The Landmark building, formerly occupied by Michigan Book & Supply, was sold this week to a Farmington Hills, Mich.-based realty company, which intends to make it into a retail drug store.
For $5.8 million, Agree Realty Corporation bought the 18,000-square-foot building, located on the corner of State Street and North University Avenue. It has been vacant since Michigan Book & Supply closed last year.
Joey Agree, Agree’s president and chief operating officer, said in a statement that the company is excited about the near-campus purchase.
“We are extremely pleased to announce the acquisition and redevelopment of 317 South State Street,” Agree said. “This is an exciting project, that once complete will be a jewel in our portfolio of net lease assets and a fixture on the University campus for many years.”
The company said it acquired the building for redevelopment and has leased it in a twenty-year agreement to “the industry leader in the retail pharmacy sector.”
Agree said in an interview Friday that he could not confirm the incoming tenant due to a confidentiality agreement.
However, applications Agree Realty submitted to the Ann Arbor Historic District Commission name Walgreens, a national drug store chain, as the likely tenant.
An Oct. 26 application states that, “the former book store located at S. State St. & University is proposed to be renovated into a Walgreens Store.”
Agree Realty owns 23 Walgreens properties in Michigan, including one on Jackson Road in Ann Arbor.
The submitted application notes that Agree intends to keep the original façade and internal structure of the building the same, but the company requested additions and changes in signage.
According to a staff report from the Ann Arbor Historic District Commission filed Nov. 5 in response to the application, the company filed for permission to put “Walgreens” signs above the door as well as permission to recover the awnings with Walgreens company logos.
Agree said the company’s interest in the Landmark Building stemmed from working closely with the tenant, who was interested in opening a new location in the area.
“We really work hand in hand with our retail partners and really through their site selection process and then target specific intersections, or in this case building, for a new store or relocation opportunities,” Agree said.
Agree said the building’s proximity to campus made it a natural choice for his company and the tenant.
“We believe it’s of the premier locations in the city of Ann Arbor and on University of Michigan’s campus,” Agree said. “We obviously have a significant history of doing business in the city of Ann Arbor and we’re thrilled to see this project come to fruition.”