Description
Marcus & Millichap has been retained as the exclusive marketing advisor for the disposition of the General Dynamics Land Systems HQ Building located at 6353 Fourteen Mile Road in Sterling Heights, Michigan.
The building consists of 51,620-square feet and is 100 percent occupied by their Land Systems Division through August, 2017 (8.25 years remaining). However, the lease is equipped with the option to terminate every three years with 12 months notice. Their first option to terminate expired August 31, 2008 in which they did not exercise their option. Therefore, their next option to terminate will not occur until 2011.
General Dynamics is on a NN lease in which they are responsible for all operating expenses including landscaping, ice and snow removal. The landlord is responsible for the repair or replacement of the building structure, outer walls, parking lot and capital expenditures for heating and air conditioning and mechanical systems exceeding $5,000.
The property itself is entirely engineering/office space with only 2,121-square feet of shop space (4 percent) and is 100 percent air conditioned and is equipped with a fire suppression throughout the entire building.
The subject property is located on the north side of Fourteen Mile Road, just east of Mound Road. The asset is provided excellent north/south and east/west access via I-696, Fourteen Mile Road, Mound Road and Van Dyke Avenue.
The General Dynamics building is located in the West of Van Dyke/Macomb Industrial Submarket consisting of 1,194 flex and industrial buildings totaling 52.39 million square feet of space. Within the submarket the current occupancy is 92 percent with rental rates ranging from $2.75 to $9.44 per square foot with an average rental rate of $4.54 per square foot. However, the majority of the buildings within the area submarket have less office space than the subject property. Of the 8 percent of space that is vacant, this includes the former Ford/Visteon plant of 1,870,480-square feet, the former Continental Paper & Supply Building of 319,000-square feet and the former H.B. Stubbs Company building of 286,985-square feet, among others.