VOL. 129 | NO. 193 | Friday, October 3, 2014
Olive Branch Business Park Closer to Development
By Amos Maki
A Texas-based development firm could start turning dirt soon on a massive new business park in Olive Branch.
Hillwood Investment Properties is expected to close on a land purchase next week that will clear the way for Legacy Park, a 265-acre distribution and business park on the south side of Goodman Road, just east of Hacks Cross Road near Polk Lane.
The $165 million park, which will have around 4.3 million square feet of industrial space and includes a 50-acre site for an office campus, could generate an estimated 850 to 3,000 new jobs.
“We are fortunate that companies with the proven, local and national reputation that Hillwood Investment has are willing to make these investments in our community,” said Jim Flanagan, president and CEO of the DeSoto Economic Development Council.
Kurt Nelson, senior vice president for Hillwood, declined to comment on Legacy Park.
The site has caught the eye of several large employers, according to local officials. International Paper considered the site for its expansion, which ultimately took place in Memphis, and Under Armour shortlisted it for a 2 million-square-foot distribution facility that will create 1,000 jobs, a project that appears destined for the Nashville area.
The Legacy Park development received stiff opposition from some nearby residents who said they feared the warehouses and increased traffic could erode their property values or significantly alter their quality of life. But in August the DeSoto County Board of Supervisors voted to approve Legacy Park after Hillwood made several adjustments to the plan, including appointing residents to a design review committee and adding a landscaped buffer zone to shield homes from the park.
Hillwood is betting on the DeSoto County submarket as industrial activity picks up and the amount of available space there shrinks.
The vacancy rate in the DeSoto County industrial submarket is hovering around 4.2 percent. At the same time, demand in the Memphis market, including DeSoto County, is gaining momentum. According to Cushman & Wakefield/Commercial Advisors, prospects are looking for around 9 million square feet in the market.
“Hillwood, as usual, is smartly leaning forward in the market due to a robust pipeline consisting of over 25 deals representing 9 million square feet – almost half are new to the market,” said Kemp Conrad of Cushman & Wakefield/Commercial Advisors. “Although fall is here, the fourth quarter will be hotter than a stolen tamale.”
• The Silver Spoon Restaurant & Lounge is relocating but its destination remains unclear.
The restaurant and event rental business will relocate from its current space at Apple Tree Center in Southeast Memphis on Oct. 31, according to CB Richard Ellis Memphis, which handles leasing for the property. CBRE declined to say where the restaurant will be moving, and Silver Spoon management did not immediately return a phone call seeking comment.
The Silver Spoon location, 4,684 square feet at 6063 Mount Moriah Road, will be available for a new tenant as of Nov. 1, according to CBRE.
“This space will be a perfect location for a restaurant, medical office or retailer who desires proximity to Highway 385 and a vibrant, high-density community,” said Ron Kastner, senior vice president of office brokerage services for CBRE Memphis, in a statement.
Apple Tree Center is 168,016 square feet of office and retail space that caters to medical offices, staffing companies, legal services and small, locally owned businesses.
• In leasing news, The Covington Way I Distribution Center has seen an uptick in activity.
Covington Way I, two multitenant buildings totaling 126,500 square feet at 2093 and 2099 Thomas Road near Covington Pike and Elmore Road, has seen a flurry of smaller leases, a sign that the economy is gaining momentum, said Roger McLemore, vice president of Makowsky Ringel Greenberg LLC.
J. Brooks Coffee Roasters leased 6,000 square feet, Cannon Marketing Inc. leased 3000 square feet and Henry Patterson leased 5,400 square feet.
“This year to date, we’ve seen great activity for smaller bays in the 3,000- to 6,000-square-foot range, which I think would be an excellent indicator that businesses are finally getting some confidence that the economy is stabilizing and their businesses are viable long-term so they need a permanent home,” said McLemore. “Hopefully this trend continues with the smaller guys and the larger requirements usually follow. “
McLemore represented landlords Covington Way LP and Property Associates LLC.
Melanie Myers with The Gary Myers Co. represented Patterson.
• In other news, a leading producer of cotton, burlap and polypropylene bags is leaving Memphis for Olive Branch.
Innpack LLC purchased the 127,000-square-foot building at 10511 High Point Road in Metro Industrial Park in Olive Branch for $1.8 million. Innpack will be leaving its roughly 100,000-square-foot space at 2100 Troyer Ave. in the Defense Depot area in Memphis.
Preston Thomas of Colliers International Memphis handled the transaction.