DETROIT BUSINESS MAIN 03-19-07 A 1 CDB 3/16/2007 7:07 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 12 MARCH 19 – 25, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Local partners buy Downtown rentals Galleria Officentre The Galleria Officentre in BLOOMBERG Southfield is back in the Carl Icahn enjoys going against the hands of local developers. tide. Southfield-based Nemer Property Group, the developer gain more attention of the 1 million-square-foot office complex built in 1983, and its partner, Uniprop, Icahn on Birmingham, bought the majority interest purchased Condos still in 2000 by Charlesbank Realty Fund of Boston for about $125 million. Nemer re- Lear: selling, but tained a minority interest. Larry Nemer, president of Nemer Property Group, de- investors clined to reveal the sale Company price for the latest deal. Occupancy is about 70 start to shift percent, according to CoStar positioned Group. Major tenants in- their gaze clude CitiMortgage, Xerox, well in Accenture and Centex Homes. BY JENNETTE SMITH — Jennette Smith industry AND ROBERT ANKENY CRAIN’S DETROIT BUSINESS Fund to invest $400M BY BRENT SNAVELY When Jon Grabowski is trying in shopping centers CRAIN’S DETROIT BUSINESS to sell a downtown Detroit condo- minium at the Book Cadillac de- A fund created by devel- Legendary value investor Carl opers Grand Sakwa Proper- velopment or the Watermark, the Icahn said Friday that he became east riverfront project led by Dave ties and Lormax Stern Devel- interested in Lear Corp. for the opment Co. plans to invest Bing, he has much better luck same reason he invests in most when the potential buyer already $400 million in shopping companies: Others lost confidence. lives in a downtown apartment. centers in Michigan, Ken- “If you look at my history, I’ve Often, a buyer will test the wa- tucky and Texas. done this all of my life. You buy ters in Detroit by renting an apart- According to a news re- companies that are not in favor,” ment for a year before committing lease, the Equity Alliance Icahn said in an interview with to a purchase through Grabowski, Fund, established last year Crain’s Detroit Business on Friday. president of Esquire Properties, or to buy and build shopping “You go against the emotion. You another broker. centers, is ahead of sched- go against the tide. You don’t go In parts of downtown, there’s a ule in its plans to acquire with the crowd, you go against it.” race among developers to get mid- $1 billion in real estate. On Feb. 9, Southfield-based Lear priced and luxury condos up to at- Daniel Stern, Equity Al- JOHN F. MARTIN (NYSE: LEA) announced that its tract prospects before demand liance partner, said other Jon Grabowski, president of Esquire Properties, and Gideon Pfeffer, buyer of a board of directors had voted to ac- wanes. But investors also are pay- acquisitions are being cept a $5.3 billion buyout agree- Book Cadillac condominium, inside the building under renovation. Pfeffer, 27, is a mortgage broker who rented downtown apartments for two years before ing more attention to the rental worked on in Tennessee, ment from New York-based Ameri- buying at Harbortown, and then at the Book Cadillac. See Rentals, Page 32 Kentucky, Florida, the Car- can Real Estate Partners L.P., a olinas and Texas. company affiliated with Icahn. The Southeast Michigan Icahn built his reputation in the projects so far include a 1980s as a corporate raider by tar- 320,000-square-foot develop- geting companies such as Texaco ment at Michigan Avenue Inc. and Trans World Airlines Inc. He and Beck Road, Canton has recently battled with New 6% service tax floated as SBT replacement Township; a 65,000-square- York-based TimeWarner Inc. and foot shopping center at Five Chicago-based Motorola Inc. BY AMY LANE the measure would raise an esti- group has been wary of the gross- Mile and Sheldon, North- Icahn said the idea for the buy- CAPITOL CORRESPONDENT mated $4.5 billion annually before receipts tax proposed by some be- ville Township; a 300,000- out proposal emerged in late Janu- tax credits and deductions and cause it could institute multiple square-foot Super Wal- ary during a dinner meeting in LANSING — Add another idea would eradicate the need for any layers of taxation on the way Mart-anchored center, New York with Lear Chairman to accelerating discussions on a other measure to replace Michi- dealers do business. Hartland Township; and a and CEO Bob Rossiter. At the time, replacement for Michigan’s sin- gan’s single-business tax. The For example, dealer-to-dealer 300,000-square-foot, depart- Icahn was already a major Lear in- gle-business tax: a 6 percent tax SBT currently raises about $1.9 vehicle trades, in which