DETROIT BUSINESS MAIN 07-23-07 A 1 CDB 7/20/2007 7:28 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 30 JULY 23 – 29, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved Big deals on big buildings THIS JUST IN State pursues Deloitte names new network for managing partner 2 Riverfront Towers sold Tom Dekar, vice chairman at Deloitte & Touche USA L.L.P., is turning over the sharing patient reins of the Detroit office to a new managing partner. Joseph Angileri has been to New Jersey investor named managing partner of data by 2010 the Detroit office of Deloitte, replacing BY SHERRI BEGIN Dekar. CRAIN’S DETROIT BUSINESS Dekar had Deal estimated been both Southeast Michigan health care head of the providers would be able to share in- Detroit office at about $50M formation on patients in order to co- and manag- ordinate their care as early as 2010 ing principal BY DANIEL DUGGAN under a new online patient informa- in charge of CRAIN’S DETROIT BUSINESS tion network. Angileri the 12 offices The state has committed $658,356 in in the seven-state, North Two of the three towers in Detroit’s luxury grant funding to the Altarum Institute Central region. He will re- residential development, Riverfront Towers, in Ann Arbor to lead planning for sev- main in charge of the re- have been sold to a New Jersey investor. eral regional health-information ex- gion. In a deal estimated at roughly $50 million, changes. The grant is part of a $4.5 Angileri said it was de- commercial real estate professionals say, the million project the state is funding to cided that as the Detroit towers are the only Detroit buildings that develop or expand online patient in- office, Deloitte’s eighth- could command such a price. Towers 100 and 200 (far right and center) have been formation programs. largest nationwide, con- “This is going to remain the primo rental sold. “We see this as a benefit for pa- tinues to grow, it needed property in Detroit,” said Mark Rohr, a part- tients whose records will be able to someone to act exclusively ner in the Birmingham office of Phoenix-based RIVERFRONT TOWERS follow them through technology,” as a managing partner. Hendricks & Partners, which brokered the deal. Ⅲ Where: 100, 200 and 300 Riverfront Drive, off East said James McCurtis Jr., assistant to The Detroit office grew by “The feeling was that this is a real bargain, and Jefferson west of Joe Louis Arena. the director of the Michigan Depart- a combined 23 percent in will be a great long-term investment as Detroit Ⅲ What: Gated community on 24-acre site with ment of Community Health. 2005 and 2006 to a total of improves.” landscaped parkland, private marina, sand volleyball Within two to three years, the state 1,010 employees. Plans are The 100 and 200 towers on Riverfront Drive court, health club, bar and grill, market, hair salon, dry wants to establish local access to pa- to add another 125 this near Joe Louis Arena were sold by Florida- cleaners and indoor walkway to Joe Louis Arena and tient information, and, ultimately, to year. based Ram Development Co. to New Jersey- People Mover. provide statewide access, he said. Angileri, 49, a member of based Empirian Acquisitions July 13. Ⅲ Units: 555 apartments; 285 condos. “The new exchange would help in- Crain’s 40 under 40 class of Eric Taylor, senior investment advisor with Ⅲ History: Two towers built in early 1980s, third in crease quality of care through re- 1991. Renovated 2005-2007. duced errors, access to care, and ... 1997, was managing part- See Riverfront, Page 29 ner in charge of the tax more efficient (care),” said Jeff practice in Detroit before Moore, Altarum senior vice president transferring to New York and chief development officer. City in 2002 to head the na- Other regions including Santa Bar- tional corporate-finance bara, Calif.; the border area between and mergers and acquisi- Michigan and Indiana near South tions practice. Most recent- National buyers heat up Bend; and the Research Triangle area ly, he was national manag- in North Carolina have similar initia- ing partner for strategic tives, he said. relationship management “Some have been successful and for nonaudit clients. local industrial real estate some haven’t been, which is why the “It’s great to be back planning process we are leading is so critically important. You have to look here,” said Angileri, who BY DANIEL DUGGAN at issues of governance and sustain- had retained a residence in CRAIN’S DETROIT BUSINESS Franklin while based in ability if these (exchanges) are really New York City. Investors holding on to industrial real estate are seeing to take root.” “Michigan’s