VOL. 131 | NO. 78 | Tuesday, April 19, 2016
Sale of Former Memphis Police Headquarters Set for May
By Bill Dries
The tours and inspections are done for now. And City Hall’s timeline for selling the circa-1910 Memphis Police headquarters at 128 Adams Ave. is a bit behind schedule.
The city has three offers to redevelop the old Memphis Police Headquarters as a hotel. The Memphis City Council is scheduled to vote next month on those offers.
(Daily News File/Bill Dries)
But the city plans to recommend a buyer for the building at the May 3 Memphis City Council meeting, and the council is scheduled to make its final decision at its May 17 session.
The original timeline was for final council action in April.
Council members get an update on the process during Tuesday, April 19, committee sessions.
The companies exploring a bid on the building and its later annex completed tours and inspections of the building on April 8, and the deadline for proposals was April 12.
The council’s website includes three proposals, including the original offer that triggered the bidding process.
In December, two weeks before Mayor A C Wharton left office, NCE Realty and Capital Group LLC offered the city $1.1 million for the police station. NCE is best known as the buyer of the shuttered French Quarter Inn at 2144 Madison Ave., east of Overton Square. NCE had plans for a Hotel Overton on the land but then sold the property to Ballet Memphis in June 2015.
Ballet Memphis is building a new performance center that is to open in 2017
MG Capital LLC, a group that had been linked to NCE’s offer on the police building, meanwhile, offered a letter of intent to buy the building for $1 million in December through Commercial Advisors LLC.
Suna Investments LLC is offering $1.6 million, according to an undated 2016 purchase and sale agreement, with $50,000 to be paid in escrow as earnest money toward the purchase price and the balance due at closing.
Suna has two other Downtown development projects underway.
In March, the company bought the 107 S. Main St. building in Downtown’s demonstration block. Suna principal Snay Patel said a hotel is one possibility for that building but that no decision has been made yet.
Suna is also the developer of the Hotel Napoleon that is to open in July in the Winchester Building at 179 Madison Ave., on the southeast corner of Madison and Third Street.
The city administration has set conditions on the police building sale, which does not include the adjacent garage.
The property must be redeveloped as a boutique hotel, and the facade of the property must be retained.
The city wants a minimum bid of $1 million and earnest money that is 10 percent of the purchase price due within 24 hours of the city accepting the winning bid.
The property is sold as is and the closing is 45 days after the due diligence phase, which is 30 days from the city accepting the offer.
The offer endorsed by the administration is the one that goes to the council. On the second and final reading, the council will open the process to competing offers. The next offer on the property must be at least $500 higher than the original proposal. From there, the bidding is in increments of at least $50.