VOL. 127 | NO. 187 | Tuesday, September 25, 2012
Memphis Real Estate Recap
Shelby Oaks Red Roof Inn Sells for $1.6 Million
By Eric Smith
6055 Shelby Oaks Drive
Memphis, TN 38134
6055 SHELBY OAKS DRIVE • MEMPHIS, TN 38134
Sale Amount: $1.6 million
Sale Date: Sept. 19, 2012
Buyer: Shree Shiv LLC
Seller: FMW RRI NC LLC
Loan Amounts: $1.3 million; $300,000
Loan Dates: Sept. 19, 2012
Maturity Dates: Oct. 1, 2032; Oct. 1, 2017
Lender: Trust Co. Bank
Details: The Red Roof Inn at 6055 Shelby Oaks Drive has traded hands for the second time in a year and for the same sales price of $1.6 million.
Shree Shiv LLC of West Memphis bought the 108-room hotel Sept. 19 from FMW RRI NC LLC, which had acquired the property in August 2011 as part of a joint venture.
The site was one of 143 Red Roof Inns – totaling about 17,000 rooms – sold last year to affiliates of Five Mile Capital Partner and Westmont Hospitality Group in a joint venture, according to an Aug. 31, 2011, statement from Red Roof Inns Inc. The joint venture committed more than $70 million for renovating and upgrading the portfolio.
Built in 1980, the two-story, 17,472-square-foot hotel sits on 2.2 acres on the south side of Shelby Oaks Drive east of Sycamore View Road. The south line of the property backs up to Interstate 40.
Its 2012 appraisal is $2 million, according to the Shelby County Assessor of Property, which lists the hotel’s address as 6065 Shelby Oaks Drive.
Shree Shiv filed two loans through Trust Co. Bank in conjunction with the acquisition, one for $1.3 million and one for $300,000.
Ashokkumar Dharsandia signed the trust deeds as chief manager of Shree Shiv. The transaction also included two assignments of leases and rents to the lender, one for each loan.
75 Jefferson Ave.
Memphis, TN 38103
Loan Amount: $15 million
Loan Date: Sept. 18, 2012
Maturity Date: N/A
Borrower: THG Jefferson LLC
Lender: Trustmark National Bank
Details: The company that developed and owns the Courtyard by Marriott hotel at 75 Jefferson Ave. has filed a $15 million loan on the Downtown property.
THG Jefferson LLC filed a leasehold deed of trust, security agreement, assignment of leases and fixture financing statement Sept. 18 through Trustmark National Bank in Germantown.
THG Jefferson is managed by Conrad Properties LLC, whose sole member is Gregory Averbuch, the Atlanta developer who spearheaded the development and construction of the 131-room hotel in 2009.
The 87,297-square-foot, eight-story hotel sits on 0.44 acres at the southwest corner of Jefferson and North Main Street.
Its 2012 appraisal is $8.3 million, according to the Shelby County Assessor of Property, although it is exempt from property taxes because it is under a payment-in-lieu-of-taxes (PILOT) program through the Center City Revenue Finance Corp.
Averbuch also developed two other nearby Downtown hotels – the Sleep Inn, built in 1996, and the SpringHill Suites by Marriott, built in 2001.
1.41 Acres in Collierville
Sale Amount: $812,871
Sale Date: Sept. 10, 2012
Buyer: STAMJA-LP TN
Seller: Stephen L. LaFrance Pharmacy Inc.
Details: Stephen L. LaFrance Pharmacy Inc. of Little Rock – the former parent of retail pharmacies Ike’s, Super D, USA Drug, Drug Warehouse and Med-X – has sold 1.41 acres on the south side of West Poplar Avenue (Tenn. 57) near its intersection with Maynard Way.
The company transferred the land to an entity called STAMJA-LP TN for $812,871 in a Sept. 10 warranty deed.
Stephen L. LaFrance had planned to build a 10,000-square-foot Ike’s on the vacant land, but soon after buying the property in 2009 decided to shutter its Memphis-area Ike’s and Super D stores.
And just last week Stephen L. LaFrance Holdings Inc. sold its portfolio of regional drugstores – USA Drug, Super D Drug and Med-X – to Walgreen Co. for $438 million.
Walgreen, a Deerfield, Ill.-based company, announced the deal in July and then said Monday afternoon that it closed.
The deal involves the purchase of 144 stores in a chain focused on the Mid-South from the privately held Stephen L. LaFrance Holdings.
Stephen L. LaFrance had bought the Collierville land for the exact same amount, $812,871. Its 2012 appraisal is $742,500, according to the Shelby County Assessor of Property.
1836 Dock St.
Memphis, TN 38113
Loan Amount: $2.2 million
Loan Date: Sept. 14, 2012
Maturity Date: N/A
Borrower: NCI Group Inc.
Lender: Credit Suisse AG
Details: Houston-based NCI Group Inc. has filed a $2.2 million loan through Credit Suisse AG on the warehouse at 1836 Dock St. on Presidents Island.
Built in 1994, the 52,997-square-foot, Class B facility sits on 3.8 acres on the east side of Dock Street and south of Channel Avenue. The Shelby County Assessor of Property’s 2012 appraisal is $1 million.
The loan also covers a smaller, 0.7-acre parcel that contains a 1,755-square-foot office building and has an appraised value of $159,000. Both parcels are listed as “deactivated” by the assessor.
NCI, doing business as Metal Prep, operates locally as Metal Coaters Operating LP, which acquired the properties in 1998 during a transfer from a related entity, Metal Coaters Holdings Inc.
The company filed the loan Sept. 14 with Todd R. Moore signing the trust deed as executive vice president and general counsel of NCI.
Founded in 1984, NCI is a designer, manufacturer and vendor of “metal coatings, components and buildings for nonresidential construction in North America,” according to the company’s website.