VOL. 126 | NO. 167 | Friday, August 26, 2011
Local Investors Buy SE Memphis Office Condos
By Sarah Baker
A portfolio of office condominiums in Southeast Memphis have sold to a group of local investors.
Winchester Office Plaza at 5501, 5507 and 5489 Winchester Road has sold to QSM Holdings LLC for $273,333.
John and Jeff Waddell of Crye-Leike Commercial Inc. represented both the buyer and seller, Pegasus Real Estate Services LLC.
The portfolio includes four buildings of 11 office condos each, for a total 44 condos.
QSM Holdings purchased 19 condos total in three out of the four buildings, Waddell said.
The Shelby County Assessor of Property’s 2011 appraisals of the Class B properties is $38,300 per building.
The new local ownership group plans to hold the properties, make renovations where necessary then lease them out, John Waddell said. Jeff Waddell will handle the leasing of the 750-square-foot bays, which will have a monthly rent of $750.
“They bought it for the purpose of holding. It’s not something they’re going to flip off or anything because they got a pretty good price on it,” he said.
Current occupancy of the purchased properties is about 60 percent, Waddell said. Many of the properties are built out for beauty shops.
• In other deals, Dink’s has signed a 2,600-square-foot lease across two bays in Poplar Market Plaza, 890 W. Poplar Ave., suites 6 and 7.
Dink’s is a new burger venue by Scott and Tracy Dinkins, principals of MOO LOO Holdings LLC. Scott Dinkins – a 25-year veteran of the restaurant industry – has career stops working for Mike Garibaldi and most recently with Colton’s Steak House & Grill. Tracy Dinkins works for Memphis-based International Paper.
The concept of the restaurant is a “fast casual,” build-your-own-burger bar, with the menu featuring hamburgers, hot dogs and fish. The food will be brought out cooked, and customers will be able to dress their order with about 30 items.
“We polled different friends from different regions to decide the toppings,” Scott Dinkins said, noting there will be a 9-foot cold bar and 1-foot hot bar.
Dink’s will join other tenants in the 218,380-square-foot Collierville shopping center such as FedEx’s training center and back-up storage facility, Hobby Lobby, CiCi’s Pizza, AT&T and Big Lots. The tenant will occupy the two bays in between Yogurt Nation and GNC.
J. Tucker Beck with Crye-Leike Commercial represented the tenant. The Shopping Center Group LLC’s Gary Shanks represented the landlord, Stanley Rosenblum and Alan Kosten of Premier Management Co.
Shanks said Dink’s new lease brings Poplar Market Plaza’s occupancy to 95 percent.
It was important for the couple to launch their first business venture in Collierville, where they have lived for the past 15 years.
“We wanted something to be kind of community-tied,” Scott Dinkins said. “Both my kids came through the schools out here and we’ve been on different committees throughout the years, and we just wanted to be involved in the community.”
The tenant plans to open within 30 days, Beck said.
• Shanks also represented the landlord of Wolf River Commons, 420 S. Germantown Parkway, in a handful of recent retail deals, each for a term of five years.
The 20,445-square-foot shopping center is situated in front of Lowe’s on the north side of the Wolf River. The landlord is Palm Beach Gardens, Fla.-based RAM Realty. The ownership entity is Wolf River Commons 132 LLC.
Parkway Wine & Liquor signed a 1,335-square-foot lease for its first location.
Shanks was the only agent involved.
The area was appealing because it is a second-generation liquor-store business, Shanks said.
Philly Connection has also signed a new lease for 1,335 square feet lease in suite 108. Sam Zalowitz of Zalowitz Commercial Realty LLC represented the tenant.
While Philly Connection has been an operating business for about two years, it’s a new lease, Shanks said. Before The Shopping Center Group took over at the beginning of this year, the property had already gone through the foreclosure process.
A South Florida group called Ram Realty had previously bought a portfolio of loans and did not get the “typical due diligence involved when buying an investment property,” he said
“There’s just been kind of lack of communication between the previous owner and this owner – they didn’t get everything delivered to them that they were supposed to, so they continued to let them operate while we negotiated a lease,” Shanks said. “This is one of those properties where it’s taken half the year to really get our arms around it because (of) the documentation or the lack thereof.”
In suite 101, Physiotherapy Associates has inked a 3,000-square-foot lease renewal. Shanks was the only party involved.
The tenant has seven locations in Tennessee and two in Mississippi.
And the U.S. Armed Forces Career Center for the Marine Corps renewed its 900-square-foot lease.