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VOL. 115 | NO. 169 | Tuesday, October 9, 2001

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$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 space.

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 tilt-up walls.

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.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 56 437 16,061
MORTGAGES 76 508 18,556
FORECLOSURE NOTICES 8 56 2,461
BUILDING PERMITS 241 876 33,390
BANKRUPTCIES 64 301 10,314
BUSINESS LICENSES 15 125 5,303
UTILITY CONNECTIONS 17 125 6,273
MARRIAGE LICENSES 19 98 3,511