EAST LANSING — A pair of firms have made marketing proposals to the East Lansing DDA that officials hope could eventually lead to the sale of several long-vacant properties and new development near downtown.
The city’s DDA bought the parcels at 314, 328, 334, 340 and 344 Evergreen Ave. more than 15 years ago for a little more than $5 million and has been seeking a developer ever since. A development proposal by a local company fell through last year, in part because of the COVID-19 pandemic, leaving the DDA back at square one.
The five adjacent parcels are located just off Albert Avenue where local developer River Caddis had proposed in 2020 to construct an eight-story, 360,000-square-foot development.
The deal’s expiration was tied to the COVID-19 pandemic, said DDA Chairperson Mike Krueger, but the authority’s board still considers finding a buyer for the properties a priority. Members hope an outside marketing firm can solicit buyers who may have new ideas for its development.
“We just want to see what potential developers want to do there,” Krueger said. “There might be people who have ideas for this property that are completely different than anything that we’ve ever thought of.”
Two marketing proposals submitted
Officials began soliciting marketing proposals in late May, and set a submission deadline in late July.
Two firms — Westland-based Catina Willis Realty DBA Next Level Realty and Investments and real estate firm Savills, a London-based company with an office in Detroit — submitted plans. Both documents were presented to the DDA earlier this month.
The proposals from companies outside the Lansing area could be an advantage, Krueger said.
“They might have some more connections around the country with developers from all over the place that might be interested in the property,” he said.
Here’s a brief look at what each firm is offering, including “negotiable” compensation terms, according to city records:
- Catina Willis offers a “one-year commitment.” According to its proposal, “Our goal is to achieve sales as quickly as possible, leveraging our expertise and aggressive marketing strategies to expedite the process.” Proposed compensation would include “$1,500 per property in advance to cover marketing expenses” and 5% of the land’s sale price.
- Savills also proposes a one-year agreement. “With a prominent development site such as this, we expect a more sophisticated buyers pool to be involved and we will emphasize developers’ track record, and experience while evaluating offers,” said the company’s proposal. The plan outlines compensation of 6% of the total sales price if the property sells for $1.5 million or more or $90,000 if it sells for less than $1.5 million.
What’s next?
The DDA likely will enter an agreement with one of the two companies, Krueger said.
“It’s not been determined which one yet,” he said. “We’re still in the process of negotiating the cost of what that wouldbe.”
Officials hope to negotiate an agreement with one of the firms later this month or in September, Krueger said.
He believes there’s a possibility an area developer will take on the property.
“I think there are some local developers that may have interest in it still,” Krueger said. “I think they’re just getting their ducks in a row before they submit a proposal.”
Contact Reporter Rachel Greco at rgreco@lsj.com. Follow her on X @GrecoatLSJ .
