Sunday, May 15, 2005

Ernst to move 400 to new Detroit office tower

Accounting firm, Visteon Corp. will be main tenants at $54 million One Kennedy Square.

By R.J. King / The Detroit News

Neumann Smith & Associates Visteon and Ernst & Young will occupy 70 percent of the first new multitenant office building in downtown Detroit in years. Comment on this story Send this story to a friend Get Home Delivery

DETROIT -- Ernst & Young will move 400 workers to the top three floors of what will be the first new multitenant office building in downtown Detroit in about 15 years, the company said.

The $54 million, 10-story building at Woodward and Michigan avenues -- to be called One Kennedy Square -- is slated to open in April 2006.

About 1,200 people will eventually work at the building, said Dale Watchowski, president and CEO of Redico, the Southfield-based real estate firm building One Kennedy Square.

One Kennedy Square will provide a boost to the downtown Detroit business district, which is showing sporadic signs of life after several decades of losing retail businesses and office jobs.

"We certainly see positive signs in downtown Detroit when you look at all the improvements being made by the city," Watchowski said.

Ernst & Young has signed a 10-year lease with One Kennedy Square. The 400 employees moving to the new building include 300 that currently work in Detroit and 100 from the accounting firm's Troy offices.

"We feel a location at the center of downtown Detroit will be very advantageous as we look to grow our business," said Jeffrey D. Bergeron, office managing partner for Ernst & Young.

The company will share the building with Van Buren Township-based auto supplier Visteon Corp., which is bringing 500 information technology workers from the suburbs, 450 of whom work for outside suppliers. Together, the two tenants will occupy about 70 percent of the building.

Other leases will be announced shortly, said Sam Munaco, associate broker for Signature Associates-ONCOR International in Southfield. The first floor will house two restaurants adjoined to a covered plaza.

George W. Jackson Jr., president and CEO of Detroit Economic Growth Corp., said the city is receiving more interest from developers for office, retail and residential projects.

The city is spending more than $20 million to fix downtown streets and offer tax breaks and other incentives to improve downtown.

One Kennedy Square will be covered in green, translucent glass and be complemented by a spire that will be lit at night.

"The glass will contrast nicely with all the masonry buildings in the area," said Ken Neumann, principal of Neumann Smith & Associates, designer for the project.

You can reach R.J. King at (313) 222-2504 or rjking@detnews.com.