VOL. 127 | NO. 35 | Tuesday, February 21, 2012
Memphis Real Estate Recap
Nucor Files Application For Steel Operations
3601 Paul R. Lowry Road
Memphis, TN 38109
3601 PAUL R. LOWRY ROAD • MEMPHIS, TN 38109
Permit Cost: $2 million
Permit Date: Applied February 2012
Owner: Nucor Corp.
Tenant: Nucor Steel Memphis Inc.
Details: Nucor Steel Memphis Inc. is taking steps toward increasing its Memphis steel operations at 3601 Paul R. Lowry Road. The company filed a $2 million permit application with the city-county Office of Construction Code Enforcement for what the permit terms “files and steel erection.”
The permit application comes around the same time the Economic Development Growth Engine (EDGE) board awarded Nucor a 15-year tax freeze for the company’s local expansion plans. Nucor in January announced its local plant will be part of a two-year, $290 million effort to expand the Charlotte-based company’s production of special bar quality and wire rod, with a goal of completing the projects by 2013.
Nucor currently has about 400 direct jobs in the city and has invested about $400 million in operations here. It plans to increase its manufacturing output by up to 25 percent, create 27 new jobs at its Paul R. Lowry Road location and acquire about 42 acres on the east side of Paul Lowry from the Port Commission to help expand Nucor’s rail infrastructure.
In return, the company would invest $113 million to produce “high-quality carbon alloy steel for the automotive, heavy equipment and service center markets.”
The tax freeze would save Nucor a little more than $9.4 million in taxes over the 15-year term. During that same period, the company would pay a little more than $9.5 million in tax revenue.
400 Mahannah Ave.
Memphis, TN 38107
Permit Costs: Applied $1.1 million and $224,000; Issued $2.2 million
Permit Date: February 2012
Owner: K.T.G. (USA)
Tenant: Amec Kamtech Inc. ($1.1 million), K.T.G. (USA) ($224,000), according to deed
Contractor: Amec Kamtech Inc.
Details: Recent building permits have been applied with and issued by the city-county Office of Construction Code Enforcement related to Canada-based tissue manufacturer Kruger Inc.’s development of a $316 million Memphis plant to expand its current facilities here. The permits are the latest steps for the buildout of Kruger’s development at 400 Mahannah Ave., north of Downtown. Kruger’s multimillion-dollar deal was announced in August.
The news came a few days after the company, which is Canada’s leading tissue manufacturer, filed a $39.8 million construction loan for its existing Memphis facility on Mahannah.
In this month’s transactions, applications for $1.1 million and $224,000 permits were filed, with the description on the former as “erection of release #3 of the structural steel for tissue machine building” and on the latter as “installation of concrete pile cap foundation for tile chest.” In addition, Construction Code Enforcement approved a $2.4 million permit with the description: “steel erection for converting building structure.”
Kruger and local officials announced last year the company had chosen Memphis from several locales – including several in the U.S. and one in Quebec – to be the new site of its tissue facility.
Part of the city’s economic incentive deal included a 15-year payment-in-lieu-of-taxes. The project will create 100 jobs, preserve 294 jobs and create about 500 direct and indirect jobs during construction, the company estimated last year.
Of Harbor Town
Loan Amount: $9.1 million
Loan Date: Feb. 14, 2012
Maturity Date: Feb. 14, 2017
Borrower: River Inn of Harbor Town LLC and River Inn Spa LLC, collectively as borrower
Grantor: Memphis Center City Revenue Finance Corp.
Lender: First Tennessee Bank NA
Details: Memphis Center City Revenue Finance Corp. has filed a $9.1 million fee deed of trust through First Tennessee Bank NA for River Inn of Harbor Town hotel property in the Harbor Town area of Mud Island, according to documents filed with the Shelby County Register of Deeds’ Office. River Inn of Harbor Town LLC and River Inn Spa LLC are listed as the borrowers. The loan matures in February 2017.
River Inn of Harbor Town LLC is part of a payment-in-lieu-of-taxes agreement through CCRFC that began in 2006.
The hotel, at 50 Harbor Town Square, has 28 rooms in two areas – the north and south towers – according to the hotel’s website. It also houses Paulette’s Restaurant and Tug’s: A Casual Grill.
3615 Houston Levee Road
Collierville, TN 38017
Sale Amount: $800,000
Sale Date: Feb. 2, 2012
Buyer: H-L Centro LLC
Seller: Forest Hill LP
Details: An outparcel to Collierville’s Gallina Centro shopping center traded hands twice in recent weeks, culminating in a $800,000 sale. First, Gallina Centro LLC quitclaimed the 18,260-square-foot building to two entities, with 75 percent interest going to H-L Centro LLC and the remainder quitclaimed to Forest Hill LP.
Then Forest Hill LP sold its 25 percent interest to H-L Centro for $800,000.
The multitenant building, whose largest occupant is Hollywood Feed, is on 1.9 acres with frontage on the west side of South Houston Levee Road between West Poplar Avenue to north and Winchester Road to the south.
The Shelby County Assessor’s 2011 appraisal was $2.9 million.
The property is an outparcel to the 350,000-square-foot Gallina Centro shopping center, which is anchored by Kohl’s and Stein Mart department stores and Kroger grocery store.