Published September 02, 2008 07:43 pm - ANDERSON — A developer is interested in buying two of Anderson’s former General Motors plants, making offers on them just three weeks after they were listed with a real estate company with national scope.
7:43 p.m.: Developer makes offers on two former GM plants
ANDERSON — A developer is interested in buying two of Anderson’s former General Motors plants, making offers on them just three weeks after they were listed with a real estate company with national scope.
Davis Group, a developer/landlord, offered $300,000 cash each for Plant 16, on Jefferson Street, and Plant 18, on Scatterfield Road, Director of Economic Development Linda Dawson said at Tuesday’s Anderson Redevelopment Commission meeting.
Dawson could not provide details on the nature of Davis Group’s business, citing business confidentiality, but said it planned to rehabilitate the structures and look for tenants for them. The area is zoned for industrial use, so new tenants must use the buildings for that purpose.
The city will make a counter-offer of $425,000 cash for each plant, a figure arrived at through the buildings’ appraisals about three years ago and the advice of the city’s staff appraiser and that of Coldwell Banker, the real estate company working with the city to sell the properties.
“At this point we’re really negotiating what we think is fair and accurate,” Dawson said.
Davis Group also offered $400,000 if the city would agree to finance the deal, but the city only will take cash for the properties, Dawson said.
Anderson still is open to other offers, as the city has no indication whether Davis Group will accept its $425,000 counter-offer.
The properties were listed with Indianapolis-based Coldwell Banker Commercial Realty Services just three week ago, after the city canceled its contract with Value Recovery Group because it was “disappointed in the results of what they were producing,” Anderson Mayor Kris Ockomon said previously.
“We were very pleased that there has been the amount of interest generated since they were listed with a national firm such as Coldwell Banker,” Dawson said.
The city had an offer on another GM plant, Plant 20, by Phoenix-based Sophia Holdings, but negotiations are not complete, and the city continues to market Plant 20. Plants 16 and 18 — at 14 and 19.55 acres, respectively — are smaller and older than Plant 20, so the city wasn’t sure if they would generate as much interest.
“We had feared these two plants would generate less interest than Plant 20, and now this national exposure has opened up new interest across the nation,” Dawson said.
What’s next?
The city of Anderson received offers of $300,000 cash each on former General Motors plants 16 and 18 from developer/landlord Davis Group. The city will make a counter-offer of $425,000 each and negotiate with Davis Group. If a price is agreed upon, Davis Group will make a good-faith payment of $10,000 and will be given 38 days to do building inspections before the deal is closed and Davis Group pays the full amount in cash.