VOL. 127 | NO. 10 | Monday, January 16, 2012
Memphis Real Estate Recap
City Files $12M Permit Application For Mitsubishi Plant Infrastructure
2865 Riverport Road
Memphis, TN 38109
Permit Cost: $12.1 million
Permit Date: Applied January 2012
Owner: City of Memphis
Tenant: City of Memphis
Details: A $12.1 million building permit application has been filed for the Mitsubishi Electric Power Products Inc. plant property at 2865 Riverport Road in southwest Memphis’ Rivergate Industrial Park. The application states it is for “deep foundation for manufacturing and office building.”
The city of Memphis is named on the application as the owner and tenant. The listed phone number is that of O’Neal Inc., the project’s general contractor, which has offices in Greenville, S.C., Raleigh, N.C., and Atlanta.
MEPPI is building a 330,000-square-foot facility to manufacture large power transformers. A 40,000-square-foot office structure will connect to the production area via a pedestrian bridge. The project also includes building 4,100 feet of railroad track and a railroad bridge.
The deal, which will result in an investment of about $200 million in Memphis, was announced in February by the company – as well as local and state leaders.
Mitsubishi currently manufactures large power transformers at a factory in Japan and exports them to the U.S. The Japan plant is nearing its maximum capacity, so the company decided to build a new transformer plant in the U.S. It spent a year and a half scouting potential U.S. sites – including several trips to Memphis – before making the formal announcement in February.
The value of the incentive package presented to Mitsubishi to woo them here in early 2011 was a little more than $41 million.
18.6 Acres Near
Hacks Cross Road, Tournament Drive
Sale Amount: $1.2 million
Sale Date: Dec. 29, 2011
Buyer: PHC Real Estate LLC
Seller: CRM Central Properties LLC
Details: Memphis-based PHC Real Estate LLC has bought 18.6 acres near the southwest corner of Hacks Cross Road and Tournament Drive from CRM Central Properties Inc. for $1.2 million.
The land is part of about 38 acres Atlanta-based CRM bought in June from G. Benjamin Clark and Nicholas G. Clark in lieu of foreclosure.
That site was appraised by the Shelby County Assessor of Property in 2011 at nearly $1.5 million.
The acreage is in the 112-acre Tournament Center Planned Development, third amendment.
A 2009 plat filed with the Shelby County Register of Deeds shows the planned development includes about 60 acres zoned for general office use and about 50 acres zoned as an “office/multifamily community.”
The plat lists Clark & Clark as the developer.
PHC Real Estate filed articles of organization as a limited liability company with the Tennessee Secretary of State in July. It shares a Memphis address with Poplar Healthcare, a laboratory services parent company of GI Pathology, D-PATH Dermatopathology and OncoMetrix.
436 S. Front St.
Memphis, TN 38103
Permit Cost: $1.5 million
Permit Date: Applied January 2012
Owner: Greenbrier Partners
Tenant: Greenbrier Partners
Details: Greenbrier Partners has filed a $1.5 million building permit application with the city-county Office of Construction Code Enforcement for construction of a mixed-use building at 436 S. Front St.
The project has been in the works for more than a year. Greenbrier filed a $2.1 million loan in September 2010 to build at the site, which is at the corner of Front and East Nettleton Avenue and is part of a 10-year payment-in-lieu-of-taxes (PILOT) agreement with the Memphis Center City Revenue Finance Corp.
The PILOT agreed on in May 2010 included demolition of a building and construction of a three-story, 29,000-square-foot mixed-use building with 1,500 square feet of retail, 25 apartment units and 25 underground parking spaces.
Vince Smith, chief manager of Greenbrier Partners LLC, told The Daily News in October 2010 he wanted to break ground in January 2011 but needed CCRFC “to help work with us on a few other items in order to get it done, but I think we can get there.”
1715 Crimson Circle and 5324 Millbranch Road
Memphis, TN 38116
Sale Amount: $2.3 million
Sale Date: Dec. 19, 2011
Buyer: Memphis Bell LLC
Seller: LILO LLC
Loan Amounts: $1.4 million; $690,000
Loan Date: Dec. 1, 2011 ($1.4 million); Dec. 19, 2011 ($690,000)
Maturity Date: n/a
Lender: The Rama Fund LLC ($1.4 million); LILO LLC ($690,000)
Details: Laredo, Texas-based Memphis Bell LLC has bought the 299-unit Oakshire Apartments just north of the Tennessee-Mississippi state line from LILO LLC for $2.3 million, financing it with two trust deeds – $1.4 million through The Rama Fund LLC and $690,000 through the seller. The purchase includes an adjacent single-family residence.
Oakshire Apartments, which uses the address 1715 Crimson Road, comprises three parcels totaling 17.4 acres east of Millbranch Road and bounded on the east by U.S. 55. The Class D apartments range from studios to townhouses, with 136 units built in 1969 and 163 built in 1972.
The Shelby County Assessor of Property lists the complex at 1717 Crimson, and the combined 2011 appraisal for the three-parcel site is $1.8 million.
The house included in Memphis Bell’s purchase is an 1,160-square-foot single-family residence built in 1956 at 5324 Millbranch, at the southeast corner of Millbranch and Crimson. Its 2011 appraisal is $69,800.
Memphis Bell incorporated as a limited liability company in October.