VOL. 124 | NO. 226 | Tuesday, November 17, 2009
Memphis Real Estate Recap
Conwood Buys Hickory Hill Facility For Planned $133 Million Expansion
5106 Tradeport Drive
Memphis, TN 38141
Sale Amount: $19.3 Million
Sale Date: Nov. 5, 2009
Buyer: Conwood Co. LLC
Seller: Chickasaw and Goodman Realty Holding Co.
Details: Conwood Co. LLC on Nov. 5 formally acquired the 787,500-square-foot facility at 5106 Tradeport Drive in Hickory Hill South for $19.3 million. Conwood earlier this year announced plans to buy the building, where it will expand its manufacturing operation of the smokeless tobacco products Kodiak and Grizzly.
The company currently operates its manufacturing facility at 46 Keel St. in North Memphis, plus a corporate office on Ridge Lake Boulevard and a warehouse on Warford Street.
Conwood, which will consolidate its operations at the new location, has been on Keel Street since 1912, when it was known as the American Snuff Co. Conwood today is a division of Winston Salem, N.C.-based Reynolds American Inc.
“This is an important step toward expanding our capacity, securing Conwood’s continued presence in the Memphis community and continuing to serve our employees and customers,” Mick Spach, vice president of operations for Conwood, said in a statement.
Conwood plans to invest $133 million in its Memphis operation. The move to the new facility is expected to add 25 employees to Conwood’s current work force of 294.
Built in 2001, the Class A building Conwood bought sits on 35.66 acres near the intersection of Hickory Hill and East Holmes roads.
Construction on the Tradeport Drive building should begin in 2010, with completion targeted for 2012.
1860 Union Ave.
Memphis, TN 38104
Sale Amount: $950,000
Sale Date: Nov. 10, 2009
Buyer: Cypress Realty Holdings Co. II LLC
Seller: Elvi Partners LLC
Details: Memphis-based Cypress Realty Holdings Co., a private real estate investment trust managed by Joe Jarratt and Price Ford, has bought the retail/billboard site at 1860 Union Ave. in Midtown for $950,000. Operating in the transaction as Cypress Realty Holdings Co. II LLC, the company acquired the property Nov. 10 from Louisville, Ky.-based Elvi Partners LLC. The 0.34-acre parcel is home to a T-Mobile USA Inc. freestanding store and a Clear Channel Outdoor Inc. billboard. Both companies have long-term leases, Jarratt said. The Shelby County Assessor of Property lists the building as 4,080 square feet, although Jarratt said the store is 2,500 square feet. Jarratt and Ford are principals with the eponymous Ford Jarratt Realty and Development Co., which represented Cypress Realty Holdings in the acquisition. Dan Cooper of Cleveland-based Cooper Commercial Investment Group represented the seller. J. Mark Blieden signed the warranty deed as manager of Elvi Partners, which bought the property for $400,000 in May 2008, developed the site and built the T-Mobile store. Danny Buring of Memphis, managing partner of The Shopping Center Group, was involved with Elvi Partners. Built in 2008, the property sits at the northeast corner of Union Avenue and South McLean Boulevard, next door to Starbucks Coffee. The site, formerly home to Scruggs Lighting, has a 2009 appraised value of $378,500, according to the assessor.
5336 Poplar Ave.
Memphis, TN 38119
Sale Amount: $1.8 Million
Sale Date: Nov. 6, 2009
Buyer: Solberg Properties
Seller: William A. Frazee, CPA, Trustee of the Luella Phillips Wiygul Revocable Trust Dated April 30, 1993, and the James L. Wiygul Revocable Trust Dated April 30, 1993
Details:Solberg Properties, the local franchisee of Sonic, America’s Drive-In restaurants, has bought the property at 5336 Poplar Ave. in East Memphis for $1.8 million. The 1-acre site contains a 6,713-square-foot building that was built in 1980 and formerly housed Bennigan’s Grill & Tavern and most recently the River City Bar & Grill. Solberg Properties, a family-owned business that operates Sonic restaurants throughout the area, on Nov. 6 bought the parcel from a trustee who owned it on behalf of two trusts: William A. Frazee, CPA, Trustee of the Luella Phillips Wiygul Revocable Trust Dated April 30, 1993; and the James L. Wiygul Revocable Trust Dated April 30, 1993. The parcel is part of the Poplar and West Suggs Planned Unit Development Phase I and has an appraised value of $1.7 million, according to the Shelby County Assessor of Property. It sits on the north side of Poplar Avenue between Estate and West Suggs drives. Solberg Properties applied for rezoning of the property to allow a restaurant where food can be eaten inside vehicles, but the Land Use Control Board last month rejected the application, citing traffic concerns for the neighborhood. The transaction included a right of first refusal agreement to Solberg and an easement agreement pertaining to the north end, or rear, of the property. Representatives with Solberg Properties weren’t available to discuss the status of resubmitting a rezoning request or other plans for the property.
11061 U.S. 70
Arlington, TN 38002
Sale Amount: $1.1 Million
Sale Date: Oct. 30, 2009
Buyer: Gateway Properties LP
Seller: Dunlap & Kyle Co. Inc.
Details: Batesville, Miss.-based Dunlap & Kyle Co. Inc., which owns and operates Gateway Tire and Service Centers, has internally transferred six acres of land at Lamb Road and U.S. 70 in Arlington for $1.1 million. Dunlap & Kyle transferred the property to Gateway Properties LP Oct. 30. The company had bought the land in April 2008 for $1.5 million from Anupinder S. Guron. The Shelby County Assessor of Property’s 2009 appraisal of the parcel is $1.5 million. Company vice president Brent Nickle said the transfer doesn’t portend the definite development of a store at the site, although that is still the company’s long-term plan. “I would say within the next year, but I can’t say any further than that,” Nickle said. Nickle had told The Daily News previously that Arlington is a “growing little community” that needs “good service and good stores to provide the services.” Dunlap & Kyle operates 51 Gateway Tire and Service Centers in seven states, with 12 stores in the Memphis metropolitan area – six in Shelby County, four in DeSoto County and two in Tipton County. The nearest existing store to the purchased land is on U.S. 64 in Lakeland.