Shelby Crossing Retail Center Sells for $2M in Foreclosure

By Kate Simone

6100 Macon Road
Memphis, TN 38134


Sale Amount: $2 million

Sale Date: July 13, 2012

Buyer: Flagstar Bank FSB

Seller: David J. Cocke, substitute trustee for Flagstar Bank FSB

Details: Flagstar Bank FSB has bought back a shopping center near Bass Pro Shops on Macon Road at a $2 million foreclosure sale after owners Sun Shelby LLC defaulted on a 2007 loan through the bank.

The 30,000-square foot Shelby Crossing phase II, 6100 Macon Road, was built in 1988 and is situated on 3.23 acres on the east side of Sycamore View Road between Interstate 40 and Macon Road. Tenants include Yarbrough’s Music and Draper’s Catering.

The Shelby County Assessor of Property’s 2012 appraisal is $1.8 million.

Sun Shelby – an entity affiliated with Tempe, Ariz.-based SUN 1031 LLC – bought the Class C center in November 2007 for $3.7 million, financing it with a $2.4 million loan through Flagstar.

SUN 1031, which offers 1031-exchange property investments nationwide, had a minimum buy-in of $100,000 for Shelby Crossing, the company’s broker for the center said at the time of the 2007 purchase.

The foreclosure sale was originally scheduled for May 14 but was pushed back to July 13. David J. Cocke of Evans Petree PC served as substitute trustee.

2939 Lamar Ave., 3429 Ramill Road
And 2875 N. Houston Levee Road

Sale Amounts: $1.1 million (Lamar); $1.1 million (Ramill); $1 million (Houston Levee)

Sale Date: July 19, 2012

Buyer: Retail Property Investments LLC

Seller: Ware Properties LLC

Details: Goodlettsville, Tenn.-based Dollar General Corp. has paid $3.2 million to buy three recently completed stores from Ware Properties LLC, the company that built them.

The publicly traded discount store operator, working under the name of majority-owned subsidiary Retail Property Investments LLC, bought the stores at 2939 Lamar Ave. and 3429 Ramill Road for $1.1 million each and the store at 2875 N. Houston Levee Road for $1 million.

All three stores were built in the past year. The 10,560-square-foot Lamar store is situated on the west side of Lamar north of Southwall Street; the Ramill store is on the west side of Ramill south of Yale Road; and the Houston Levee store is on the west side of North Houston Levee south of U.S. 64.

Dollar General, which trades on the New York Stock Exchange, operates more than 10,000 stores in 40 states. The company announced in May it plans to open 625 stores in 2012. It also plans to remodel or relocate 550 stores and increase average square footage by 7 percent.

19 houses in
Royal Oaks PD

Sale Amount: $1.1 million

Sale Date: July 18, 2012

Buyer: SpringView Investments LLC

Seller: Le’Ward Investments LLC

Loan Amount: $400,000

Loan Date: July 18, 2012

Maturity Date: Aug. 1, 2017

Lender: Le’Ward Investments LLC

Details: New York-based SpringView Investments LLC has acquired 19 houses in Raleigh’s Royal Oaks Planned Development for $1.1 million.

The houses are in Royal Oaks’ first three phases, with addresses on Royal Run, Royal View, Mistic Lake and Waterfront Oak drives. Seller Le’Ward Investments LLC acquired the properties between 2009 and this year.

SpringView financed its purchase with a $400,000 loan through Le’Ward.

The Royal Oaks development is north of Egypt Central Road between Bolen Huse Road and Singleton Parkway.

7384 Raleigh Lagrange Road
Memphis, TN 38018

Sale Amount: $1.2 million

Sale Date: July 3, 2012

Buyer: Orchid Hill Investments #1 LLC

Seller: Tellus Grand Central LLC

Loan Amount: $1.5 million

Loan Date: July 3, 2012

Maturity Date: July 6, 2022

Lender: UBS Real Estate Securities Inc.

Details: Sale and loan documents related to the recent sale of a Memphis storage facility have been filed with the Shelby County Register’s Office. Grand Central Storage, 7384 Raleigh Lagrange Road, is one of two properties bought by out-of-town entity Orchid Hill Investments for a total $4.5 million.

The seller is Gulfport, Miss.-based Tellus Grand Central LLC.

Built in 1998, the 63,710-square-foot Grand Central facility makes up $1.2 million of the purchase price. The building, which includes 376 units within 48,590 square feet of rentable space, is situated on 2.4 acres on the east side of Raleigh Lagrange near the street’s intersection with Mullins Station Road.

The Shelby County Assessor of Property’s 2012 appraisal is $1.1 million.

The second property included in Orchid Hill’s purchase is Mid South Storage in Southaven.

Orchid Hill financed the purchases with a $3.1 million loan through UBS Real Estate Securities Inc. Grand Central serves as collateral for $1.5 million of the loan.