Challenges: North Troy Corporate Park is made up of eight (8) office buildings surrounding the I-75/Crooks Road corridor. In the late 1990’s and into the mid-2000’s, these buildings provided a central location for EDS to support its major client, General Motors. In late 2007, EDS vacated 500,000 square feet in the office park resulting in a drop in occupancy of almost 50%. At the same time, the overall Troy market vacancy was increasing substantially under the weight of the US automotive crisis. Marketing efforts, including a name change to Baluster Park, proved to be unsuccessful. The properties were returned to the Lender in 2011. Many of the North Troy Corporate Park buildings were designed to be occupied by a single user and smaller tenant build-to-suits were cost prohibitive resulting in the failure to re-lease the properties. Exterior and interior maintenance programs were deferred due to the cash flow constraints of the buildings.
Solutions: Friedman was awarded the management & leasing of North Troy Corporate Park buildings in mid-2012. Each of the buildings was individually assessed to determine the upgrades and repairs necessary to re-position these buildings in anticipation of an aggressive leasing campaign. A few of the buildings were identified as suitable for the demising and space reductions necessary to accommodate a smaller scale tenant. Exterior and interior upgrades including parking lot resurfacing, roof replacements, exterior painting, landscape upgrades, lobby renovations, internal building system restorations, and general maintenance and repairs were completed within 90 days of the purchase. The North Troy Corporate Park name was returned and re-branded with a new building logo and an innovative marketing campaign was put in motion.
Results: 5750 New King and 750 Tower Drive were identified as the initial target buildings for overall improvement. The lobbies in each were designed and re-modeled to increase building appeal for potential tenants. Friedman immediately signed a lease with a prominent tenant for the occupancy of two (2) floors in the 800 Tower Drive building. Leasing activity has increased tremendously and occupancy throughout the park has increased over 20% in less than one year.
Through the successful repositioning of this development, North Troy Corporate Park has been restored to its long-standing position in the community as one of the premier corporate office parks in the Troy submarket. Now home to Magna International’s U.S. headquarters, 750 Tower Drive, encompassing 248,427 square feet, is fully occupied. Overall occupancy at North Troy Corporate Park has more than doubled since Friedman assumed management and leasing responsibilities.
750 Tower Drive has had a significant impact on the surrounding community, which includes both commercial and residential developments. Economically, it has revitalized North Troy Corporate Park and has served as a catalyst for additional development of office, housing, retail and restaurants by increasing desirability in the North Troy submarket.