VOL. 128 | NO. 196 | Tuesday, October 8, 2013
Memphis Real Estate Recap
Nike Files $4.3 Million Permit for Frayser Facility
By Eric Smith
3100 New Frayser Blvd., Memphis, TN 38128
3100 New Frayser Blvd.
Memphis, TN 38128
Permit Cost: $4.3 million
Project Cost: $301 million
Permit Date: Applied September 2013
Owner: Nike Inc.
Tenant: Nike Inc.
Contractor: Wynright Corp.
Details: Nike Inc. has filed a $4.3 million building permit with the city-county Office of Construction Code Enforcement for work on its North Memphis distribution center at 3100 New Frayser Blvd.
Elk Grove, Ill.-based Wynright Corp. applied for the permit, which didn’t include a description for the work being done.
One of many permits filed for the $301 million project, it follows a $4.4 million mechanical permit for work by S.A. Comunale Co. Inc. and a $3 million permit for the installation of “industrial steel storage racks” by Wynright, both filed earlier this year.
Nike in January paid $2.2 million for about 200 acres of vacant land in Frayser from Belz Investco GP for the distribution center.
Operating in the transaction as Nike TN Inc., the Beaverton, Ore.-based sports giant bought the land in two parcels – a 162.5-acre tract and a 38.4-acre tract, both north of Nike’s 1.1 million-square-foot facility in Belz Enterprises Inc.’s Northridge Industrial Park.
The board of the Memphis and Shelby County Economic Development Growth Engine approved last October a 15-year payment-in-lieu-of-taxes (PILOT) agreement with Nike for the $301 million project.
According to the approved PILOT, the expansion would retain 1,600 jobs and add 250 more once the expanded facility opens. The PILOT amounts to a $57.8 million tax break with a local tax benefit of $105.3 million in return.
Nike’s 1,700 employees across Memphis are the company’s second largest workforce in the U.S. behind only its Beaverton headquarters.
2165 E. River Trace Drive
Memphis, TN 38134
Loan Amount: $16.9 million
Loan Date: Sept. 1, 2013
Maturity Date: Oct. 1, 2048
Borrower: GMF-River Trace LLC
Lender: P/R Mortgage & Investment Corp.
Details: The owner of the 440-unit River Trace Apartment Homes, at 2165 E. River Trace Drive near Bartlett, has filed a $16.9 million loan on the property.
GMF-River Trace LLC – an affiliate of the locally owned, faith-based nonprofit organization Global Ministries Fellowship – filed the deed of trust Sept. 1 through P/R Mortgage & Investment Corp.
Built in 1981, the Class C multifamily property contains 38 buildings on 45.8 acres on the north side of Raleigh-LaGrange Road between Sycamore View and Bartlett roads.
The Shelby County Assessor of Property’s 2013 appraisal is $12.8 million.
Richard Hamlet, president and CEO of Global Ministries Fellowship, signed the trust deed as president of GMF-Preservation of Affordability Corp., the sole member entity of the borrower.
Global Ministries Fellowship supports ministry programs on five continents that build churches, educate children, combat hunger and perform other humanitarian deeds.
The organization also owns affordable multifamily housing developments in the U.S., and the evangelical mission agency in 2009 made its first Memphis acquisition with the purchase of River Trace.
GMF-River Trace paid $17.8 million for the complex from Mid-America Apartments LP, a partnership related to Memphis-based Mid-America Apartment Communities.
2429 Ketchum Road
Memphis, TN 38114
Loan Amount: $1.9 million
Loan Date: Oct. 1, 2013
Maturity Date: Sept. 30, 2014
Borrower: Cora Properties LLC
Lender: HIF Lenders LLC
Details: The owner of the 346-unit Willow Oaks apartment complex at 2429 Ketchum Road has filed a $1.9 million loan on the property.
Cora Properties LLC, which is affiliated with the previous ownership group, filed the deed of trust, assignment of leases and security agreement Oct. 1 through HIF Lenders LLC. Jason W. Coutts signed the trust deed as manager of Blue Salt LLC, the managing entity of the borrower.
Built in 1966, the 257,838-square-foot, Class D multifamily complex sits on 18.7 acres on the south side of Ketchum Road near its intersection with Airways Boulevard. The south side of the property abuts Interstate 240. The Shelby County Assessor of Property’s 2013 appraisal is $1.6 million.
The borrower acquired the property through a Sept. 27 quitclaim deed from Casey J. Coutts. Another quitclaim deed, filed Feb. 15 with the Shelby County Register of Deeds, shows the property being transferred from Blue Salt LLC to Cora Properties.
Blue Salt, a Delaware company, last November paid $1.5 million for the multifamily property in the Defense Depot’s 38114 ZIP code from Bountiful, Utah-based Noall Investment Properties LLC.
6126 Stage Road
Bartlett, TN 38134
Loan Amount: $2.1 million
Loan Date: Sept. 27, 2013
Maturity Date: Sept. 15, 2020
Borrower: Mid South Partners
Lender: Triumph Bank
Details: The owner of the 173-unit Bartlett Heights apartment complex at 6126 Stage Road in Bartlett has filed a $2.1 million loan on the property.
Mid South Partners filed the deed of trust, assignment of rents, security agreement and fixture filing Sept. 27 through Triumph Bank.
Built in 1972, the Class C multifamily property contains 168,542 square feet and sits on 12.6 acres along the north side of Stage Road near its intersection with Elmore Road. The Shelby County Assessor of Property’s 2013 appraisal is $5.2 million.
F. William Hackmeyer signed the trust deed as authorized partner.