VOL. 124 | NO. 206 | Tuesday, October 20, 2009
Real Estate Recap
Airport Authority Files Permit For Parking Garage, Rental Car Facility
2491 Winchester Road
Memphis, TN 38116
Permit Amount: $135 Million
Project Cost: $150 million
Permit Date: Applied October 2009
Owner: Memphis-Shelby County Airport Authority
Tenant: Memphis International Airport
Architect: Walker Parking Consultants
Details: The Memphis-Shelby County Airport Authority has filed a $135 million building permit for its new parking garage and rental car facility slated to be built in front of Memphis International Airport where the existing parking structure sits.
The permit application, filed with the city-county Office of Construction Code Enforcement, is a formality for the airport authority, which will open the bidding process for the facility’s construction later this month, said airport president and CEO Larry Cox. Cox said the permit was filed well in advance of the actual construction because of the time required to review the plan’s drawings.
The project is going out to bid later this month, and the airport authority will take bids throughout November with plans to award the contract in December or “no later than January,” Cox added. Construction should begin immediately after the contract is awarded.
“Everything’s moving well, right on schedule,” Cox said.
The $150 million structure will house parking for airport passengers and rental car companies. The garage will contain up to 4,500 long-term parking spaces for travelers. Its lower two levels will serve as the operating area for the rental car companies, including their offices, ticket counters and parking spaces. Walker Parking Consultants is architect of record; Looney Ricks Kiss Architects Inc. and Self Tucker Architects are contributing to the structure’s concept and design.
3306 Overton Crossing St.
Memphis, TN 38127
Permit Amount: $750,000
Project Cost: $800,000 to $900,000
Permit Date: Applied October 2009
Completion: April 2010
Owner: Memphis Business Academy
Tenant: Memphis Business Academy
Architect: Fisher & Arnold Inc.
Details: Memphis Business Academy has filed a $750,000 permit application with the city-county Office of Construction Code Enforcement to renovate its recently acquired building at 3306 Overton Crossing St. in Frayser. The charter school, now in its fifth academic year, will transform the 86,640-square-foot big-box retail building into its new home. MBA in July bought the property, spending close to $1 million for a building that was constructed in 1979 but recently underwent extensive renovations. MBA plans to spend between $800,000 and $900,000 for the overhaul, which will change the former Frayser Super Mall and Kmart into separate middle and high school spaces. The school’s co-founder and executive director, Anthony Anderson, said the renovation timeline has been pushed back slightly, but added that construction should be completed by April. Anderson said the renovation plans are being reviewed by the state; once they are approved the school will begin work. “You can’t do anything until the plans are approved,” Anderson said. “That could be four weeks, that could be six weeks, that could be three weeks.” Fisher & Arnold Inc. is the architect for the project. Anderson said the school is reviewing the bids of general contractors and will select one soon. MBA had considered a couple of other sites for the school, including the former Schnucks space on Austin Peay Highway and a few church buildings, but this building required the least amount of construction, saving the school money in the long run.
2665 Riverport Road
(also known as 2655 Riverport Road)
Memphis, TN 38109
Sale Amount: $2.4 Million
Sale Date: Oct. 12, 2009
Buyer: HHTP Leasing Co. LLC
Seller: Rivergate Terminal Co. LP
Loan Amount: $2.2 million
Loan Date: Oct. 12, 2009
Maturity Date: N/A
Lender: Regions Bank
Details: Cal Western Packaging Corp. has bought the 100,000-square-foot warehouse at 2665 Riverport Road in the Rivergate Industrial Port in South Memphis. Operating in the transaction as HHTP Leasing Co. LLC, Cal Western Packaging paid $2.4 million for the property, which backs up to McKellar Lake. The sale closed Oct. 12, with Rivergate Terminal Co. LP as seller. Rivergate Terminal is managed by Belz Investco GP and Haketenn Inc. Morris Thomas signed as vice president of Belz and Frank Hake signed as CEO and president of Haketenn. Built in 1981, the Class B warehouse sits on 12.75 acres on the west side of Riverport Road, near its intersection with Rivergate Road. The Shelby County Assessor of Property’s 2009 appraisal is $1.5 million. The assessor’s office lists an alternate address as 2655 Riverport. Cal Western financed the purchase with a $2.2 million loan through Regions Bank. Jimmy Phelps signed the trust deed for HHTP Leasing. The company last year bought two warehouses it had been leasing from Belz for a combined $4.2 million. Those buildings, plus an empty parcel, are also in Rivergate Industrial Port near the company’s latest purchase. Cal Western Packaging’s corporate office is at 2070 S. Third St. Its Memphis operation includes the packaging of “liquid fry, corn and canola oils in a variety of container types,” according to the company’s Web site. Cal Western also has plants in Houston and Des Moines, Iowa.
3158 and 3085 Steele St.
Memphis, TN 38127
Sale Amount: $1.5 Million
Sale Date: Oct. 1, 2009
Buyer: UIGTN LLC
Seller: LBUBS 2001-C3 Steele Street LLC
Loan Amount: $2.5 million
Loan Date: Oct. 1, 2009
Maturity Date: Sept. 30, 2014
Lender: The MacLellan Foundation Inc.
Details: The 252-unit Overlook Apartments complex at 3085 and 3158 Steele St. in Frayser sold Oct. 1 for a combined $1.5 million to a Chattanooga-based company called UIGTN LLC. The entity bought the property as an REO (real estate owned) asset from LNR Partners Inc. of Florida, which operated in the deal as LBUBS 2001-C3 Steele Street. LNR foreclosed the property, which sits south of the intersection of Steele Street and Dellwood Avenue, last year following a loan default by the previous owner, Memphis Overlook Apartments LLC. Built in 1973, the Class D apartment complex at 3085 Steele has 4,768 square feet and sits on 6.37 acres on the west side of Steele. The Shelby County Assessor of Property’s 2009 appraisal is $1.1 million. The property across the street at 3158 Steele was built in 1975. The Class D apartment complex contains 96,340 square feet and sits on 4.02 acres on the east side of Steele. Its 2009 appraisal is $974,500. Overlook is 17 percent occupied, said Steve Woodyard of Woodyard Realty Corp., who represented the lender in the transaction. He said the buyer will reposition the market-rate sprawling complex that has deteriorated over the years. It was last renovated in 2000. “They plan to renovate it, create safe, affordable housing,” Woodyard said. “The buyers are very happy with it. They’ve got big plans for it and they hope to change the community.”
3965 Pilot Drive
Memphis, TN 38118
Sale Amount: $5.1 Million
Sale Date: Oct. 6, 2009
Buyer: International Cotton Depots Inc.
Seller: CLP Industrial Properties LLC
Loan Amount: $4.1 million
Loan Date: Oct. 6, 2009
Maturity Date: Oct. 6, 2014
Lender: Regions Bank
Details: International Cotton Depots Inc. has bought the 335,080-square-foot warehouse at 3965 Pilot Drive in Oakhaven/Parkway Village for $5.1 million from CLP Industrial Properties LLC. The sale closed Oct. 6. International Cotton Depots is affiliated with Noble Americas Corp., a subsidiary of Hong Kong-based Noble Group Ltd. A request for information from the company was not immediately returned. Built in 1986, the Class B warehouse sits on 15.96 acres on the west side of Pilot Drive, near its intersection with Raines Road. The Shelby County Assessor of Property’s 2009 appraisal is $6.5 million. The building, which formerly housed a Reebok distribution center, contains 55 dock doors and 3,361 square feet of office space, and is served by rail.