City records obtained by Crain's Detroit Business show that Ford paid $90 million to acquire Michigan Central Station, the long-abandoned and heavily blighted train station where it plans to headquarter its urban campus to work on autonomous and electric vehicles.
The figure had not previously been divulged and puts the purchase price at $150 per square foot for the 600,000-square-foot building, which has been abandoned since 1988. That's a huge premium for Detroit real estate, where downtown office lease rates have reportedly been edging up toward $25 per square foot. One real estate broker told the publication the price reflects a buyer that intends to use the property itself, rather than flip it for a profit. A local real-estate financier had a more succinct verdict in an email to Crain's: "DAMN!!!!!"
Ford purchased the train depot from the Moroun family, owners of a local trucking firm and the nearby Ambassador Bridge, which connects Detroit and Windsor, Ontario, on May 22.
Ford held a celebration at the train station in June to outline its vision for the building and opened the former depot to the public for a series of viewings, offering many people their first opportunity to see the hulking Beaux Arts building in decades. Ford's plans call for space for its electric- and autonomous-vehicle business teams, startups and suppliers, residential units on the top two floors, and commercial space on a first floor that will be open to the public. It envisions housing 2,500 Ford software engineers and tech employees and another 2,500 from suppliers and other partners when the building opens in 2022.
The automaker says it plans to spend $740 million on rehabbing Michigan Central Station and other nearby properties in Detroit's Corktown neighborhood. It's seeking nearly $239 million in various tax incentives.
Related Video:
The figure had not previously been divulged and puts the purchase price at $150 per square foot for the 600,000-square-foot building, which has been abandoned since 1988. That's a huge premium for Detroit real estate, where downtown office lease rates have reportedly been edging up toward $25 per square foot. One real estate broker told the publication the price reflects a buyer that intends to use the property itself, rather than flip it for a profit. A local real-estate financier had a more succinct verdict in an email to Crain's: "DAMN!!!!!"
Ford purchased the train depot from the Moroun family, owners of a local trucking firm and the nearby Ambassador Bridge, which connects Detroit and Windsor, Ontario, on May 22.
Ford held a celebration at the train station in June to outline its vision for the building and opened the former depot to the public for a series of viewings, offering many people their first opportunity to see the hulking Beaux Arts building in decades. Ford's plans call for space for its electric- and autonomous-vehicle business teams, startups and suppliers, residential units on the top two floors, and commercial space on a first floor that will be open to the public. It envisions housing 2,500 Ford software engineers and tech employees and another 2,500 from suppliers and other partners when the building opens in 2022.
The automaker says it plans to spend $740 million on rehabbing Michigan Central Station and other nearby properties in Detroit's Corktown neighborhood. It's seeking nearly $239 million in various tax incentives.
Related Video:
Featured Gallery Ford Michigan Central Station renderings
Sign in to post
Please sign in to leave a comment.
Continue