FedEx Headquarters Building Sells for $22.6 Million
The building that houses the corporate headquarters of FedEx Corp. at 942 S. Shady Grove Road in East Memphis has sold for $22.6 million.
Terraza 9 LLC, an affiliate of Escondido, Calif.-based Realty Income Corp., bought the 101,308-square-foot office building in a Feb. 21 special warranty deed from Norman FX World LLC of Poway, Calif.
Built in 1999, the Class A office facility sits on 4 acres along the east side of Shady Grove between Briarcrest and Poplar avenues. The Shelby County Assessor of Property’s 2012 appraisal was close to $16 million.
This marked Realty Income’s third Memphis purchase in the past few months. In December it paid $16.6 million for the Herbalife International of America Inc. distribution center at 5025 Crumpler Road in Hickory Hill.
Operating as Terraza 2 LLC, the company bought the 131,672-square foot facility in a Dec. 20 special warranty deed from Memphis Herb GP, an affiliate of Sherman Oaks, Calif.-based Cardinal Industrial.
Also in December, it paid $1.1 million for the Advance Auto Parts store at 9811 U.S. 64 in Arlington. Operating as Realty Income Properties 18 LLC, the company bought the 6,708-square-foot retail store in a Dec. 7 special warranty deed from Advance Stores Co. Inc. of Roanoke, Va.
Source: The Daily News Online & Chandler Reports
– Daily News staff
Olymbec Files $5.5 Million Mortgage on Brinkley Plaza
Montreal-based Olymbec USA LLC, an entity of Olymbec Corporate Group, has filed a $5.45 million mortgage on Brinkley Plaza in Downtown Memphis.
Olymbec president Richard Stern signed the mortgage with Standard Insurance Co., which matures March 2028. William L. Rosenberg of First American Title Insurance Co. out of Nashville was the trustee.
Olymbec in October acquired the 219,557-square-foot office tower at 80 Monroe Ave., its ground lease and the adjacent 300-space covered parking garage for $7.2 million. The Canadian real estate investment firm bought the Class B, 10-story building from a partnership made up of entities related to local commercial real estate groups CB Richard Ellis Memphis and Loeb Properties Inc.
Sanderlin Place, Loeb’s two-thirds ownership entity, and Brinkley Plaza II Partnership, CBRE’s one-third ownership entity, bought Brinkley Plaza in 2003 for $6 million.
Built in 1923, Brinkley Plaza sits on 0.66 acres at the corner of Monroe and South Main Street. The Shelby County Assessor of Property’s 2012 appraisal was $4.4 million.
Although the office high-rise was 60 percent occupied at time of sale, Stern told The Daily News last fall that he’s bullish that Brinkley Plaza can “easily” achieve the average office occupancy rate of 80 percent.
CBRE Memphis continues to lease and manage Brinkley Plaza. The current asking rate is $14.50 to $15.50 per square foot, and is marketed as the “best office value in Memphis.”
– Sarah Baker
Wellford Elected a Fellow of Tennessee Bar Foundation
Shea Sisk Wellford, a director and partner with the Memphis law firm of Martin, Tate, Morrow & Marston PC, has been elected as a fellow of the Tennessee Bar Foundation.
Only 30 attorneys across Tennessee this year were invited by the foundation’s board of trustees to become a foundation fellow. In total, 766 attorneys in Tennessee are fellows of the Foundation.
The Tennessee Bar Foundation is a philanthropic organization that honors attorneys and financially supports law-related public projects. During 2013, the foundation will distribute $650,000 in awards to 53 organizations across Tennessee.
– Andy Meek
St. George’s School Launches App for Parents
St. George’s Independent School has put school calendars, sports schedules, private postings for parents and even news items and videos on a new app announced to parents last week.
The app, which works on iPhones and iPads, is free in the Apple App Store.
The school with campuses in Memphis, Germantown and Collierville also launched a blog last week that is part of the school’s “Parenting Roadmap” evening and lunchtime sessions.
The sessions, open to the general public as well as St. George’s parents, now come with blog posts written by administrators at the school as well as the schools’ early childhood director.
– Bill Dries
US Service Firms Grow at Fastest Pace in a Year
U.S. service companies grew in February at the fastest pace in a year, buoyed by higher sales, more new orders and solid job growth.
The gain suggests higher taxes have yet to slow consumer spending on services.
The Institute for Supply Management said Tuesday that its index of non-manufacturing activity rose to 56 in February from 55.2 in January.
Any reading above 50 indicates expansion.
The report measures growth in industries that cover 90 percent of the work force, including retail, construction, health care and financial services. A solid recovery in the housing market helped drive the index higher.
Service firms also kept adding jobs last month. A measure of service-sector hiring fell only slightly after reaching a nearly seven-year high in January.
Thirteen of the 18 industries covered by the ISM survey reported expansion, including construction, real estate, finance and insurance, and utilities.
The companies surveyed by the ISM cover many industries that are closely tied to consumer spending, such as retail, hotels and restaurants and arts and entertainment.
The higher payroll taxes cost a household earning $50,000 about $1,000 a year; a household with two high-paid workers will have up to $4,500 less.
– The Associated Press
US Home Prices Rose by Most in Nearly 7 Years
U.S. home prices jumped in January, a sign the housing market is gaining momentum as it nears the spring selling season.
Home prices rose 9.7 percent in January from a year ago, according to data released Tuesday by CoreLogic. That’s up from an 8.3 percent increase in December and the biggest annual gain since April 2006.
Prices rose in all states except Delaware and Illinois. And prices increased in 92 of the 100 largest metro areas, up from 87 in December.
Home prices also rose 0.7 percent in January from December. That’s a solid increase given that sales usually slow over the winter months.
Rising demand combined with fewer available homes is pushing up prices. Sales of previously owned homes ticked up in January after rising to their highest level in five years in 2012, according to the National Association of Realtors. At the same time, inventories of homes for sale fell to a 13-year low.
– The Associated Press