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VOL. 130 | NO. 126 | Tuesday, June 30, 2015

Graceland Hotel Developers File $84 Million Construction Loan

The Daily News and Chandler Reports staff

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3600 Elvis Presley Blvd.
Memphis, TN 38116
Loan Amount: $84 million

Loan Date: June 19, 2015
Borrower: Guest House at Graceland LLC
Lender: Highbridge Principal Strategies Growth Equity and affiliated funds; Philadelphia Indemnity Insurance Co.; Reliance Standard Life Insurance Co.; Safety National Casualty Corp.; Lincoln Investment Solutions Inc.; and American United Life Insurance Co.,
Details: The developers behind a massive hotel near Graceland are ready to shake, rattle and roll on the project.

Guest House at Graceland LLC, formed to develop the hotel, has filed an $84 million construction loan for the 450-room resort-style hotel at 3600 Elvis Presley Blvd.

Joel Weinshanker, who acquired the rights to the management of Graceland operations with Authentic Brands Group and the Presley family as partners, signed the loan for Guest House at Graceland LLC. The construction loan is the result of revenue bonds the city-county Economic Development Growth Engine approved for the project last year.

In December, EDGE approved issuing up to $124.5 million in revenue bonds to help fund a series of improvements to the Graceland campus, including the hotel, improved exhibits, new attractions and commercial space.

“We do anticipate the developers will use some or all of the remainder” of the bond funds on future projects, said EDGE president Reid Dulberger.

A Tax Increment Financing district, Tourism Development Zone and a tourism sales tax surcharge were approved to help pay off the bonds.

In addition to the construction loan, Guest House at Graceland LLC acquired nearly 25 acres of land for the hotel from Elvis Presley Enterprises for $2.1 million.

Late last year, EPE applied for a $70 million building permit for the hotel, which will include a grand stairwell in the lobby that mimics the main staircase at Graceland. The hotel, originally scheduled to open in fall 2015, also will include Jungle Room-inspired prints and accents, plus a sports bar and lounge that recalls the design of Graceland’s billiard room.

Belz’s 25-Property
Industrial Portfolio
Sale Amount: $82 million

Sale Date: June 11, 2015
Buyer: MDH Partners LLC
Seller: Belz Enterprises
Loan Amount: $58 million
Loan Date: June 11, 2015
Lender: Metropolitan Life InsurancE co.
Details: The recent sale of Belz Enterprise’s industrial portfolio to MDH Partners LLC of Atlanta totals more than $82 million, according to four special warranty deeds filed on June 19.

The deeds, signed by Ronald Belz on June 11, are for the sale of 25 properties located in Shelby Oaks, Southridge, Democrat Square North and Meltech. The 25 parcels have a combined tax appraisal value of more than $85 million, according to the Shelby County Assessor of Property.

The largest property in the sale is 6400 Shelby View Drive located in Shelby Oaks industrial park. The 460,000-square-foot building sits on 10.5 acres and is valued at more than $6.7 million.

Metropolitan Life Insurance Co., a New York corporation, issued a $58 million loan to MDH Partners on June 11, financing all of the properties listed in the sale.

Belz announced last week it had sold 3.1 million square feet of its industrial portfolio to MDH, which said it will “implement a significant capital improvement plan to position the assets for the future growth of the local and national economies.”

6539 Knight Arnold Road
6551 Knight Arnold Road
Memphis, TN 38115

Sale Amount: $10 million
Sale Date: June 11, 2015
Buyer: Legacy IL Property Co. LLC
Seller: Greenfield Independent Living of Memphis LLC
Details: Legacy IL Property Co. LLC purchased two properties comprising the Residences at Lenox Park senior living community in Hickory Hill on June 11 for $10 million. The 152,706-square-foot, 168-unit independent living facility located at 6539 Knight Arnold Road sold for $6.7 million. The facility was built in 1988 and sits on 11.6 acres on the south side of Knight Arnold west of Kirby Parkway. The Shelby County Assessor of Property’s 2015 tax appraisal value is $4.4 million.

The 35,411-square-foot, 52-unit assisted living facility located at 6551 Knight Arnold Road sold for $3.3 million. The one-story facility was built in 1988 and sits on 4 acres on the southwest corner of Knight Arnold and Kirby Parkway. The 2015 appraisal is $2 million.

The seller, Greenfield Independent Living of Memphis LLC, purchased both properties in 2011 for $5.6 million.

Legacy IL Property Co. is an affiliate of Cumming, Ga.-based Beacon Communities Inc., a senior housing management group.

191 Beale St.
Memphis, TN 38103
Permit Cost: $350,000

Permit Application Date: June 2015
Completion: September 2015
Owner: Public Building Authority
Tenant: Memphis Grizzlies
Contractor: Montgomery Martin Contractors LLC
Details: The Memphis Grizzlies have applied for a $350,000 building permit to upgrade facilities at FedExForum, 191 Beale St.

During the June 23 Public Building Authority meeting, the Grizzlies were granted permission to start construction on the first phase of capital projects at the arena.

Improvements will include the addition of a new state-of-the-art video and screening room for coaches and players to analyze game and practice footage, renovation of coaches’ offices and new space for front office personnel.

The PBA holds the title to FedExForum, and the authority’s board must approve any capital expenditures that exceed $500,000. The $350,000 in upgrades approved at the June 23 meeting are being funded by the Grizzlies.

“The Grizzlies organization and (controlling owner) Robert Pera’s commitment to maintain and enhance FedExForum for both fans and players is vital to the Public Building Authority and our community,” said PBA chairman of the board David Levine. “By providing the funding for these improvements, Robert continues to exhibit his long-term commitment to professional basketball in Memphis.”

Jason Wexler, the Grizzlies’ president of business operations, said the facilities improvements “represent another step towards creating the best-in-class basketball organization that Robert Pera envisions.”

The application field with the city-county Office of Construction Code Enforcement lists Montgomery Martin Contractors LLC as the general contractor on the project. Construction is to begin immediately, according to the Grizzlies, and the initial phase is expected to be finished by the time the team reports for training camp in September.

PROPERTY SALES 57 280 1,209
MORTGAGES 55 244 916
BUILDING PERMITS 158 699 2,751