Evening journal., 1921-11-16
GENERAL MOTORS
REALTY BONDS
Issue of $12, 100000 on New
Detroit Office Building
Sold
THIRTY ACRES OF
FLOOR IN STRUCTURE

Pierre s. DUPONT. president Of the
General Motors Corporation. an
nounced that S. w. Strauss G. Co.,
purchased from the General Motors
Building Corporation subsidiary Of
General Motors Corporation. S12.-
OO0.OO0 first mortgage per cent.
serial bonds, maturing from 1922 to
1916.
These bonds are secured by the
corporations new office building at
Detroit Mich. This building, which
has just been completed, represents
an investment of more than $780,
100000. It occupies an entire block
SOOx5OO feet, is fifteen stories tall
and is the largest office building in
the world.
This loan represents one Of the
largest real estate mortgages ever
recorded.
In connection with this under
writing S, w. Straus & Co. say:
THE General Motors building has
been leased for term of 80 years
by the General Motors Corporation
at an annual rental fixed at an
amount sufficient to pay the COM
bined principal and interest charges
on the bonds in each successive
year. after the payment of all op-
Grating expenses. Under the cove
nants of the trust mortgage the
bonds are to be paid off in yearly
serial installments, the coupons be-
ing payable twice a year. May l and
November 1. The trust mortgage
requires the General Motors Build
ing Corporation subsidiary Of the
General Motors Corporation, to make
800 approximately equal monthly
payments to S. W. Straus & CO. OF
$4,000 each. These payments au-
tomatically provide in advance a
fund of a little more than $1,000
600 a year from which the coupons
are cashed, the balance being used
for the serial retirement of the
bonds
THE bonds constitute a direct
closed first mortgage on the build
ling land and equipment as we'll as
first lien on the income from the
property.
''The General Motors Corporation
with some Of its subsidiary and af-
.fihated companies, has already
moved into the building and Will
shortly occupy substantially so per
cent of the space and whatever re-
naming space not Immediately re-
quired for the occupancy OF the
company is being sub-leased. Con-
struction on the building was com
menced in 1919 and the greater por-
tion of It was completed in April,
1921. It is now proposed to COM
! plete the partitioning interior fin
ishing and equipment Of the re-
naming portion at an estimated
cost Of s3.3O0,OOO. The General
Motors Corporation states that theiI
decision to complete the interior OF
/ the remaining portion of the building
at this time is based on the fact
that there is every indication Of an
active demand for the space at sat
isfactory rentals. 1t is anticipated
that the new construction will be
completed by May / 1922.
'The building contains a total
| A'NA dAtd VI AAAAAA y dNAtos II has
1900 offices with a capacity Of 60O0
people and is equipped with 81 ele-
vators.
THE General Motors Corporation,
/ through its divisions. makes the
Cadillac. Buick. Oakland. Oldsmo-
bile and Chevrolet motor cars. tho
General Motors truck, Samson trac-
tor as well as farm machinery till
age impliments, iceless refrigerators
accessories and parts. There are
] 133,5OO in the General Motors inn
mediate family, of which $4,000 are
stockholders. Since 1909 the cor
poration has produced over 2.O0O.-
900 passenger and commercial cars
OF which approximately over 72 per
cent are now In use In this country
AS there are more than 10000
motor cars In the United States, one