VOL. 124 | NO. 3 | Tuesday, January 6, 2009
Real Estate Recap
Newly Merged Renal Firm To Improve Poplar Ave. Building
1333-1341 Poplar Ave.
Memphis, TN 38104
Permit Amount: $1.2 Million
Project Cost: $1.2 million
Permit Date: Applied December 2008
Owner: National Renal Alliance LLC
Tenant: National Renal Alliance LLC
Details: Franklin, Tenn.-based National Renal Alliance LLC has filed a $1.2 million permit application with the city-county Office of Construction Code Enforcement to make alterations to the 18,482-square-foot building at 1333-1341 Poplar Ave.
The permit was filed just before the company’s acquisition by RA Group Holdings Inc., the parent company of Brentwood, Tenn.-based Renal Advantage Inc., which is the third largest for-profit provider of dialysis services in the U.S. The merger became official Jan. 1 with the new company retaining the Renal Advantage name.
National Renal Alliance bought the Poplar Avenue building in July for $500,000, simultaneously filing a $1.5 million construction loan on the property, and also has bought a vacant lot at 1200 Marlin Road in Whitehaven.
Renal Advantage CEO Michael Klein confirmed the Poplar Avenue building is being renovated for a new dialysis facility and that the company would proceed with two Memphis locations, although he was unable to provide a definitive timeline because of the recent merger.
“We are not sure at this point in time with the current acquisition that we have just completed,” Klein said. “We do have a couple of properties down in Memphis, but at this time it’s a little too early for us to say.”
6201 Poplar Ave.
Memphis, TN 38119
Sale Amount: $1.9 Million
Sale Date: Dec. 18, 2008
Buyer: RABF Holdings LLC
Seller: CNL Net Lease Funding 2001 LP
Loan Amount: $1.6 million
Loan Date: Dec. 18, 2008
Maturity Date: N/A
Lender: First Capital Bank
Details: RABF Holdings LLC, an investment group headed by Bernard Farber, Robert Allen and Anwar Aman, has bought the old Steak & Ale restaurant at 6201 Poplar Ave. for $1.9 million from CNL Net Lease Funding 2001 LP. The sale closed Dec. 18, about three months after the restaurant shuttered its doors. The 6,291-square-foot Steak & Ale restaurant sits on 1.33 acres on Poplar Avenue east of Ridgeway Road and was built in 1980. The Shelby County Assessor of Property’s 2008 appraisal was $1.5 million. Steak & Ale’s parent company, S&A Restaurant Corp., filed bankruptcy in late July, closing hundreds of Steak & Ale and Bennigan’s restaurants nationwide. The Bennigan’s at 5336 Poplar Ave., however, isn’t closing. RABF Holdings financed the purchase with a $1.6 million loan through First Capital Bank.
540 S. Mendenhall Road
Memphis, TN 38117
1605-1713 N. Germantown Parkway
Cordova, TN 38016
Loan Amount: $20.9 Million
Loan Date: Dec. 22, 2008
Maturity Date: N/A
Borrower: WRI HR Venture Properties I LLC
Lender: New York Life Insurance Co.
Details: WRI HR Venture Properties I LLC, the real estate investment trust (REIT) that recently bought the Commons at Dexter Lake and Mendenhall Commons shopping centers, on Dec. 22 filed a $20.9 million deed of trust, assignment of leases and rents and security agreement for the properties through New York Life Insurance Co. The entity, a joint venture between Weingarten Realty Investors and Hines Real Estate Investment Trust (REIT), both of Houston, in November paid $41.6 million for a 70 percent share of the Kroger-anchored retail centers. The deal was part of an aggregate $271 million deal that included 12 properties and 1.5 million square feet in multiple states. The centers are anchored by a mix of grocery and other retail box stores. The 167,000-square-foot Commons at Dexter Lake sits on 23.5 acres at the southwest corner of Dexter Road and North Germantown Parkway in Cordova. Tenants include Kroger, Stein Mart, Samuel’s Furniture, Marshall’s and Dress Barn. The Shelby County Assessor of Property’s 2008 combined appraisal of its three parcels was $24.7 million. The 80,000-square-foot Mendenhall Commons sits on 5.73 acres at the southeast corner of Sanderlin Avenue and South Mendenhall Road in East Memphis. Tenants include Kroger, Pei Wei Asian Diner, Lucchesi’s Ravioli & Pasta Co. and Breakaway Running. The Assessor’s 2008 appraisal was $9.5 million.
4380 Swinnea Road
Memphis, TN 38118
Permit Amounts: $1.9 Million and $1.1 Million
Project Cost: N/A
Permit Date: Applied December 2008
Owner: Medtronic Inc.
Tenant: Medtronic Inc.
Contractors: DanMar Installations Inc. and Grafco Inc.
Details: Medtronic Inc. has filed two permit applications with the city-county Office of Construction Code Enforcement totaling $3 million to make improvements to the distribution and logistics center it is building at 4380 Swinnea Road near the airport. The Minneapolis-based company’s Spinal and Biologics Business is based in Memphis. One of the building permits is for $1.9 million and is slated for the installation of a carousel at the facility. The contractor of record is Memphis-based DanMar Installations Inc. The other permit is for $1.1 million and is slated for the installation of a pallet rack. The contractor of record is Memphis-based Grafco Inc. Medtronic opened its new Memphis headquarters in July, part of the company’s multimillion-dollar capital expansion in the city since 1994. Its distribution and logistics center is still under construction, and the expansions are expected to bring about 600 new jobs to Memphis and the Mid-South area.