VOL. 126 | NO. 185 | Thursday, September 22, 2011
Memphis Red Roof Among 143 Sold
A Red Roof Inn on Shelby Oaks Drive is one of 143 bought by a joint venture as part of Red Roof Inns Inc.’s efforts to recapitalize ownership of its assets.
FMW RRI NC LLC bought the Memphis hotel, which uses the address 6055 Shelby Oaks Drive, from R-ROOF VI LLC for $1.6 million. The Shelby County Assessor of Properties lists the address as 6065 Shelby Oaks Drive. The deal closed in late August but documents were just filed with the Shelby County Register of Deeds.
The two-story, 17,500-square-foot hotel was built in 1980 and has 108 units. It sits on 2.2 acres on the south side of Shelby Oaks Drive east of Sycamore View Road. The south line of the property backs up to Interstate 40.
The assessor’s 2011 appraisal is $2 million.
The site is one of 143 Red Roof Inns – totaling about 17,000 rooms – acquired by affiliates of Five Mile Capital Partner and Westmont Hospitality Group, in a joint venture, according to an Aug. 31 statement from Red Roof Inns Inc. The joint venture committed more than $70 million for renovating and upgrading the portfolio. All the properties in the acquisition have entered into franchise agreements with Red Roof Franchising LLC and will continue to be managed by RRI West Management, an affiliate of Red Roof Inns, according to the statement.
FMW RRI NC LLC filed a loan through Fortress Credit Corp., secured by 56 properties in multiple states. Those 56 hotels include two Tennessee sites: the Shelby Oaks one as well as one in Nashville.
The total principal indebtedness of the 56 hotels, according to loan documents, is $275 million, with the total value of the collateral listed as $493 million. The indebtedness for the two Tennessee hotels is $2.6 million, with the collateral worth $4.7 million.
Source: The Daily News Online & Chandler Reports
– Kate Simone
Hubbard Selected to Serve as MAAR President-Elect
Regina Hubbard of Lester Hubbard Realtors has been selected as the 2012 president-elect of the Memphis Area Association of Realtors after a vote by the 2011 and 2012 board of directors Wednesday, Sept. 21.
Fast Track Realty’s Greg Glosson, who in 2012 will be on the board of directors for his second year, was elected as the 2012 secretary-treasurer.
Steve Brown of Crye-Leike Realtors Inc. was selected by the general membership during the annual election to serve as vice president in 2012.
The 2012 board of directors and officers are as follows: president Carol Lott; president-elect Regina Hubbard; vice president Steve Brown; secretary/treasurer Greg Glosson; and directors Mindy Creech, Eric Fuhrman, John Linthicum, Thomas Murphree, Claire Owen, Landra Pryor, Judy Skinta, Jo Walker-Payton and Sam Zalowitz.
– Sarah Baker
Baptist Affiliate Acquires Integrity Oncology
Baptist Memorial Medical Group announced Wednesday the formation of Integrity Oncology Foundation, the result of the recent acquisition of Integrity Oncology, a comprehensive oncology physician practice.
An affiliate of Baptist Memorial Health Care Corp., BMMG is one of the area’s largest nonprofit, multispecialty, physician group practices, with more than 200 physicians representing 31 specialties. Locations are in West Tennessee, East Arkansas and North Mississippi.
Dr. Margaret Gore, Dr. Suhail M. Obaji and Dr. Earle Weeks practice at Integrity Oncology, which has four locations in Tennessee and Arkansas. Integrity provides treatment in oncology, hematology, immunotherapy and rheumatology.
Integrity Oncology and its physicians will continue practicing at other area hospitals.
Since April 2009, BMMG has opened primary care and internal medicine physician practices in Arlington, Lakeland, Collierville, the Forest Hill area and several locations in Mississippi, with plans to expand to other areas and specialties.
In 2010, BMMG acquired and formed a foundation with NEA Clinic, the largest physician group in Northeast Arkansas, and earlier this year, the group acquired Memphis-based Stern Cardiovascular Center, one of the largest and most comprehensive cardiology group practices in the region, to form Stern Cardiovascular Foundation.
