VOL. 128 | NO. 118 | Tuesday, June 18, 2013
Memphis Real Estate Recap
James Lee House Owner Files Construction Loan
By Eric Smith
690 Adams Ave.
Memphis, TN 38105
Loan Amount: $1 million
690 Adams Ave. • Memphis, TN 38105
Loan Date: June 4, 2013
Maturity Date: June 4, 2019
Borrower: The James Lee House LLC
Lender: Triumph Bank
Details: The new ownership group of the historic James Lee House at 690 Adams Ave. in Victorian Village has filed a $1 million construction loan for renovations of the property.
The James Lee House LLC – whose partners include Jose Velazquez and J.W. Gibson – filed the construction/term deed of trust June 4 through Triumph Bank. Velazquez signed the deed as managing member of the borrowing entity.
The James Lee House LLC plans to convert the 8,100-square-foot Lee House into a five-suite, luxury bed-and-breakfast inn.
The home was the original home of Memphis College of Art in 1927 until the college moved to Overton Park in 1959, leaving the building empty. Built in 1841 as a two-story, four-room home, the Lee house went through several large changes in the 1870s.
In a related transaction, The James Lee House LLC quitclaimed the property to The Memphis Center City Revenue Finance Corp. as part of the CCRFC approving a 10-year payment-in-lieu-of-taxes freeze for the project. Staff estimated that the PILOT benefit over the 10-year term would be $309,778.
The project is a mixture of public and private money with the new owners – Velazquez is former executive director of Latino Memphis and Gibson is owner of Gibson Cos. Inc. – planning to spend $2.3 million on the project.
Last August the Memphis City Council and DMC approved a $1 transfer of the James Lee House from the city to the ownership group.
6881 Appling Farms Parkway
Memphis, TN 38133
Sale Amount: $2.7 million
Sale Date: May 30, 2013
Buyer: Soyab Malani and Sumaira Jamal
Seller: John W. Pike Jr. and Constance C. Pike
Loan Amount: $2.5 million
Loan Date: May 30, 2013
Maturity Date: July 1, 2023
Lender: John W. Pike Jr. and Constance C. Pike
Details: A 54,621-square-foot warehouse at 6881 Appling Farms Parkway in Northeast Memphis has sold for $2.7 million.
Soyab Malani and Sumaira Jamal bought the Class A industrial facility May 30 from John W. Pike Jr. and Constance C. Pike, who had acquired the then-vacant property for $621,125 in 2004 from BICO Associates, which is affiliated with the Belz family.
Built in 2005, the warehouse sits on 4.3 acres along the south side of Appling Farms Parkway, northeast of the Whitten Road exit of Interstate 40.
The Shelby County Assessor of Property’s 2013 appraisal is $2.6 million.
In conjunction with the purchase, Soyab Malani and Sumaira Jamal filed a $2.5 million deed of trust through the sellers. Both Malani and Jamal signed the trust deed.
2160 Mangum Road
Memphis, TN 38134
Loan Amount: $8.1 million
Loan Date: June 1, 2013
Maturity Date: July 1, 2048
Borrower: Wesleyan Homes of Tennessee Inc.
Lender: M&T Realty Capital Corp.
Details: The owner of the 120-unit Foxbridge Assisted Living and Memory Care center at 2160 Mangum Road in Northeast Memphis has filed an $8.1 million loan on the property.
Wesleyan Homes of Tennessee Inc. – an affiliate of Shelton, Conn.-based United Methodist Homes – filed the deed of trust June 1 through M&T Realty Capital Corp. Gary Maglio signed the deed as treasurer of Wesleyan Homes of Tennessee.
Built in 1989, the 64,413-square-foot retirement center sits on 8.7 acres along the east side of Mangum Road off Summer Avenue near Raleigh-LaGrange Road. The assessor’s 2013 appraisal is $2.5 million.
Wesleyan Homes of Tennessee bought the property for $2 million in a 2005 substitute trustee’ s deed after the previous owner defaulted on a loan.
5545 Murray Road
Memphis, TN 38119
Loan Amount: $1.6 million
Loan Date: May 28, 2013
Maturity Date: N/A
Borrower: CLK Murray Road LLC
Lender: Oklahoma Fidelity Bank
Details: Woodbury, N.Y.-based CLK Properties has filed a $1.6 million loan on its local office at 5545 Murray Road in East Memphis.
Operating in the transaction as CLK Murray Road LLC, the company filed the deed of trust, assignment of rents and leases, and security agreement May 28 through Oklahoma Fidelity Bank.
Built in 1974, the Class C office building sits on 1.4 acres on the south side of Murray Road between South Yates and Oakhaven roads near Poplar Avenue and Interstate 240.
The Shelby County Assessor of Property’s 2013 appraisal of the property is $1.7 million.
Craig Koenigsberg signed the trust deed as president of CLK Murray Road Realty Corp., the company acting as manager of the borrower.
The property has traded hands among CLK Properties entities, most recently in 2006 with an internal $800,000 sale.
CLK Properties – which, according to its website, has “over 135 assets in 43 cities, consisting of over 24,000 residential units and over 4 million square feet of commercial property” – operates CLK Multifamily Management LLC at the Murray Road location.