VOL. 130 | NO. 42 | Tuesday, March 3, 2015
Memphis Real Estate Recap
Brewery Developers Buy Site for New Apartment Building
By Amos Maki
11 Butler Ave.
Memphis, TN 38103
Sale Amount: $1.25 million
11 Butler Ave. • Memphis, TN 38103
Sale Date: Feb. 23, 2015
Buyer: 495 Tennessee LLC
Seller: BCH Investments LLC
Details: The team behind the development of the historic Tennessee Brewery has acquired a key piece of property adjacent to the long-vacant structure as plans for the new Tennessee Brewery: The Revival series of events there move forward.
The development team, operating as 495 Tennessee LLC, purchased the vacant lot at 11 Butler Ave. from BCH Investments LLC for $1.25 million, according to a Feb. 23 warranty deed.
The 1.6-acre slice of vacant land is key to the development team’s effort to save the 125-year-old brewery building at 495 Tennessee St. Developer Billy Orgel and his team plan to build a new, 90-unit apartment building on the site that will essentially subsidize the adaptive reuse of the old brewery.
The $23 million project includes about 148 residential units – 58 in the brewery building and 90 in a new six-story building to be built on the Butler lot – about 8,000 square feet of commercial space and a 280-space public parking garage.
The castle-like brewery opened in 1890 and made the Memphis-based Goldcrest 51 beer label, a popular regional brand for years, but the structure has been vacant since the 1953.
The development team of Orgel, Adam Slovis, Jason Wexler and Jay Lindy stepped in last year to save the brewery from the wrecking ball.
After years of trying to find a developer willing to take on the project – proposals over the years included hotels and condominiums – the previous owners announced last year they were considering demolishing the landmark brick and cast-iron building overlooking the Mississippi River.
Following last summer’s successful month-long Brewery Untapped event, which activated the long-vacant space with a beer garden, music, food trucks and other activities, Orgel and his partners acquired the property in November for $825,000.
Meanwhile, The Revival will open for lunch and dinner Thursdays through Sundays from April 9 through May 31. Organizers were granted a beer permit from the city of Memphis last week.
5449 Winchester Road
Memphis, TN 38135
Permit Amount: $7 million
Permit Application Date: February 2015
Tenant: Gestalt Community Schools
Details: A new Power Center Academy middle school in Hickory Hill near or on the footprint of the old Marina Cove Apartments moved a step closer to reality with Gestalt Community Schools applying for a $7 million building permit to build a 40,147-square-foot middle school at 5449 Winchester Road.
A project contractor has not been determined, according to the application filed with the city-county Office of Construction Code Enforcement.
The charter school company currently operates the Power Center Academy at 6120 Winchester Road.
The Marina Cove apartments were demolished by the city in October 2010 after standing vacant for years.
Memphis Mayor A C Wharton Jr. drove a bulldozer into a stairway of one of the 54 buildings in the complex to mark the occasion and signal the redevelopment was a priority of his administration.
The Power Center Community Development Corp. bought an adjoining 19-acre parcel for $182,400 from Boston Capital Corporate Fund in 2010. With the apartment complex site and that additional land, CDC had plans to develop a town center that would have included retail, some residential and a performing arts center.
The new Power Center Academy, by those plans, would have been the development’s first phase and was to open in 2012, financed with money from private donors and grants.
Gestalt also operates charter schools at Humes Prep and Klondike Prep for the state-run Achievement School District and is among the tenants to come of the Crosstown Concourse redevelopment project that formally began construction Saturday, Feb. 21.
5461 Davidson Road
Memphis, TN 38118
Permit Amount: $1.2 million
Project Cost: $50 million
Permit Application Date: February 2015
Contractor: Dan Walker Associates Inc.
Details: A third-party vendor has applied for a $1.2 million building permit to build out Target’s planned Memphis online fulfillment center.
Innotrac, which will manage the Southeast Memphis facility for Target, applied for the permit through the city-county Office of Construction Code Enforcement. Memphis-based construction contractor Dan Walker Associates Inc. is listed as the contractor on the application, which says the work is for “new tenant space renovations.”
Target will turn the 900,000-square-foot building at 5461 Davidson Road into an online fulfillment center that will employ 462 people and service the entire Southeast U.S.
In December, Target was awarded a 15-year tax break for the project, which will support the Minneapolis-based retailer’s booming online business. The incentive would save Target around $12 million over 15 years while producing a local tax benefit of $27.2 million, according to the city-county Economic Development Growth Engine.
In January, Innotrac applied for a $42 million building permit for the project.
7399 U.S. 64
Memphis, TN 38133
Sale Amount: $3.8 million
Sale Date: Feb. 19, 2015
Buyer: AMERCO Real Estate Co.
Seller: 7399 US Highway 64 Holdings LLC
Details: An Arizona-based real estate firm has acquired a Memphis storage facility for $3.8 million.
Phoenix-based AMERCO Real Estate Co. bought the American Mini Storage facility at 7399 U.S. 64 from 7399 US Highway 64 Holdings LLC, which is affiliated with Florida-based LNR Partners Inc., for $3.8 million, according to a Feb. 24 warranty deed.
Built in 1999, the mini-storage site sits on 5.2 acres on the south side of U.S. 64 between Appling Road and Dromedary Drive. The Shelby County Assessor of Property’s 2014 appraisal is $2.7 million.
4300 American Way
Memphis, TN 38118
Sale Amount: $1 million
Sale Date: Feb. 10, 2015
Buyer: The Inn at American Way LLC
Seller: Motel 6 Operating LP
Details: A Georgia-based investor has purchased a Southeast Memphis hotel for $1 million.
The Inn at American Way LLC, operating in care of Atlanta-based businessman Amish Patel, bought the Home One hotel at 4300 American Way from Motel 6 Operating LP, according to a Feb. 10 warranty deed.
Located on American Way near Cherry Road, the former Studio 6 hotel was built in 1987 and totals 48,437 square feet. At 121 rooms, the purchase price of the hotel breaks down to roughly $8,264 per unit. The Shelby County Assessor of Property’s 2014 appraisal is nearly $1.3 million.