VOL. 122 | NO. 108 | Tuesday, June 12, 2007
5668 Poplar Ave. and
1000 S. Yates Road
Sale Amounts: $23.9 million; $350,000
Sale Date: May 22, 2007
Buyers: NorthStar Cemetery Services of Tennessee LLC ($23.9 million); NorthStar Funeral Services of Tennessee LLC ($350,000)
Seller: Alderwoods (Tennessee) Inc.
Details: Memorial Park Cemetery and Funeral Home ($23.9 million) and Memorial Park-Southwoods Mortuary ($350,000). The cemetery and funeral home sit on about 150 acres at 5668 Poplar Ave. west of Interstate 240. Founded in the 1920s, it houses the Crystal Shrine Grotto, a manmade cave decorated to depict biblical scenes. The mortuary is on the east side of South Yates Road south of Poplar Avenue.
Alderwoods' sale was mandated by the Federal Trade Commission (FTC) as part of Service Corporation International's (SCI) acquisition of Alderwoods, announced in November. Houston-based SCI is the nation's largest chain of funeral homes and cemeteries and Alderwoods is the second largest. The FTC mandated that, as part of their merger, they divest properties in 47 markets in which the new company would hold a monopoly. KAG LLC, a NorthStar subsidiary, petitioned the FTC in January to buy a number of SCI's divestitures, including Memorial Park, Spring Hill Funeral Home and Cemetery in Nashville and eight properties in Florida. The deal was approved in early May.
1022 S. Shady Grove Road
Memphis, TN 38120
Sale Amount: $18.9 million
Sale Date: June 1, 2007
Buyer: 1022 Shady Grove LLC
Seller: Embassy Equity Development Corp.
Loan Amount: $19.5 million
Loan Date: June 1, 2007
Maturity Date: n/a
Lender: Lehman Brothers Bank FSB
Details: A 220-room, five-story Embassy Suites hotel on about four acres on the east side of Shady Grove Road north of Poplar Avenue. The 173,000-square-foot hotel was built in 1989, and the Shelby County Assessor's appraisal was $19.8 million. It houses Frank Grisanti Italian restaurant. Hilton Hotels Corp. has spent about $2 million in upgrades in the last year, and it is estimated the new owners, Haberhill LLC, will spend about $3.5 million in additional upgrades. "We like investments where we can add value. ... We're going to be completing a renovation that Hilton started, and we really like this market," said Haberhill managing member Douglas Greene. Greene said Haberhill has extended Frank Grisanti's lease through 2014, with the option for another five-year extension. The hotel will continue to be operated as an Embassy Suites through a long-term management agreement with Hilton. This is Haberhill's fourth hotel investment; other properties are in Minneapolis, Washington and Hawaii.
1570 Bonnie Lane
Cordova, TN 38018
Sale Amount: $3.1 million
Sale Date: May 23, 2007
Buyer: Cordova Self Storage LLC
Seller: Judson A. Lindsey and Diane B. Lindsey
Sale Amount: $3.6 million
Sale Date: May 24, 2007
Buyer: Cordova Storage Investments LLC
Sale Date: Cordova Self Storage LLC
Loan Amount: $2.8 million
Loan Date: May 29, 2007
Maturity Date: n/a
Lender: UBS Real Estate Investments Inc.
Details: Cordova Stor 'n' Lock, a 387-unit, five-building mini-storage facility on the south side of Bonnie Lane east of North Germantown Parkway. The buyer is San Diego-based Equity Based Services Inc. (EBS). EBS chief operating officer Eric Kaplan declined to comment about the back-to-back sales, but said it was an internal transaction and that both Cordova Self Storage LLC and Cordova Storage Investments LLC are controlled by EBS. The company owns three other mini-storage facilities in Memphis - all branded American Mini Storage.
The Cordova Stor 'n' Lock will not be rebranded, Kaplan said.
"It has drive-up climate-controlled units, which is something that's rare in Memphis. ... It's clean, we're not doing any work, we're just taking it over," Kaplan said. "(Judson) Lindsay ran it great - he's the seller. He just had a pristine property, and we love Cordova." EBS owns about 40 facilities in the U.S. Besides the Memphis properties, the company has one holding in Chattanooga, plus properties in eight other states.
Six lots in
Loan Amount: $1.1 million
Loan Date: May 15, 2007
Maturity Date: May 15, 2008
Borrower: Encore Homes LLC
Lender: Pulaski Bank & Trust Co.
Details: Construction loan for six lots in Taluswood Planned Development on the west side of Pisgah Road north of Macon Road. Encore bought the lots May 15 from Latting Road Partners LLC for $249,000. The plan for Taluswood was recorded in July and re-recorded in August. It shows 81 lots on 26.16 acres.