VOL. 127 | NO. 156 | Friday, August 10, 2012
Dot-Com Moves Distribution To Memphis
By Sarah Baker
Wilsonville, Ore.-based LinenTablecloth.com has entered the Memphis industrial market, leasing 82,500 square feet at 3046 Datsun Drive for its new distribution center.
Founded in 2005, Linentablecloth.com is an online retailer of tablecloths, chair covers, and other related products for hotels, restaurants, cafés, weddings and corporate functions.
Prior to the company’s Memphis lease, LinenTablecloth.com’s distribution and corporate offices were located in the Portland, Ore., area. Its corporate offices will remain in Portland while its distribution operations will be relocated to Memphis.
LinenTablecloth’s new distribution center is 15 minutes south of Downtown and 10 minutes west of Memphis International Airport. The Memphis locale triples LinenTablecloth’s inventory capacity and will initially employ 12 to 15 people doing order fulfillment.
“The Memphis distribution center will allow LinenTablecloth to offer free three-day shipping promotions to customers anywhere in the continental United States,” company CEO Ron Berrett said in a statement. “No one else in our industry currently has this capability.”
Colliers International’s Memphis industrial team of Andy Cates and Preston Thomas represented LinenTablecloth.com in lease negotiations. Stan Myers with Belz Enterprises represented the landlord.
The deal is one of 69 transactions Cates and Thomas have closed to date this year.
Others include M&G Wholesales Inc., a supplier for convenience stores, which has purchased the 23,200-square-foot warehouse at 3090 Broad Ave. for $385,000.
Built in 1994, the Class B warehouse’s 2012 appraisal from the Shelby County Assessor of Property is $444,700.
Cates and Thomas represented the seller, Henley Real Estate LP, an entity of Henley Distributing Co. LLC. Colliers’ Henry Stratton and Ed Thomas represented the buyers, Mahmound “Mike” Ghannam and Irada Gannam.
Stratton said the Broad warehouse is a central location for M&G’s business. The company has two locations in the area it leases that will remain open.
“That’s close to where they are currently and most of the people they serve come to them, rather than they deliver,” Stratton said. “They wanted to own. The other two they lease and they’re not big enough for them to consolidate everything under one roof. But there’s not a whole lot for sale in that area that is of the size range that they ideally would want.”
Also, Chris Mayatte, owner of EliteDeals.com, has purchased the 20,000-square-foot warehouse at 5680 E. Shelby Drive for $477,000.
EliteDeals, which offers low prices on storage sheds, tents, canopies and fireplaces, will expand and relocate from 3953 Hickory Hill Road, where it was leasing 12,000 square feet.
Cates and Thomas handled both sides of the deal for the seller, Merchants and Farmers Bank.
“Chris was able to buy a property for a good enough price to compel him to purchase, rather than continually leasing,” Thomas said. “This was Merchants and Farmers’ last industrial property in Memphis. We’ve been able to sell over $9 million worth of property for them in the last three years.”
Cates and Thomas also recently sold four acres in Cordova for Merchants and Farmers, which Thomas said is positive news for the commercial lot market.
“There aren’t many lot sales going on in our market,” he said. “It’s a good sign that people are starting to take risk and purchase land.”
• In commercial leasing news, BCL-Memphis LLC bought the 146,000-square-foot warehouse at 4049 E Raines Road for $2.3 million.
The purchase marks the Northbrook, Ill.-based buyer’s first property in Memphis. The warehouse is 100 percent leased to two tenants.
Brian Califf and Hank Martin with NAI Saig Co. negotiated the deal for the seller, Memphis-based Progression Realty LLC, which paid $501,500 for it in August 2010.
In addition, Qwest Air Parts Inc. has signed a lease for 30,000 square feet at 4210 BF Goodrich.
The worldwide supplier and distributor of commercial aviation parts is based at 3960 Crowfarn Drive.
Califf negotiated the deal for Plus One Holdings, landlord of the southeast Memphis warehouse in Airport Industrial Park, which totals 72,000 square feet.
Tan-N-Go has signed a new 2,000-square-foot lease for its first Millington location at 8510 Wilkinsville Road in Flag City Center, across the street from Walmart.
Califf represented the tenant. Kevin Hardin with Gary Myers Co. represented the landlord, Chamberlain McCreery & Rice LLC.
Meanwhile, four new leases have been completed in Perimeter Point Business Park at Covington Pike and Elmore Road: C4 Connections for 1,600 square feet; Felix Automotive for 1,600 square feet; Global Midsouth Co. for 1,500 square feet; and Allied Medical for 2,200 square feet.
Martin and Califf represented the owner, CP Perimeter Point LLC, on the deals. DeDe Malmo, president of MalmoMemphis Real Estate Inc., represented Allied Medical on that deal.
Califf also represented Dr. Alan Werner of Clarksville, Tenn., on his $2.63 million purchase of a 20,000-square-foot Walmart shadow center in Lewisburg, Tenn., from Canton, Ohio-based Triad Realty.
The property at 1340 N. Ellington Parkway in Lewisburg Crossing was fully occupied at time of sale.