Steelcase Signs Letter of Intent to Sell Grand Rapids Property to Ashley Capital

GRAND RAPIDS, Mich., May 22 /PRNewswire-FirstCall/ -- Steelcase Inc. , a global office environments manufacturer, announced today that it has signed a non-binding letter of intent with Ashley Capital for the sale of the majority of its Grand Rapids campus.

In 2005, Steelcase announced it had retained Grubb & Ellis|Paramount as its brokerage partner to manage the sale of approximately 206 acres of its Grand Rapids, Michigan manufacturing campus. This move was precipitated by the rationalization and modernization of Steelcase's manufacturing system, creating over four million square feet of vacant manufacturing space. Steelcase will retain ownership of its global headquarters building as well as its Steelcase University Learning Center in Grand Rapids, and the company expects to maintain its presence in the city for the foreseeable future.

The sale is contingent upon the successful completion of negotiations between Steelcase and Ashley Capital and the satisfaction of customary conditions to closing. The companies expect to close on the sale by the end of the calendar year.

"During the purchaser selection process, candidates were evaluated based on qualifications such as financial capability, experience in major redevelopments, compatibility of the developer's plan with the desires of the community and the overall strength of the individuals that would be working on the project," said Nancy Hickey, Steelcase Inc., Chief Administrative Officer. "Ashley Capital emerged from the process excelling in each of those areas."

When asked why Ashley Capital was interested in purchasing and redeveloping the Steelcase campus, Susan Harvey, Senior Vice President, stated "This is exactly the type of urban renewal project for which we have the expertise." She added, "The complexity of the issues involved in putting this site back into full productive use for the community makes this a uniquely exciting project."

Paul Rubacha, Principal of Ashley Capital, shared his vision for the future of this property by adding "while we need to remain flexible in our plans for the property, at this time we foresee a mixed-use redevelopment including residential, retail, restaurant and industrial components. As always, we will work closely with the community to keep our goals for the redevelopment closely aligned with those of the community."

"When this project was announced, I was confident Steelcase wanted the best for the City of Grand Rapids as they sought to redevelop their Grand Rapids campus and they showed that by working openly and directly with this office," said Grand Rapids Mayor George Heartwell. "Now that a developer has been announced, it is an exciting opportunity for the City and the people of this community to be a part of the renewal and reuse of that property. We anticipate working closely with Ashley Capital and the City of Wyoming as this project moves forward."

Added Wyoming Mayor Carol Sheets, "These types of projects work best when business and government work together. We were pleased to work with Steelcase and Grubb & Ellis in the early stages of the redevelopment project. We look forward to continuing that relationship with Ashley Capital to bring new opportunities to the Wyoming and Grand Rapids area."

"The marketing plan that was jointly developed between Grubb & Ellis|Paramount and Steelcase produced the desired result of bringing the most qualified and capable developers to this site," said Duke Suwyn, Grubb & Ellis|Paramount President & CEO. "The selection of Ashley Capital, a premiere player in this unique type of redevelopment project, is the culmination of tremendous efforts by many parties including Steelcase, the City of Grand Rapids, The City of Wyoming, Ashley Capital and Grubb & Ellis|Paramount."

About Steelcase Inc.

Steelcase, the global leader in the office furniture industry, helps people have a better work experience by providing products, services and insights into the ways people work. The company designs and manufactures architecture, furniture and technology products. Founded in 1912 and headquartered in Grand Rapids, Michigan, Steelcase serves customers through a network of more than 800 independent dealers and approximately 13,000 employees worldwide. Fiscal 2006 revenue was $2.9 billion. Learn more at http://www.steelcase.com/.

About Ashley Capital

Ashley Capital was founded in 1984 by Rick Morton and Paul Rubacha and remains privately held. Based in New York with approximately 25 million square feet in its portfolio throughout the eastern half the United States, Ashley Capital is among the premier industrial development firms in the country. The firm specializes in the redevelopment of large manufacturing facilities.

About Grubb & Ellis|Paramount:

Established in 1995, Grubb & Ellis|Paramount is one of the largest commercial real estate firms in West Michigan, with offices in Grand Rapids, Kalamazoo and Holland. Leading market knowledge and technological resources support individual teams of specialists representing Industrial, Office, Retail and Investment/Land markets, Corporate Account and Property Management services to provide a full range of strategic, customized client solutions. For more information, visit http://www.paramountprop.com/.