FLINT, MI—The Michigan State University plans to lease 40,000 sq. ft. at the former Flint Journal newspaper building to house the MSU College of Human Medicine’s public health program. Uptown Reinvestment Corp., a non-profit group, bought the property after it was closed by the Journal’s successor, the MLive Media Group. Uptown plans to renovate the rest of the 120,000-sq.-ft. building into loft apartments.The Board of Trustees for the East Lansing, Mich.-based college has agreed to pursue the lease, and is working with Uptown on finalizing financing arrangements. {Source: NREI}
Month: January 2013
Bankrupt Pinnacle Airlines chooses new HQ
ST. PAUL, MN—Pinnacle Airlines Corp. has announced it is moving its headquarters from Memphis, Tenn. to vacant space currently leased by Delta Air Lines here at the Minneapolis-St. Paul International Airport property. According to a company statement, the decision came after an exhaustive evaluation of the most cost-effective option as Pinnacle emerges from Chapter 11. Flying as Delta Connection, Pinnacle operates 191 regional jets on 1,000 daily flights to more than 100 cities in the United States and Canada. {Source: NREI Daily}
Incoming NAREIT Chair says REITs well positioned to capitalization on recovery for 2013
Increased Liquidity, Capital Availability, Improving Property Fundamentals Should Bring Another Strong Year for Property Investment Trusts. “For companies that can access the bond markets, and most of the larger REITs are structured to use that type of capital primarily, as opposed to mortgage debt — the debt markets are incredibly attractive right now,” he said. “Over the last 12 months, those companies have been issuing debt at record low coupons and in significant volume,” said Ed Walter, new President & CEO of NAREIT.
FAA Approves Midway Airport Lease Idea
CHICAGO—The U.S. Federal Aviation Administration has approved the city’s preliminary application to a pilot program to investigate the privatization/lease of Midway Airport.
The approval allows the city to move forward with issuing a request for qualifications (RFQ) for potential interested bidders in Midway Airport and test market interest, conditions and revenue generation possibilities for the potential lease of Midway. The city is contemplating a lease of the airport, the air travel option for Chicago after O’Hare International Airport, for fewer than 40 years. The proceeds will be used to pay off debt, and the city will retain ownership and receive a percentage fee that will grow over time. Bids are due Feb. 22. {Source: NREI Daily}
$10.3 Billion and counting …..
That is the figure that Bank of America will pay Fannie Mae to settle claims resulting from the mortgage-backed investments and expediting foreclosures. BofA also said that it is selling mortgage servicing rights on about 2 million residential mortgage loans which have an total unpaid balance of +/- $306 billion, according to this morning’s Detroit News.
Turner wins big
Turner construction won a $14 million contract for the design and construction of a new US Border Patrol station in Detroit. Work is scheduled to begin Spring 2015. The 45,000-square-foot facility will be designed to accommodate about 100 agents, a kennel, a fitness area, holding facilities, processing areas and storage space. It also will include a helipad, communications tower and security fencing according to Crain’s Business.
Zazios closing
After less than 3 years in operation, the wonderful Zazios Italian restaurant in Birmingham is closing on 1/31 because it did not hit its target revenue amount of $4 million per year according to Crain’s Detroit Business.
Mortgage debt relief extended by Congress
Per NAR, the law, which was set to expire at the end of 2012, is crucial to foreclosure mitigation efforts such as forgiveness and short sales. The Mortgage Forgiveness Debt Relief Act allows homeowners who received principal reductions or other forms of debt forgiveness to not pay taxes on the amount forgiven.
Judeh & Associates 