VOL. 127 | NO. 124 | Tuesday, June 26, 2012
Memphis Real Estate Recap
FedEx Express Files Permit App For Airways Blvd. Construction
By Kate Simone
3851 Airways Blvd.
Memphis, TN 38116
3851 Airways Blvd. • Memphis, TN 38116
Permit Cost: $30.2 million
Permit Date: Applied June 2012
Owner: FedEx Express
Tenant: FedEx Express
Contractor: Flintco Inc.
Details: FedEx Express is moving ahead with plans to build on Airways Boulevard. The company, a division of FedEx Corp., has applied to the city-county Office of Construction Code Enforcement for a $30.2 million building permit to construct a mixed-use building at 3851 Airways Blvd. Flintco Inc. is listed as the project’s general contractor.
FedEx Express in February announced plans to invest $142 million to consolidate flight simulators and training devices into a new Air Operations Training Center adjacent to its 3855 Airways location and to build an additional 12-bay building for training equipment. The plans, as they stood in February, would retain 333 existing jobs at 3855 Airways.
The just-filed $30 million permit application comes within days of FedEx Corp. reporting plans for a “cost reduction program” at Express in hopes of improving margins there. Executives made that announcement during a quarterly earnings call with analysts Tuesday, June 19, but said they won’t talk about the particulars until the fall.
FedEx Express has been busy expanding its network recently, with five acquisitions since February 2011. In late May, it agreed to buy Brazilian courier Rapidao Cometa Logistica e Transportes SA, a deal executives expect to close in the third quarter. Earlier in the month, it closed a deal to buy TATEX, a business-to-business French express transportation company.
In April, the company announced it would buy the Polish courier company Opek Sp.z.o.o. And in February 2011, FedEx bought AFL Pvt. Limited and AFL’s affiliate, Unifreight India Pvt. Ltd.
In addition, on Wednesday, May 30, FedEx announced Express will establish a new North Pacific regional hub in Osaka, Japan.
6205 Knight Arnold Road
and 6249 Knight Arnold Road
Memphis, TN 38115
Sale Amount: $10 million
Sale Date: June 14, 2012
Buyer: GMF-Arbors LLC
Seller: Fairfield Arbors LLC
Details: The Memphis-based nonprofit Global Ministries Fellowship has bought the 348-unit Arbors of Hickory Ridge Apartments on Knight Arnold Road for $10 million from Fairfield Arbors LLC, a California company.
Global Ministries completed the transaction under the name GMF-Arbors LLC.
Built in 1986, the class C Arbors is on two parcels totaling about 36 acres at 6509 Knight Arnold and 6249 Knight Arnold, on the north side of the street between Ridgeway and Kirby roads. The complex uses the address 6296 Lake View Trail, and the Shelby County Assessor of Property’s 2012 appraisal is about $9 million.
Founded in 2003, faith-based nonprofit Global Ministries Fellowship supports ministry programs that build churches, educate children, combat hunger and perform other humanitarian deeds on five continents. GMF also owns affordable multifamily housing developments in the U.S., including several in Memphis.
3865 Kirby Parkway
Memphis, TN 38115
Sale Amount: $6.7 million
Sale Date: June 18, 2012
Buyer: LCP Memphis LLC
Seller: SATCA Ltd.
Loan Amount: $5.6 million
Loan Date: June 18, 2012
Maturity Date: n/a
Lender: Wells Fargo Bank NA
Details: A New Jersey entity has purchased the 200-unit Country Oaks Apartments at 3865 Kirby Parkway for a little more than $6.7 million, or about $33,700 per unit. LCP Memphis LLC on Monday, June 21, closed on its deal for the 200-unit Hickory Hill complex from SATCA Ltd., the property’s owner since 2005.
In conjunction with the purchase, LCP Memphis filed a $5.6 million multifamily loan through Wells Fargo Bank.
Built in 1985, Country Oaks is a Class C property on 10.3 acres on the west side of Kirby south of Deer Forest Drive. The Shelby County Assessor of Property’s 2012 appraisal for the complex, which uses the address 6555 Country Oaks Circle, is $6.1 million.
2576 Thousand Oaks Cove
Memphis, TN 38118
Permit Cost: $4.9 million
Permit Date: Applied June 2012
Owner: National College/Corolla Management
Tenant: National College/Corolla Management
Contractor: JDL Warm Construction LLC
Details: National College of Business and Technology is building in East Memphis, where the trade and technical school will relocate its current Lamar Avenue campus.
National College/Corolla Management has filed a $4.9 million building permit application with the city-county of Office of Construction Code Enforcement for the college’s planned two-story building at 2576 Thousand Oaks Cove, just off Interstate 240 and east of Perkins Road. Cincinnati-based JDL Warm Construction LLC is the general contractor.
National, a private college based in Roanoke, Va., has locations in six states. Its Memphis campus opened at 3545 Lamar Ave. in 2006, and now that facility is nearing its 400-student capacity. A year later, National opened a Bartlett location at 5760 Stage Road; its enrollment numbers about 300.
Corolla Management Corp. bought the Thousand Oaks property in September for $925,000 from Bank of Bartlett. Two months later, National and Corolla filed for a $5.2 million building permit for preliminary work on the site.