Ann Arbor's landmark 777 Building re-listed for sale

But the building’s owners say conditions have improved to the point where a national marketing effort may succeed in finding a buyer for the 10-story building at the corner of South State and Eisenhower, along with a 3-story, 108,900-square-foot building on the east side of the high-rise.

“We think it’s a good time to sell,” said Bill Harvey, senior vice president in the Southfield office of Texas-based Transwestern. “… (The owners) believe the capital markets are better and financing is available.

Harvey said the marketing is a dual effort between Transwestern and Eastdil Secured, a real estate investment banking company based in New York.

The pair is not publicizing an asking price.

Transwestern bought the 10-story building in 2004 for $21.9 million. It made several improvements to the structure and grounds, and also built the three-story building, leasing it to Proquest.

The property was assessed at $26.6 million in 2010, a drop of $2.6 million from the previous year. In 2009, Transwestern was the fifth largest taxpayer in the city, behind Pfizer, Briarwood, Detroit Edison and Arborland.

The property was 60 percent leased in 2004, and today it’s close to 90 percent, Harvey said. That represents the entire second floor, which is available.

Recent deals in the building included an additional floor leased to Thomson Reuters and some lease renewals. The overall vacancy rate in the Ann Arbor market was just under 18 percent at year-end, according to a survey by Swisher Commercial.

The 777 Building listing doesn’t represent a distressed sale, Harvey said.

However, he said, “it’s a natural time to sell the property. There’s very little value left to add … It’s leased, renovated, good to go.”

Transwestern is one of the largest privately held real estate companies in the U.S. - and the size and profile of the 777 building means that it should attract a national audience of potential buyers.

“It’s a big enough of a project that it will attract attention nationwide,” Harvey said.

Paula Gardner is Business News Director of AnnArbor.com. Contact her at 734-623-2586 or by email. Sign up for the weekly Business Review newsletter, distributed every Thursday, here.