VOL. 128 | NO. 15 | Wednesday, January 23, 2013
Former Harrah’s Headquarters Sells for $4.1 Million
By Sarah Baker
The previous owner of the East Memphis office complex at 1023 Cherry Road has reinvested in the asset for $4.1 million.
The buyer was RBM Cherry Road Partners, which originally leased the 113,556-square-foot campus to Harrah’s Entertainment Inc. in 1999 and owns the adjoining property, Oaksedge. RBM Cherry Road Partners is an entity of Memphis-based RBM Venture Co., the private investment company of the R. Brad Martin family.
The sale closed Tuesday, Jan. 22.
“We are pleased to have acquired these special buildings and to have the opportunity to reintegrate these assets with the balance of Oaksedge,” RBM Venture Co. president Scott Imorde said in a statement. “As has been the case during our ownership of the campus, we are committed to the highest standards and quality at this very unique and important location.”
CB Richard Ellis Memphis brokers Johnny Lamberson and Terry Radford represented the seller, New York-based MLMT 2004-MKB1 1023 Cherry Road LLC, in the sale of the campus located next to the Dixon Gallery and Gardens.
MLMT 2004-MKB1 1023 Cherry Road LLC bought the embattled office property for $6.4 million during a substitute trustee’s sale in October 2009 at the Shelby County Courthouse.
Originally developed for Promus Hotels in 1985 and renovated for Harrah’s in 1995, the property has been vacant since Harrah’s moved its Memphis corporate office to 7216 Goodlett Farms in 2006. The Goodlett Farms campus was subsequently vacated in 2008 when Harrah’s relocated its Memphis operations to Las Vegas.
The campus consists of two buildings – one that’s 59,159 square feet and one that’s 54,397 square feet. The property also contains a covered parking structure.
The buildings were 52.1 percent leased as of May, but are both empty. Harrah’s currently is still under lease for the 59,159-square-foot building until April 2017. The lease for the 54,397-square-foot building expired in April.
The Class B office complex’s 2012 appraisal from the Shelby County Assessor of Property, including land and building, was $2.4 million.