VOL. 110 | NO. 149 | Friday, August 2, 1996
By CAMILLE H. GAMBLE
Restaurants follow diners to parkway
Krystal, Chic-fil-A restaurants
under construction on Germantown Parkway
By CAMILLE H. GAMBLE
The Daily News
Commercial real estate on Germantown Parkway is continuing to be gobbled up by fast-food and casual dining restaurant chains with more than 28,000 square feet under development in the past year and a half.
In the fast-food market, a Dyersburg partnership recently purchased a three-quarter-acre tract of land and is developing a Krystal store. KABB Partnership purchased the property from Cordova Centre LLC for $400,000 and borrowed $691,000 from First Citizens National Bank in Dyersburg to finance the transaction and construction, according to warranty and trust deeds filed in the Shelby County Registers Office.
Dr. Kenneth Brunson, a partner, is a Krystal franchisee in Dyersburg but is building the Cordova store to be leased to Faye Kirby, who operates a Krystal in Bartlett. It is the first real estate investment the partnership has made in the Memphis market.
Brunson said a Krystal franchisee in Collierville had considered building on the property, which had been previously approved by the chain as a Krystal site. "They had an option to buy the land and decided not to, so we purchased their option," he said.
Brunson said construction has started on the 2,700-square-foot store and is expected to be complete by October. Venture Construction Co. is the general contractor.
Going up near the Krystal are an extended stay hotel and mini-storage facility, according to Jackie Welch, chief managing officer of Cordova Centre LLC.
He said the company has about 25 acres still available for sale on Germantown Parkway and another 15 acres on Dexter Road that is zoned commercial. Welch said he does not currently have any prospects for that property.
South on Germantown Parkway, construction has started on a free-standing Chic-fil-A restaurant. Horizon Construction Co. is the general contractor on the 3,268-square-foot store being built at 1230 Germantown Parkway near a new Wal-Mart store.
The Atlanta-based company purchased the property from Wal-Mart Stores Inc. for $628,000, according to a warranty deed.
"We look for traffic volume from the street and what is around the restaurant that is going to intentionally draw traffic to that area that we can capitalize on," public relations director Don Perry said. "That was the basis in looking at the Germantown property."
Another free-standing Chic-fil-A is in the works at the Market of Wolfcreek on Germantown Parkway across from the Wolfchase Galleria Mall, said Ken Hoerster, vice president of retail development with Trezevant Realty who manages the property.
The new stores are part of the fastest growing segment of the chain free-standing restaurants. Originally, Chic-fil-A stores were only located in shopping malls, but Perry said the company is moving toward more free-standing facilities. Of the 531 Chic-fil-A restaurants, 101 are free-standing.
New casual dining restaurants in the Cordova/Germantown area under construction or in the planning stages include an OCharleys at 1100 N. Germantown Parkway and a J. Alexanders and Logans Road House restaurant near the Wolfchase Galleria Mall.
Plans are underway to build a Burger King at the corner of New Brunswick and Highway 64, according to J. J. McNelis of Mirabile Investment Corp.
McNelis said the restaurant will be built as a co-brand facility with Exxon, meaning both full-size businesses will be separate but under one roof. Construction is expected to start in about 30 days. Venture Construction Co. is the general contractor.