Ford Motor Co. Industrial Project Lands Financing
- Dec 23, 2020
InSite Real Estate LLC has received financing to construct a 1 million-square-foot build-to-suit industrial facility for the Ford Motor Co. in Newport, Mich., approximately 30 miles southwest of Detroit. The amount of the loan was not disclosed by Associated Bank, which announced the closing.
Associated Bank was the lead arranger and administrative agent, working with Great Southern Bank and Trustmark National Bank. Krista Casper, a senior vice president with Associated Bank’s Commercial Real Estate division, handled the loan arrangements and the closing.
InSite acquired the 263-acre property at 8335 N. Telegraph Road in August and signed a long-term lease with Ford to build an automotive parts distribution center on the site of the former Nike Missile Base at Telegraph and Newport roads. InSite, which acquires, develops and operates industrial, office and retail investment properties nationwide, expects to complete the project in the fourth quarter of 2021. The building will feature a clear height of 36 feet and have 87 loading-level dock doors and four drive-in doors, with parking for 250 cars.
Ford is expected to lease the site for at least 10 years and create about 150 jobs, according to local media reports. On Oct. 1, Ford was granted a property tax abatement from the Frenchtown Township Board. The company will receive a 50 percent industrial facilities tax exemption that will cover eight years on the real estate and four years on investment in machinery and equipment, the Monroe News reported. The newspaper also reported Ford expects to invest $30 million in the site and pay about $20 million to lease the building.
Ford Detroit development
The automotive giant is also planning to build a 30-acre “mobility innovation district” in the Corktown neighborhood of Detroit. Last month, Ford unveiled the site plan for Michigan Central that will have at least four key buildings: The Michigan Central Station that has an 18-story office building; The Book Depository that is being revitalized into a maker space by Gensler; a new property to be called Building West and The Factory, a repurposed former hosiery factory that is already home to 250 employees of Ford’s autonomous vehicle business.