DETROIT -- The Renaissance Center, symbol of Detroit's revitalization efforts, was sold Wednesday at an apparent loss to a group of private investors headed by a Chicago real estate mogul.
Henry Ford II, former chairman of the Ford Motor Co. and one of the key backers of the shining downtown office tower-hotel complex, announced the sale by the Renaissance Center Partnership at a news conference.
Sold to a group of private investors headed by Theodore Netzky was the 73-story Westin Hotel, four 39-story office towers and a four-level podium structure containing parking and shopping facilities.
The sale does not involve two 21-story office towers being built by Rockefeller Center and Ford Land Development Corp.
Netzky is being joined in the sale by two Detroit-area investors, Mickey Shapiro and Spencer Partrich, who own Cunningham Drug Stores Inc.
Netzky would not disclose terms of the deal, but Ford admitted the 50 original investors 'are taking less out than they put in.' The original construction price of the complex was $357 million.
'I believe it is an excellent opportunity to buy one of the best pieces of real estate in the United States at a fair price,' Netzky said. When asked if the complex was underpriced, he said, 'Obviously, that's the case.'
He said the deal should be completed by June 30.
Ford said the Ford Motor Co. will continue to occupy one of the office towers where 1,700 Ford employees work. Netzky said he is 'keeping everything intact' but will supplmement some of the Renaissance Center's existing management with 'people with expertise.'
The Renaissance Center was completed in 1977 and sits on Detroit's riverfront. It was built following a drive by Ford and other local businessmen to revitalize the city in the wake of the 1967 riots.
