By Evelyn Jozsa
An affiliate of Phoenix Investors has acquired Delphi Flint East, a former assembly plant in Flint, Mich. The property, totaling more than 550,000 square feet, changed hands for $3.2 million. River Valley Bank provided the senior mortgage financing and Paul Hoge of Signature & Associates brokered the transaction.
The building located at the intersection of Dort Highway and Robert T. Longway was originally constructed in 1960, and requires extensive renovations. It features 42-foot clear ceiling heights, 17 loading docks and many overhead cranes. The new owner plans to renovate the facility for its future tenants.
“Although we have a real estate presence in the state, this acquisition represents our entry into the rebounding industrial markets of Michigan,” said Kurt Jensen, senior vice president of acquisitions and leasing at Phoenix Investors, in prepared remarks.
The purchase is part of Phoenix Investors’s strategy to expand its Michigan portfolio, as the company has other pending acquisitions in the state and throughout the Midwest. Earlier this year, it has purchased two industrial spaces, comprised of more than 1 million square feet, in Beloit and Jefferson, Wis.
The Flint industrial submarket shows strong fundamentals. During the last five years, the market vacancy rates declined from 10.5 percent in 2011 to 3.7 percent as of 2017. Among warehouse and distribution facilities, the market vacancy rate is even lower—1.7 percent for buildings over 100,000 square feet.
“We are encouraged by the opportunity that strong tenant demand provides, specifically in the Flint industrial market. A long period of blight and the prospect for future value-add improvements provides an opportunity in the coming months to immediately execute on a turnaround plan for this asset,” added Jensen.
Image courtesy of Phoenix Investors