Haven't seen much discussion of the big news on the buyer of the COB building in downtown Ypsi. Huge for the Ypsilanti community.

Developer buys Eastern Michigan University building in $12.6M deal to create STEM center

"An Ann Arbor workspace developer will spend $12.6 million to buy and renovate the former College of Business building at Eastern Michigan University.

Michigan Innovation Headquarters, also known as MI-HQ, will purchase the Gary Owens Building from EMU for $2.6 million, with renovations expected to cost $10 million, company officials said.

MI-HQ, which develops properties to provide companies a collaborative space, said it plans to turn the 130,000-square-foot space into an “innovative shared workspace” for STEM companies.

The EMU Board of Regents sold the Owens Building, 300 W. Michigan Ave., to River Caddis Development in April 2020 for $2.7 million. However, that deal fell through, said MI-HQ President Mark Smith.

The EMU College of Business was moved to Boone Hall on campus.

EMU’s Board of Regents approved the sale to MI-HQ during its Thursday, June 16 meeting, giving 30 days for both parties to close the deal, Smith said. The MI-HQ space is on schedule to open in the first quarter of 2023, and is estimated to provide 300 new jobs, company officials said.

“These added innovators will bring additional foot traffic to the downtown core and businesses recovering from the lack of pedestrian traffic during COVID,” Mark Smith, MI-HQ president said in a statement. “With abundant housing stock near the building, there is a great opportunity for workers to be able to locate and walk or bike to work.”

Since the Owens Building is no longer public university property, it will provide a net tax benefit of $1.1 million to Ypsilanti during the next 10 years, according to an Ann Arbor SPARK estimate.

“The building is located in an Opportunity Zone which provides tax advantages for companies and the investors that invest in them,” Smith said. “We hope to be a catalyst for the area and drive investment, development, and growth. By providing important infrastructure, oversight, investment, and collaboration.”

Ann Arbor SPARK, EMU, Ypsilanti, Washtenaw County and the Michigan Economic Development Corporation collaborated with MI-HQ on the purchase. MI-HQ currently operates more than 160,000 square feet of space on Ann Arbor’s west side, the company states on its website.

The MI-HQ renovation at the site will provide free onsite parking, medical offices, a space for food trucks, a courtyard for public gatherings and a café, 160-seat auditorium and gym open to both tenants and the public. It will also house research and development wet labs, or a lab that could contain chemicals and potential wet hazards.

New tenants of the property may reach out to MI-HQ now ahead of the 2023 opening date. However, a primary anchor business already accounts for half of the space, officials said."

2.6 million seems like a low number for the university

(06-22-2022 02:05 PM)dansplaining Wrote:  2.6 million seems like a low number for the university

Yeah, but it gets an unused piece of property off their books. It also eliminates the cost of maintenance, insurance, utilities, and providing security for a building they are not using. The reduction in operations expenses is a tangible value to the University.

If I recall right the Boone Hall improvements will cost $5 to $5.5 million. It will be nice to have the business college back on campus again. EMUs College of Business is underated in my opinion.

(06-22-2022 03:42 PM)emu79 Wrote:  If I recall right the Boone Hall improvements will cost $5 to $5.5 million. It will be nice to have the business college back on campus again. EMUs College of Business is underated in my opinion.

(06-22-2022 03:03 PM)cidbearit Wrote:  

(06-22-2022 02:05 PM)dansplaining Wrote:  2.6 million seems like a low number for the university

Yeah, but it gets an unused piece of property off their books. It also eliminates the cost of maintenance, insurance, utilities, and providing security for a building they are not using. The reduction in operations expenses is a tangible value to the University.

As EMU79 points out below the Owens Building was in poor shape. The cash is nice but CID nails it. This is an addition by subtraction deal.

(06-22-2022 03:59 PM)masttg Wrote:  

(06-22-2022 03:03 PM)cidbearit Wrote:  

(06-22-2022 02:05 PM)dansplaining Wrote:  2.6 million seems like a low number for the university

Yeah, but it gets an unused piece of property off their books. It also eliminates the cost of maintenance, insurance, utilities, and providing security for a building they are not using. The reduction in operations expenses is a tangible value to the University.

As EMU79 points out below the Owens Building was in poor shape. The cash is nice but CID nails it. This is an addition by subtraction deal.

Agree here 100%. No more shuttles from main campus and more importantly this building could not be served by the power plant and incurred huge utility fees from DTE.

I loved the original concept, building a beautiful building Downtown would revitalize that area. It clearly, however, did not work. Perhaps MI HQ can do this, they have been incredibly successful on the west side of Ann Arbor.

(06-22-2022 03:59 PM)masttg Wrote:  

(06-22-2022 03:03 PM)cidbearit Wrote:  

(06-22-2022 02:05 PM)dansplaining Wrote:  2.6 million seems like a low number for the university

Yeah, but it gets an unused piece of property off their books. It also eliminates the cost of maintenance, insurance, utilities, and providing security for a building they are not using. The reduction in operations expenses is a tangible value to the University.

As EMU79 points out below the Owens Building was in poor shape. The cash is nice but CID nails it. This is an addition by subtraction deal.

And the city gets a parking structure that was a pain and expensive to run.