VOL. 121 | NO. 151 | Tuesday, August 1, 2006
Ericson Group Property Financed for $1.5 Million
Ericson & Associates LLC has filed a $1.5 million leasehold mortgage through Lehman Brothers Bank FSB for a 20,130-square-foot warehouse at 400 N. Front St. across from The Pyramid. Built in 1916, the two-story renovated building serves as the headquarters of marketing, entertainment and consulting firm Ericson Group. The property was part of a 14-year payment-in-lieu-of-taxes (PILOT) agreement signed in August 2000 between Memphis Center City Revenue Finance Corp. and Greg Ericson.
The Bodine Company Sold for Undisclosed Sum
Royal Philips Electronics has acquired The Bodine Co., a Collierville-based manufacturer of emergency ballasts, for an undisclosed sum. A ballast is an electrical device for starting and regulating fluorescent and discharge lamps.
Amsterdam-based Royal Philips announced completion of the transaction July 7, but terms of the deal were not released.
The Bodine Co.'s revenue topped $30 million in 2005.
Bodine operates a single 70,000-square-foot facility in Collierville that employs about 200 people. Bodine will be fully integrated as a business unit within Philips Lighting, while its commercial activities will continue to be operated under the Bodine structure, officials said in a Royal Philips statement announcing the acquisition.
"Together with Bodine, we will pursue new opportunities in emergency lighting and improve the system compatibility of lamp, ballast and emergency lightning technology," said Brain Dundon, president and CEO of Philips Lighting Electronics North America.
SunTrust Bank Leaving Downtown?
The One Commerce Square building in Downtown Memphis might lose its primary tenant within the next couple of years when SunTrust Bank's lease expires, according to a Commercial Appeal news story.
Atlanta-based SunTrust Banks Inc. moved its headquarters into the 31-story building at Main Street and Monroe Avenue in 2004 when it acquired National Commerce Financial Corp., the parent company of National Bank of Commerce (NBC Bank) for $7.4 billion.
SunTrust currently occupies 170,000 square feet of office space in the building, but if rumors are correct, when the company's lease expires in 2008, there may be nothing more than a branch left at the site.
Reportedly, SunTrust is examining all options for its office space Downtown.
"It's too early to speculate because that lease is not up until 2008," said Tracy Oakley, sales and marketing manager for SunTrust Memphis. "SunTrust is committed to Downtown so we are not deserting Downtown by any means."
Nucor to Build in Memphis - Maybe Yes, Maybe No
Steel manufacturer Nucor
Corp., based in Charlotte, N.C., received a nod from the Memphis and Shelby County Industrial Development Board's evaluation committee late last week to recommend a payment-in-lieu-of-taxes (PILOT) application from the company.
Nucor announced in mid-July plans to build a "Special Bar Quality Products" steel mill in the southern United States. If Memphis is chosen as the site for the mill, the company could bring as many as 225 jobs to Memphis and make a total capital investment of about $230 million. Median wage for the jobs is expected to be $67,897.
The state-of-the-art facility would produce high-quality carbon and alloy rounds and round-cornered squares for automotive, heavy equipment and service center markets, according to a company statement.
Nucor owns the Frank C. Pidgeon Industrial Park in Memphis that is on the banks of the Mississippi River.
A decision about where the new plant will be built is expected to be made within the next month.