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GM buys Detroit headquarters for $626 million

GM buys Detroit headquarters for $626 million

James Martinez May 12th, 2008 James Martinez By James Martinez Author May 12th, 2008
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December 31st, 1969 Despite GM's massive $3.3 billion dollar loss for the first quarter of 2008, the General has gone ahead with the purchase of its previously leased headquarters in Detroit. The deal went through for GM to purchase the Renaissance Center for a cool $626 million as well as forking out another $200 million for two office properties in Pontiac. GM moved to its current headquarters in 1996 and spent around $500 million on renovations and improvements to its headquarters, which were originally built by Ford during the 1970s. These improvements were paid for through loans, and the building was leased from lenders until May 1 this year, when the lease expired, which is when GM decided to purchase the building. GM claims that the state of the real estate market prompted them to purchase the headquarters outright, rather than continuing to lease, but it is still open to reselling the building and entering another lease agreement if the conditions are right, reports the Associated Press.
GM buys Detroit headquarters for $626 million

GM buys Detroit headquarters for $626 million

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Despite GM's massive $3.3 billion dollar loss for the first quarter of 2008, the General has gone ahead with the purchase of its previously leased headquarters in Detroit. The deal went through for GM to purchase the Renaissance Center for a cool $626 million as well as forking out another $200 million for two office properties in Pontiac.

GM moved to its current headquarters in 1996 and spent around $500 million on renovations and improvements to its headquarters, which were originally built by Ford during the 1970s. These improvements were paid for through loans, and the building was leased from lenders until May 1 this year, when the lease expired, which is when GM decided to purchase the building.

GM claims that the state of the real estate market prompted them to purchase the headquarters outright, rather than continuing to lease, but it is still open to reselling the building and entering another lease agreement if the conditions are right, reports the Associated Press.

Tags: Industry, General Motors

Posted in: News


Comments (3 total)

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  1. By chris #1, Posted: 5/12/2008

    just want to clarify that ford built the complex in the 70's as a business venture... they never intended to use the building as their head quarters like GM does.

    I'm interested to figure out who actually owned the property before hand cause I was under the impression that GM already owned it.

  2. By brian #2, Posted: 5/12/2008

    626mil for a HUGE building like that? So cheap. Then again detroit is a declining city. A typical 28 story office building in SF cost 120mil....

  3. By chris #3, Posted: 5/12/2008

    detroit is only declining because of the high percentage of automotive jobs in the outlying areas. the city itself isn't doing too bad. like i said, the decline in detroit is on par with that in the auto industry. detroit has more going for it than *just* cars

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