Ottawa Towers recruiting potential tenants
Several groups, individuals sent lease proposals
Two prominent buildings in downtown Pontiac are being actively marketed to prospective tenants.
The Oakland Press has learned that nearly a dozen lease proposals have been distributed to individuals and organizations that may be interested in renting space in the Ottawa Towers office buildings, located along Woodward Avenue and W. Judson Street near the Phoenix Center.
Last month, the city’s longtime legal battles over the Phoenix Center officially came to a close following a $19.2 million deal with Chicago-based investment group Dearborn Capital Partners and the owners of the two Ottawa Towers buildings. The deal involved the city purchasing the Ottawa Towers and simultaneously selling them to Dearborn Capital Partners for $7.4 million while creating a new public-private partnership for the Phoenix Center amphitheater and parking garage.
In exchange, Dearborn Capital Partners is responsible for completing the estimated $18 to 20 million in repairs and renovations to the Phoenix Center garage and amphitheater.
Dearborn Capitol Part
ners has brought on Dirt Realty as its leasing agent, which is charged with attracting tenants to fill the Ottawa Towers.
The 11 lease proposals include both full (up to 220,000-squarefeet) and partial (around 5,000-square-feet) building leases. The lease price per square foot is very flexible based on the type of tenant and length of lease.
Bob Waun, partner at Dirt Realty, told The Oakland Press that the company is giving a private tour of the two buildings to a number of “very credible” potential tenants later this month.
The names of individuals receiving a private tour and those that have received formal lease proposals were not released.
Waun told The Oakland Press that the building along Woodward will receive a fresh coat of paint by the end of the summer, but added that the interior of both buildings is in “incredible” shape and ready for tenants to move in at anytime.
The Woodward building is currently undergoing lobby renovations, but that work is expected to be completed next week with 300 new parking spaces being added at a later date.. Waun also confirmed that new lights will be installed in the Phoenix Center underpass along Orchard Lake Road, which will precede new lighting being installed at the Phoenix Center tent.
In addition to getting the Ottawa Towers filled, there are discussions being had about other development projects on the property that could include a new public library, bus stop, multi-family apartments, and a medical clinic.
Depending on funding and construction timelines, events could return to the Phoenix Center as early as this summer, according to a representative from the city’s legal team.
Previous estimates have shown the structure needs over $16 million in repairs.
The city’s transaction solidifies a December global settlement agreement between the parties, resolving eight years of legal battles between Pontiac and the Ottawa Towers.
Pontiac will retain ownership of the garage and amphitheater while Dearborn Capital, under a recently approved 100-year lease written as a 20-year agreement with multiple extensions, will manage and maintain the garage.
There’s no set timeline in the agreements for either party to make repairs to the Phoenix Center garage or the amphitheater.
It’s likely that talks about the repairs will coincide with discussions about a potential two-way conversion of the five-lane Woodward Avenue proposed by the Michigan Department of Transportation.
The Phoenix Center dispute began back in 2013 when a former emergency manager ordered the demolition of the property, to which the tower’s owners had perpetual easement rights for parking.
Pontiac signed off on a settlement agreement in 2018 to end litigation on the matter, but was required to repair the center for use by November 2020.