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Developers Move to Meet Office Demand

Business to Business Monthly Magazine
Ann Arbor Area Chamber of Commerce

  Date -- September, 2000 - By Bill Milliken, CCIM
 Last spring Avis Farms was running out of land. But that was before they moved to acquire the Cody property, the 127 acres on State Road immediately south of Avis Farms. Trish Kalmbach, Avis Farms president, says Buffalo Bill Cody actually slept here, taking advantage of a shirt tail relative’s hospitality when he was booked for appearances in Detroit years ago. 
Situated on the northwest corner of State and Textile Road,  the land is bisected by a Conrail freight railroad line. The easternmost piece along State Road is already zoned as a Planned Unit Development (PUD), while the acreage on the other side of the tracks remains Agricultural – for now. Kalmbach says their proposal last month to Pittsfield Township to rezone the Agricultural portion to Business Park met with no opposition. “This means we could have the necessary permits and be ready to go [with development] in a year,” she notes. That pushes the size of Avis Farms to about 300 acres. 
 
Avis South to Launch This Fall
 Prior to getting the Cody land under contract, Avis Farms had focused its development energy on Avis Farms South. This is another  parcel of 140 gross acres located on the adjacent southeast corner of State Road and Textile Road. Breathing a sigh of relief, Kalmbach notes that her permit applications for water and sewer usage at Avis South were approved last month by the Ypsilanti Community Utilities Authority (YCUA). and forwarded to the State of  Michigan Department of Environmental Quality (DEQ) which will issue the permits.
YCUA (pronounced YUH-kuh by those in the know) is not a household term. But the agency’s Larry Thomas notes that it sells 14 million gallons of water to users in Washtenaw and western Wayne County, and treats 23 million gallons a day at its plant near Willow Run Airport. The permits are the lifeblood of outlying development that has no access to municipal Ann Arbor, Ypsilanti or Saline water and sewer hookups.
 Avis South’s first building, which received site plan approval at Pittsfield Township last month, should break ground later this month, according to Trish Kalmbach. Avis South III, as it is known, is being done on a speculative basis. That is to say the 75,000 square foot “flex” building will be built without any pre-leasing and, if their luck holds, will be rented to a user by the time it is completed late next spring.  The Heil Partnership (architects) and J.S. Vig Construction Company will design and build the building, respectively. The asking rent, according to broker Cam McCausland, will be $14.50, triple net.
 
Valley Ranch “Spec” Buildings Underway
 After assessing the office market last spring, Ann Arbor developer Thomas B. McMullen Co. pulled out all the stops on its Ponds Office Center this summer. Construction is underway on a pair of 30,300 square foot, single story buildings on five acres of land at McMullen’s Valley Ranch Office Park, which is on Ann Arbor’s southwest side between Ellsworth Road and the I-94 expressway. The ten year old business park already hosts corporate headquarters for Discount Tire, Integrated Design, Navigant International (formerly Lovejoy-Tiffany Travel) and Molly Maid, Inc., among others. 
 Hobbs & Black designed the buildings, and McMullen’s in-house construction arm is the general contractor. Occupancy is projected for next spring. The asking rental rate is $15.00 per square foot, triple net, and it includes a tenant buildout allowance for the space. Leasing director Randy Maas indicates negotiations are already underway with a user to lease about 45,000 square feet at the Ponds, but he declined to disclose the name of the prospective tenant.
 McMullen will break ground on another Valley Ranch “spec” building this fall. Unnamed as of this writing, it is a 33,600 square foot “flex” building, located by the Valley Ranch water tower.
 
Scio Town Center To Add Office Use
 A revised plan for the former Scio Town Center shopping center just west of Ann Arbor is expected to be submitted to the Scio Township planning commission. Developer Joe Grammatico has not yet built the 117,000 foot, Zeeb Road neighborhood shopping center he first presented in 1996. Township Supervisor Spaulding Clark indicates the current discussions involve a mix of retail, office and second story residential uses for the site, which is located across Zeeb Road from the new 210,000 square foot Meijer store -- which is under construction.

For More Information Contact:
Bill Milliken, CCIM
Milliken Realty Company
100 Huron View Blvd.
Ann Arbor, MI 48103
Tel: 734-821-4321
Fax: 734-821-4322
Internet: info@millikenrealty.com

 

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