Chicago-based Grubb & Ellis took another step toward buying the former Union Carbide world headquarters in Danbury, apparently putting down a second $1 million deposit to proceed with negotiations toward the scheduled April 17 closing.
Grubb & Ellis and the building”™s owner, Sunbelt Management of Delray Beach, Fla., were circumspect in their comments about the sale.
“At this stage, I really have no comment on the active negotiations,” said Sunbelt”™s president, Richard Reeves. “An acquisition this large is extremely complicated and is a constant, moving target. There are always issues that come up.”
The closing date could be sooner or later than April 17, he said ”“ the date published in a Form 8-K Grubb & Ellis filed with the Securities and Exchange Commission. The company said in the filing it was required to make a second $1 million deposit by March 16 to proceed with the purchase.
Grubb & Ellis, which had been the commercial real estate listing agent for the 1.2 million-square-foot building called the Corporate Center, announced Feb. 22 it will pay $86 million for the building and surrounding 100 acres. Real estate agents at the Stamford office had been representing Sunbelt in marketing the property.
Janice McDill of Grubb & Ellis”™ Chicago office, said that while the inspection period for the sale ended March 16, “we can still walk away with no penalty” before the closing. “As far as I know, we are proceeding with the purchase.”
The architecturally significant building was opened in 1982 in the center of a square mile of woodland on Danbury”™s west side. The building and 100 acres were sold to Sunbelt in 1986, and the remaining 540 acres were divided into three parcels for commercial and apartment and condominium development.
The building is 65 percent leased with long-term tenants that include Boehringer Ingelheim Pharmaceuticals.
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