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VOL. 127 | NO. 221 | Monday, November 12, 2012

Daily Digest

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Owner of Mixed-Use Property Files $1.4 Million Loan

The owner of the mixed-used property at 300 Poplar Ave. Downtown has filed a $1.4 million loan through Clayton Bank and Trust.

K & A Poplar, a general partnership whose address is in Collierville, acquired the 19,074-square-foot property in a quitclaim deed from K & A Investments on Nov. 1; the deed of trust was filed Nov. 5.

Built in 1964, the Class C property includes two buildings – a BP gas station and an office strip center – that sit on 1 acre on the north side of Poplar Avenue, between North Lauderdale Street and North Danny Thomas Boulevard.

The Shelby County Assessor of Property’s 2012 appraisal is $501,400.

Source: The Daily News Online & Chandler Reports

– Daily News staff

Ubiquiti CEO Talks Grizzlies Deal With Analysts

Ubiquiti Networks CEO Robert Pera, who’s also the new controlling owner of the Memphis Grizzlies, briefly addressed his purchase of the team and touched on the deal’s financing while talking to analysts during Ubiquiti’s latest quarterly earnings presentation last week.

In short, Pera said he didn’t sell any of the stock he owns in Ubiquiti to finance the Grizzlies deal.

However, the NBA required him to take steps that resulted in Pera obtaining financing for $26 million, collateralizing 15 million shares of his Ubiquiti stock holdings.

“I was required by the NBA league to improve the liquidity of my personal balance sheet,” is how Pera put it to analysts.

He added: “I will remain, as always, 100 percent devoted to Ubiquiti and its future success.”

The deal closed Oct. 29. Pera will be the new Grizzlies chairman, and he’s tapped Jason Levien to be the Grizzlies CEO, running things on a day-to-day basis. Pera and his team assembled two dozen individuals and partner entities to serve as limited partners with him.

Meanwhile, Pera emphasized Ubiquiti’s “strong fundamentals” in his comments to analysts Thursday, Nov. 8. At the end of the most recent quarter, Ubiquiti – which provides high-end wireless networking products – had a 27 percent operating margin and notched $14 million in profit for the quarter. The new product category alone contributed about $15 million of revenue during the most recent quarter.

Ubiquiti reported revenue of $61.5 million for the quarter, down 22 percent compared to revenue of $79.2 million during the same period last year.

However, a drop was expected. The company warned during its previous earnings presentation that counterfeit goods spreading through its sales channel would hurt the company for the next few quarters as Ubiquiti brought the problem under control.

That response appears to already be under way. Pera said the company has expanded the infrastructure of its legal team. And going forward, Ubiquiti is giving stronger guidance for future quarters.

– Andy Meek

Remodelers Council to Host Seismic Discussion

City and county code enforcement offices throughout Tennessee are required by state law to adopt and enforce construction-related codes that have been published within the past seven years.

Memphis and Shelby County are currently operating under the 2003 codes and have made a decision to adopt the 2012 codes.

The Memphis Area Home Builders Association has had an integral role in the adoption of codes with local amendments. After considerable discussion with code officials and elected leaders, MAHBA recommended to the County Commission that they adopt the 2012 codes with some special provisos.

On Nov. 13, the MAHBA Remodelers Council will host a meeting of interested industry professionals to discuss those provisos, its position and the implications of them on the industry.

The meeting will be held at the Memphis Area Association of Realtors Education Center, 6939 Poplar Ave., at 9 a.m. Refreshments will be provided.

R.S.V.P. can be made by calling 756-4500 or by emailing rterry@mahba.com.

– Sarah Baker

Elvis Presley Boulevard Improvements Set to Begin

City leaders will formally break ground Thursday, Nov. 15, for improvements to the streetscape of Elvis Presley Boulevard between Brooks Road and Shelby Drive in Whitehaven.

Memphis Mayor A C Wharton Jr. and Memphis City Council member Harold Collins will lead the ceremony at the Memphis Convention and Visitors Bureau Center at Elvis Presley and Brooks Thursday at 3:30 p.m.

Collins has campaigned and lobbied for years for the combination of local, state and federal funding for changes to a streetscape that has changed little since the stretch of road was a country highway outside the city limits.

The improvements include sidewalks, synchronized traffic signals, better street lighting and relocation of some utilities.

The changes begin this month with a first phase of construction from Brooks to Commercial Parkway to be followed by two other phases that take the improvements to Shelby Drive.

– Bill Dries

Wholesale Stockpiles Grew 1.1 Percent

U.S. wholesale businesses increased their stockpiles in September at the fastest pace in nine months and their sales jumped by the largest amount in 18 months. The increases suggest the U.S. economy grew faster over the summer than first estimated.

Wholesale stockpiles grew 1.1 percent in September, the Commerce Department said Friday. That’s up from a 0.8 percent increase in August, which was revised higher.

Sales at the wholesale level rose 2 percent in September. That was double the August gain and the largest increase since March 2011.

Economists said the faster inventory growth will prompt the government to raise its July-September economic growth estimate from the 2 percent annual rate reported last month. When businesses order more goods, it generally leads to more factory production and that boosts economic growth.

The government issued its first estimate for third quarter growth before knowing the September wholesale inventories figures. The growth estimate also did not include the September trade figures. On Thursday, the government said the U.S. trade deficit narrowed to its lowest level in nearly two years because exports rose to a record high.

Both reports suggest economic growth was stronger over the summer than first thought. The government issues its second estimate for third-quarter growth on Nov. 29.

Economists at Barclays said a string of better-than-expected numbers including Friday’s wholesale inventories report had prompted them to boost their estimate for third-quarter growth to 3.2 percent.

Economic growth slowed in the spring, in part because high unemployment and low pay increases kept U.S. consumers from spending more freely. Consumer confidence has increased sharply since then and that has translated into a rise in consumer spending, which accounts for nearly 70 percent of economic activity.

A stronger job market could also help boost growth in the final three months of the year. When more people find jobs, consumer spending typically increases.

– The Associated Press

Oil Rises as Americans' Confidence Improves

The price of oil rose Friday on a report that shows Americans’ perception of the economy is improving.

Benchmark crude was up 48 cents to $85.57 midday Friday.

The Thomson Reuters/University of Michigan consumer sentiment index reveals that Americans feel better about the state of the world’s largest economy than any point in the last five years.

Elected officials were also speaking Friday about ways to avoid the so-called fiscal cliff, a slew of tax increases and spending cuts that would take effect in January.

It’s believed that a lack of compromise in Washington on reducing the budget deficit would send the fragile economy back into recession.

Meanwhile, AAA says the nationwide average for gasoline fell to $3.456 a gallon, the lowest since July 21.

– The Associated Press

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 89 242 14,959
MORTGAGES 111 255 19,585
FORECLOSURE NOTICES 21 43 3,838
BUILDING PERMITS 153 512 35,842
BANKRUPTCIES 61 182 14,216
BUSINESS LICENSES 18 104 5,095
UTILITY CONNECTIONS 76 246 21,679
MARRIAGE LICENSES 16 75 4,632

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