VOL. 127 | NO. 65 | Tuesday, April 3, 2012
Memphis Real Estate Recap
Cargill Files $1.4M Permit App For Pres. Island Storage Bldg.
2615 Channel Ave.
Memphis, TN 38113
2615 Channel Ave. • Memphis, TN 38113
Permit Cost: $1.4 million
Permit Date: Applied March 2012
Owner: Cargill Corn Milling North America
Tenant: Cargill Corn Milling North America
Contractor: Chris Woods Construction Co. Inc.
Details: Cargill Corn Milling North America, which operates a wet mill on Presidents Island, is planning work on a flexi-container storage building there, according to a building permit application filed with the city-county Office of Construction Code Enforcement.
Chris Woods Construction Co. Inc. is the general contractor for the project at 2615 Channel Ave., according to the application.
The Shelby County Assessor of Property’s listing for 2615 Channel includes a 7,104-square-foot Class C warehouse built in 1971. The parcel is about 15 acres at the southwest corner of Channel Avenue and Pier Street on the north side of McKellar Lake.
The assessor’s 2011 appraisal was $825,900.
Cargill Corn Milling is based in Minneapolis and has seven wet mills, which steep corn in water and separate it into starch, protein, germ and fiber. The company also operates two dry mills that grind corn into flour.
The company entered the Memphis market more than 35 years ago, and the local mill produces corn sweeteners, corn starch, corn oil and gluten.
The city council in December approved plans to apply for a $3 million state Fast Track Infrastructure Program grant as part of a rail expansion project for Cargill. The city had already committed $3 million in local funding – agreeing to the terms when Cargill executives threatened to move the facility and its 370 jobs from the city if the company didn’t get the incentives.
The total cost of the rail expansion is $13.1 million, and Cargill is putting up $4.9 million.
2240 Democrat Road
Memphis, TN 38132
Loan Amounts: $5 million; $1.6 million
Loan Date: March 9, 2012
Maturity Date: n/a
Borrower: Alpha Hospitality Ventures LLC
Lender: Cecil Bank
Details: Alpha Hospitality Ventures LLC has filed two loans totaling $6.6 million through Cecil Bank for Memphis Airport Hotel & Conference Center in Nonconnah Corporate Center. The company bought the property, 2240 Democrat Road, for $4.4 million at a July foreclosure sale, financing it at the time with a $4 million open-end mortgage through Cecil Bank.
The 270,000-square-foot, five-story hotel was built in 1974 and includes 374 rooms, more than 30,000 square feet of conference space and an onsite restaurant. It is on 7.6 acres at the northeast corner of Nonconnah Boulevard and Democrat Road, about three miles from Memphis International Airport. The hotel has frontage on Airways Boulevard to the east, and the Shelby County Assessor of Property’s 2011 appraisal is $5.5 million.
Of the two loans, $5 million is through a federal Small Business Administration program that uses tax dollars to assist small business owners.
The hotel and conference center went into foreclosure last year after its former owner, which bought the property for $8.3 million in 2008, defaulted on a $12.8 million loan.
8119 Memphis-Arlington Road
Bartlett, TN 38133
Loan Amount: $11.8 million
Loan Date: March 22, 2012
Maturity Date: March 22, 2017
Borrower: Memphis RE LLC
Lender: The PrivateBank and Trust Co.
Details: Bartlett-based Covenant Dove – an operator of skilled nursing facilities in 12 states – has filed two leasehold loans totaling $16.5 million for nursing homes in Bartlett and Collierville, part of an aggregate $165 million loan through The PrivateBank and Trust Co.
Working under the name Memphis RE LLC, Covenant Dove financed Rainbow Health & Rehab of Memphis, 8119 Memphis-Arlington Road in the 38133 ZIP code, for $11.8 million. Built in 2009, the 45,078-square-foot facility is on about 6 acres at the southeast corner of Memphis-Arlington and North Germantown roads. The Shelby County Assessor of Property’s 2011 appraisal was $4.4 million.
Also, working under the name Collierville RE LLC, Covenant financed Dove Health & Rehab of Collierville, 490 W. Poplar Ave., for $4.7 million. That facility, which was built in 1970 and has 34,186 square feet, is on 3.1 acres on the north side of West Poplar between Maynard Way to the west and Aldersgate Street to the east. The assessor’s 2011 appraisal was $3.2 million.
Both loans mature in March 2017, and Michael Bagley, executive vice president and chief financial officer, signed the trust deeds as secretary and treasurer of the Memphis RE and Collierville RE entities.
Both nursing homes offer stays for short-term rehab services, as well as ongoing services for patients needing long-term care, according to Covenant Dove’s website.
In addition to its other offerings, Dove Health offers “Wii Hab,” which uses the Nintendo Wii as a therapy device.
Covenant Dove – whose headquarters is on Summer Oaks Drive – operates 57 skilled nursing facilities with almost 6,000 beds, according to its site. The Collierville and Bartlett facilities are the company’s only operations in Tennessee.
Three lots in Enclave PD
Loan Amount: $1.1 million
Loan Date: March 1, 2012
Maturity Date: March 1, 2013
Borrower: Mike Murphy Builders LLC
Lender: Financial Federal Savings Bank
Details: Mike Murphy Builders LLC has filed a construction loan for three lots in Germantown’s Enclave planned development, phase 3, through Financial Federal Savings Bank for $1.1 million. The sizes of the financed lots are 6,759 square feet fronting Enclave Hollow Lane East, 7,032 square feet fronting Terrene Lane and 6,760 square feet fronting Enclave Green Lane West.
Enclave phase 3 is on the north side of Wolf River Boulevard northwest of the dead end of Forest Hill-Irene Road.