GRAND RAPIDS — The historic Waters Building in downtown Grand Rapids is now under new management.
Farmington Hills, Mich.-based Friedman Real Estate Solution Inc. announced this month that it had been awarded the management contract for the 280,000-square-foot building, which is in receivership.
The building went into foreclosure last September, according to former building owner, Bill Godrey, partner at the Ann Arbor-based Three Oaks Group LLC. The company also owns Waters Realty and Development, which managed the property.
When Three Oaks purchased the historic six-story property in 2006, Gordey said the company paid approximately $27 million for the building, which at the time was 90 percent leased. In 2012, the building was appraised for $12 million, which basically explains why Three Oaks doesn’t own the property anymore, Godrey told MiBiz.
With the collapse of the financial markets and the ensuing recession, property values took a huge hit across the board. Three Oaks felt the weight and decided it wasn’t worth it to reinvest any more money into the building.
A New York-based bond holding company currently owns the mortgage.
Tenants in the building told MiBiz they had been notified that the building was in receivership, but said they had not seen any changes in staffing. If anything, tenants said they noticed a few new offices move in over the last few weeks.
The building is home to Grand Rapids Area Chamber of Commerce, The Right Place Inc., law firm Rhoades McKee PC, and other professional offices.