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VOL. 127 | NO. 205 | Friday, October 19, 2012

Sarah Baker

SEND COMMERCIAL LEASE ANNOUNCEMENTS to Sarah Baker, who can be reached at 521-2464 or sbaker@memphisdailynews.com.

LGSTX Services Expands Local Warehouse

By Sarah Baker

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LGSTX Services Inc. is relocating and expanding its Memphis warehouse operations. The Wilmington, Ohio-based firm, which specializes in aviation support and facility services, has leased 184,680 square feet across two facilities in the Southwide Distribution area at 363 Burma Road and 410 Burma Road.

The spaces are adjacent to the FedEx Ground facility and Del-Nat Tire Corp. LGSTX Services will occupy all of 363 Burma’s 124,200-square-foot distribution warehouse and 60,480 square feet of 410 Burma’s total 113,100-square-foot facility.

LGSTX Services currently operates out of 105,785 square feet at 3845 Crowfarn Drive. Formally known as ABX Equipment and Facility Services Inc., LGSTX Services does contract work for the United States Postal Service.

In September, LGSTX renewed its contract to manage the Memphis USPS sort facility under a business unit called Air Transport Services Group Inc. (ATSG). ATSG has managed the Memphis USPS facility since 2006.

“Obviously, USPS has altered their business model a little bit, so (LGSTX's relocation) is just really to accommodate the operation,” said Kelly Medley, manager of communications, marketing and employee services for LGSTX Services.

Gene Woods, president of Colliers International Memphis, facilitated the transaction for both LGSTX Services and representation of the Thousand Oaks, Calif.-based landlord, Silagi Development & Management Inc.

“I have been working with (LGSTX) for quite some time trying to locate a new space that would accommodate their needs,” Woods said.

A $240,211.25 building permit application was recently filed with the city-county Office of Construction Code Enforcement for tenant space alterations to the 363 Burma space.

Mark Denton, architect with Denton Architecture, is providing design services for the new space. Work has begun, with an intended move in by the end of the year.

• In other commercial leasing news, Taziki’s Inc. has inked 3,000 square feet in the old Pei Wei space in Mendenhall Commons, 540 S. Mendenhall Road, for 10 years.

The Birmingham, Ala.-based Mediterranean café has been seeking space in Memphis for the past two years, said co-founder Keith Richards.

“Finally, it was a location that came up that was an existing restaurant, which helps us on our build out, which is a big part of it,” Richards said. “We’ve got plenty of parking, being right off of the main drag of Poplar Avenue, and then the accessibility of the homes, hospitals and businesses really just fit our profile. When we go to create a recipe for success, those ingredients have to be there.”

Greg Clotfelter will be managing partner of Taziki’s first Memphis store. The fast casual restaurant already has Tennessee locations in Chattanooga, Cool Springs and West End in Nashville.

Taziki’s will employ at least 30 part- and full-time employees, Richards said. The store has begun interior alterations and is expected to be open by early January.

Gary Shanks with The Shopping Center Group LLC represented the tenant in lease negotiations. Justin Latone with Houston-based Weingarten Realty Investors represented the landlord.

• Meanwhile, Planet Fitness has inked a 10-year, 18,783-square-foot lease at 5740-5746 Stage Road in Bartlett.

Ed Thomas and Andrew Phillips with Colliers International represented the tenant. Shawn Massey, principal with The Shopping Center Group, represented the landlord, American Properties G.P.

The fitness club already operates a store at 7114 Winchester Road. Thomas said Planet Fitness is “actively looking for additional locations.”

• In other deals, Mattress Firm has leased 6,155 square feet at 1556 Union Ave., in the same strip center as Subway and Petra Café.

The space briefly housed Crazy Mike’s Mattress and Blockbuster before that. Interior renovations for $200,000 have commenced at 1556 Union Ave.

The Shopping Center Group’s John Reed is Mattress Firm’s exclusive tenant rep in the Memphis market and surrounding areas. Bob Wenner, one of the principal/owners of Fifteen 56 Partners, represented the landlord.

Reed said the new Union store fills a hole in Mattress Firm’s Memphis portfolio of stores. The farthest west the company had been before this lease was in Poplar Plaza, which opened about 18 months ago.

“They didn’t have anything in Midtown,” Reed said. “We were waiting to see how the Poplar Plaza store would perform before we would venture farther west. Because the Poplar Plaza store is performing very well, and it’s just a lucky coincidence that its sales are good at the time that the (Union) building became available again.”

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 81 301 17,656
MORTGAGES 101 347 22,998
FORECLOSURE NOTICES 38 76 4,504
BUILDING PERMITS 208 722 41,947
BANKRUPTCIES 61 237 16,629
BUSINESS LICENSES 11 61 5,762
UTILITY CONNECTIONS 60 256 25,125
MARRIAGE LICENSES 14 80 5,365

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