Tuesday, May 29, 2007, Vol. 122, No. 98

15 buildings in
Bartlett Industrial Park
Sale Amounts: $20.7 million; $9.4 million; $2.9 million; $1.5 million; and $1.2 million

Sale Date: May 17, 2007

Buyer: Bartlett Logistics One LLC

Sellers: 64 Investments Partnership and M. Spence Ray ($20.7 million); Axel Road Partnership and M. Spence Ray ($9.4 million); Stage Post Partners and M. Spence Ray ($2.9 million); Lot 9 and M. Spence Ray ($1.5 million); and Stage Industrial Partners and M. Spence Ray ($1.2 million)

Loan Amount: $34.7 million

Loan Date: May 15, 2007

Maturity Date: June 1, 2017

Lender: LaSalle Bank NA

Details: A 15-building portfolio in Bartlett Industrial Park. McNeill Investment Co. president Phillip H. McNeill Sr. and executive vice president M. Spence Ray signed as the sellers. Buildings total 515,000 square feet of industrial-flex space, said Randy Engel, senior vice president of Magna Bank, formerly 1st Trust Bank for Savings. Magna worked with both sides of the transaction and also arranged the financing through LaSalle. Thirteen of the 15 buildings have been built out and stabilized, with a 95 percent occupancy, he said. The other two are just completed and are in shell form. McNeill and Ray began work on the Bartlett center in the early 1990s, Engel said. The properties, which formerly were managed by McNeill Investment, now will be managed by Colliers Management Services, he added.

5811 Poplar Ave.
Memphis, TN 38119
Sale Amount: $9.3 million

Sale Date: May 15, 2007

Buyer: Apple Seven Hospitality Ownership Inc.

Seller: Hampton Inns Inc.

Details: The 140-room Homewood Suites by Hilton Memphis-Poplar hotel. It was built in 1990 and sits on 4.43 acres on the south side of Poplar Avenue west of its intersection with Poplar Pike. Shelby County Assessor's 2006 appraisal was $5.6 million. The buying company is a hotel real estate investment trust (REIT), one of several related REITs based in Richmond, Va.
"This hotel was purchased into Apple Seven," said Nelson Knight, senior analyst for Apple Seven Hospitality and its sister companies. "We have seven public companies, four that we currently own still. We've either merged or sold other companies. Apple Two, Apple Five, Apple Six and Apple Seven are all hotel REITs. We own 189 hotels nationwide between those four."
Apple Seven owns about 30 hotels and closes fairly regularly, he added. The Apple investment trusts exclusively own Hilton and Marriott properties. Knight said David Lerner Associates Inc. in New York raises money for the Apple REITs through best-effort public offerings. In a best-effort offering, an investment firm acts as an agent to sell financial securities to the public, but is under no obligation to buy the securities outright.
Sister REIT Apple Two owns the 105-room Residence Inn Memphis-East at 6141 Old Poplar Pike.

1210 N. Germantown Parkway
And 9423 Poplar Ave.
Sale Amounts: $1.8 million; $1.8 million

Sale Date: May 14, 2007

Buyer: Schnuck Markets Inc.

Seller: HUPO LLC

Details: Two former Fill'n Stations, which began operating as Schnucks Express fuel centers May 16. The North Germantown Parkway property is 1.03 acres at the northeast corner of the street's intersection with Cordova Road. It includes a 2,039-square-foot convenience store and a 952-square-foot car wash, both built in 1999, along with gas pumps. Shelby County Assessor's 2006 appraisal was $991,200. The station is across Cordova Road from the Cordova Schnucks at 1150 N. Germantown Parkway. The Poplar Avenue property is 1.08 acres west of Poplar's intersection with Poplar Pike. It has gas pumps, a 2,091-square-foot convenience store and a 1,800-square-foot car wash built in 2000. The 2006 appraisal was $1.1 million. It is about a half-mile west of Schnucks Forest Hill at 3150 Village Shops Drive in Germantown.

Two lots in
Flag City Commercial
Sale Amount: $1.4 million

Sale Date: May 14, 2007

Buyer: Chamberlain, McCreery & Rice LLC

Seller: Wilkinsville Partners LLC

Loan Amount: $2.5 million

Loan Date: May 15, 2007

Maturity Date: May 15, 2014

Lender: Trustmark National Bank

Details: Two vacant lots in Flag City Commercial Subdivision on the north side of Wilkinsville Road west of U.S. 51 North in Millington. The most recent plan for Flag City Commercial was approved in early May and shows five lots on 5.73 acres. Chamberlain, McCreery & Rice LLC (CMR) plans a 26,720-square-foot retail center on one parcel, plus a separate outparcel to be leased or sold, said CMR vice president Hank Rice. The three remaining lots already are sold or occupied. Tops Bar-B-Q is in operation in one outparcel and IHOP will occupy the other outparcel, though construction on the IHOP has not started yet, he said. Behind the outparcels is a 9,360-square-foot retail center built in 2006. Its main tenant is Olympic Steak & Pizza.
"(Wilkinsville Partners is) going to continue to own that, we're just going to add on," Rice said. "It's going to look like one building. We're going to tie on to their building and keep going."
The site already is cleared, he said, and CMR hopes to start pouring the slab in the next two weeks. It will likely take six months to build the shell. He said CMR currently is looking for tenants.
"We think with that location - we come right out of Wal-Mart's drive, you're looking at this building - a large restaurant is something that's kind of on the radar, someone that takes several bays," he said. "And then I think we'll get a lot of the normal stuff, but we think we could probably get a couple of large tenants in there. That's what we're hoping anyway."