Wednesday, April 28, 2004, Vol. 118, No. 73


Collierville Retail Center off the Market

Portion of Collierville Marketplace sells for $8 million


The Daily News

A shopping center in the heart of Collierville situated on what once was rolling farmland was sold last week by its original developer.

An $8 million warranty deed was filed April 19 for a portion of Collierville Marketplace, phase four, according to The Daily News Public Records Database,

Hackmeyer-Loeb Joint Venture sold the property, located near the corner of Poplar Avenue and Market Boulevard, to the Jason Crews Partnership.

Income property. Crews, chief manager of Crews Realty, said the purchase was a good investment.

We wanted something in Collierville that was income-producing to add to our portfolio, he said. We do have land in Collierville that is vacant investment property. We felt it would be nice to have something like (Collierville Marketplace) in Collierville.

Bob Loeb, president and chief executive officer of Loeb Properties, said it was a good time to sell the property.

Different partners wanted to exit the development, and we had an attractive offer from Crews and we decided to sell it, Loeb said. We had a 50/50 partnership, and we just felt like it was time to sell.

Retail-oriented. The transaction includes an Office Depot store, a small retail strip and an inline lot for potential big-box development. It does not include a Home Depot store located on the west side of Market just north of the property.

Crews said no alterations are planned for the existing property. There is one vacancy in the retail center, a 2,100-square-foot space.

In the past. About 15 years ago, the now-busy corner was characterized by open farmland. But as has been the case with much of Colliervilles open land, the property was purchased for development, starting with the east side of Market, where a shopping center once anchored by a K-Mart store was built.

That center was followed by a Malco movie theater in the late 1990s and by Home Depot, located across the street from the theater just north of Poplar.

When developer David Halle originally purchased Burch Farm, the property encompassed 50 acres zoned for commercial use, Loeb said.

We got involved in this project probably five years ago, Loeb said. Home Depot announced they were going to build a store. The Home Depot was excluded from our piece (of property). It had already been done by the time we got there. Office Depot wanted to be next door to Home Depot, and that worked out great for us because it enabled us to have that inline space available between our L-shaped small bay building and the Office Depot.

Jump-started by Home Depot. After Home Depot secured its site, 20 acres adjacent to the stores property was sold to Bill Hackmeyer, followed by the involvement of Loeb Properties.

We subsequently joined Hackmeyer to develop a Home Depot-shadowed center, Loeb said.

That center included the 20,000-square-foot Office Depot store and 27,200-square-foot retail building. The center includes retailers such as El Porton restaurant, Duke Furniture, Lennys Sub Shop, Red Sun Buffet, FedEx, PakMail and Pearle Vision.

Construction of the property was completed in fall 2000.

Big-box potential. The vacant land situated between Office Depot and the retail center provides unique options. It could be developed to include up to 60,000 square feet of retail space, preferably big-box, Loeb said.

There are no prospects yet for the property.

Were not talking to anybody right now, Crews said. Were still pursuing prospects and hope to find someone shortly and build some more retail there within the next year.

There are other properties on the site that were not included in the transaction.

Since weve been there, Chick-fil-A has built out on Poplar, Bank of Bartlett has built out and Chilis is there, Loeb said. Those three outparcels are a part of what Halle kept of the Burch property.

Bank of Bartlett eventually purchased its site.

Future plans. The Hackmeyer-Loeb partnership still owns two outparcels and plans to develop both. Located on the west side of Market just north of Chilis, the 1.1-acre and one-acre sites are available for sale or lease, Loeb said.

They could be anything from a single-tenant fast-food restaurant to a multiple-bay small strip, he said. I think we have the opportunity to build up to 17,000 square feet on the two lots. We could develop that much under our real estate agreement, but I doubt well build that much.

A contract is pending for an auto-related user interested in one of the two tracts, Loeb said.