Memphis-based Loeb Properties will help revitalize another core city neighborhood. Fresh off redeveloping Overton Square and currently involved in the Highland Strip, Loeb has set its sights on Broad Avenue.

The company is preparing to renovate the western portion of the old Sears Factory Outlet warehouse at 2542 Broad Ave. into a mixed-use development totaling 44,500 square feet.

The vacant warehouse, purchased by Loeb in 1995 and featuring the iconic Broad Avenue Water Tower, is across the street from the bustling south side of Broad, which is currently 100 percent occupied.

Early plans call for the warehouse to be “hollowed out” in the middle to make way for parking on what is now a warehouse floor. Retail, entertainment and restaurant space will surround the parking area.

“We have been in planning mode for the last six months, specifically addressing issues that come with converting a 70-year-old warehouse to a new use,” said Aaron Petree, vice president of brokerage for Loeb Properties.

“In terms of tenants, there is already a diverse, eclectic mix of businesses on Broad, and we will target an equally diverse tenant roster,” said Petree. “We are currently in negotiations with a few exciting prospective tenants in the fitness, retail, entertainment and restaurant categories, and we are looking for other unique businesses to add to the mix.”

The old loading dock of the warehouse is already home to the Water Tower Pavilion, managed by the Broad Avenue Arts District, which frequently hosts outdoor concerts, festivals and food trucks.

“We are looking to continue the momentum and expand the funky energy of Broad Avenue, but in a style that pays homage to the building’s industrial roots,” Petree said.

Construction on the $4 million project is slated to begin in the second quarter.