#United States #Saginaw #Phoenix Investors #Nexteer Automotive

Major Industrial Property Acquisition in Saginaw

In a significant development for the manufacturing landscape in Saginaw, Michigan, Phoenix Investors, based in Milwaukee, has successfully finalized the acquisition of an expansive industrial property covering 1.8 million square feet. This deal, in collaboration with Nexteer Automotive, marks a pivotal step in revitalizing existing manufacturing facilities while providing extensive opportunities for future industrial users.

Overview of the Acquisition

The newly acquired property comprises three buildings, known locally as Plants 5, 6/1, and 7, situated in Buena Vista Charter Township. Historically, this site has been instrumental in Saginaw's industrial operations, dating back to the General Motors Saginaw Steering Gear complex which fostered local economic growth throughout the latter half of the 20th century. This transaction not only supports the ongoing manufacturing activities of Nexteer but also facilitates Phoenix's strategic focus on redeveloping and marketing industrial real estate.

Nexteer will continue to utilize approximately 1.27 million square feet within two of the buildings under a lease-back agreement while retaining ownership of adjacent facilities, including Plants 3 and 4, ensuring a seamless operational transition. The significance of this acquisition lies in its dual benefit: bolstering Nexteer's manufacturing capabilities and simultaneously enabling Phoenix to attract new industrial tenants to the approximately 552,000 square feet designated for lease.

The Role of Phoenix Investors

Renowned for their expertise in rehabilitating former manufacturing sites, Phoenix Investors aims to invest capital into this newly acquired property, with a commitment to reposition available spaces for future manufacturers. The associative benefits of this property, such as its well-established infrastructure, utility capacity, and advantageous location near major transport routes, position it as a desirable alternative for manufacturers looking to set up or expand operations in the region.

Anthony Crivello, President of Phoenix Investors, highlighted the potential of this property: "The campus has tremendous existing infrastructure, a long history of successful manufacturing operations, and more than 550,000 square feet immediately available for a new user.” He emphasizes the vision to bring vitality back to the industrial hub and support Nexteer's operational commitments during this transition period.

Nexteer Automotive's Strategic Vision

For Nexteer Automotive, this transaction is a pivotal component of their ongoing transformation strategy initiated in 2018 aimed at enhancing operational efficiency in Saginaw. Jill Dralle, Vice President and USA Divisional President, explained that divesting underutilized space allows Nexteer to reinvest in their core operations, which will enable modernization and future growth in the region.

With its legacy of over a century in automotive innovation, Nexteer's commitment to advancing motion control technology will only be strengthened through this strategic alignment with Phoenix Investors. The collaboration between the two entities is poised to rejuvenate Saginaw’s manufacturing sector, ensuring continued employment opportunities and enhanced industrial activities for the community.

Future Outlook

As Phoenix Investors embarks on plans to revitalize the campus, the combination of existing industrial capacity and new investment initiatives will likely attract further manufacturing and industrial activities to the area. This partnership exemplifies a forward-thinking approach to real estate and manufacturing, with both firms focused on creating sustainable environments that foster growth and innovation.

In conclusion, the completion of this 1.8 million-square-foot acquisition not only solidifies a robust platform for Nexteer's operations but also enhances the attractiveness of Saginaw as an industrial center, supporting ongoing economic growth within the community.

For additional details about Phoenix Investors and Nexteer Automotive, please visit their respective websites.