VOL. 130 | NO. 27 | Tuesday, February 10, 2015
Memphis Real Estate Recap
Fogelman Company Launching Retail Center in East Memphis
By Amos Maki
6544 Poplar Ave.
Memphis, TN 38118
6544 Poplar Ave. • Memphis, TN 38118
Permit Amount: $3.2 million
Permit Application Date: February, 2015
Applicant: Crown Centre LLC
Contractor: Linkous Construction Co. Inc.
Lender: Ladder Capital Finance LLC
Details: A company affiliated with Robert F. Fogelman II plans to build a new retail center on a key piece of land in the heart of East Memphis.
Crown Centre LLC has applied for a $3.2 million building permit to build the “shell” of a 29,000-square-foot, single-story retail building on the site of the old Cozymel’s Mexican Grill site at 6544 Poplar Ave., near International Paper’s campus in East Memphis.
Linkous Construction Co. Inc. is listed as the general contractor on the project.
The old Cozymel’s restaurant was razed in 2013. A 2012 plan approved by the Land Use Control Board indicated Fogelman, who is listed as manager of Crown Centre LLC, was seeking to develop a three-story mixed-use building with retail on the ground floor and office space on the upper floors, but the project is now firmly retail-oriented.
The site is east of International Paper’s expanding headquarters at Poplar and International Drive.
The Shelby County Assessor of Property’s 2014 appraisal for the property is $1.9 million. In December, Crown Centre LLC filed a $6.1 million loan on the property with Financial Federal Bank.
717 Riverside Drive
Memphis, TN 38103
Permit Amount: $2 million
Permit Application Date: February 2015
Applicant: Horizon Memphis LLC
Contractor: Environmental Construction Services Inc.
Details: The new owner of The Horizon condominium tower on Riverside Drive Downtown is moving forward with renovating the tower.
Dawn Properties Inc. has applied for a $2 million building permit to begin construction on the first three floors of the 155-unit tower.
“We’re starting to phase into the construction process,” said Walker Thrash, principal of Dawn Properties. “I’m excited and I’m ready to launch this product. We think there is strong demand Downtown.”
Over the next 30 to 60 days Thrash said the company also will unveil a new name and exterior look for the 16-story tower. Currently, five floor plans are available at The Horizon, averaging in size from 1,498 square feet to 1,590 square feet. The site also includes land for the development of 141 additional high-rise units and 54 terrace homes
Dawn Properties acquired the uncompleted tower, located adjacent to the white-hot South Main Historic Arts District neighborhood Downtown, for $13.5 million on Oct. 10.
Development of the property began in 2007, but the original developer, the Bryan Co., defaulted on a $58.6 million loan in 2009. Since then, the tower has remained vacant.
85 S. Second St.
Memphis, TN 38103
Permit Amount: $2.2 million
Permit Application Date: January 2015
Contractor: Montgomery Martin Contractors LLC
Details: An adaptive reuse project Downtown is moving forward.
Cendown Ltd. LP, which is redeveloping 85, 87 and 91 S. Second St. into 16 apartments and restaurant space, has applied for a $2.2 million building permit for interior renovation work at 85 S. Second.
The application, filed with the city-county Office of Construction Code Enforcement, lists Montgomery Martin Contractors LLC as the contractor.
In November, the Center City Revenue Finance Corp. approved Cendown’s request for a 10-year payment-in-lieu-of-taxes, or PILOT, tax incentive for the redevelopment of the buildings, which are on the west side of South Second between Union and Gayoso.
Cendown owns the row of five buildings between 77 S. Second and 91 S. Second, about half of which have been redeveloped, according to a Downtown Memphis Commission staff report from November. Buildings that house existing tenants, including Automatic Slim’s, D. Canale & Co. and Huey’s, are not part of the development and will remain unchanged.
Cendown received a 15-year PILOT for the buildings at 79 S. Second and 81 S. Second in 1986. That PILOT is in an extension period, with the buildings set to return to the tax rolls in December 2016, according to the report.
381 Johnson Circle West
Memphis, TN 38112
Sale Amount: $3.4 million
Sale Date: Jan. 23, 2015
Buyer: Eastern Heights Partners
Seller: Eastern Heights Apartments Ltd.
Loan Amount: $3 million
Loan Date: Jan. 23, 2015
Maturity Date: Feb. 1, 2020
Lender: Financial Federal Bank
Details: An apartment development near Chickasaw Country Club has sold for $3.4 million.
Eastern Heights Partners, a Tennessee general partnership, bought the 130-unit Eastern Heights Apartments from Eastern Heights Apartments Ltd., according to a Jan. 23 warranty deed.
The Class D complex, built in 1946, is on the south side of Johnson Avenue west of North Holmes Street.
The seller paid $2.8 million for the development in 1996.
Though the deed lists the general address of 381 Johnson Circle W., the purchase included a dozen parcels totaling more than 12 acres with addresses on Johnson Avenue; Johnson Circle North, South, East and West; and North Holmes.
The Shelby County Assessor of Property’s 2014 appraisal for the 12 parcels totals $1.8 million.
Eastern Heights Partners’ purchase was financed with a $3 million deed of trust, security agreement and assignment of rents and leases through Financial Federal Savings Bank.
Robert D. Hyde signed the trust deed as president of ALCO Properties Inc., general partner of Eastern Heights Partners.