Seating and electronics suppler Lear Corp. has purchased a 50,000-square-foot building in downtown Detroit for an undisclosed price.
The Hemmeter Building, located near the heart of the city's entertainment district, was built in 1911 for the Hemmeter Cigar Co.
Lear spokesman Mel Stephens said the building is intended to be used as a satellite office that probably will house an unknown number of administrative personnel. A time frame for moving in employees has not yet been determined.
“It’s something we are evaluating now,” he said, adding that Lear owns more than 300 properties around the world. “There are lots of different options.”
It’s Lear's first property purchase in Detroit's central business district, Stephens said.
“We have roots in Detroit. We are supportive of the turnaround of Detroit. We’ve operated in the Detroit area for about 100 years, and our business is growing,” he said.
The building had been for sale for $5 million, according to CoStar Group Inc., a Washington, D.C.-based real estate information service. Stephens said it will be renovated and customized.
There has been speculation in the real estate community that Lear had been considering opening a creative design studio in space in the Capitol Park area. Stephens declined to comment on those rumors.
Lear, founded in 1917, reported $17.7 billion in revenue in 2014 and projects $18.5 billion this year, Stephens said.
The sale was first reported by DBusiness on Wednesday afternoon.