KENTWOOD — A Cleveland-based developer with properties elsewhere in Michigan has made its first entry into the greater Grand Rapids market with the purchase of an industrial complex from office furniture maker Knoll Inc.
Industrial Commercial Properties LLC closed June 26 on the transaction for the 619,165-square-foot plant, located on a 37-acre parcel at 4300 36th Street in Kentwood. The company plans to upgrade the facility in the coming months and market it for lease.
Chris Semarjian, owner of Industrial Commercial Properties, told MiBiz the company will “let the market decide” whether to lease the building in its entirety or split up the space for multiple tenants.
Knoll and Penske Logistics remain tenants of the facility, but the developer has the ability to offer the entire space for lease. Semarjian estimates the site could likely support up to six companies.
“It’s a good location not only for industrial manufacturers and industrial distributors, but it also has a large office component so we can do a call center there or a headquarters,” Semarjian said, calling it a “wonderful building” that’s in a “world-class” location.
The developer plans to make a “multi-million investment” in modernizing the facility and campus, which is in close proximity to the Gerald R. Ford International Airport.
Jones Lang LaSalle IP Inc. (JLL) brokered the property deal.
Semarjian declined to comment on the purchase price for the property. Previously, Greenville, Pa.-based Knoll disclosed that it had a tentative deal to sell the plant for approximately $13 million, as MiBiz previously reported.
The office furniture manufacturer decided to vacate the plant as part of a corporate consolidation plan that included eliminating 180 hourly and 30 salaried positions in Kentwood and moving production to other Knoll facilities in North America. Knoll continues to operate a plant in Muskegon.
The investment is Industrial Commercial Properties’ first in the Grand Rapids area, although the company’s portfolio includes properties in Holland and Southeast Michigan. The company’s experience elsewhere in West Michigan led it to target deals in the Grand Rapids metro area, according to Semarjian.
For example, the company owns the Holland Technical Center, where automotive supplier GHSP recently signed a long-term lease agreement, as MiBiz previously reported.
“We love Michigan to begin with,” Semarjian said, noting the company has enjoyed “great success” in other markets around the state. “Grand Rapids is a very large office and industrial marketplace, with strong demand and a lot of existing user base in place. It’s a great community with fantastic work ethic.”