VOL. 123 | NO. 142 | Tuesday, July 22, 2008
Real Estate Recap
Penn Specialty Chemicals Sells Assets to PennAkem
By Eric Smith
3324 Chelsea Ave.
Memphis, TN 38108
Sale Amount: $1.5 Million
Sale Date: July 2, 2008
Buyer: Penn A Kem LLC
Seller: Penn Specialty Chemicals Inc.
Details: Memphis-based Penn Specialty Chemicals has been acquired by PennAkem, a wholly owned subsidiary of the French company Minakem Group.
Under the terms of the acquisition, PennAkem bought the 42.49-acre property, buildings and equipment at Penn Specialty Chemicals’ North Memphis plant, where the company produces chemicals such as furfural and furan.
“It’s a complete sales transaction of essentially all the assets of Penn Specialty Chemicals to a new company, PennAkem,” said Dale Fannin, president of Penn A Kem LLC, the company’s local operating entity. “Penn Specialty Chemicals had been looking for a compatible investor for some time, and the Minakem Group is a company that specializes in fine chemical production, similar to what Penn was doing. They had a high interest in Penn’s product line.”
The Shelby County Assessor of Property’s 2008 appraisal is $3.8 million. Through all the changes, PennAkem will continue to call Memphis home, beefing up production of both PennAkem and Minakem lines.
“While the business plan will be similar to the prior business plan, joining forces with the Minakem Group will do a lot for our long-term stability and will probably, we hope, improve our growth program,” Fannin said. “It’s very good news for the employees here and I think for the customers as well as for the Memphis location.”
31.24 acres in Unincorporated Shelby County
Sale Amount: $700,000
Sale Date: July 11, 2008
Buyer: Memphis Islamic Center
Seller: Margaret Gillis and Carol Ruby, personal representatives of the Estate of Charlotte H. Humphreys
Details: The Memphis Islamic Center has bought a 31.24-acre parcel on Humphreys Road in unincorporated Shelby County where it will build a new facility. The property is on the south side of Humphreys, northeast of Walnut Grove Road and Hall Road. The center bought the land for $700,000 from Margaret Gillis and Carol Ruby, personal representatives of the Estate of Charlotte H. Humphreys. The Shelby County Assessor of Property’s 2008 appraisal is $653,000. The sellers also quitclaimed, or transferred, the property to the Memphis Islamic Center, a nonprofit, multipurpose Islamic organization that serves the “needs of Muslims in eastern Shelby County and beyond,” according to its Web site. A statement on the organization’s site said the land was bought with donations and a small amount of an interest-free personal loan. The site also said, “This is only the first step towards the fulfillment of our common dream to establish a comprehensive Islamic Center for all.”
800 Ridge Lake Blvd.
Memphis, TN 38120
Sale Amount: $6 Million
Sale Date: June 30, 2008
Buyer: The Kroger Co.
Seller: Newkirk Altenn LP
Details: The Kroger Co. has bought through a special sale deed its Memphis office in the River Oaks area of East Memphis. The seller was Newkirk Altenn LP. The Kroger Co. was leasing the property until the sale on June 30. “We exercised a purchase option on it, and it’s been a ground lease up until that time (of the sale),” said Brian Middleton, real estate supervisor at the Memphis office of Kroger. In conjunction with the sale is a termination of sublease agreement between Newkirk Altenn LP and The Kroger Co. that was dated June 1, 1983. The property is a 4-acre lot off Ridge Lake Boulevard just south of Ridge Bend Road. The building is 75,537 square feet and was built in 1982, according to local real estate information company Chandler Reports. The Shelby County Assessor’s 2008 appraisal of the property is $6 million. The sale included three easements and rights set forth in two agreements and one warranty deed, all recorded Feb. 3, 1981.
Two lots in Winstead Farms
Lakeland, TN 38002
Loan Amount: $736,000
Loan Date: July 15, 2008
Maturity Date: Aug. 10, 2009
Borrower: Magnolia Homes Inc.
Lender: Regions Bank
Details: Magnolia Homes Inc. has filed a construction loan to build homes on two lots in the Winstead Farms Planned Mixed Use Development in Lakeland. The company took out the loan July 15 through Regions Bank for lots 4 and 61. Winstead Farms is a 116-lot mixed use development on 77.44 acres across from Lakeland City Hall. The property, which has an entrance on U.S. 70, also has three lots for future commercial use, according to plans filed last year with the Shelby County Register of Deeds’ office. Magnolia Homes owner Reggie Garner told The Daily News last year that Magnolia will build out 57 of the lots, while the 59 other lots will be divided between Kenny Cook Construction, Harrell Homebuilders Inc. and Rivercrest Homes. Winstead Farms’ amenities include a pool, kids’ park with water sprinklers, trails, a fishing lake and jogging paths through the woods. The subdivision is about a mile and a half away from Cool Springs, another Magnolia Homes development.