EAST LANSING – Two companies have submitted marketing proposals to the East Lansing DDA that officials hope could ultimately lead to the sale of several long-vacant properties and new development near downtown.
The city’s DDA purchased the properties at 314, 328, 334, 340 and 344 Evergreen Ave. more than 15 years ago for just over $5 million and has been looking for a developer ever since. A development proposal from a local company failed last year, partly due to the COVID-19 pandemic, and the DDA was back to square one.
The five adjacent properties are located directly on Albert Avenue, where local developer River Caddis proposed building an eight-story, 360,000-square-foot building in 2020.
The expiration of the contract was due to the COVID-19 pandemic, said DDA Chairman Mike Krueger, but the authority’s board still considers finding a buyer for the properties a priority. Members hope an outside marketing firm can recruit buyers who may have new ideas for the development.
“We just want to see what potential developers want to do there,” Krueger said. “Maybe there are people who have ideas for this property that are completely different from anything we’ve ever imagined.”
Two marketing proposals submitted
The authorities began soliciting marketing proposals in late May and set the deadline for submission at the end of July.
Two firms – Westland-based Catina Willis Realty DBA Next Level Realty and Investments and real estate firm Savills, a London-based company with an office in Detroit – submitted plans. Both documents were submitted to the DDA earlier this month.
Offers from companies outside the Lansing region could be beneficial, Krueger said.
“They may have other contacts with developers across the country who might be interested in the property,” he said.
Here’s a quick look at what each firm is offering, including “negotiable” compensation terms, as shown by city records:
- Catina Willis is offering a “one-year commitment.” Her offer states, “Our goal is to achieve sales as quickly as possible by leveraging our expertise and aggressive marketing strategies to expedite the process.” The proposed compensation would include “$1,500 per property up front to cover marketing costs” and 5% of the property’s sale price.
- Savills is also proposing a one-year agreement. “With such a prominent development site as this, we expect a more sophisticated buyer base to be involved and we will consider the track record and experience of developers when evaluating offers,” the company said in its proposal. The plan includes compensation of 6% of the total sale price if the property sells for $1.5 million or more, or $90,000 if it sells for less than $1.5 million.
What happens next?
The DDA will likely reach an agreement with one of the two companies, Krueger said.
“It hasn’t been decided yet which one,” he said. “We’re still negotiating the cost of that.”
Officials hope to negotiate an agreement with one of the companies this month or in September, Krueger said.
He believes it is possible that a regional developer will take over the property.
“I think there are some local developers who might still be interested in it,” Krueger said. “I think they’re just getting everything ready before they submit a proposal.”
Contact reporter Rachel Greco at [email protected]. Follow her on X @GrecoatLSJ .
