Sherman property purchase agreement
November 10, 2010 - Ortonville- Sold.
|The Brandon School Board has accepted a purchase agreement for the nearly 15,000 square-foot building that formerly housed the Sherman Lifelong Learning Center. Photo by Susan Bromley. (click for larger version)|
The Brandon School Board has accepted a purchase agreement for the former Sherman Lifelong Learning Center, located at 330 Sherman Court in the village.
The board unanimously approved the proposed sale of the property to local business owner Paul Breakie during their Nov. 8 meeting. The sale price is $147,000, a bargain compared to the $600,000 price the district was asking when the property was first put on the market in August 2009.
"We are pleased with what we got for it," said Superintendent Lorrie McMahon. "It could take a month to six weeks to finalize (the sale). We will discuss with the finance committee what we will do with the proceeds."
Breakie is the owner of Diamond Forest Properties, which manages several apartment buildings, and he also operates Groveland Quality Care, an adult foster care home in Groveland Township. He is planning to convert the Sherman property into an assisted living facility, primarily serving elderly residents with dementia and Alzheimer's Disease.
"I really think there is a need for it in Brandon Township," said Breakie. "It's going to be a nice facility. The building is plain, not real fancy, but if work goes well on the inside, we can make it really nice for the residents. I'm pumped, I think its an awesome project."
There will be a 120-day due diligence period in order to get the building licensed as an assisted living facility. Breakie plans to open the facility in the spring of 2011, housing anywhere from 28-36 residents, and employing 12-15 people.
The building is roughly 50-years-old and was originally a nursing home. The school district purchased the building in the mid '90s and housed preschool classes and the alternative high school there until they were moved to the H.T. Burt building last year after the construction of Oakwood Elementary.
The district still has for sale a 23-acre section of property along Oakwood Road, just north of Leece Road, purchased with bond extension dollars in December 2006 for the construction of Oakwood Elementary School, which was ultimately built on a 75-acre parcel at Oakwood and Hadley roads. This property was purchased for $500,000 from Tucker Investment Co., LLC. The property has been on the market since last summer with the same asking price of $500,000, at which it will remain. The property is listed with Rich Mahoney, an agent with Real Estate One Professionals.
"We don't want to cut the price because it doesn't cost us anything," said McMahon.
The Sherman Court property was originally listed with Mahoney and REO and was professionally appraised at $600,000, but after zero offers for more than a year at that price, Mahoney said the district relisted it with Thomas Duke, a commercial real estate firm, which reduced the price to $147,000.
"I would say $147,000 is a fair appraisal," said Mahoney, who was the buyer's agent for Breakie. "Everyone thought $600,000 was an appropriate price, but it changed because of the market. $147,000 is more appropriate."
Susan covers Brandon Township and Ortonville