Reorganization of the complex ownership structure of 2 RenCen towers

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A redesign with the second phase of the Renaissance Center means that General Motors Co. is now removed from any ownership or operational interest in the property.

The end result of a series of real estate maneuvers in late October put the pair of high rise office buildings known as the 500 and 600 towers and the land they are on in the hands of an entity related to Newark, NJ- A utility company based on Public Service Enterprise Group Inc. (NYSE: PSEG), according to public records.

They have been quietly listed for sale in recent months, half a dozen sources have said, with two of them claiming the asking price for the two buildings is around $ 60 million, or about $ 100 per square foot. .

It is not known, however, if they are still on sale, if there is a buyer online, or if PSEG is still receiving offers to offload them.

Either way, a possible change of ownership in two of the city’s most recognizable buildings would be a key change in the real estate landscape of downtown Detroit, which has seen seismic movement – both positive and negative. – over the past decade.

The PSEG declined to comment on Wednesday. Emails were sent to the Southfield office of the brokerage firm Colliers International Inc., which markets the properties for rent, on Tuesday and Wednesday mornings.

In a statement, a GM spokesperson said that PSEG LMC Phase II LLC “has consumed its purchase option to acquire the land under Renaissance Center towers 500 and 600 from (a GM subsidiary) Riverfront Holdings Phase II Inc. LMC Phase II LLC is the owner of the towers and had previously leased the property to Riverfront Holdings Phase II Inc. “

The 500 and 600 towers are 307,000 square feet each and have 21 floors, making them key landmarks on the Detroit skyline, located east of the region’s largest office complex, the first phase of the RenCen consisting of four office skyscrapers flanking the state’s tallest building, the 727-foot Detroit Marriott at the Renaissance Center.

Blue Cross Blue Shield of Michigan has a substantial lease in the two shorter towers through a sublease agreement.

In a statement Wednesday afternoon, the healthcare provider said, “We have been renting space in the Renaissance Center 500 and 600 towers for many years and the new owner is PSEG. The conditions and services of our lease remain the same. We have had a positive experience. as a tenant and we expect this to continue in the future. “

CoStar Group Inc., a real estate information service based in Washington, DC, says the healthcare provider leases Tower 500 entirely, while Colliers’ marketing materials indicate Tower 600 has 125,800 square feet available at the rental, on the 12th and 15th floors. on the 21st floor.

Data on CoStar indicates that BCBSM occupies much of the remaining floor space, along with the Canadian Consulate General, Invest Detroit and others.

It is not known how heavily the buildings were used during the COVID-19 pandemic, in which many office workers worked at least part-time from home.


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