VOL. 115 | NO. 169 | Tuesday, October 9, 2001
$20 million warehouse begins in SE market
$20 million warehouse begins in Southeast
By SUE PEASE
The Daily News
Construction is underway on Trammell Crow Co.s
707,000-square-foot warehouse project on Lamar Avenue.
According to a building permit issued by the Shelby County
Office of Code Enforcement, the construction value is about $22 million.
The project, on the northwest corner of Lamar and Holmes
Road, is the first of a possible three warehouses in the complex dubbed the
Summit Distribution Center.
Were taking it one building at a time. The park we build
out depends on what the market tells us to build. You could have three big
boxes, which will get you just under 2 million square feet, said Brad
Kornegay, vice president of marketing for Trammell Crow Co. in Memphis.
The entire park is expected to cost nearly $40 million.
The first building would ideally hold one tenant but could
be divided for two, Kornegay said.
Fitting one tenant into the building will more than likely
be the scenario, because of the trend of companies consolidating into one
This falls in line with what has happened in the last five
to six years in the Memphis market, Kornegay said.
As companies started looking at ways to save money, they
consolidated several distribution centers across the country or region by
bringing them into one big box.
The project sits on 38 acres. Trammell Crow is developing it
for partner Principal Capital of Des Moines, Iowa, said Keith Saunders,
Trammell Crow vice president of development management.
The property is part of a larger 114 acres, which Trammell
Crow has options on, he said.
This week, contractors should be pouring and raising the
The general contractor is Atlanta-based The Conlan Co.
The architect is Wakefield Beasley & Associates, also
based in Atlanta, and the civil engineering firm is Memphis company Reaves
Sweeney Marcom Inc.
Asked if the company is worried about bringing so much
square footage online at once in a continually volatile market and unsure
political scene, Kornegay said they were ready to move forward, with caution.
Fortunately, were not scheduled to come online until next
year. Weve got a little time for hopefully everything to start happening and
people to feel comfortable with what the country will do, he said.
Im still optimistic, but cautiously optimistic.