French Quarter Suites Hotel Bought Back by Original Owner

Tuesday, December 8, 2009, Vol. 124, No. 240

2144 Madison Ave.
Memphis, TN 38104
Sale Amounts: $1 Million; $300,000; $200,000

Sale Dates:Nov. 20, Nov. 5 and Nov. 12, 2009
Sellers:Lodgian Memphis Property Owner LLC, Horace and Ann Proctor, and Martha D. Sutton
Loan Amount:$1.3 million
Loan Date:Nov. 30, 2009
Maturity Date:Nov. 20, 2010
Lender:Triumph Bank

Details: The first owner of the French Quarter Suites Hotel has reacquired the property for $1.5 million. FQI LLC, a limited liability company whose chief manager is Ronald L. Kirkpatrick, bought the shuttered hotel at 2144 Madison Ave. from three sellers – Lodgian Memphis Property Owner LLC, Horace and Ann Proctor, and Martha D. Sutton – in three separate warranty deeds all dated in November.

The 105-room hotel, at the northeast corner of Madison Avenue and Cooper Street in the Overton Square neighborhood, closed in July 2008.

When reached by phone Friday, Kirkpatrick declined to disclose plans for the property, but he did tell The Daily News that he was the developer of the property and it might not be a hotel moving forward. He said plans would be made public this week.

“There’s a lot of things in motion, and I don’t want to mislead the public,” Kirkpatrick said. “There’s so much happening in Overton Square. Whatever you say today sometimes changes tomorrow.”

Kirkpatrick was alluding to the potential redevelopment of the Overton Square properties at the southwest corner of Madison and Cooper.

The property was listed on LoopNet for $1.7 million, or $16,190 per room. The listing’s description of the hotel said the seller had recently called for a “major price reduction.” The hotel’s original asking price was $3.5 million.

Nine units in RiverCrest Condominiums
65 Pontotoc Ave.
Memphis, TN 38103
Sale Amount: $1.1 Million
Sale Date:Nov. 18, 2009
Buyer:Front Street Partners LLC
Seller:Merchants and Farmers Bank
Loan Amount:$1.1 million
Loan Date:Nov. 18, 2009
Maturity Date:N/A
Lender:The Hardin County Bank

Details: An entity called Front Street Partners LLC has paid $1.1 million for all nine of the unsold units of the RiverCrest Condominiums at 65 Pontotoc Ave. Downtown. The limited liability company, whose address is in Savannah, Tenn., in Hardin County, bought the condo units from Merchants and Farmers Bank. The 11-unit RiverCrest condo development sits on the southeast corner of Front Street and Pontotoc Avenue, in what the Center City Commission calls the Warehouse District. Only two of RiverCrest’s units had sold – one for $299,000 and one for $399,000 – according to the Shelby County Assessor of Property. The condo units are 1,860 to 2,600 square feet, and their appraised values range from $294,000 to $399,000. Front Street Partners financed the purchase with a $1.1 million loan through The Hardin County Bank. Only seven of the nine condo units were listed on the trust deed. Ron Harmon signed the trust deed as chief manager of Front Street Partners. A call to Front Street Partners wasn’t immediately returned.

Three parcels,
Unincorporated Shelby County
Sale Amount: $1.2 Million
Sale Date:Nov. 10, 2009
Buyer:BancorpSouth Bank
Seller:David J. Harris, substitute trustee

Details:BancorpSouth Bank has bought back three parcels totaling 51.7 acres of land in a substitute trustee’s deed following a foreclosure. The Tupelo, Miss.-based bank paid $1.2 million for two pieces of farmland and one vacant residential lot – all in unincorporated Southeast Shelby County – on the courthouse steps Nov. 10 from substitute trustee David J. Harris of Burch, Porter & Johnson PLLC. The properties previously were owned by Mike and Bonita Whittington, who defaulted on a $2.6 million loan through BancorpSouth dated April 30, 2002. The first farm property contains 18.38 acres on the east side of Fleming Road, north of Holmes Road. The Shelby County Assessor of Property’s 2009 appraised value is $423,900. The second farm property contains 28.5 acres on the north side of Holmes Road. Its formal address is 10792 Holmes Road, and its appraised value is $633,300. Last is a 4.84-acre parcel zoned residential. The formal address is 5030 Fleming Road, and its appraised value is $124,100.

11 parcels
Unincorporated Shelby County
Sale Amount: $1 Million
Sale Date: July 29, 2009
Buyer: Renasant Bank
Seller: Paul Royal, substitute trustee

Details: Renasant Bank has bought back 11 lots in the Highland Point Subdivision in unincorporated Shelby County from developer Latting Road Partners LLC following a foreclosure. The bank bought the parcels for a combined $1 million in a substitute trustee’s deed, acquiring the properties on the steps of the Shelby County Courthouse from trustee Paul Royal of the law firm Crislip, Philip and Associates. The bank foreclosed on the parcels during the summer. The previous owner, Latting Road Partners, had defaulted on a $3.1 million construction loan through Renasant dated Feb. 18, 2005. That loan was modified and extended in June 2006, tacking on another $438,000. David Miller signed the original trust deed as chief manager of Latting Road Partners. The 11 parcels are part of Highland Point Subdivision, which is a resubdivision of Wilderwood Estates near Cordova. The subdivision includes 83 lots on 34.27 acres. It sits east of Berryhill Road south of Grove Road. The foreclosed lots are sized between a fourth and a half of an acre, each one with an appraised value of $48,600, according to the Shelby County Assessor of Property.