VOL. 123 | NO. 167 | Tuesday, August 26, 2008
Real Estate Recap
Whitehaven Apartments Sell for $1.3 Million
1033 Whitaker Drive
Memphis, TN 38116
Sale Amount: $1.3 Million
Sale Date: July 30, 2008
Buyer: Geoffrey Sinckler
Seller: Whitaker Place Associates
Loan Amount: $1.5 million
Loan Date: July 30, 2008
Maturity Date: Aug. 1, 2011
Lender: Regions Bank
Details: Bronx, N.Y.-based investor Geoffrey Sinckler has bought the 64-unit Birchleaf Place apartments in Whitehaven from Whitaker Place Associates, whose partner Michael Greenberg is CEO of Makowsky Ringel Greenberg LLC.
The 6,360-square-foot apartment complex was built in 1965 and sits on 2.79 acres west of Elvis Presley Boulevard between Winchester and East Raines roads. The Shelby County Assessor of Property’s 2008 appraisal is $840,000. The transaction also included an assignment of rents and leases to Sinckler. Greenberg, who bought the property in 2001, said the asset performed well and was at 90 percent occupancy. “We just got a good offer and decided to sell it,” Greenburg said. He was pleased with the transaction in light of how the local multifamily sector has turned south in the past year. About a couple of years ago, he noted, the market was swirling with outside investors – but not so much anymore. “My personal feeling is that – due to what’s going on in the financial markets at least since the beginning of the year and maybe even longer – the volume of activity has dropped off dramatically,” Greenberg said. “I still think the nicer apartments are doing better. What we’re seeing at the lower end of the market, people are still struggling.”
848 Adams Ave.
Memphis, TN 38103
Permit Amount: $179.8 Million
Project Cost: $327 million
Permit Date: Applied August 2008
Owner: Le Bonheur Children’s Medical Center
Tenant: Le Bonheur Children’s Medical Center
Contractor: Skanska USA
Architect: FKP Architects
Details: Le Bonheur Children’s Medical Center has filed a $179.8 million permit for application to build a 613,512-square-foot, 12-story facility at on Adams Avenue, adjacent to its existing campus. It will double Le Bonheur’s current space for patient care, research and teaching. “The new facility will allow our physicians and staff to provide the quality of health care that we need to provide for the children of the Mid-South and the region,” said Dave Rosenbaum, vice president of facilities management for Methodist Le Bonheur Healthcare. “Some of our hospital is 60 years old and the building itself had not kept up with the technology of health care.
This is going to give us the 21st century building to complement the 21st century health care that we are providing for the kids.” Le Bonheur first announced plans for the new facility in 2005, and it broke ground on the first stages of the building earlier this year. The hospital already had filed its initial permits for demolition and site work, while the most recent permit allows for continued construction, which is expected to wrap in the summer of 2010.
“The demolition is completed, the foundation is in, the two tower cranes are up and we’re going to be pouring the first elevated slabs starting on Thursday,” Rosenbaum said. After the new building is complete, the hospital will then demolish part of the existing hospital, renovate other parts of it and build a 500-spot parking garage, with completion slated for 2011.
The total project cost – including construction, demolition, equipment, fees, the new parking garage and renovation to a portion of the existing building – will be $327 million. The address of 848 Adams Ave. was Le Bonheur’s original 1952 address. The campus will have a new boulevard entrance at that spot and a parking area.
8040 Wolf River Blvd.
Germantown, TN 38138
Sale Amount: $2.3 Million
Sale Date: July 23, 2008
Buyer: Bayrock Investment Co.
Seller: Greenbriar Holdings LLC
Loan Amount: $10.1 million
Loan Date: July 23, 2008
Maturity Date: July 2, 2013
Lender: RBC Bank USA
Details: Charlotte, N.C.-based Bayrock Investment Co. has bought a medical office building in Germantown, a deal that happened in late July but wasn’t recorded in the Register’s office until last week. Before the sale took place, the property was quitclaimed, or transferred, from Landstone Greenbriar Partners to Greenbriar Holdings. Bayrock financed the purchase with a $10.1 million loan that doubles as a construction loan and includes provisions for improvements to the property. The 40,592-square-foot building was constructed in 2007; it sits on 2.94 acres on the north side of Wolf River Boulevard where it meets Kimbrough Road west of Germantown Parkway. The Shelby County Assessor of Property’s 2008 appraisal is $6 million.
11610 U.S. 70
Arlington, TN 38002
Permit Amount: $1 Million
Project Cost: N/A
Permit Date: Applied August 2007
Owner: McDonald’s USA
Tenant: McDonald’s USA
Contractor: Venture Construction Co.
Details: McDonald’s USA has filed a $1 million permit for application with the city-county Department of Construction Code Enforcement to build a new restaurant in Arlington. The property is at the intersection of U.S. 70 and Airline Road, north of Interstate 40 and east of Tenn. 385. This restaurant will be the fast food giant’s first in that community. The company and the city of Arlington debated over signage and color schemes for the restaurant, with the city having final say in its design, according to media reports earlier this year. Local McDonald’s restaurants are operated by franchisee Century Management Inc.