– Aisling Maki
Morgan Keegan Sees Recent Exit of Advisers
Morgan Keegan & Co. Inc. has lost some advisers over the last several days, some of them taking a big volume of business with them while the investment banking firm continues to try and resolve the future of its ownership.
Recruiter Ron Edde of Armstrong Financial Group Inc., who told The Daily News his firm is currently working with more than a dozen Morgan Keegan advisers, confirmed two Morgan Keegan advisers – Richard Smith and Steven Thornton, who had a book of business at the firm that topped $1 million – have left to start their own firm.
Additionally, advisers Peter Korcusko and Frank Colucci left Morgan Keegan within the last several days and moved to Morgan Stanley Smith Barney.
Those departures, and any more Morgan Keegan advisers who might be on the fence, represent the outcome Morgan Keegan and its parent, Regions Financial Corp., likely have been trying to avoid: an uptick in departures before a sale of Morgan Keegan could be completed.
Regions’ Memphis-based investment banking franchise was put up for sale this summer, and though talks are still ongoing, a buyer has not been announced. Meanwhile, it’s generally understood that an exodus of talent could erode the value of the franchise.
The Wall Street Journal reported Wednesday that Bank of America Corp. has opted out of providing financing for private-equity bidders for Morgan Keegan. The paper reported part of the reason why is a worry over Morgan Keegan’s liabilities.
Earlier this month, Regions CEO Grayson Hall addressed the still-unresolved sale of Morgan Keegan during the 2011 Barclays Capital Global Financial Services Conference in New York. Regions had nothing to report at the conference.
– Andy Meek
Museums Participate In Smithsonian Museum Day
Admission to several Memphis museums will be free Saturday, Sept. 24, as part of Museum Day, an annual event hosted by Smithsonian Magazine. Participating venues include the Metal Museum, Belz Museum, Memphis Rock ‘n’ Soul Museum and Dixon Gallery and Gardens.
Admission will be free all day with tickets, which are good for the ticketholder and a guest. Tickets are available at www.smithsonianmag.com/museumday, and participants must choose one museum at the time of registration.
The Metal Museum will feature blacksmithing demos and a number of displays. A new exhibition, Master Metalsmith – featuring Fred Fenster, will be in the main building.
The Belz Museum will display its lavish collection of Asian and Judaic art, along with screenings of Disney’s “Mulan” and “Kung Fu Panda.”
The Rock ‘n’ Soul Museum will present its Memphis music collection, which tells the story of musical pioneers who overcame racial and socio-economic barriers to create music that that helped to shape musical history as we know it.
The Dixon Gallery and Gardens features a permanent collection of more than 2,000 pieces, including French and American impressionist paintings and significant holdings of German and English porcelain.
– John Lintner
Architecture Billings Index Up After 4 Months of Decline
On the heels of a period of weakness in design activity, the Architecture Billings Index took a sudden upturn in August.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lag between architecture billings and construction spending.
The American Institute of Architects reported the August ABI score was 51.4, following a very weak score of 45.1 in July. This score reflects an increase in demand for design services, as any score above 50 indicates an increase in billings.
The new projects inquiry index was 56.9, up sharply from a reading of 53.7 the previous month.
The South regional average ABI was 47.4. The sector index breakdown for August was as follows: multifamily residential (44.8), commercial/industrial (46.0), institutional (48.5) and mixed practice (50.9).
– Sarah Baker
Moody's Cuts Lenders' Ratings
Moody’s Investors Service lowered the debt ratings for Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., saying it is now less likely that the U.S. government would step in and prevent the lenders from failing in a crisis.
The ratings firm said Wednesday, Sept. 21, that it believes the government is likely to provide some level of support for financial institutions, but is also more likely now than during the 2008 financial crisis to allow a large bank to fail.
The downgrades stem partly from new laws that went into effect under the Dodd-Frank Wall Street Reform Act that was passed last year. The new law ended the possibility of the government bailing out a large financial firm and creates a way to liquidate failed financials.
Bank of America was the worst hit – with a two-notch downgrade in its key long-term debt ratings to Baa1 from A2. Wells Fargo’s long-term debt was downgraded by one notch to A2 from A1, while Citigroup’s rating remained the same at A3.
– The Associated Press