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Sunday, 02 February 2014 14:24

Former Israels’ store location on GR’s west side changes hands

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Former Israels’ store location on GR’s west side changes hands Photo: JOE BOOMGAARD

A building on Grand Rapids’ West Side initially renovated by developer and businessman Bob Israels now has new ownership.

An unnamed Canadian investor recently purchased the bank-owned Aslan Building at 600 Seventh Street NW, said Chip Hurley, managing director of Newmark Grubb Cressy & Everett. The building is the former site of The Other Store that served as a clearance center for Israels Designs for Living and Klingman’s Furniture before closing in the recession.

Eric Trierweiler, a broker for Grand Rapids-based Prime Development who represented the as-yet unnamed buyer, confirmed the sale to MiBiz.

Coastal Real Estate Holdings LLC, a holding company for Holland-based Macatawa Bank Corp., was the seller.

[RELATED: Orion details plans for former Aslan Building on GR’s west side]

Israels lost the property to Macatawa in 2010 when the bank sued him for a past-due loan, according to previous reports.

The 115,000-square-foot building went under contract shortly after Newmark launched its new brokerage office in West Michigan, and the deal closed in late December, Hurley said.

The three-story Aslan Building had a new roof and new mechanicals installed as part of renovations completed in 2005. At the time, Israels’ plans called for the Aslan Building to become a mixed-use property with residences above ground-floor retail space.

A brownfield plan is in place for the property, which is also in the city’s Renaissance Zone.

Neither broker was able to comment on the new owner’s future plans for the building, but Hurley noted that the buyer is working through local partners that run other investments for him in the area.

The sale comes as banks across West Michigan, Macatawa included, have continued to shed foreclosed or repossessed properties — known as other real estate owned, or OREO — that they picked up in the recession.

Through the first nine months of 2013, Macatawa Bank’s OREO dropped to $42.8 million from $51.6 million at the end of 2012. Macatawa Bank also generated a net gain of $1.0 million on the sale of foreclosed properties, partially offsetting the $2.4 million in valuation writedowns as of Sept. 30.

Macatawa’s losses on OREO also declined from $7.9 million through the third quarter of 2012 to $4.0 million through the same period last year.

Read 2652 times Last modified on Monday, 03 February 2014 16:07

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