VOL. 130 | NO. 229 | Tuesday, November 24, 2015
Memphis Real Estate Recap
TVA Begins Work On Memphis Natural Gas Plant
Daily News Staff
2480 HENNINGTON AVE
Memphis, TN 38109
Permit Amount: $5 million; $1.4 million
Application Date: Nov. 17
Owner: Tennessee Valley Authority
Tenant: Tennessee Valley Authority
Contractor: Kiewit Construction
Details: The Tennessee Valley Authority has begun work on its natural gas plant near the site of the former coal-burning Allen Fossil Plant.
On Nov. 17, Kiewit Construction applied for a $5 million building permit for an office building and a $1.4 million permit for a trailer build-out.
The combined-cycle natural gas plant at 2480 Hennington Ave. should be operable by 2018 with a 1,000 megawatt-per-hour generation capacity, or enough to supply 580,000 homes.
The natural gas plant is expected to cost $975 million.
General Electric Co. will be providing the high-efficiency gas turbine generators, which bear lower emissions of carbon dioxide, sulfure dioxide and nitrogen dioxide than a coal-firing plant.
The U.S. government-owned utility supplies power to about 9 million people in seven states. TVA’s largest customer is Memphis Light, Gas and Water Division.
10136 MAGNOLIA DRIVE
Olive Branch, MS 38654
Sale Date: Nov. 19
Buyer: BPI Packaging LLC
Details: BPI Packaging LLC has expanded its footprint with the purchase of a 291,000-square-foot building in Olive Branch, Miss.
With the addition, Memphis-based BPI plans to add 100 new employees over the next two years and 50 employees by year five.
The warehouse at 10136 Magnolia Drive will house operations for BPI’s coatings solutions business.
BPI will continue to operate out of its 215,000-square-foot space at 4050 New Getwell Road.
Matt Weathersby, principal with Cushman & Wakefield/Commercial Advisors, represented BPI in the sale. He said that his team “searched the entire Memphis MSA for a manufacturing building with rail capabilities,” and the Mississippi location provided the best opportunity with easy access to five Class I railroads.
Weathersby represented BPI with CW/CA president and CEO Larry Jensen and associate Luke Jensen. CW/CA vice president Landon Williams represented the seller.
4296 SOUTHRIDGE BLVD
Memphis, TN 38141
Sale Amount: $6.5 M
Sale Date: Nov. 10
Buyer: Southridge Owner LP
Seller: Belz Investco GP
Details: Belz Investco GP has sold its warehouse in the Southridge Industrial Park for $16.5 million. The 640,000-square-foot warehouse at 4296 Southridge Blvd. is Belz’s last holding in the industrial park.
SK Realty Management, acting as Southridge Owner LP, purchased the building in a Nov. 10 warranty deed. Sam Kirschenbaum, founder of SK Realty, signed as affiant.
The warehouse is fully leased to Technicolor, a global provider of advanced video services.
In June, Atlanta-based MDH Partners bought out most of Belz’s industrial portfolio with 20 major industrial facilities totaling more than 9 million square feet.
Selling off the Southridge holdings is just the latest piece in Belz’s selling spree.
In October, Belz sold the four-story office building at 3725 Champion Hills Drive for $7.8 million to Faropoint Venures LLC, acting as Champion Hills Realty Holdings LLC.
The 77,000-square-foot building is 90 percent leased. According to the CB Richard Ellis Memphis listing, there is space for four tenants across 9,214 square feet.
In conjunction with the sale, Belz quitclaimed the parking lot adjacent to the building. In July, Belz sold a 64,294-square-foot office building to Methodist Le Bonheur Healthcare for $4 million. Located at 5865 Shelby Oaks Circle, it is located inside Belz’s Shelby Oaks corporate park near Interstate 40 and Sycamore View. Recently, Methodist has filed several construction permits for the Class B building.
4500 MALONE ROAD
Memphis, TN 38118
Tenant: DYK Automotive
Details: DYK Automotive, a national aftermarket automobile parts and accessories distributor, will nearly double its current 150,000-square-foot headquarters at 4500 Malone Road.
Kemp Conrad with Cushman & Wakefield/Commercial Advisors LLC brokered the lease renewal and 316,666-square-foot expansion, and Tim Mashburn with Colliers represented the property owner.
The deal indicates that the local industrial sector’s dynamite year is going out with a bang.
“Our region is on track for one of the best years in recent history,” Conrad said. “We currently are tracking demand for approximately 25 users looking in the market for warehouse space greater than 100,000 square feet, half of which are looking for more than 500,000 square feet. In general, we are seeing a flight to quality, with a significant percentage of these deals involving Class A accommodations.”
The warehouse at 4500 Malone in the Shelby Air Park totals 475,000 square feet.