VOL. 126 | NO. 196 | Friday, October 7, 2011
CBRE Closes On Two Distressed Apt. Complexes
By Sarah Baker
CB Richard Ellis Memphis has recently closed two distressed multifamily properties in the West Winchester apartment submarket.
Tommy Bronson III and Blake Pera with CBRE’s multifamily division represented MPI Coventry Village LLC in the $1.25 million sale of Highland Creek Apartments, 1305 Turkey Run Lane, to Highland Creek Acquisitions LLC.
Highland Creek is a 458-unit apartment community with visibility along Winchester Road, which provides immediate access to Memphis International Airport.
Constructed in 1967, the property consists of one-bedroom flats and two- and three-bedroom townhouses. Average unit size is 1,301 square feet, and amenities include three swimming pools, a fitness center, basketball and tennis courts, and a playground.
The duo also represented Lighthouse Capital Funding Inc. in the sale of Oak Park Apartments, 1221 Willett St., to Martin Family Rentals LLC.
Oak Park, a 224-unit apartment complex built in 1961, offers residents a mix of one-, two- and three-bedroom units ranging in size from 558 to 768 square feet. Rents range from $275 to $475.
Located directly to the south of Oak Park is 130 million square feet of distribution space, as well as the Memphis International Airport, which together provide a tremendous job base.
CBRE’s multifamily division has closed more than $105 million in multifamily transactions since June, both locally and regionally. Sales have come across all classes of product and have included both stabilized and distressed transactions.
These two properties, in fact, are in need of very significant renovation, Bronson said. Highland Creek’s occupancy is about 30 percent, while Oak Park’s is about 5 percent.
“Each of these transactions represented distressed opportunities, where the ability to create value exists through recapitalization and aggressive management,” Bronson said in a statement. “Investors continue to remain positive on the outlook of multifamily as an investment vehicle, and capital from across the country continues to focus on the Memphis market for opportunity.”
It’s the plan of both buyers to hold these properties, renovate them and attempt to stabilize them, Bronson said.
• In other leasing news, Barry D. Maynard with Trezevant Realty Corp. has inked a flurry of deals in recent weeks.
KC Holdings Inc., doing business as Ace Hardware, has signed a 10,322-square-foot lease in the Shops of Oakland, 7860 Highway 64, suite 1. Approximately 8,072 square feet of the lease is for interior space and the remaining 2,250 square feet will be used for an outside lawn and garden center.
Maynard represented Ace Hardware in the deal. Eric Fuhrman with Crye-Leike Commercial represented the landlord, Oakland Enterprises LLC. Ace Hardware is leasing 54 percent of the 15,000-square-foot shopping center, with the only other tenant being Anytime Fitness.
Also, MXLP Inc., doing business as Motorcycle Xpress Loop Plus, has signed a lease for 8,314 square feet at 6412 Summer Ave. in Bartlett. The tenant will occupy the end cap in the 12,400-square-foot free-standing retail building. Motorcycle Xpress Loop Plus is a new start-up company owned by Kenny and Sandi Martin.
Maynard represented the tenant. Preston Thomas with Colliers International represented the landlord, First State Bank.
The tenant plans to do an extensive makeover with improvements made to the interior, Maynard said. The landlord is also making improvements to the exterior of the premises.
And Elias Ghosheh and Nassar Altamini, owners of Captain JJ’s Fish & Chicken, have signed two new leases.
One is for 2,600 square feet at 3346 Goodman Road in Horn Lake.
Maynard handled negotiations on behalf of the tenant and the landlord, American Properties Co.
The other Captain JJ’s Fish & Chicken lease is for 1,700 square feet at 450 Stateline Road in Southaven.
Maynard represented the tenant. Arthur Malkin with Malkin Management & Investment Co. Inc. represented the landlord.