VOL. 129 | NO. 134 | Friday, July 11, 2014
Pathmark Inks Lease at I-Bank Tower
By Amos Maki
A longtime third-party logistics company is on the move.
Pathmark Transportation Co., which was started in 1984 as a subsidiary of petroleum marketing company Pathmark International before becoming a national logistics provider, has signed a new lease for 3,800 square feet at the i-bank Tower on Poplar Avenue in East Memphis.
Pathmark is relocating from space at 2875 S. Mendenhall Road for what is now the city’s main business district.
Jeb Fields and Neely Mallory of Cushman & Wakefield /Commercial Advisors represented Pathmark. Laura Taylor of the office team at Colliers International Memphis represented landlord Rosemont Realty LLC.
Earlier this year, the law firm of Rogers, Berry, Chesney & Cannon PLLC, sold its office building at 1713 Kirby Parkway, and relocated to the office tower at 5050 Poplar Ave.
Rosemont Realty is investing around $400,000 to update the 24-story i-bank Tower. The 275,634-square-foot building, built in 1967 by pioneering developer William B. Clark Sr. and formerly known as White Station Tower, includes the signature round top roof, which once housed a rotating restaurant.
The renovation plan included resurfacing the skyscraper – essentially restoring and sealing the exterior of the building – before giving it a fresh coat of paint. Rosemont will also completely refurbish the 18th floor of the building, a move the real estate firm hopes will attract a single tenant to the 13,500-square-foot space.
The building, which sits on 9.4 acres on the north side of Poplar next to Clark Tower, is currently 84 percent occupied. Tenants include Independent Bank, Mid-South Pulmonary Specialists, BNY Mellon, Methodist Healthcare, the Cotton Board and John Hancock Life Insurance, among others.
The well-positioned i-bank Tower is poised to take advantage of current commercial real estate trends, With Class A vacancies in the East Memphis submarket hovering around 3 to 4 percent, Class B properties like i-bank Tower, which was renovated in 2006, could benefit.
“I think opportunity for Class B East Memphis owners is developing for them to be able to place tenants that are having trouble finding space in the A market or are finding the A rates too high,” said Frazier Baker of the office team at Colliers International.
“If a Class B owner can demonstrate that they are improving their properties or adding amenities, they are going to be positioned well to win tenants in the market,” Baker said. “I-bank Tower, owned by Rosemont Realty, is a prime example. They proactively demolished a full floor in anticipation of a new user, are marketing the signature top floor for lease and are resurfacing and painting the exterior of the building.”
FedEx Corp. is still exploring reducing its leased footprint in Memphis.
FedEx Corp. is reviewing its 11,974-square-foot lease at the Renaissance Center office building at 1715 Aaron Brenner Drive in East Memphis.
“FedEx continually reviews our facilities in order to operate in the most efficient manner and it is inappropriate to speculate about specific facility leases,” FedEx media relations representative Scott Fiedler said in a statement.
As part of a consolidation effort, FedEx did not extend a roughly 75,000-square-foot lease at the Lenox Park Professional Building B. At that time Fielder said the company was “consolidating and moving people to the world headquarters.”
FedEx, the Memphis area’s largest private employer and one of the city’s largest office tenants, could have a profound impact on the overall Memphis office market if it continues to consolidate.
FedEx and its subsidiaries lease space at well-known office buildings such as Crescent Center, Forum II, Renaissance Center, Thousand Oaks and Shady Grove.