VOL. 126 | NO. 228 | Tuesday, November 22, 2011
Memphis Real Estate Recap
Cross Creek Shopping Ctr. Sells for $12.7 Million
3469 Riverdale Road, 3505 Riverdale Road and 3587 Riverdale Road
Memphis, TN 38115
Sale Amount: $12.7 million
3469, 3505 and 3587 Riverdale Road • Memphis, TN 38115
Sale Date: Nov. 1, 2011
Buyer: Allied Development of Memphis LLC
Seller: JPMCC 2005-LDP2 Riverdale Retail LLC
Loan Amounts: $5.5 million (two trust deeds, $2.75 million each)
Loan Date: Nov. 1, 2011
Maturity Date: Nov. 1, 2021
Lender: Ameritas Life Insurance Corp. and The Union Central Life Insurance Co., collectively
Details: Commack, N.Y.-based Allied Development of Memphis LLC has bought Cross Creek Shopping Center for $12.7 million. The seller is JPMCC 2005-LDP2 Riverdale Retail LLC, an entity managed by LNR Partners LLC that bought the property for $12.3 million out of foreclosure in October 2010.
The center encompasses three addresses – 3469 Riverdale Road, 3505 Riverdale Road and 3587 Riverdale Road – bounded by Riverdale Road to the east, Winchester Road to the south, Tenn. 385 to the north and Winchesterview Road to the west.
The purchase was financed with two loans through Ameritas Life Insurance Corp. and The Union Central Life Insurance Co., each for $2.75 million.
The 3469 Riverdale parcel is a 101,800-square-foot Class A department store built in 1996 on 12.4 acres and occupied by The Home Depot; the Shelby County Assessor of Property’s 2011 appraisal is $6.2 million. The 3505 Riverdale property is a 257,345-square-foot Class A strip shopping center built in 1997 on a 26.8-acre parcel; the 2011 appraisal is $12 million. And 3587 Riverdale is a 3,128-square-foot Class A fast-food outparcel built in 1998; the 2011 appraisal is $340,400.
LNR Partners’ $12.3 million foreclosure purchase in October 2010 occurred after previous owner Lakha Properties – Memphis LLC defaulted on a $46 million loan taken out in May 2005. That was the same time Lakha bought the center from Michael A. Lightman Sr. for $57.5 million.
Miami-based LNR Partners – working under the names of various affiliates – has been involved in a number of Memphis real estate transactions in 2011. The company sold Trinity Ridge Business Center in Cordova for $7.6 million to Dalfen America Corp., less than a year after LNR bought Trinity Ridge at a foreclosure sale for $4.5 million. That deal closed Oct. 26.
LNR bought two properties at separate foreclosure sales May 11: Waterford Place Apartments in Southeast Shelby County for $18.2 million and The Villas at Cordova apartment complex for $14.2 million. And on May 19, LNR bought Bartlett Logistics Center, a group of flex warehouses, at a foreclosure sale for $15 million.
Vacant land at 443 S. Highland St., 366 Ellsworth St., 374 Ellsworth St. and 380 Ellsworth St.
Memphis, TN 38111
Sale Amount: $2.6 million
Sale Date: Nov. 17, 2011
Buyer: Highland Row Land Partners LLC
Seller: Poag & McEwen Lifestyle Centers – Memphis LLC
Details: Worthington Hyde Partners, working under the name Highland Row Land Partners LLC, has bought the 13 acres of vacant land slated to become Highland Row from Poag & McEwen Lifestyle Centers – Memphis LLC for $2.6 million. The deal closed Nov. 17.
Near the University of Memphis, the land for the planned Highland Row “town and gown” development encompasses the site of the now-demolished Highland Street Church of Christ at the northwest corner of Highland Street and Midland Avenue.
Plans for Highland Row include residential and retail space.
The partners in Norcross, Ga.-based Worthington Hyde Partners are Joseph R. “Pitt” Hyde III, founder of Memphis-based AutoZone Inc. and chairman of GTx Inc.; John H. Pontius, city of Memphis director of finance and administration from 1986 to 1991; and Robert W. Worthington of Atlanta, who served as chairman and CEO of the partnership’s previous incarnation, Schaedle Worthington Hyde Properties, according to the real estate investment company’s website.
The vacant parcels formerly used the addresses 443 S. Highland St., 366 Ellsworth St., 374 Ellsworth St. and 380 Ellsworth St.
The $70 million Highland Row project stalled last year amid the recession. In August 2010, Josh Poag, president and CEO of Memphis-based Poag & McEwen Lifestyle Centers, said the company was still getting financing in place but anticipated starting construction around the end of 2010 or early 2011, with a grand opening in 2012.
2403 E. Reese Grove Road
Bartlett, TN 38133
Loan Amount: $2.6 million
Loan Date: Nov. 3, 2011
Maturity Date: n/a
Borrower: Reese Road Apartments LLC
Lender: U.S. Bank NA
Details: Reese Road Apartments LLC has filed a $2.6 million mortgage through U.S. Bank NA for Reese Road Apartments at 2403 E. Reese Grove Road after a number of quitclaims transferring the property to the limited liability company.
Those quitclaims were from Strategic Equipment Systems Inc., Reese Road Partners, Joyce Kimball and Lyn Kimball, Gordon R. Kimball, JTLP Investments LLC, Greenwood Warehouse LC and Desert Mountain Associates LLC, all with no transfer amount, as well as Valley Sage Apartments LLC, with a transfer amount of $326,500.
Built in 2001, the complex contains 76 units on 6.9 acres on the south side of Reese Road between Whitten Road to the west and Country Trail Drive to the east.
The Shelby County Assessor of Property’s 2011 appraisal is $3.2 million.
The property will be managed by Management Solutions Inc., according to a management agreement filed at the same time as the quitclaims and mortgage deed.