VOL. 129 | NO. 53 | Tuesday, March 18, 2014
Memphis Real Estate Recap
Richmond Honan Buys Quince Centre for $10 Million
By Eric Smith
6555 Quince Road, Memphis, TN 38119
6555 Quince Road
Memphis, TN 38119
Sale Amount: $10.4 million
Sale Date: March 7, 2014
Buyer: Regional One RH MOB 1 SPE LLC
Seller: 6555 Quince Building Owner LLC
Loan Amount: $19 million
Loan Date: March 7, 2014
Maturity Date: N/A
Lender: Cantor Commercial Real Estate Lending LP
Details: An affiliate of Roswell, Ga.-based health care real estate company Richmond Honan Development & Acquisitions LLC has paid $10.4 million for Quince Centre at 6555 Quince Road in East Memphis.
A single-purpose entity called Regional One RH MOB 1 SPE LLC bought the five-story, 123,924-square-foot office building in a March 7 special warranty deed from 6555 Quince Building Owner LLC, which is related to Lake Worth, Fla.-based In-Rel Properties Inc.
Built in 1989, the Class A office facility sits on 5.9 acres at the southwest corner of Quince Road and Kirby Parkway, near Interstate 385 in Koger Center II. The Shelby County Assessor of Property’s 2013 appraisal was $5.7 million.
In conjunction with the purchase, the buyer filed a $19 million trust deed through Cantor Commercial Real Estate Lending LP. Richmond Honan president Scott Honan signed the trust deed.
In-Rel bought the property in 2009 for $5 million. Formerly the Comcast building, In-Rel renamed it Quince Centre.
2321 N. Germantown Parkway
Memphis, TN 38016
Sale Amount: $3.3 million
Sale Date: Feb. 25
Buyer: National Retail Properties LP
Seller: US Real Estate LP
Details: The 18,200-square-foot Staples store at 2321 N. Germantown Parkway has sold for $3.3 million.
National Retail Properties LP bought the Class A retail property, which is part of the Countrywood Crossing shopping center, in a Feb. 25 special warranty deed from US Real Estate LP.
The sale occurred at roughly the same time that Staples announced the mass closing of stores throughout the nation. The company said in early March that nearly half of its sales are now generated online, and it is working aggressively to cut costs and become more efficient, according to an Associated Press report.
Staples aims to close more than 10 percent of its North American stores by the end of next year, up to 225 stores, as part of a plan to save about $500 million.
This location, one of three in the metro area and listed on the Staples website as 2335 N. Germantown Parkway, was built in 2011. It sits on 1.7 acres at the northwest corner of North Germantown Parkway and Market Plaza Drive, adjacent to Kohl’s. The Shelby County Assessor of Property’s 2013 appraisal was $3.3 million.
The seller is an affiliate of San Antonio-based USAA Real Estate Co. It bought the property in 2012 for $3.3 million from the developer, Greenville, S.C.-based TN Cordova Germantown LLC.
6339 Village Grove Drive
Memphis, TN 38119
6497 Knight Arnold Road
Memphis, TN 38115
Sale Amounts: $8.7 million; $8.6 million
Sale Dates: March 7, 2014
Buyers: Briar Club LLC; Cinnamon Trails LLC
Sellers: Briar Apartments LLC; Cinnamon Apartments LLC
Loan Amounts: $7.7 million; $7.2 million
Loan Dates: March 7, 2014
Maturity Dates: N/A
Lender: Arbor Commercial Funding LLC
Details: Affiliates of New York-based Hyde Capital LLC have paid a combined $17.3 million for the Briar Club Apartments at 6339 Village Grove Drive in East Memphis and the Cinnamon Trails apartment complex at 6497 Knight Arnold Road in Hickory Hill.
An entity called Briar Club LLC paid $8.7 million for the 272-unit Briar Club Apartments in a March 7 special warranty deed from Briar Apartments LLC.
And an entity called Cinnamon Trails LLC paid $8.6 million for the 208-unit Cinnamon Trails apartment complex in a March 7 special warranty deed from Cinnamon Apartments LLC.
Built in 1985, the Class C, 210,336-square-foot Briar Club Apartments sits on 12 acres on the south side of Village Grove Drive east of Ridgeway Road. An alternate address is 6355 Briar Patch Lane. The Shelby County Assessor of Property’s 2013 appraisal was $6.5 million.
And built in 1989, the Class C, 180,648-square-foot Cinnamon Trails sits on 11 acres on the south side of Knight Arnold Road between Ridgeway Road and Kirby Parkway. The assessor’s 2013 appraisal was close to $6 million.
In conjunction with the purchases, Briar Club LLC filed a $7.7 million multifamily deed of trust and Cinnamon Trails LLC filed a $7.2 million multifamily deed of trust, both through Arbor Commercial Funding LLC.
Hyde Capital’s Tom Intrator signed both deeds as managing member of the respective borrowing entities. His company last year bought the 324-unit Autumnwood Apartments at the southwest corner of Kirby Parkway and Mount Moriah Road Extended for $13.5 million.
400 S. Highland St.
Memphis, TN 38111
Sale Amount: $12 million
Sale Date: March 5, 2014
Buyer: GMF-Serenity Towers LLC
Seller: Serenity Towers at Midtown Memphis LLC
Loan Amount: $14.5 million
Loan Date: March 5, 2014
Maturity Date: N/A
Lender: The Bank of New York Mellon Trust Co.
Details: An affiliate of Cordova-based Global Ministries Fellowship has paid $12 million for the Serenity Towers retirement center at 400 S. Highland St.
GMF-Serenity Towers LLC bought the 324,021-square-foot high-rise facility in a March 5 special warranty deed from Serenity Towers at Midtown Memphis LLC, an affiliate of Orlando, Fla.-based Elevation Financial Group.
Built in 1964, the Class C high-rise retirement center sits on 2.8 acres on the east side of Highland Street between Norriswood and Watauga avenues. The Shelby County Assessor of Property’s 2013 appraisal was $3.9 million.
GMF-Serenity filed a $14.5 million deed of trust, assignment of rents and security agreement March 1 through The Bank of New York Mellon Trust Co. The property is under a payment-in-lieu-of-taxes (PILOT) program through the Shelby County Health, Education and Housing Facility Board, which is listed on the deed.
Richard L. Hamlet signed the trust deed as president of GMF-Serenity Towers. Hamlet is president and CEO of Global Ministries Fellowship, which 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.
Serenity Towers at Midtown Memphis LLC had bought the property in 2010 for $1.8 million from Seattle-based New Wesley Highland Towers Associates.