VOL. 130 | NO. 85 | Friday, May 1, 2015
Shelby County Commercial Sales Revenue Surges in First Quarter
By Amos Maki
The number of commercial sales in Shelby County dipped in the first quarter when compared to last year but the average sale amount and total sales revenue surged ahead of 2014 levels, according to real estate information company Chandler Reports.
Shelby County recorded 206 commercial sales in the first quarter, down 8.9 percent from 226 sales over the same three-month period of 2014, according to Chandler, www.chandlerreports.com.
While the overall number of sales dipped in the first quarter, total sales revenue jumped to $422 million, up 29 percent from $328 million a year ago and the highest first-quarter revenue since 2007. The average sale amount in the quarter was $2 million, up 41 percent from $1.4 million a year ago.
Commercial sales in the first quarter averaged 48,870 square feet, up 26 percent from 38,871 square feet a year ago. The average commercial sale in the quarter was $52.50 per square foot, up 22 percent from $42.95 per square foot over the same period last year.
Vacant land over one acre in size led the way in total sales with 34 sales averaging $386,198. Apartment sales came in second, with 27 sales averaging 132,225 square feet and $5.7 million, or $42.76 per square foot. Warehouse sales came in third place, with 22 sales averaging 126,439 square feet and $3.7 million, or $32.69 per square foot. There were 10 office building sales in the quarter averaging 29,436 square feet and $814,725, or $27.68 per square foot.
The largest sale in the first quarter was an affiliate of Chicago-based LivCor LLC acquiring the Preserve at Forest Creek Apartments in Southeast Memphis for $51.3 million. The Shelby County Assessor of Property’s 2014 appraisal for the apartment community located just off Forest Hill Irene Road near Tenn. 385 is $43.5 million.
Bayou Bar & Grill will have even more room to serve up its Cajun fare.
The Bayou, located in Overton Square, plans a $300,000 expansion into the current Le Chardonnay space, doubling its capacity to 7,000 square feet. Le Chardonnay will cease operating as a bar and restaurant.
“This is all good,” said Bill Baker, owner of Bayou Bar & Grill and Le Chardonnay, along with his wife Carla Baker. “We chose to keep the Bayou open and maximize the space we have next door.”
Lou Loeb, executive vice properties for landlord Loeb Properties, said that after understanding more about what the company needed to offer Overton Square patrons, “expanding and adding more amenities to the Bayou makes the most sense.”
Horizon Tire Group has agreed to purchase a 500,000-square-foot Memphis warehouse formerly owned and operated by Memphis-based Del-Nat Tire Co.
The former Del-Nat facility is located at 2365 Texas Drive in Southwest Memphis.
The warehouse will become Horizon’s fifth in the U.S. The company’s website said distribution centers in Irwindale, Calif., Cranbury, N.J., Houston and Norcross, Ga., have in excess of 430,000 square feet of warehouse inventory available. Horizon also has overseas branch offices in Beijing and Qingdao, China.
A purchase price hasn’t been disclosed yet. While published reports said the warehouse measures 500,000 square feet, the Shelby County Assessor of Property’s website lists a size of 366,373 square feet. Situated on 19 acres, the 2014 appraisal of the Class B building is $5.3 million.
In 1994, Trans-International Warehouse Co. sold the building to Westside Compress Co. Inc. for $5.1 million. In 2005, Del-Nat Tire Group transferred the warehouse via quitclaim deed to Del-Nat Realty.
Horizon imports a variety of tire brands, including Antares, Crosswind, Supermax and LingLong, among others.
The sale of the Del-Nat warehouse to Horizon comes just a few months after the sale of Del-Nat’s tire inventory, brands and trademarks to TBC Corp., which also has a significant presence in Memphis.
Main Street will continue to be majestic.
Patrick Reilly, who came to America from Ireland in 1986, is chef and co-owner of the Majestic Grille.
(Daily News File/Lance Murphey)
The long-time owners of The Majestic Grille, Patrick and Deni Reilly, have entered into a 10-year lease renewal of their Downtown restaurant with landlord Belz Enterprises.
The Majestic, located on Main Street between Peabody Place and Gayoso Avenue, draws heavy business from devoted Downtown residents, The Orpheum Theatre, Grizzlies games, and Downtown concerts and festivals.
“Patrick Reilly, as a leader and staunch supporter of Downtown, has shown the community that good food, good drink, consistent and great environment make a difference and lead to
success,” said Ron Belz, president and CEO Memphis-based Belz Enterprises. “I look forward to many more good times at Majestic Grille!”
The Majestic Grille, occupying a 10,800-square-foot Beaux Arts former silent picture house, has been a lynchpin in the redevelopment of restaurant and retail on Main Street over the last decade.
The restaurant will undergo some cosmetic upgrades as it prepares for its 10-year anniversary in May 2016.