no mon- ment store-anchored pro- vestor. on all services, including busi- billion annually. ey is exchanged, might be count- ject at 23 Miles and Hayes, During the dinner, Rossiter told ness-to-business. One group intrigued by the 6 able as gross receipts and thus Macomb Township. Icahn how difficult it is for an au- No specific group claims own- percent services tax is the Michi- subject to tax, he said. “Every — Jennette Smith tomotive supplier to aggressively ership of the idea, but as ex- gan Automobile Dealers Association. time a vehicle moves, there would invest in its future without worry- See This Just In, Page 2 plained on a plain piece of paper Terry Burns, the association’s ex- See Icahn, Page 30 circulating around the Capitol, ecutive vice president, said the See Tax, Page 31 A talk with Comerica’s new The men behind the Michigan chief, Tigers’ talent, NEWSPAPER Page 18 Page 11 DETROIT BUSINESS MAIN 03-19-07 A 2 CDB 3/16/2007 6:09 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS March 19, 2007 while we can is an important first tion to investors who bought La- Medical Center, the health system George Ellenwood, Detroit Water and THIS JUST IN step,” Cullen said. son stock after the company an- announced Friday. Sewerage Department public-affairs Built in 1905, the office build- nounced record results for the The gift was made to honor the manager. ■ From Page 1 ing contained the lobby of the third quarter of 1999. St. John Hospital Guild and the Because of the late approval, Adams Theatre, added behind it Two other former Lason execu- Fontbonne Auxiliary, the hospi- the new rates will not take effect Dow Automotive president in 1917 on Elizabeth Street and tives, Chairman Gary Monroe and tal’s two volunteer service and until July 14, or be reflected in fundraising groups. The Bolls are connected to it by a tunnel. The CFO William Rauwerdink, also bills until after Aug. 1 , he said. Hamilton to leave Adams offered the full range of members of both. have pleaded guilty to similar Voting for the rate increases entertainment from vaudeville, Including the $5 million gift, Dow Automotive announced that criminal charges and are to be were Kwame Kenyatta, Monica silents, talkies, Cinerama and sentenced in April. the St. John capital campaign President George Hamilton is leav- Conyers, Sheila Cockrel, Alberta even adult movies before it was — Robert Ankeny committee has raised about $24.2 ing the company to lead a new Tinsley Talabi and Martha Reeves. coatings business for Dow Chemi- closed in 1988. Its marquee, in million of its $30 million goal. Council President Kenneth Cock- cal Co. Peter Sykes will replace danger of collapsing, was re- The campaign will support the WSU to break ground rel, Brenda Jones and JoAnn Watson him. moved in 1999. $163 million, 288,000-square-foot voted against the new rates. Bar- Hamilton, 51, has led Auburn Francis Grunow, Preservation at former Vernors site expansion of the St. John Hospi- Hills-based Dow since 2003. Wayne executive director, said tal and Medical Center in Detroit. bara-Rose Collins was absent. Wayne State University plans to Sykes, 46, most recently the organization “grudgingly sup- — Andrew Dietderich — Robert Ankeny worked as vice president of ports the proposal … provided re- break ground Wednesday on South University Village, a $36 Cranbrook seeks renovation bids Dow’s plastics business in the development happens quickly.” Water-rate increase OK’d Asia-Pacific region. He has been The commission is scheduled million mixed-use development Cranbrook Educational Communi- with Dow since 1981. to consider the request at a on the former site of the Vernors The Detroit City Council voted 5-3 ty said it is soliciting bids for a $6 Sykes will work from Tokyo, March 29 meeting at 5:30 p.m. in ginger ale plant. Friday to approve water rate in- million renovation and expan- but the company said its head- the City Council chambers, Cole- Prime Development Co. of Grand creases both for retail customers sion of the Cranbrook Kingswood quarters will stay in Auburn Hills. man A. Young Municipal Build- Rapids is serving as developer on in the city and for its wholesale Boys’ Middle School scheduled to the project which will include a — Automotive News ing, Detroit. billings to suburbs. begin in June. parking structure and Fifth Third — Robert Ankeny The split vote approval came af- DSA Architects L.L.C. in Berkley Bank as an anchor tenant, said ter two previous rejections of pro- is serving as the architect. Ilitch asks for OK to demolish Francene Wunder, director of cor- posed hikes, with the city’s in- The project, which includes a Former Lason COO gets porate and public affairs at WSU.