VOL. 127 | NO. 122 | Friday, June 22, 2012
Aren Buys SE Memphis Warehouse For $1.3M
By Sarah Baker
Trane U.S. Inc. has sold its parts distribution center in Southeast Memphis for $1.3 million.
Aren Investments LLC of Memphis acquired the 99,375-square-foot distribution warehouse at 4250 Concord Road. The company, which used a 1450 Massey Road address on the Shelby County Register of Deeds, financed the purchase with an $800,000 loan through BancorpSouth Bank. Igal Elfezouaty signed the trust deed as managing member of Aren.
Aren Investments also owns the 86,400-square-foot warehouse at 4041 Delp St.; the 42,934-square-foot warehouse at 4260 E. Raines Road; and the 202,475-square-foot facility at 89 Eastley St.
Built in 1987, Trane’s former Class B warehouse received a $1.96 million 2012 appraisal from the Shelby County Assessor of Property.
Ed Larkin of Memphis Commercial & Industrial represented the buyer. Brad Murchison of CB Richard Ellis Memphis represented the seller.
Trane, a subsidiary of Dublin-based Ingersoll-Rand, finalized its 625,875-square-foot industrial lease in Chickasaw Distribution Center Building E at 5200 Tradeport Drive in Southeast Memphis in December.
The residential and commercial heating, ventilation and air-conditioning (HVAC) systems provider also has a 393,000-square-foot distribution center in Southaven at 1560 Stateline Road E.
• In other commercial news, Regel PharmaLab has purchased the Prudential Collins-Maury office in Germantown at 1352 Cordova Cove for $600,000.
The buyer, who made an unsolicited offer to building owner Doug Collins, will be converting the space into a compounding pharmacy. Built in 1993, the 3,040-square-foot Class A office building’s 2012 appraisal from the assessor is $392,300.
Eric Fuhrman, president and managing broker of Crye-Leike Commercial, represented Regel PharmaLab, which will be relocating from 1679 Bonnie Lane in Cordova.
“The intersection of Wolf River and Germantown Parkway is a strong and growing medical district,” Fuhrman said. “This was a rare opportunity to invest in a small office building in the center of the growth.”
Neil Hubbard, principal broker with Prudential Collins-Maury, represented the seller. The Memphis-based residential real estate company is still exploring options of where to move its Germantown office.
Also, Boise, Idaho-based private investor Harmony LLC has closed on a 4,783-square-foot Davita Dialysis facility at 854 U.S. 51 in Ripley, Tenn., for $1 million.
Fuhrman handled both sides of the 1031 exchange transaction. The buyer, “liked the financial strength of this tenant combined with a solid real estate asset,” Fuhrman said.
• Meanwhile, Stamar Packaging has signed a 25,000-square-foot lease at 5335 Mineral Wells Road in the Southeast industrial submarket.
Addison, Ill.-based Stamar is a full-line distributor of packaging supplies with branch locations in Nashville and Memphis. The company acquired Memphis-based Package Supply & Design LLC in January 2010.
Hank Martin, vice president of NAI Saig Co., represented the tenant. Martin and NAI Saig affiliate broker Elliot Embry represented the landlord, Net Magan Property I LP.
Stamar Packaging will relocate from 2158 Heyde St. to occupy half of the 50,500-square-foot distribution warehouse at 5335 Mineral Wells.
“This facility was more in line with what they want in a property and it allows them to expand easily,” Martin said.
Also, Planned Packaging of Illinois Corp. has leased 25,000 square feet at 4290 Delp. The industrial packaging and machinery company is new to the Memphis market.
Martin represented both the tenant and the landlord, RNB Interests LLC and BAK Interests LLC, in the deal.
Planned Packaging will join tenant Three States Supply Co. LLC, which inked 47,000 square feet in August. The 110,488-square-foot warehouse distribution facility has 39,000 square feet remaining.
• In other deals, One Source Industries LLC has renewed its 52,000-square-foot lease at 4467 Delp St.
The Los Angeles-based packaging and merchandising company has locations in Memphis, New York, Chicago, Hong Kong and Bentonville, Ark.
Colliers International’s industrial team of Andy Cates and Preston Thomas handled the transaction for landlord, San Francisco-based ProLogis Inc. There were no other brokers involved in the deal.
Dugmore & Duncan-Tennessee Inc. also renewed its 9,200-square-foot lease at 4158 Getwell Road.
The Memphis warehouse is one of three that the door hardware and access technology solutions provider owns. The other locations are in Hingham, Mass., and Corona, Calif.
Cates and Thomas handled the transaction for ProLogis.
And investor Phil Casio has purchased the 470,000-square-foot building at 214 W. Market St. in Greenville, Miss., from Staplcotn for $1.5 million.
Cates and Thomas represented the seller in the transaction. Casio plans to use the space on 70 acres for agricultural storage of peanuts and other raw goods, Thomas said.