VOL. 130 | NO. 254 | Thursday, December 31, 2015
Mall of Memphis Land Sold to Trucking Company
By Madeline Faber
The development company that wanted to build a speculative industrial park on the former Mall of Memphis site has sold the property instead.
Johnson Development Associates, Inc., acting as Memphis Industrial Properties, LLC, has unloaded the Mall of Memphis land in a Dec. 29 warranty deed.
The 113 acres, bearing the real property address of 0 American Way, was sold to TAG Real Estate Holdings LLC for $3.9 million, or $34,513 an acre. In conjunction with the sale, TAG filed a $23 million mortgage with Mercedes-Benz Financial Services USA LLC.
TAG Real Estate is affiliated with Memphis-based TAG Truck Enterprises LLC, which formed in 2007 when business partners Tommy Earl and Gary Dodson bought four truck centers and a body shop from Barloworld Truck Center Inc.
Today, TAG operates truck centers in Tennessee, Arkansas, Mississippi, Missouri and Kentucky.
The future of the land at American Way and Perkins Road has been under question since the mall was demolished in 2004.
Johnson bought the land from Memphis Mall Holdings LLC for $2.7 million in April 2012.
This year, Huntington Industrial Partners and Johnson Development had planned to break ground on a $112.7 million speculative industrial park for the site, a plan that hinged on a 15-year tax break from the Memphis-Shelby County Economic Development Growth Engine.
The developers said a tax break was needed to compete with the sea of available speculative industrial property in North Mississippi.
The EDGE board denied the payment-in-lieu-of-taxes request at a Sept. 16 meeting, despite the developers’ threats to sell the land to a trucking company if they didn’t receive the tax break.
The request was the first time EDGE denied a developer a PILOT. If approved, it would have been the first PILOT granted to a speculative project.
Without a set tenant, there couldn’t be any hard figures for job creation.