VOL. 131 | NO. 80 | Thursday, April 21, 2016
Memphis Real Estate Recap
$12.6M Building Permit For New Ballet Memphis HQ
2144 Madison Ave.
Memphis, TN 38104
Permit Amount: $12.6 million
2144 MADISON AVE. • MEMPHIS, TN 38104
Owner: Ballet Memphis
Tenant: Ballet Memphis
Contractor: Grinder, Taber & Grinder
Details: Ballet Memphis is setting the stage for its Overton Square headquarters as Grinder, Taber & Grinder recently applied for a $12.6 million building permit for new construction.
In 2015, Ballet Memphis purchased the former French Quarter Inn, at the corner of Madison Avenue and North Cooper Street. Demolition on the shuttered hotel began in October.
NCE Realty and Capital Group purchased the property in 2013 for $1.9 million with plans to convert the building into Hotel Overton. Two years later, the company sold the vacant hotel at 2144 Madison Ave. to Ballet Memphis for $4.2 million.
67 Madison Ave.
Memphis, TN 38103
Buyer: Scott Ledbetter and family
Seller: 67 Madison Partners
Loan Amount: $22.3 million
Details: The Metro 67 Apartments in Downtown Memphis has been sold by a Dallas equity firm to Scott Ledbetter, founder and chairman-emeritus of LEDIC Management Group in Memphis, and members of his family.
The sales price was not released, but a $22.3 million loan was transferred as part of the ownership change, according to Shelby County Register of Deeds data.
The seller, 67 Madison Partners – an affiliate of Dallas-based EFO Holdings LP – bought the building in 2007 for $4.5 million.
The property transfer includes an adjacent parking garage at 60 Madison Ave., according to a release from ARA Newmark-Memphis, which brokered the sale for the seller.
The release states the Ledbetter family plans to “implement extensive improvements on the parking garage located at 60 Madison to enhance the experience for tenants.”
The building’s 157 units were 99 percent leased at the time of closing.
In January, the Center City Revenue Finance Corp. board approved transferring the Metro 67 lease to the Ledbetter family. The CCRFC, an affiliate board of the Downtown Memphis Commission, grants property tax freezes to promote Downtown development.
With the CCRFC’s approval, Metro 67’s 15-year payment-in-lieu-of-tax incentive will continue under the new ownership until 2021.
ARA Newmark-Memphis brokers Blake Pera and Tommy Bronson represented the seller. LEDIC Realty Co. will take over leasing and management from Fogelman Management Group.
The high-rise, located at Madison Avenue and Front Street, was built in the 1920s as the headquarters for Union Planters Bank. In 2009, it was renovated for multifamily use as a Historic Tax Credit redevelopment.
1245 N. Germantown Parkway
Cordova, TN 38016
Sale Amount: $9.7 million
Sale Date: April 15, 2016
Buyer: Germantown Retail Square Co.
Seller: NPK Cordova LLC
Loan Amount: $5.8 million
Borrower: Faropoint Investments
Lender: First Capital Bank
Details: Israel-based Faropoint Investments has made its second Memphis purchase this year. The real estate investment firm, acting as Germantown Square Retail Co., bought a Cordova shopping center from NPK Cordova LLC for $9.7 million, according to an April 15 warranty deed.
The shopping center, bearing a 1245 N. Germantown Parkway address, is anchored by L’Ecole Culinaire and Incredible Pizza Co. The 137,355-square-foot Class A facility, built in 2000, is situated on about 17 acres. The Shelby County Assessor most recently appraised it at $11.5 million.
In conjunction with the April 15 sale, Faropoint took out a $5.8 million mortgage with First Capital Bank.
3675 Swinnea Road
Memphis, TN 38118
Permit Amount: $6 million
Owner: UPS Inc.
Tenant: UPS Inc.
Contractor: Diversified Contractors, Inc.
Details: UPS Inc. has filed a $6 million building permit for its property at 3675 Swinnea Road near Memphis International Airport.
The Oakhaven-area customer center was built in 1998 and bears 460,769 square feet. In 2013, UPS applied for a tax incentive through the Memphis-Shelby County Economic Development Growth Engine to support an $80.3 million expansion of the 3675 Swinnea Road property.
Diversified Contractors Inc. is listed as the contractor for the interior alterations.
633 Normal St.
Memphis, TN 38152
Permit Amount: $16,597
Owner: University of Memphis
Contractor: Belz Construction Services
Details: The University of Memphis is building a satellite donor center to support ALSAC, the fundraising and awareness organization for St. Jude Children’s Research Hospital.
The donor contact center, located in the Billy Mac Jones building at 633 Normal St., will be staffed by U of M student interns tasked with calling current and potential ALSAC donors. Twenty to 30 student internships are expected to be created as a result of the partnership.
Belz Construction Services recently filed a $16,597 building permit for a "St. Jude Call Center" in the Billy Mac Jones Building.