VOL. 127 | NO. 103 | Friday, May 25, 2012
FDIC Signs Lease In Lakecrest
By Sarah Baker
Federal Deposit Insurance Corp. has inked a substantial lease in Lakecrest III, marking the market’s largest office lease signing this year.
FDIC has leased 32,306 square feet in Lakecrest III, 6060 E. Primacy Parkway. And B&B Specialty Contractors Inc. recently filed a $1 million building permit application with the city-county Office of Construction Code Enforcement for tenant space alterations, according to The Daily News online, www.memphisdailynews.com.
While there’s been more cumulative office leasing activity with FedEx Corp. and FedEx Trade Networks – 27,338 square feet in Forum II and 24,834 square feet in Crescent Center, respectively – FDIC’s deal represents the most space for a single lease so far in 2012.
The only other recent office leases that stack up to FDIC’s 32,306 square feet came last fall when Duncan-Williams Inc. signed a 45,000-square-foot lease in Forum I and Education Realty Trust signed a 23,343-square-foot lease at 999 Shady Grove Road. Both leases are in the East Memphis office submarket.
East Memphis remains the center of leasing activity for the office sector, with 109 buildings and 38.2 percent of the market, according to CB Richard Ellis Memphis’ first quarter MarketView report.
The submarket’s net absorption as of March 31 was 21,317 square feet, while total vacancy was 14.2 percent. And it continues to have the highest average asking lease rate at $20.17 per square foot.
Lakecrest III – the 130,593-square-foot, Class B office building owned by Massachusetts-based REIT Management & Research LLC (formerly known as HRPT Properties Trust) – is managed and leased by Phil Dagastino Jr. and Bentley Pembroke, vice presidents with Cushman & Wakefield/Commercial Advisors Asset Services LLC. Lakecrest III is listed on the firm’s website as having 60,481 square feet available for lease.
FDIC’s Memphis regional office is currently located in Clark Tower, 5100 Poplar Ave.
Frank Bryan, president of B&B Specialty Contractors, said tenant construction is scheduled for completion Sept. 1.
• In other commercial leasing news, Sweet Wise has leased 3,100 square feet in Germantown Collection, 7810 Poplar Ave.
In addition, Smoker’s Corner has inked 1,257 square feet in the 60,724-square-foot shopping center at Poplar and Exeter Road.
Renewals in Germantown Collection include Chili’s Restaurant for 5,500 square feet and Leslie’s Pool Supply for 4,717 square feet.
Ed Thomas and Andrew Phillips of Colliers International handled all of Germantown Collection’s transactions on behalf of the owner, GA Poplar Avenue Germantown LLC, a local affiliate of Des Moines, Iowa-based Principal Real Estate Investors (a member of the Principal Financial Group). The tenants were unrepresented.
“Chili’s is undergoing a major renovation,” Phillips said. “They’ve updated their interior and exterior of the building, added some new signage, and will be there for a long time to come.”
• Meanwhile, in multifamily news, WI Memphis LLC has purchased the Oak Creek Apartments near the University of Memphis campus at 3303 Southern Ave. from SA Challenger Inc. for $245,000.
The 34-unit complex’s 2012 appraisal from the Shelby County Assessor of Property is $450,000.
Steve Woodyard of Woodyard Realty Corp. brokered the sale. WI Memphis LLC is working exclusively with Woodyard and now has 182 apartment units in the 3300 block of Southern Avenue.
WI Memphis LLC uses an Asset Management System designed and installed by Big Brother Inc. to assist in the management and ownership of the property. The system is comprised of the latest audio, visual and communication technologies placed throughout the entire property.
Asset Management System allows management and ownership to have complete access to the property at any time and from anywhere via the Internet, which in turn increases efficiencies and effectiveness.
WI Memphis LLC now has approximately 800 apartment units in Memphis. Each complex has a custom designed Asset Management System.
• And in renewals, Hal Otey Financial has extended its 2,204-square-foot lease in Oak Court Office Building, 530 Oak Court Drive, suite 270.
Pembroke and Dagastino with Commercial Advisors Asset Services represented the landlord, Indianapolis-based Simon Property Group Inc.
Jill Schmitt, principal with CresaPartners, represented the tenant.
Also renewing in Oak Court Office Building is Ageless Men’s Health, for 1,657 square feet in suite 125.
Pembroke and Dagastino handled the transaction.
And American National Insurance Co. has renewed its 1,098-square-foot lease in Nonconnah Corporate Center, 2603 Corporate Ave.
Dagastino represented the building owner, New York-based Hampshire Properties.