VOL. 130 | NO. 190 | Wednesday, September 30, 2015
Overton Square’s Future Tenants Could Be Residents
By Madeline Faber
With Overton Square reaching 100 percent occupancy, there’s nowhere else for the entertainment district to go but up. Loeb Properties currently is looking at possibly adding two multistory mixed-use buildings to complement the bustling arts and nightlife scene.
Three years into its rebirth, Overton Square has reach full capacity and is turning an eye toward new mixed-use construction.
(Daily News File/Andrew J. Breig)
“Considering what (Overton Square’s) fate was – its fate was going to be a discount grocery store, and now we have Fresh Market just down the street,” said Mary Caywood, Loeb Properties’ vice president of marketing.
Early this month, clothing and lifestyle boutique The Ivory Closet inked a lease for the last open bay, 1095 Madison Ave., making it the 27th and final tenant. In 2012, Loeb purchased the left-for-dead commercial area for $7 million and has worked to turn it into one of the most vibrant areas in Midtown. Residential components could be next.
Loeb has two of the last surface parking lots under consideration: the lot at the southwest corner of Trimble Place and Cooper Street, behind Bar Louie; and the lot on the north side of Madison between Schweinhaus and Bayou Bar & Grill.
Initial discussions focused on mixed-use buildings, with residential on the upper levels and retail on the ground level.
“That’s one area we want to concentrate on,” Caywood said.
The square is currently made up of 12 restaurants and eight tenants that classify themselves as retail. The area also has five health- and beauty-related studios, the Malco Studio on the Square and two event venues.
Residential is not new to the area, with houses to the south of Madison toward Florence and Diana streets and around The Second Line on the east side of Cooper.
Live music and events have to cease at 11 p.m., Caywood added.
“We’re open to possibilities,” she said. “If a retailer, preferably local but if another retailer came in, they could share the investment there.”
“I think it’s prime for that,” said Tommy Bronson, senior vice president of multifamily at CBRE Memphis. “In that location, it’s almost a necessity that you have to build mixed use.”
He added that no new residential construction has occurred in Midtown in recent years.
According to real estate information company Chandler Reports, it’s been more than a decade. The most recent residential building dates back to 2004, when the 220-unit, four-story Bristol on Union went up at 1177 Union Ave.
However, large redevelopment projects underway elsewhere in Memphis are incorporating a residential mixed-use component. East of Midtown proper, the Highland Row mixed-use project being developed by Milhaus Development and Poag Shopping Centers should be coming online in the third or fourth quarter of 2016. And closer to Downtown, 270 apartments leased by LEDIC Management Group will comprise the upper levels of Crosstown Concourse.
“Whether it’s office or hotel or residential, anything that gets more people in and adds another component adds value to the rest of the project,” said Danny Buring, partner with The Shopping Center Group.