VOL. 129 | NO. 76 | Friday, April 18, 2014
Commercial Real Estate Sales Up 6.1 Percent In March
Shelby County recorded 208 commercial real estate sales in the first quarter, according to real estate information company Chandler Reports, www.chandlerreports.com.
The 208 sales in the first quarter were up 6.l percent from 196 sales in the first quarter of 2013. Commercial sales volume for the quarter was $319.6 million and the average sales price for a commercial property was $1.53 million, with an average price per square foot of $38.34. That compares to sales volume of $254.9 million and an average sales price of $1.3 million in the first quarter of 2013.
Vacant land and agricultural properties claimed the most sales in the quarter, with 49 averaging $439,126 per transaction. The 49 vacant land or agricultural property sales were up 16.6 percent from 42 over the same period last year. Retail sales came in second, with 47 averaging $1.73 million per transaction. The 47 retail sales in the quarter were up 67.8 percent from 28 over the same period in 2013.
The increase in first quarter commercial sales are a continuation of sales volume momentum that developed last year and has so far carried over into 2014.
Shelby County recorded 99 commercial sales in January, which was up 10 percent from 90 in January 2013. Commercial sales were up 12 percent in February, with 48 sales recorded compared to 43 recorded in February 2013. Shelby County recorded 61 commercial sales in March with a total sales volume of $115.1 million and an average sales price of $1.88 million, down 3 percent from 63 sales in March 2013.
One of the largest commercial real estate transactions in March occurred when Exeter Property Group acquired a 4.4 million-square-foot industrial portfolio – including four properties in Memphis – for $132 million. The four Memphis buildings included in the sale are the 625,000-square-foot building at 5200 Transportation Drive occupied 100 percent by Trane, the 550,000-square-foot building at 6005 Freeport occupied partially by Kuehne & Nagel, the 600,000-square-foot building at 3399 E. Raines Road occupied 100 percent by Philips Electronics North America and the 337,655-square-foot building at 4550 Swinnea Drive occupied partially by Ingram Micro.
Shelby County recorded 829 commercial sales in 2013, the most commercial sales recorded since 2008.
• In leasing news, a large third-party logistics provider has renewed its lease in Southeast Memphis.
Menlo Worldwide Logistics renewed its 120,050-square-foot lease at 4550 Quality Drive inside Hillwood Investment Properties’ Southpark Distribution Center. Hillwood acquired the 1.6 million-square-foot distribution center from TIAA Realty Inc. in 2012 for $37.25 million.
Scott Pahlow of Newmark Grubb Memphis represented Menlo.
• The Pinnacle Apartments, a 118-unit apartment community constructed in 1970, has been sold for $3.77 million, or $31,992 per unit.
Tommy Bronson III and Blake Pera with the CB Richard Ellis Memphis Multifamily Division represented the seller, Bellevue Tower II LLC, in the sale to Pinnacle Apartments Property Owner LLC.
Pinnacle Apartments is a high-rise community located at 305 S. Bellevue Blvd. on the edge of Downtown
The property offers four floor plans with a mix of one- and two-bedroom units averaging 757 square feet.
• In other news, a warehouse building on Elvis Presley Boulevard has changed hands.
J & H Graphic Screen Printing Inc. acquired the 6,000-square-foot building at 2331 Elvis Presley from Jerry Parker for $80,000.
Eric Fuhrman of Crye-Leike Commercial handled the transaction.