Price drop: Borders corporate headquarters in Ann Arbor now for sale at $10 million
How much is one of the largest office buildings in Ann Arbor worth?
That leaves Agree Realty Co. of Farmington Hills holding the building on Phoenix Drive and facing either finding a new tenant or a buyer for the building.
In fall 2010, a previous listing priced the property at $18.349 million. However, that listing also touted a 12-year lease with a corporate tenant that had an option to renew. It also included an adjacent building, giving it a total square footage of 460,000 square feet.
The new listing is for the 330,000-square-foot main headquarters.
Borders once filled the property with as many as 1,800 employees, a number that's likely below 500 today.
Since the listing last fall, Agree has successfully listed and sold other properties in its multi-state portfolio that were solely leased to Borders. At that time, 27 percent of Agree’s $34 million in rental income came from 17 leases to Borders.
Today, Agree says it has 14 properties leased to Borders.
Meanwhile, the building is assessed by the city at $10.6 million, giving it an estimated market value of $21.2 million. That assessment reflects the quality of the rental income stream - it was $15.9 million in 2009.