

Post Number: 949
Registered: 07-2007
Posted on Tuesday, January 22, 2008 - 12:52 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

It could just be that Northern wants to maximize cash flow for their new project and focus on it and not waste time and resources on the P.

^Consumer spending increases taxes to the state, and tax supported debt will give even more tax money eventually to the guv't and keep money circulating to keep businesses happy with a shot of cappuccino. (It also makes it look like the guv't is in control)
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Digitalvision
Member
Username: Digitalvision

Post Number: 513
Registered: 11-2003
Posted on Tuesday, January 22, 2008 - 1:00 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Agreed Lefty.

Developers (in general) prefer new buildings to old. That's just the sad fact. They're easier to sell, manage, and make profit on.
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Hans57
Member
Username: Hans57

Post Number: 260
Registered: 05-2006
Posted on Tuesday, January 22, 2008 - 6:45 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I don't think they plan on flaking out on the city anytime soon. They just bought the Lafayette Towers and Alden Park Towers. It seems they genuinely see something in our city.

http://modeldmedia.com/inthene ws/lafayettetwrs12708.aspx

http://modeldmedia.com/develop mentnews/aldenprk12708.aspx
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Thejesus
Member
Username: Thejesus

Post Number: 3265
Registered: 06-2006
Posted on Tuesday, January 22, 2008 - 6:51 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

^you're making the assumption that they *could* build this thing if they so choose, and that it's only a matter of whether they decide to or not
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Histeric
Member
Username: Histeric

Post Number: 827
Registered: 10-2003
Posted on Tuesday, January 22, 2008 - 8:32 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

TheJeebus (how arrogant and offensive to have to argue with someone of that name) and Livernoisyard....keeping it real in the ...who knows where. You guys just don't get it and really don't care to. Must be cozy to sit in your armchair and throw darts. Your lives are really that lacking huh? I am sorry.

Blah,blah blah, i am smarter than you, blah blah blah blah followed by some clever quip, blah blah blah.
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Thejesus
Member
Username: Thejesus

Post Number: 3270
Registered: 06-2006
Posted on Wednesday, January 23, 2008 - 12:36 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

^lol wtf was that?
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Registeredguest
Member
Username: Registeredguest

Post Number: 350
Registered: 10-2003
Posted on Wednesday, January 23, 2008 - 1:00 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

^^ It was what needs to happen more often on this site, stupidity and opinion for opinion's sake called out.
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Iheartthed
Member
Username: Iheartthed

Post Number: 2566
Registered: 04-2006
Posted on Wednesday, January 23, 2008 - 1:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

They didn't decide to flake out on Cadillac Centre two weeks after it was announced to the public. I think they are just interested in selling the Penobscot. It's one of the few bright spots in the downtown office market.

I would guess that they are trying to free up capital for other projects...
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Ro_resident
Member
Username: Ro_resident

Post Number: 289
Registered: 11-2003
Posted on Friday, January 25, 2008 - 10:27 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

If you are offended by his name, wait til you see how he's dressed.

Jesus Quintana


[Insert clever quip from "The Big Lebowski" here.]

And, actually, I am a little concerned about the Penobscot Building. It seems to have changed hands two or three times in the past ~5 years.
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Lo_to_d
Member
Username: Lo_to_d

Post Number: 45
Registered: 07-2007
Posted on Friday, January 25, 2008 - 11:24 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Let me tell you something pendejo!

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