Bedrock Grows Industrial Portfolio with Acquisition of former Sakthi Industrial Campus
September 15, 2020
Detroit-based company to add more than 618,000 sq. ft. and 10 acres of developable land to its growing footprint
Industrial acquisition marks real estate developer’s largest development outside of Detroit’s Central Business District
Acquisition expected to strengthen industrial activity within the city, and add hundreds of local jobs
September 15, 2020 [DETROIT] – Bedrock today announced that it has acquired the former Sakthi Industrial Campus located along West Fort Street, just west of downtown Detroit, from Friedman Real Estate. The acquisition adds more than 618,000 sq. ft. of industrial real estate and 10.39 acres of developable land to Bedrock’s expanding downtown footprint.
“Acquiring this property provides us with a rare opportunity to capitalize on the growing demand for industrial space in Detroit,” said Sam Hamburger, VP of Acquisitions and Leasing at Bedrock. “By investing capital into this industrial complex, we believe that Bedrock will be well positioned to strengthen the surrounding neighborhoods by delivering a site that will create local jobs and serve as a catalyst for broad economic development efforts in the City of Detroit.”
The nearly 37-acre acquisition includes approximately 529,000 sq. ft. of industrial and manufacturing space, 89,000 sq. ft. of office and flex space, along with more than 10 acres of developable land. The property is strategically located just four miles west of downtown Detroit, adjacent and to the north of the Norfolk Southern Rail Line, near the future Gordie Howe International Bridge U.S. Port of Entry.
“Given its unique location, the property offers us an opportunity to provide functional warehouse, distribution, and manufacturing space that is both close to downtown Detroit and attractive to regional and national companies that serve an international clientele,” Hamburger continued.
The acquisition will allow Bedrock to quickly and effectively bring industrial buildings to market that are equipped to meet the evolving demands of today’s industrial users, while reinvigorating industrial activity in the City of Detroit which has already seen tremendous interest from major retailers and tech firms over the last few years.
“This development will effectively bridge the gap between the strong demand for, and lack of suitable industrial space in the city,” said Lawrence McLaughlin, Chief Development Officer at Bedrock. “We are excited to work with, and attract, new manufacturers and industrial users to the city.”
The Campus currently hosts one tenant, MOBIS, an automotive parts supplier for Fiat Chrysler Automotive and Hyundai.
The deal was facilitated by Kevin George, Senior Vice President of Brokerage Services and Jared Friedman, Director of Opportunities at Friedman in partnership with court appointed receiver Kevin English of Lark Advisors and counsel for the Receiver, the Dragich Law Firm.
“Having the privilege of working with the Bedrock team to facilitate the sale of this portfolio has been a rewarding experience,” said Jared Friedman, Director of Opportunities at Friedman Real Estate. “We’re excited to complete a deal of this size in the Detroit market and see what the future holds for the area.”
Financial figures were not disclosed.
Detroit-based Bedrock is a full-service real estate firm specializing in acquiring, developing, leasing, financing and managing commercial and residential buildings. Since its founding in 2011, Bedrock and its affiliates have invested and committed more than $5.6 billion to acquiring and developing more than 100 properties, including new construction of ground up developments in downtown Detroit and Cleveland totaling more than 18 million square feet. Bedrock’s real estate portfolio consists of 210 office tenants and 125 retailers and restaurants in Detroit’s technology-centric downtown, the majority of which are new to the market. Key office tenants include Coyote Logistics, IBM, Microsoft, Quicken Loans, LinkedIn, StockX, Universal McCann, UBS, Ally Bank’s national headquarters and Fifth Third Bank’s regional headquarters. Key retail tenants include H&M, Plum Market, The Lip Bar, 6 Salon, Lululemon, Shake Shack and countless others.
Bedrock is currently developing four transformational projects including the Hudson’s Site, Monroe Blocks, Book Tower renovation and One Campus Martius expansion. Bedrock is also undergoing construction of City Modern, a community development in Detroit’s Brush Park neighborhood. Partnering with Detroit-based Shinola, Bedrock developed the world’s first Shinola Hotel on Woodward Avenue, which opened in early 2019.
Bedrock is dedicated to creating jobs for Detroiters and investing in job training. Over the last year, the company has invested in both the Randolph & Breithaupt Career and Technical Centers to build a pipeline of talent for Detroit’s growing economy.
Creating unique experiences through real estate is Bedrock’s mission. To make this a reality, Bedrock and its affiliates continuously invest in significant public art installations and placemaking initiatives throughout the city.
Click here to view a complete timeline of Bedrock and the Rock Family of Companies’ engagement within the Detroit community.