VOL. 130 | NO. 197 | Friday, October 9, 2015
Belz Sells Office Building Near Windyke for $7.8 Million
By Madeline Faber
Belz Enterprises made another big real estate deal on the tail of its recent announcement to redevelop the corner of McLean Boulevard and Union Avenue into a mixed-use development.
In an Oct. 8 warranty deed, Belz Investco GP sold the four-story office building at 3725 Champion Hills Drive for $7.8 million to Faropoint Ventures LLC acting as Champion Hills Realty Holdings LLC.
This is the 12th Memphis-area investment for Faropoint Ventures.
The Class A building, which totals around 77,000 square feet, sits on 5.8 acres on the south side of Winchester Road west of Champion Hills Drive, adjacent to Windyke Country Club. The Shelby County Assessor, which lists the property at its alternate address of 8721 Winchester, appraised it at $7.5 million this year.
In a video posted to Faropoint Ventures’ business Facebook page on Sept. 9, principal Adir Levitas said that he bought the building for $100 per square foot and intends to sell it back at $150 per square foot.
“I wouldn’t be worried about new construction of offices because a new building like this would cost anywhere from $220 to $270 dollars per foot,” Levitas said in the video.
Crowded Poplar Avenue is increasingly cost-prohibitive to office tenants, said NAI Saig Realtor Brian Califf in the same video. The Champion Hills Office Park, which was constructed in 2001, is changing owners at a pivotal moment in Collierville/Tenn. 385 corridor real estate.
The building is 90 percent leased, Levitas said. 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.
Champion Hills Realty Holdings took out a $5.5 million loan through C-III Commercial Mortgage LLC, according to an Oct. 5 deed of trust and security agreement. Levitas signed the deed as chief manager of Faropoint Ventures LLC, the managing member of the buying entity.