Tognum/MTU: MacKenzie South Technology Centre

MacKenzie South Technology Centre began life as a 56,000 s.f. proposed speculative single story office/flex building.  As with all of the single story buildings in our portfolio, I led the architectural design, engineering and approval process and brought the project to the point of a building permit. Tognum Corporation (now MTU), which at that time was a division of Detroit Diesel, wanted desperately to get out of their Albert Kahn designed industrial building which was converted into an office building in an non-hip area of Detroit.  The company not only found it impossible to hire new engineers/marketing associates/sales associates at their existing location, but also were getting kicked out of their building due to the sale of the unit.  (MTU manufactures and markets large diesel engines for boats, railroads and aircraft. The engines can also be used in large scale real estate developments.  The engines produce both heat, which can be used in heating buildings, and electricity, which can be sold back into the electrical grid. Their technology is a cost effective alternative to the usual gas and electric consumption model.  We incorporated this technology into the HVAC design of the building.)

A new beginning was desired, and we had just the solution for them. 

We negotiated a leased with MTU for a 68,475 s.f. building at Mac South and promised delivery within 12 Months. We worked with the city of Novi to get administrative site plan approval for the larger building, re-designed the entire building and site to meet Tognum’s needs, including the need to have a 20 ton diesel engine on display in their showroom. We received site plan approval, got the building permit and finished the building on time and on budget. I was project lead for the development of the shell and tenant improvements and assisted in the negotiations that led to the lease.  I placed the construction loan with a national bank and the permanent loan with a life insurance company. Tognum now has over 235 employees at this location and is looking to expand the building.



Date

2011 - 2012

Client

Rolls Royce, Tognum Corporation, MTU

Role

Development and Financing