Metro Detroit doctor buys downtown Ann Arbor building that houses Melange, The Ark for $3.85M

A Metro Detroit ophthalmologist, Dr. Reza Rahmani of Rahmani Eye Institute PC, purchased the building at 312 S. Main St. Jim Chaconas along with Brendan Cavender of Colliers International represented Rahmani in the deal.

Amvest Properties had owned the 19th century building since 2003. In 2006, Amvest renovated the lower level, including lowering the basement floor by three feet, according to its website.

The building was assessed at $1.78 million for the 2010 tax year, according to Ann Arbor assessment records.

Under Michigan law, a property’s assessed value should be nearly equal to half of its market value.

Chaconas said the $3.85 million purchase price is in line with what he expected for that strip of Main Street.

“If you’re trying to buy something as stable as possible, that’s the best block,” he said. “It’s pretty stable. The rents go up 20 percent every 5 years.”

Chaconas said the same of Rahmani’s purchase in December 2010 of the ex-Ritz Camera building on South State Street near the University of Michigan campus.

“Main Street and State Street are the right spots,” he said.

The former Ritz Camera building, which became vacant after the store’s national bankruptcy, is now occupied by a 7-Eleven store. Rahmani bought the building at 318 S. State St. at auction after bidding $1.3 million.

Rahmani owns some out-of-state real estate and has been looking for property in Ann Arbor to diversify his investments.

“Somebody who has cash right now can make good investments in Michigan,” Rahmani told AnnArbor.com in 2010. “There’s a lot of opportunity.”