Real estate investment firm buys AT&T tower in downtown

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A real estate investment company bought AT&T Inc.’s 20-story addition to its downtown Detroit campus complex.

New York-based Reign Capital LLC purchased the nearly 50-year-old building in late May for $ 15.5 million through a subsidiary, Reign CO1 Propco LLC, according to CoStar Group Inc., a service of real estate information based in Washington, DC.

It’s one of several AT&T properties the company has purchased recently, including in Milwaukee ($ 30.1 million), Pittsburgh ($ 25.7 million) and Winston-Salem (also $ 15.5 million). ).

Public records do not yet reflect a sale. An email was sent to Reign Capital late Thursday afternoon requesting comment and additional information, and a voicemail message was left Friday morning.

“We remain committed to Detroit, and this change in building ownership will not affect our employees or our operations,” AT&T spokesperson Brandy Bell-Truskey said in an emailed statement Friday afternoon. .

The purchase price is just over $ 28 per square foot for the approximately 551,500 square feet.

Anthony Sanna, executive director of the Birmingham office of Integra Realty Resources, a valuation firm, said the low purchase price likely reflects “uncertainty in the office market” and the high cost of “trying. to absorb half a million square feet and reposition “the building.”

Of these, 91,900 build mechanical systems, for a total office space of approximately 461,000 square feet. AT&T, according to previous marketing materials, was to retain approximately 57,000 square feet. The rest of the building, built in 1972, is vacant.

At 444 Michigan Ave., it is across from the Patrick V. McNamara Federal Building and across from Cass Avenue from the Rosa Parks Transit Center.

It has been almost six years since the skyscraper first hit the market.

It was listed in September 2015, taken off the market three and a half years later, briefly re-listed in June 2020, then re-listed in November 2020, according to CoStar.

The purchasing entity, Reign CO1 Propco LLC, lists Ryan Klenovich as its principal in its Michigan incorporation documents, which were filed with the state on May 26.

Klenovich, described in media as a former executive at New York-based investment firm Angelo Gordon & Co., was linked to a Chicago deal in 2018 with Kushner Cos., The real estate firm of Jared Kushner, son of former President Donald Trump -in law.

In this 2018 deal, Chicago-based Angelo Gordon, AJ Capital Partners and Klenovich were to purchase the 225 W. Randolph skyscraper owned by Kushner in the City Loop, Crain’s Chicago Business, sister publication of Crain’s Detroit Business, reported at the time.

A deal to refinance this property in 2017 was criticized when the New York Times reported in February 2018 that Kusher, then Trump’s senior adviser, had held meetings with the founder of private equity firm Apollo Global. Management at the White House before Apollo granted Kushner Cos a $ 184 million refinancing loan that paid off a $ 132 million loan financing Kushner’s purchase of the $ 276 million building in 2007 .

The 853,000 square foot building was also home to AT&T, which sold it to Kushner 14 years ago.

The Angelo Gordon / AJ Capital / Klenovich purchase agreement has since been transferred to Canadian developer Onni, Crain’s Chicago Business reported late last year. Onni would buy the building for $ 188 million.


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