Magna International Inc.'s new seating division headquarters in Novi, Mich. sold last month for a pandemic-era high price for a single office building in Metro Detroit during the COVID-19 pandemic.
The 180,000-square-foot building sold to Norfolk, Va.-based Harbor Group International LLC for $58 million, or $322.22 per square foot, according to CoStar Group Inc., a Washington, D.C.-based real estate information service. The property also sits on 11.7 acres east of M-5 and north of 13 Mile Road.
The previous owner was Irvine, Calif.-based IRA Capital LLC. The buyer and seller are verified in Novi land records, although a sale price is not listed.
A property transfer affidavit filed with the city of Novi said that purchase price "exceeds $50 million" and "represents the present value of payments that automotive supplier Magna has committed to make for its lease of the subject build-to-suit property, and also reflects the strength of Magna's credit worthiness."
CoStar lists no other office buildings in the metro region selling for more than $50 million since Jan. 1, 2020.
Messages were left Friday afternoon and Monday with an Eastdil Secured LLC broker out of Chicago described by CoStar as a contact on the deal, as well as a Harbor Group representative on Friday and Monday.
Tracy Fuerst, vice president of corporate communications and public relations, said in an email that there are roughly 350 employees occupying the building.
According to CoStar, Magna Seating pays $17.27 per square foot per year to lease the building, which would equate to rent payments of approximately $259,000 per month, not including things like taxes and insurance. The lease expires in January 2035, CoStar says.
Crain's Detroit Business sister publication Automotive News reported four years ago when the building opened that Magna had spent $48 million building the property between December 2015 and December 2016.
When it opened, it housed 450 people working in areas of accounting, purchasing, human resources, engineering and sales and marketing, Automotive News reported.
During the COVID-19 pandemic, state public health orders have required people to work from home when it is feasible, leaving many offices severely reduced of their typical worker count.
That has led to speculation about the future of office space not just in Metro Detroit, but around the country.
Senior reporter Dustin Walsh contributed to this report.