Henry Ford negotiated a new contract with Cardinal Health to help directly reduce supply chain related costs as a result of the changing healthcare reimbursement environment. This new project will bring a state of the art, 275,000 SF distribution and light assembly building to a blighted area in the City of Detroit.
Cardinal Health and Henry Ford Health System selected KIRCO Development to act as their development partner for what is intended to be the first component of a $500-750 mm master planned community revitalization effort of 300 acres to include new medical and educational facilities. The plan will help stimulate residential and commercial development in the area.
The land being acquired will accommodate an expansion capability of an additional 135,000 sf. The project involves significant environmental site remediation and attainment of a $12mm brownfield tax increment financing package.
The capital stack for this community redevelopment project will involve the application and use of new market tax credits applicable for identified census tracks.
KIRCO development will own and lease the facility to Cardinal Health.
KIRCO MANIX will act as the construction manager for the estimated $28mm project and provide a guaranteed maximum price contract for the project.