In a deal brokered by Newmark Grubb Knight Frank Capital Markets, the Travelers Tower I & II buildings in Southfield, the Detroit metro area's largest office submarket, traded hands this month for an undisclosed sum. An investor group led by Time Equities Inc. of New York purchased the 790,000-square foot, Class A office complex from an affiliate of Lehman Brothers Holdings Inc. after winning out over a number of competing bidders. Larry Emmons, Patrick Shannon, Daniel Canvasser and Fred Liesveld from Newmark Grubb Knight Frank marketed the property.
"This is a gateway event signaling that out-of-town capital is once again interested in Detroit," said Larry Emmons, a senior managing director in Newmark Grubb Knight Frank's Capital Markets Group in Detroit. "We took the buildings to market right around Thanksgiving, and received nine offers within weeks."
"The Travelers towers acquisition is a great opportunity for us to expand our presence in the submarkets of Michigan. We have experience working with office properties like this one in multiple markets across the nation and know we are in a position to add value and stabilize the property," said Francis Greenburger, chairman of Time Equities Inc. "We plan to make improvements as necessary to preserve the long term usefulness of the property and maintain its Class A office status."
According to a Crain's Detroit Business article, the new owners have plans for $10 million in improvements to the properties. Chief tenants in Travelers Tower I, built in 1973 at 26555 Evergreen Road, include automotive firm Faurecia and Fox Sports. In Tower II, at 26533 Evergreen Road, major tenants include the corporate headquarters of R.L. Polk & Co., and Action Benefits.
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