Thats Not A Lot
The offer is from 30 percent to 50 percent less on a per-square-foot basis than the others, depending on how a sale is calculated.
The entire Area 4 lot is 2.8 acres, or 121,968 square feet. At a sale price of $3 million, the entire lot would sell for just under $25 per square foot.
But the entire lot can't be developed because a U.S. 131 overpass limits the construction height of any project, leaving about 2 acres, or 87,120 square feet, that can be easily built on. At a sale price of $3 million, the 2 acres would sell for just under $35 a square foot.
Over the past few years, though, city-owned properties in the downtown district have carried a price tag that tops $50 per square foot. The going rates for three of these are:
- $54 per square foot for the former City Centre parking ramp site at Fulton Street and Division Avenue.
- $55 per square foot for a surface parking lot at Ottawa Avenue and Fulton Street situated between The BOB and 50 Monroe Place.
- $51 per square foot for the
at Public Works Island 201 Market Ave. SW.
Following a pricing pattern of at least $50 per square foot, the entire Area 4 lot should draw a bid of $6 million and the developable portion $4.3 million. The DDA has entered into sales negotiations with KG Development.
The city is also considering selling the Area 5 lot, which is immediately east of the Area 4 lot. Area 5 is about 1.6 acres, or 68,900 square feet. The property is being appraised and the asking price likely won't be revealed until the city issues a request for proposals, which is expected to be next month.
KG Development wants to build a movie theater with up to 14 screens on the Area 4 lot. The project also includes 12,500 square feet of separate retail space and up to three levels of parking above the theater. A companion residential and retail project could be built on the Area 5 lot, should the developers have the winning bid for that property.
KG Development is a partnership between Gershenson Realty & Investment of