transforma- opportunities to cash out as selling prices have been on the The institute will collaborate with tion provides great growth rise since the second quarter of 2006. about 40 other organizations in opportunities for us.” Driving up prices and demand are risk-tolerant national pulling together a plan and looking at When you talk about the investors eager to buy at prices lower than in other national architecture, software to converge pa- things that are going on markets, betting that the market will stabilize and net a high tient data from various health care here, whether it’s supplier Auto talks. Housing. The U.S. return. provider systems, access and privacy consolidation, low-cost economy. Fuel prices. Private- Industrial property in the Detroit market sold for an aver- issues, and how the system will be country sourcing, labor is- equity and hedge funds. The age of $50.61 per square foot in the second quarter of 2007, ac- funded, Smith said. Governance is also an issue; creating a nonprofit to sues, health care and pen- impact of those trends and cording to Rosemont, Ill.-based Grubb & Ellis, up from a 2006 sion issues, we’ve done a average of $45.32 and a 2005 average of $48.50. operate the exchange is one option. lot of work in those areas.” more are covered in Crain’s Dealmakers are keeping an eye on capitalization rates for Altarum expects to finish planning — Tom Henderson Midyear Economic Report properties — net operating income divided by property val- and request vendor bids for the ue — and finding indicators of high rates of return in the fu- Southeast Michigan exchange by Sep- See This Just In, Page 2 beginning on Page 11. See Industrial, Page 29 See Altarum, Page 28 Report calls for more CRAIN’S LIST women in tech programs, Fastest growing companies, NEWSPAPER Page 27 Page 20 DETROIT BUSINESS MAIN 07-23-07 A 2 CDB 7/20/2007 7:06 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS July 23, 2007 heading to a new level, with the as interim dean since December in Detroit has pulled out of the Crain’s hires staff member THIS JUST IN tribes last week appealing an 2005, when Harvey Kahalas deal, according to Jane Shallal, April U.S. District Court ruling that stepped down to return to the president of the Associated Food Mark Thompson-Kolar, 39, has ■ From Page 1 favored the state. WSU faculty. and Petroleum Dealers of Michigan. joined Crain’s Detroit Business The Little River Band of Ottawa In- — Sherri Begin Shallal did not name the grocer, as assistant managing Former clothier gets prison dians and the Little Traverse Bay and said the grocer did not discuss editor/production overseeing One-time clothier and fashion Bands of Odawa Indians last week Southfield authority mulls plan why they cancelled the deal. the design, maven Ilene Ruth Moses was sen- filed notice of an appeal to the 6th The Jefferson Avenue store headline tenced Friday by U.S. District U.S. Circuit Court of Appeals in for Stouffer’s Northland Inn site opened in 2003 and was one of the writing and Cincinnati. The case involves the chain’s largest at 63,892 square final editing Judge Patrick Duggan to a 17 ½- Southfield’s Cornerstone Devel- tribes’ obligation to pay the state feet. The store closed July 7. of the news- year prison term on her Feb. 1 opment Authority plans to consider a share of their casino revenue — — Sheena Harrison paper. conviction by a federal court jury a proposal later this week for money that supports state eco- Thompson- in Detroit on 52 counts of bank, medical offices on the site of the nomic-development efforts. Kolar previ- mail and wire fraud, bankruptcy former Stouffer’s Northland Inn Henry Ford Health leases The state sued the tribes in ously was as- fraud, money laundering, false near Northland Mall, housing a June 2005 over their withholding sistant news statements and perjury. possible dialysis treatment cen- office building in Novi of payments, and U.S. District editor/editor- The charges arose from allega- ter and other services as a joint Detroit-based Henry Ford Health Thompson-Kolar Judge Wendell Miles recently ial design di- tions that Moses, now 70 and liv- venture of Henry Ford Health Sys- System has leased the 130,000- ruled that the tribes were in viola- rector with The Ann Arbor ing in Las Vegas, defrauded Michi- tem, Detroit Medical Center and square-foot Columbus Corporate Of- tion of their obligations to make 8 News, where he had been since gan National Bank and Swiss several assorted doctors in pri- fice Centre at 39450 12 Mile Road percent payments to the state. 2000. Previously, he had worked Cantobank International of about vate practice.