VOL. 126 | NO. 242 | Tuesday, December 13, 2011
Memphis Real Estate Recap
LNR Buys Germantown Apartments for $17.1M
7491 Wyndhurst Place or
7455 Wolf River Blvd.
Germantown, TN 38138
7491 Wyndhurst Place • Germantown, TN 38138
Sale Amount: $17.1 million
Sale Date: Nov. 28, 2011
Buyer: DMARC 2006-CD2 Wyndhurst Place LLC
Seller: Harris P. Quinn, substitute trustee
Details: DMARC 2006-CD2 Wyndhurst Place LLC, an entity affiliated with Miami-based LNR Partners LLC, has bought Oakwood temporary housing apartment complex at 7455 Wolf River Blvd. in Germantown at a foreclosure sale for $17.1 million. The substitute trustee in charge of the sale was Harris P. Quinn.
Oakwood is a 252-unit complex built in 1996 on 27.7 acres at the southwest corner of Wolf River Boulevard and Miller Farms Road in Gables of Germantown subdivision. It uses the address 7491 Wyndhurst Place and has one-, two- and three-bedroom units.
Oakwood offers temporary housing with furnished and serviced corporate apartments and residences, according to the company’s website.
The Shelby County Assessor of Property’s 2011 appraisal of the property is $18 million.
The complex’s most recent owners – and the entities involved in the foreclosure – are Bush Realty Colonnade LLC and Empirian Colonnade LLC. The pair bought the apartment complex in October 2004 for $20.7 million, renaming it Empirian Colonnade.
The foreclosure occurred after Bush and Empirian defaulted on a $22.1 million loan secured by the property. The entities took out a $15.5 million loan through KeyBank in October 2004.
The KeyBank loan was assigned in 2005 to Deutsche Banc Mortgage Capital LLC, which assigned it the next year to Wells Fargo Bank NA. Wells Fargo assigned it to Bank of America this year.
Miami-based LNR Partners, the entity behind buyer DMARC, has been involved in a number of Memphis real estate transactions in 2011. Most recently, LNR sold Cross Creek Shopping Center at 3469 Riverdale Road, 3505 Riverdale Road and 3587 Riverdale Road for $12.7 million, having bought it about a year ago for $12.3 million. Also, the company sold Trinity Ridge Business Center in Cordova for $7.6 million in October.
LNR also made three purchases earlier this year, all at foreclosure sales. In April, the company bought Waterford Place Apartments in Southeast Shelby County for $18.2 million and The Villas at Cordova apartment complex for $14.2 million. And in May, LNR bought Bartlett Logistics Center, a group of flex warehouses, for $15 million.
8166 Varnavas Drive
Cordova, TN 38016
Sale Amount: $2.5 million
Sale Date: Nov. 29, 2011
Buyer: Minesh Patel
Seller: Shyona Inc.
Loan Amount: $2.8 million
Loan Date: Nov. 29, 2011
Maturity Date: n/a
Borrower: Minesh Patel and spouse, Jagruti Patel
Lender: Liberty Bank of Arkansas
Details: Minesh Patel has bought the 102-unit Quality Suites hotel at 8166 Varnavas Drive in Cordova from Shyona Inc. for $2.5 million after Shyona filed for Chapter 11 bankruptcy protection. Patel and spouse Jagruti Patel financed the purchase with a $2.8 million loan through Liberty Bank of Arkansas.
The three-story, 66,050-square-foot hotel, which includes an indoor pool, was built in 1996. It is on 2.2 acres on the north side of Varnavas Drive east of North Germantown Parkway. Varnavas is between U.S. 40 to the north and Bellevue Parkway to the south.
The Shelby County Assessor of Property’s 2011 appraisal is $4.7 million.
Shyona bought the property in 2008 for $5.2 million, financing it with a $4.7 million loan.
The company, doing business as Quality Suites of Cordova, filed for Chapter 11 in December 2010. Shyona listed 19 creditors with claims totaling more than $328,000. Shelby County and the city of Memphis were the top two creditors, both for 2009-2010 property taxes. Shyona is disputing both, according to a document filed with the U.S. Bankruptcy Court, Western District of Tennessee.
The court on Nov. 9 gave Shyona the green light to sell the Cordova hotel. The transaction closed Nov. 29.
826 Virginia Run Cove, 832 Virginia Run Cove, 835 Virginia Run Cove, 836 Virginia Run Cove, and vacant properties on Summer Avenue and Virginia Run Cove
Memphis, TN 38122
Sale Amount: $1.4 million
Sale Date: Nov. 29, 2011
Buyer: Merchants & Farmers Bank
Seller: Dudley B. Bridgforth, substitute trustee
Details: Merchants & Farmers Bank has bought six parcels containing four warehouses near the intersection of Virginia Run Cove and Summer Avenue at a foreclosure sale for $1.4 million. The substitute trustee who sold the property is Dudley B. Bridgforth.
The properties are part of 5325 Summer Avenue Planned Development, south of the intersection of Summer Avenue and the Wolf River, north of Macon Road, in the 38122 ZIP code.
The warehouses, which are at 826 Virginia Run Cove, 832 Virginia Run Cove, 835 Virginia Run Cove and 836 Virginia Run Cove, were built between 1999 and 2003. They total about 26,300 square feet and together are appraised at $1.4 million.
The sale also includes a 0.5-acre parcel making up the paved surface of the cove itself and a 0.75-acre driveway on Virginia Run Cove.
The package of parcels was sold in foreclosure after former owner 5325 Summer Ave Properties LLC defaulted on loans through Merchants & Farmers Bank. The limited liability company’s original loan through M&F, dated March 2003, amounted to $2.4 million. It was modified in July 2004, and again in March, September and December 2005. By the last modification, the loan had increased to three notes totaling about $6.8 million.