VOL. 110 | NO. 201 | Wednesday, October 16, 1996
Dexter Road Lj
lj 10/5 cates
Wolfchase area site of two
new multifamily projects
By LAURIE JOHNSON
The Daily News
Two apartment communities with a total value of $44 million are now in the beginning stages of construction in the Cordova/Germantown corridor, an area that has been designated as Shelby Countys current hot market for multifamily development.
Construction began about a week ago on the first phase of The Registry at Wolfchase, located at the intersection of Dexter Road and Bonnie Lane, and is expected to begin within the next two weeks on Lincoln at Wolfchase, located in the northeast quadrant of the intersection of I-40 and Germantown Parkway.
"We looked very carefully at a number of areas of Memphis, and we concluded that for the type of residents we are going to appeal to, which is upscale couples and families, this is the best location," said George Caruso, vice president and chief operating officer of Memphis-based ALCO Properties, developer of the Registry.
Dexter Road I L.P., a development partnership formed by ALCO, borrowed $20 million from First Virginia Mortgage Co. to finance the project, according to a trust deed filed recently in the Shelby County Registers Office.
When complete, The Registry at Wolfchase, which will be built in two phases, will add 500 multifamily units to the market, Caruso said.
The first phase will consist of 324 one-, two- and three-bedroom units, which will range in size from 780 square feet to 1,250 square feet. Rental rates will run from $620 to $900.
The 22-acre property site was purchased from Kevin Hyneman and Jeffrey Bronze for $1.8 million. Larry Jensen of Commercial Tennessee Inc. was the broker for the transaction.
Memphis-based Patton & Taylor Construction Co. will be general contractor for the project, and apartments in the first phase will be ready for occupancy next summer, Caruso said.
Lincoln at Wolfchase, which will be completed in one phase, will consist of 408 units, including 216 one-bedroom, 180 two-bedroom and 12 three-bedroom apartments.
Lincoln Wolfchase Associates L.P., a development entity formed by Dallas-based Lincoln Property Co., borrowed $24 million from NationsBank for development of the project, according to a trust deed filed recently in the Shelby County Registers Office.
The apartments will range in size from 684 square feet to 1,360 square feet, and renters will have a choice of eight floor plans five options for a one-bedroom and two options for a two-bedroom apartment. The three-bedroom units have only one floor plan. The apartments will rent from $600 to $1,000, said Steven Ganzkow, development partner with Lincoln.
The 30-acre property site was purchased from an investment group composed of Martin Edwards and Marvin Palmer for $1.8 million. Martin Edwards was the broker for the transaction.
Lincoln Contractors, a subsidiary of Lincoln Property, will be the general contractor for the project, and the apartment community is expected to be ready for occupancy next summer.
Both of the apartment communities are expected to appeal to people who have chosen renting as a long-term or even permanent lifestyle, rather than just a temporary stop.
"The number of people who choose to lease as a lifestyle is out there," Caruso said. "Memphis is a growing upscale town, and it has a lot of people who are looking for single-family, residential features in a rental community."
"Primarily, people used to decide to live in an apartment only temporarily," Ganzkow said. "Now, there is a significant change, in that people are actually making the choice to rent on an extended basis, and its a trend that really crosses all age boundaries."
Ten or 15 years ago, renters were generally under age 30, Ganzkow said. Today, renter profiles follow no particular pattern.
"Now, well have young professionals in the 25 to 35 age range, young married couples, a surprising number of tenants in the late 40s to 50s and also senior citizens," he said.
As a result, floor plans and amenities offered by these communities have evolved to meet a wider range of interests and needs.
"Were building a larger proportion of three bedrooms that a lot of people build, largely because we think there is a demand in the Germantown/Cordova area for that type of unit," Caruso said.
"Weve observed with great interest that in some of the other properties opening in the area lately, the first units that have disappeared have been the big units."
Twenty percent of the Registrys units have one bedroom, 20 percent have three bedrooms and 60 percent have two bedrooms. Lincoln at Wolfchase has 12 three-bedroom units.