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VOL. 129 | NO. 106 | Monday, June 02, 2014

Daily Digest

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Perkins Hotel Sells After Foreclosure

The Inn at Thousand Oaks hotel at 2700 S. Perkins Road in Parkway Village has sold for $2.2 million following a first-run foreclosure notice filed earlier this year.

HC Memphis LLC, an affiliate of Indianapolis-based Hotel Capital LLC, bought the 130-room hotel at Perkins and Interstate 240 in a successor trustee’s deed from attorney Douglas M. Alrutz of Wyatt, Tarrant & Combs LLP.

The property entered foreclosure when the previous owner, VMN Memphis LLC, defaulted on a $6 million loan dated August 2006 through Countrywide Commercial Real Estate Finance Inc. A first-run foreclosure notice appeared in The Daily News Feb. 4.

VMN Memphis LLC bought the hotel in 2006, when it was known as the Hampton Inn-Memphis, from Perkins Hotel Partners LP for $7 million, securing the property with the loan that later went into default.

Built in 1994, the 63,778-square-foot, five-story hotel sits on 2.2 acres along the east side of South Perkins Road between I-240 and American Way. The Shelby County Assessor of Property’s 2013 appraisal was $3.8 million.

Hotel Capital is a “private equity real estate investment firm that provides debt and equity capital to the hospitality industry,” according to the company’s website.

Source: The Daily News Online & Chandler Reports

– Daily News staff

Shinseki Resignation Not Enough, Says Alexander

Word of the resignation of Veterans Affairs Secretary Eric Shinseki Friday, May 30, came as U.S. Sen. Lamar Alexander of Tennessee campaigned with New Jersey Gov. Chris Christie in Germantown.

Alexander said he respected Shinseki’s decision to resign amid evidence of misconduct and mismanagement at Veterans Affairs hospitals across the nation.

A critical report released in October by the VA inspector general highlighted “preventable deaths” of veterans at the Memphis VA Medical Center.

“That doesn’t get to the bottom of what happened,” Alexander said of Shinseki’s resignation. “We need to get to the facts. My goal is to get to the bottom of it.”

Alexander and U.S. Sen. Bob Corker have recently been visiting Veterans Affairs hospitals and other facilities across the state.

“We should give them access to the health care in the same way that we give them access to college,” Alexander said of veterans. “Over time, we should say to them, ‘Here’s a voucher, here’s the money. Go choose your own health care.’”

He described Shinseki as a “respected military hero” and criticized President Barack Obama for not going to Shinseki sooner to get a handle on the problems.

“The president does not show the characteristics of an executive leader. I cannot imagine not stepping into this more quickly,” he added. “The president should have called him in immediately and said, ‘I need to know what’s going on.’”

– Bill Dries

Mid-South Marking Rebrands as MSM Solutions

Mid-South Marking Systems is changing its company name to MSM Solutions to better reflect its products and offerings in providing barcoding and radio-frequency identification, or RFID, solutions.

The name change will go into effect July 1. MSM’s core focus will remain unchanged, and service to its nearly 2,000 customers will not be interrupted.

“We want our customers to know we that we utilize the latest technology in barcoding and RFID,” said Rick Summers, president and CEO of MSM Solutions. “We place a premium on research and development and providing the best printing and data collection equipment in our solutions.”

– Don Wade

Haslam: Tennessee Back in Talks With Volkswagen

Gov. Bill Haslam says his administration is talking again with officials from Volkswagen.

Haslam told the Chattanooga Times Free Press that discussions include state incentives and other programs that could be used to encourage the German automaker to build a new SUV in Chattanooga.

VW is close to making a decision on where it will build the new vehicle.

Tennessee had offered $300 million in incentives, but withdrew the offer as workers at the plant prepared to vote on whether to join the United Auto Workers union. Workers decided against the union.

Haslam said the current talks haven't included any discussions about unions.

– The Associated Press

Consumer Sentiment Falls on Gloomy Wage Outlook

U.S. consumer confidence fell in May as Americans grew more pessimistic about future pay increases, though they remained optimistic about the broader economy.

The University of Michigan says that its index of consumer sentiment dropped to 81.9 this month from 84.1 in April. Still, Richard Curtin, director of the survey, says that confidence in the first five months of this year has been at the highest level since 2007, before the Great Recession began.

Nearly half of all households expect their inflation-adjusted income to decline over the next 12 months, the survey found. And among those that did anticipate gains, most expect increases of just 1 percent or 2 percent.

Consumer confidence is closely watched because spending by consumers drives about 70 percent of the economy.

– The Associated Press

Consumer Spending Down 0.1 Percent in April

U.S. consumers cut back on spending in April for the first time in a year, taking an unexpected pause after a big jump during the previous month. The results, however, are unlikely to derail an expected spring rebound in the economy.

Consumer spending, which accounts for 70 percent of overall economic activity, fell 0.1 percent in April, the Commerce Department said Friday. The drop was the first in 12 months. But it followed a 1 percent surge in spending in March, which marked the biggest increase in more than four years.

"It is obvious that after an unseasonably colder January and February consumers came out with a vengeance in March," Chris Christopher, an economist at IHS Global Insight, said in a note to clients. "So, April's poor showing on the spending front is payback for a strong March."

The latest figure reflects reductions in durable goods purchases such as autos and in services such as heating bills. While disappointed, analysts say the results don't change the broader upward trajectory of the economy and predict consumer demand to bounce back in May.

An "improving job market should support stronger spending in coming months," Jennifer Lee, senior economist at BMO Capital Markets, wrote in a research note.

Friday's government report also showed that income rose 0.3 percent in April after advancing 0.5 percent in March. That marks the fourth consecutive monthly climb.

– The Associated Press

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 96 96 12,993
MORTGAGES 132 132 16,890
FORECLOSURE NOTICES 21 21 3,322
BUILDING PERMITS 0 0 30,564
BANKRUPTCIES 66 66 12,409
BUSINESS LICENSES 20 20 4,509
UTILITY CONNECTIONS 146 146 19,039
MARRIAGE LICENSES 35 35 3,944

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