VOL. 129 | NO. 220 | Tuesday, November 11, 2014
Memphis Real Estate Recap
Highland Row Developer Applies for $6.7 Million Permit
By Amos Maki
387 S. Highland St.
Memphis, TN 38111
Permit Amount: $6.7 million
Project Cost: $61 million
Application Date: November 2014
Engineer: Jordan & Skala Engineers
Details: Indianapolis-based developer Milhaus Ventures has applied for another building permit for the long-awaited Highland Row project near the University of Memphis.
387 S. Highland St. • Memphis, TN 38111
The company has applied for a $6.7 million building permit through the city-county Office of Construction Code Enforcement for construction of a four-story apartment building at 387 S. Highland St., the first piece in the $61 million Highland Row project. In October, Milhaus applied for a $20 million permit for the project.
The mixed-use Highland Row development will include 354 apartments, 35 townhomes, a parking garage and 26,000 square feet of retail space. Memphis-based Poag Shopping Centers originally planned to develop Highland Row, but those plans were shelved following the recession.
2625 Thousand Oaks Blvd.
Memphis, TN 38118
Sale Amount: $5 million
Sale Date: Oct. 29, 2014
Buyer: Jubilee Hotels Group LLC
Seller: JPMCC 2007 CIBC19 Lodging 2625 LLC
Loan Amount: $7.5 million
Loan Date: Oct. 29, 2014
Lender: Texas Capital Bank N.A
Details: An East Memphis hotel has sold for $5 million.
JPMCC 2007 CIBC19 Lodging 2625 LLC sold The Hotel Memphis at 2625 Thousand Oaks Blvd., near Perkins Road and Interstate 240, to Jubilee Hotels Group LLC, according to an Oct. 29 warranty deed.
The purchase was financed with a $7.5 million loan through Texas Capital Bank N.A., according deed of trust filed the same day. Abdul Aziz Rupani of Dallas, Texas, is listed as the manager of Jubilee Hotels Group.
JPMCC 2007-CIBC19 Lodging 2625 LLC, an affiliate of Miami Beach, Fla.-based special servicer LNR Partners LLC, bought the former Memphis Marriott out of foreclosure in 2013 for $12.4 million after its previous owner, Kentucky-based CP Memphis Properties LLC, defaulted on a $38 million loan.
The 320-room, 218,000-square-foot hotel was built in 1987 and is situated on about 10 acres on the west side of Thousand Oaks north of Showcase Boulevard. The Shelby County Assessor of Property’s 2014 appraisal is $13.4 million.
The hotel sold for $15.3 million in 2004 to NSHE Paris LLC, an entity that merged with CP Memphis Properties the next year. CP took out the $38 million loan through CIBC Inc. in April 2007.
6015 Park Ave.
Memphis, TN 38119
Sale Amount: $11.7 million
Sale Date: Nov. 4, 2014
Buyer: CMP 1 Memphis Owner LLC
Seller: CBM One Hotels LP
Loan Amount: $23.3 million
Loan Date: Nov. 4, 2014
Borrower: CMP 1 Memphis Owner LLC c/o NorthStar Realty Finance Corp.
Lender: JPMorgan Chase NA
Details: Another East Memphis hotel has been sold, this one fetching $11.7 million.
The sale was part of a larger $1.1 billion deal New York City-based NorthStar Realty Finance Corp. announced in September to acquire 52 hotels across the country. Public records related to the sale of the East Memphis hotel show that documents were signed in September but not recorded until November.
CBM One Hotels LP, which is affiliated with Courtyard by Marriott LP, sold the Courtyard by Marriott at 6015 Park Ave., at the southeast corner of Primacy Parkway across from Saint Francis Hospital, to CMP 1 Memphis Owner LLC, according to a special warranty deed recorded Nov. 4.
Charles R. Latham, managing director of hospitality sector investments for New York City-based investment firm Clarion Partners LLC, signed the deed for the seller. The buyer, CMP 1 Memphis Owner, is affiliated with the NorthStar Realty Finance real estate investment trust and filed a $23.3 million loan through JPMorgan Chase Bank NA, according a deed of trust recorded Nov. 4. The $23.3 million loan is part of a much larger $415 million mortgage through JPMorgan Chase that helped fund the purchase of the 52 upscale extended-stay and select-service hotels.
The 76,722-square-foot hotel built in 1987 has 146 rooms. The Shelby County Assessor of Property’s 2014 appraisal is $6.1 million.
930 S. White Station Road
Memphis, TN 38117
Sale Amount: $1.3 million
Sale Date: Oct. 31, 2014
Buyer: Mem1 RE LLC
Seller: Belz Investco GP
Details: An affiliate of Memphis-based Belz Enterprises has sold an East Memphis office building for $1.3 million.
Belz Investco GP sold the office building at 930 S. White Station Road, at the northeast corner of White Station and Park Avenue, to Mem1 RE LLC, according to an Oct. 31 warranty deed. The buyer, Mem1 RE LLC, is affiliated with Dallas-based real estate investment company Pro Domo LLC.
The 19,313-square-foot Class B office building, which features a unique three-level design and is known as the Park Avenue Professional Building, was built in 1987. The Shelby County Assessor of Property’s 2014 appraisal is $1.3 million.
3100 New Frayser Blvd.
Memphis, TN 38128
Permit Amount: $691,000
Project Cost: $301 million
Application Date: November 2014
Owner: Nike Inc.
Tenant: Nike Inc.
Contractor: Wynright Corp.
Details: Nike Inc. has applied for two building permits totaling $691,600 through the city-county Office of Construction Code Enforcement for additions to its distribution center at 3100 New Frayser Blvd.
Elk Grove, Ill.-based Wynright Corp. filed the applications, which calls for engineering materials and installation.
The latest permit is part of Nike’s $301 million expansion in Frayser.
In 2012, the board of the Memphis and Shelby County Economic Development Growth Engine approved a 15-year payment-in-lieu-of-taxes agreement with Nike for the expansion. According to the approved PILOT, the expansion would retain 1,600 jobs and add 250 more once the expanded facility opens.
In January 2013, Nike paid Belz Investco GP $2.2 million for about 200 acres of vacant land north of the company’s 1.1 million-square-foot facility in Frayser.