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Thursday, 15 May 2014 11:42

616 Development partners with Rockford in purchase of west side Grand Rapids property

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Grand Rapids-based 616 Development LLC and Rockford Development Group have partnered to purchase an aging property in the city’s west side neighborhood.  

The two firms bought the 48,579-square-foot property at 420 Alabama Avenue for $1.6 million, or approximately $33 per square foot, according to information from CoStar Realty Information Inc., an industry service firm.

The deal had been in the works for several months, seller John Hyatt confirmed to MiBiz.

(The building) has been available for quite some time, but I just haven’t had a big enough incentive to move,” he said. “Now I’ve got enough incentive.”

A spokesperson for 616 Development said the firm was currently in a "hold pattern” and would discuss the firm's plans in the “coming weeks.”  

The property, which is located just north of Bridge Street, is less than a block away from Rockford Construction’s new headquarters at 601 First Street NW.

Representatives from Rockford declined to comment for this report.

Former owner Hyatt told MiBiz that the purchasers are considering some type of mixed-use development, adding that “interesting things” are happening in the neighborhood.

Built in 1910, the three-story industrial building has most recently been the headquarters for Hyatt’s architectural and theatrical lighting supply service company, John S. Hyatt & Associates.

Hyatt used a 1031 exchange with the 420 Alabama deal to roll the proceeds of the sale into the purchase of a 30,000-square-foot building at 1765 Alpine Avenue NW. The second transaction closed yesterday, Hyatt said, adding that plans are in the works to move the company’s operations to the site.

“For us, it’s a much more usable space,” he said. “The building we’re currently in … (has) multiple floors and boilers and freight elevators (that) are a good thing to get away from.”

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Editor’s Note: This version of the story has been updated from its previous version. 

 

Read 5314 times Last modified on Thursday, 15 May 2014 14:40