Hayman Co. has paid $55 million for the Troy Officentre complex.
The deal that closed Friday for the 732,000-square-foot property along East Big Beaver just north of I-75 amounts to $75.14 per square foot.
Andrew Hayman, president of Southfield-based Hayman Co., said about $10 million will be spent updating and renovating the five-building property.
Improvements include new elevators, some roof replacements, parking lot and parking deck repairs, and landscaping and signage upgrades. Common areas are also expected to be improved., Hayman said.
According to CoStar Group Inc., the average asking rent is $17.95 per square foot per year, and Hayman said he and New York City-based Torchlight Investments, an investment partner in the deal, hope to increase rents over approximately a five-year ownership period to more than $20 per square foot.
"We see a tremendous value opportunity, but at what we feel is a really good price per square foot," Hayman said.
The complex, most of which was built in the mid-1980s, is about 83 percent occupied, with large tenants including J.D. Power & Associates (43,000 square feet), St. John Providence (30,000 square feet), Urban Fulfillment Services (30,000 square feet), General Physics Corp. (60,000 square feet) and Dialog Direct (60,000 square feet), Hayman said.
Hayman Co. will manage and lease the building to tenants, and serve as construction manager on the renovations.
The previous owner was a subsidiary of Osprey S.A. Ltd.
Anne Galbraith Kohn, senior vice president in the Capital Markets Group in the Southfield office of Los Angeles-based CBRE Inc. brokered the deal.
Hayman Co. has an office portfolio of about 4 million square feet under ownership and management, plus more than 10,000 apartment units spread across about 40 properties, Hayman said.