Another former General Motors plant will get a second life after the Powertrain Engine Plant in Livonia was sold to commercial real estate company Schostak Bros. & Co on Tuesday. The 1.2 million square-foot facility was opened in 1971 and produced the Northstar V8 and Aurora V8 engines, among others.
The manufacturing complex was formerly owned by Racer Trust, a company created by the U.S. Bankruptcy Court to clean up and position 89 former GM Manufacturing facilities for redevelopment and repurposing.
Jeff Schostak, director of corporate real estate for Schostak Bros. did not reveal how much the company paid for the plant, but told Crain’s Detroit Business that the price was “very competitive”. He said the buildings size is part of its appeal, as large industrial real estate can be hard to come by.
“We think that because of the absorption that’s been in the industrial market in metro Detroit, there is a very small list of large industrial buildings available for tenants today,” Schostak said. “When you get in that 300,000-square-foot range, but especially when you get even north of there, it’s an extremely short list.”
Commercial real-estate firm CBRE Inc. will lease the building to tenants. Schostak said no companies have committed to a lease as of yet, but there has been some interest.
“This facility is a very valuable asset with which to attract new jobs and other community benefits, and we wish Schostak Bros. & Co. success as it helps create renewed economic vibrancy,” Elliot Laws, administrative trustee of Racer Trust said in an email to Crain’s.
The Livonia Powertrain Plant is the second former GM facility to get an extra lease on life in recent weeks after the Shreveport, Louisiana facility was acquired by start up automaker Elio Motors.