VOL. 126 | NO. 147 | Friday, July 29, 2011
Nike Adds 400K Square Feet To Local Portfolio
By Sarah Baker
The world’s largest maker of athletic gear has signed a lease in Memphis’ Southeast industrial submarket to handle its newly acquired NFL contract.
Nike Inc. inked a 400,000-square-foot warehouse lease in Centerpointe Distribution Center No. 1, 3461 E. Raines Road. Built in 1994, the property, owned by San Francisco-based Prologis Inc., features 38 dock doors and an 11,687-square-foot office space component.
Ryan George, Prologis vice president and Tennessee market officer, along with market representative Jacob Milligan, were the in-house landlord reps.
Memphis’ prime logistical assets made Nike’s addition to Prologis’ portfolio attractive for both parties, said Sara Klein, Prologis public relations manager.
“Nike’s decision to locate at Centerpointe Distribution Center No. 1 underscores the popularity of Memphis as a distribution hub for companies with widespread, national distribution networks,” Klein said.
Beaverton, Ore.-based Nike sells its items in some 690 Nike-owned retail stores worldwide, through about 23,000 retail accounts in the U.S. and via independent distributors and licensees in other countries.
Memphis, however, is the center of Nike’s distribution network and is responsible for all of the company’s monogramming, said Dexter Muller, senior vice president of community development for the Greater Memphis Chamber.
In 2007, Nike built a $107 million distribution center at 3100 New Frayser Blvd. Two years later, the company invested $1.8 million in expansion efforts, adding 450 jobs and retaining 1,800.
“When they built their new facility in Frayser, I really give them a lot of credit for building up there because that was a market that we tried to get industrial to go in for years,” Muller said. “Belz Enterprises gave them a portion of that land to entice them up there. That will make a big difference to that part of the community in terms of jobs, but also the neighborhood around it.”
• Nike’s lease is one of several local commercial leases that have closed recently.
Travel Leaders has signed a 4,474-square-foot lease in the Wells Fargo Bank Building, 6445 Poplar Ave., suite 200.
Michael Donahoe, director of leasing with Investec Realty Services LLC, represented the landlord, 6445 LLC, in the 10-year deal. Will Barden of Barden Commercial Realty LLC represented the tenant.
The travel agency franchise is relocating from a retail center at Poplar Avenue and Perkins Road to a spot farther east, Donahoe said.
“Travel Leaders has been one of the leading travel agency’s in Memphis for many years and our building could provide them the exposure they are looking for in the Poplar corridor,” said Donahoe, adding Investec will be providing Poplar-fronted monument signage for its new tenant.
Travel Leader’s new lease brings the Wells Fargo building to 75 percent occupancy. Donahoe has 4,194 square feet remaining available to lease in the building.
• Richelieu Apartments, a 32-, two-bedroom unit property at 3846 Millbranch Road in Whitehaven, has sold for $485,000 to Encore Properties LLC, a Redmond, Ore.-based land-use consulting firm. It was 90 percent leased at the time of sale.
Steve Woodyard, president of Woodyard Realty Corp., represented Bayview Loan Services in the sale.
The property was in good condition and had a long-tenured resident base, Woodard said.
“The Richelieu Apartments has always been a mainstay in the Whitehaven market and has been well run and managed through the years, so this offered Encore the opportunity to come in and continue that great tradition that Richelieu has enjoyed in the past,” Woodyard said. “The seller, being a lender, was eager to get the property sold since it did not have a presence in the Memphis market. We are finding that most lenders have learned to attractively price their REO (bank ‘real estate owned’ properties) on the front end to get them sold in a hurry so they don’t have to get in the ownership and management business.”
Woodyard Realty Corp. has sold several apartment complexes in recent weeks, including the French Village, Timber Pines, Cedar Wood, Kenilworth and Hunter’s Ridge. Woodyard Realty Corp. just listed the Campus Heights Apartments I-III near the University of Memphis for Sycamore Bank and is now taking offers.
• Daley Investments LLC, doing business as the Factory Stores at Batesville, has leased a 4,050-square-foot space at 325 Lakewood Drive, suite 33, to Step’N Style, an individually owned and operated clothing store geared toward men that sells brand-name suits and dress shoes at a discounted price.
Bambi Fowler, Utley Properties’ director of marketing and sales and leasing agent, was the only agent involved in the three-year deal. Step’N Style is slated to open Sept. 1.
Also, Pizza Gallery has signed a 4,000-square-foot-lease in Northwest Plaza Shopping Center, 104 Northwest Drive, in Senatobia, Miss. The 50,900-square-foot center is located off U.S. 51, across the street from Northwest Mississippi Community College.
Fowler was the only agent involved in the five-year deal.