NEWS

february 2007

Steelcase acquisition

NY-based Ashley Capital has acquired the majority of Steelcase Inc.’s Grand Rapids, MI campus. Steelcase, the global office environments manufacturer, had modernized its manufacturing systems, creating over four million SF of vacant manufacturing space. In the transaction, Steelcase retained only its global headquarters office building (approximately 370,000 SF) as well as its University Learning Center (approximately 750,000 SF, of which half will be demolished by Ashley) while Ashley purchased the remaining 18 buildings on over 200 acres. Ashley’s plan will include some demolition of obsolete buildings, renovation of other industrial buildings and the creation of retail development on the site. Ashley has been in discussions with several tenants in need of industrial and office space in excess of 200,000 SF each.

While the master plan is still in its formative stage, Ashley intends to work closely with the community to keep its redevelopment goals in line with the city’s vision for the site. Ashley will be demising much of the space to accommodate multi-tenant use and installing more environmentally friendly lighting, heating and air conditioning. A central utility system currently in place will be eliminated as part of this conversion. Ashley anticipates spending in excess of $50 million on its redevelopment of the site.

Ashley has become a national leader in working with major corporations to solve their real estate requirements. In transactions with General Motors, General Electric and Solo Cup Company, to name a few, Ashley has acquired and renovated large industrial complexes no longer needed by the companies. Not only do the corporations get the obsolete assets off their books, but Ashley creates value in converting these single tenant outdated facilities into multi-tenant efficiently designed properties. With the Steelcase acquisition, Ashley has acquired from corporate America just under ten million SF as part of this program.
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