VOL. 127 | NO. 129 | Tuesday, July 03, 2012
Canadian Firm Acquires South Memphis Warehouse for $1.5M
By Sarah Baker
A Canadian real estate investment group has purchased a 157,000-square-foot industrial warehouse in South Memphis for $1.5 million, marking the firm’s second Memphis acquisition in 18 months.
Montreal-based Olymbec USA LLC bought the Class C facility at 3615 Lamar Ave. from FUCMS 2001-C2 Lamar Industrial LLC, an entity affiliated with Miami-based loan servicer LNR Partners LLC. LNR purchased the warehouse at a foreclosure auction for $1.6 million in December after the previous owner defaulted on a $3.7 million loan backed by the property.
Andrew Phillips, vice president of investment and retail services with Colliers International Memphis, represented LNR in the deal. There were no other brokers involved.
“LNR initially had taken the property to auction in April, but decided to sell it in a more traditional fashion,” Phillips said. “After they decided to pull it back from the auction, we went out to multiple interested parties and went through a best and final process and Olymbec was the winner of those winning bids.”
The 13.41-acre parcel is on the west side of Lamar north of Knight Arnold Road. Built in 1971 and renovated in 2000, the Shelby County Assessor of Property’s 2012 appraisal is $2.5 million.
The property is 100 percent leased to Builder’s FirstSource Inc. through May 2015, however the tenant vacated the property in 2001 and has subleased the space to two separate tenants.
Cumberland Materials occupies the 67,000-square-foot portion that has 16-foot ceilings in a lease that is coterminous with Builder’s FirstSource for three more years. Process Systems Inc. occupies the remaining 90,000 square feet, which has 32-foot ceilings, through 2012 as a staging facility for job the company is completing at Memphis International Airport.
Phillips sold the 1.1 million-square-foot Space Center portfolio at 3051-3133 Tranquility Drive to Olymbec in February 2011 from Trammel Crow Co. for $7.3 million. This acquisition brings Olymbec’s total Memphis industrial portfolio to more than 1.75 million square feet.
Olymbec is a family-run, private real estate investment company with a portfolio of more than 200 properties, the majority of which are in Quebec. The firm specializes in buying distressed properties, renovating and filling the space, and seeking long-term financing.
Olymbec entered the Memphis market in 2004 with its purchase of a 500,000-square-foot distribution center in Southaven at 8800 Rostin Road. The facility is currently occupied by Terex Corp., a heavy equipment company.
Olymbec is also active in the U.S. in Texas and Nevada.