VOL. 127 | NO. 131 | Friday, July 06, 2012
Hillwood Buys Pilot Drive Warehouse
By Sarah Baker
Hillwood Investment Properties has purchased the 605,000-square-foot warehouse at 4221 Pilot Drive in Southeast Memphis for $7.5 million from Addison, Texas-based MM Industrial Memphis LLC.
Built in 1973, the Class B warehouse in Airport Industrial Park spans 25.2 acres and has a 2012 appraisal from the Shelby County Assessor of Property of $10.5 million.
In Mississippi, Hillwood owns the 619,000-square-foot Airways Distribution Center and it has 4.1 million square feet of an ultimately planned 11 million square feet of warehouse/distribution facilities built in DeSoto Trade Center. Dallas-based Hillwood also owns more than 1 million square feet in Hacks Cross Logistics Center, including the 605,427-square-foot Building I, a distribution center it acquired in January from Mazda North America Inc. for $13.5 million.
The 4221 Pilot purchase marks Hillwood’s first Memphis acquisition.
Brad Kornegay, president of Colliers International Memphis’ asset services division, worked with Frank Fallon CB Richard Ellis’ Atlanta office in representing the seller. Kornegay represented the building for years and the owner requested he be involved in the sale.
In addition, Colliers represents Hillwood for all of its leasing at the property.
“We’ll continue to lease the building for Hillwood,” Kornegay said. “Hillwood will do the same thing with this building as they did when they purchased the Mazda building (Olive Branch) back in January. They’ll put a lot of money into it for vacancy preparation to get it ready to lease for a user.”
In other commercial leasing news, Shui K. Shen has acquired the 26-acre parcel of vacant land on 5891 Summer Ave. from Nathan and Carroll Ann Pera for $100,000.
Shen, a golf pro at Cordova Country Club, plans to convert the space into a golf driving range. Rosemarie Fair, president of One Source Commercial Inc., handled the transaction.
The sellers listed it with Fair at $1.1 million two and a half years ago and the property at one time had been listed for $2.5 million before Fair’s listing.
Once the Peras realized they were not going to utilize the land for their personal offices, they put the land into a charitable remainder trust. The Peras called several brokers that had assisted them in the past, and Fair was one of them.
“He said, ‘Find me somebody, this is what I’ll take,’” Fair said. “It was a multiple offer situation when I turned in the offer from Mr. Shen, but my story and all cash touched Nathan Pera’s heart and that’s what we wanted to do was to be able to fulfill this dream.”
Catholic Charities of West Tennessee ended up being the beneficiary of the proceeds.
“What (Pera) was doing was having to maintain the property, keep it bush hogged twice a year and pay fairly high real property taxes,” Fair said. “He’s been doing this for 10 years.”
5891 Summer is the formal address of the property that was named Fletcher Creek. There are six parcels within the 26 acres at the intersection of U.S. 70 and Munson Road. Over the years, prospects for the property included a tractor-trailer yard, school bus depot, low-income assisted living facility, a RV park and Shen.
Shen is from Taiwan and met Fair two years ago when he called her about the land.
“We clicked immediately because (we both) speak Japanese,” Fair said. “The price of the land was far more than he could ever afford, but we kept in touch over the years as he would call and share his dream.”
Shen’s claim to fame is teaching kids the game of golf and within seven months, the student progresses from bouncing a golf ball off the tee to making the school golf team.
“Golf is the greatest sport on this earth,” Shen said. “Golf gives you enjoyment, it gives you achievement when you’ve done something good. With 18 holes … from beginning to end, you’re responsible for yourself. If you don’t swing right, you don’t have that enjoyment.”
Fair’s work on this sale continues as she will assist Shen in obtaining a zoning variance and an appeal to the Shelby County assessor of property to lower his taxes. Fair will also find a contractor to build a small pro shop and find someone to mow the property.
“Those are services I certainly don’t provide at all typically, but I know how to do it and I’ll be happy to do it for him and it’s for the cause,” Fair said.