Former ProQuest property at Zeeb and I-94: Plenty of space for a Costco?

After all, how often have we been able to say that?
 
Possibly never, some would say. That includes developers who have spent a decade salivating over the potential for this land and residents who - despite the complications from major retailers moving in - still long for a Costco in our midst.
 

The 71 acres at Zeeb Road are now the home of National Archive Publishing Co., which was just acquired by a Detroit-based private equity firm.
 
NAPC has been trying to sell the property, and now the new owners, Superior Capital Partners, are getting more aggressive about finding a buyer - and planning to drop the asking price from $7.5 million to … well, the number hasn’t been determined.
 
But it’s pretty clear that NAPC won’t need that much space - it’s seeking a smaller footprint in this area, ranging from 30,000 to 45,000 square feet - and getting cash out of the real estate is at the top of the to-do list of Superior Capital.
 
The value of the land has been moving in recent years: NAPC bought the 165,000 square-foot buildings on 71.5 acres for just under $8.5 million when the company was created in 2005 out of the former ProQuest.
 
Today, it’s assessed at  $4.86 million, down from over $5 million in 2008 - which meant that not too long ago, its estimated market value was about $10 million.
 
This sizeable and very visible property is a rarity for local commercial real estate, and the fact that it’s on the market now - in the midst of an epic downturn - makes this a perfect barometer for the rest of us to gauge a commercial development rebound in Ann Arbor - whenever it does sell.
 
After all, said local broker Neal Warling of Bluestone Realty Advisors, “It’s not a very friendly environment.”
 
But a buyer may be attracted to the “long term value of the site, which is phenomenal.”
 
So maybe Costco officials will change their minds.
 
If not, there are plenty of options that township officials will welcome to the site: A large, mixed-use complex, for example, or a hotel-conference center or even a private indoor recreation facility.
 
The township recognizes the potential of the site, which it master-planned to emphasize “development of a corporate, high-tech jobs node,” said planner Doug Lewan.
 
Already allowed in the industrial zoning are the obvious office and light industrial mix, like what’s there now. So are theaters and some retail uses, like restaurants, if they pass some extra official review.
 
The goals for the site from the township’s perspective: “Promote business growth and the jobs base,” said Lewan.
 
Large-scale retail - like a standalone Costco - is not compatible with zoning, he said, though the right mix of other uses with it just might work.
 
But even that zoning issue shouldn’t make a Costco fan give up hope. That’s especially true given the big-box resistance in Scio from mid-decade that seems to have abated.
 
“Some shopping is OK (there),” Lewan said, noting that the size and zoning “would allow quite a large … complex there.”
 
Paula Gardner is Business Director of AnnArbor.com. Contact her at (734) 623-2586 or by email.