VOL. 131 | NO. 170 | Thursday, August 25, 2016
Memphis Real Estate Recap
Artspace Begins $17M Affordable Housing Project
By Madeline Faber
138 & 120 St. Paul Ave.
Memphis, TN 38103
Permit Amount: $10.5 million
Project Cost: $17 million
Completion: September 2017
Tenant: South Main Artspace Lofts
Architect: Looney Ricks Kiss
Contractor: Montgomery Martin Contractors
Details: The South Main Artspace Lofts will be moving into the South Main Historic Arts District this year. The $17 million project, first announced in December 2011, has secured its final round of financing and has set a formal groundbreaking for Sept. 29.
Montgomery Martin Contractors recently filed $10.5 million in building permits for construction of the affordable, arts-centric apartment building.
The 58-unit complex will be split between the existing United Warehouse at 138 St. Paul Ave. and 30,230 square feet of new construction at 120 St. Paul.
The design by architects Looney Ricks Kiss includes 58 live/work residential units. The lower level of the United Warehouse building will be converted into 7,000 square feet of commercial, gallery and community space.
The new four-story building bears an industrial design with metal paneling and steel canopies. The area between the building and St. Paul Avenue will be turned into a plaza with an outdoor arts garden and space for seating and gathering.
Construction will continue for 12 months, said Heidi Zimmer, Artspace’s senior vice president of real estate development. In January, Artspace will hold information sessions for interested artists looking to reserve an apartment.
Rents will range from $550 for a studio to $850 for two- and three-bedroom units. The rent is determined by both income level and unit size, Zimmer said. Those rates will remain capped for a minimum of 15 years.
One of the benefits of this project, even in South Main, is quickly revitalizing a property,” Zimmer said. “I think rents are going up as a whole in that area, and rents at Artspace are locked in on affordability.”
Zimmer said a commitment from the Tennessee Housing Development Agency pushed Artspace’s fundraising effort to the finish line. The state/federal agency is supplying bond financing, low-income housing tax credits and a $500,000 trust fund grant. Hyde Family Foundations, Pyramid Peak Foundation, AutoZone and Loeb Properties are among some of the other local groups that contributed to the project.
65 Union Ave.
Memphis, TN 38103
Tenant: Archer Malmo
Size: 4,000 square feet
Landlord: Henry Turley Co.
Details: Archer Malmo is growing again.
The agency has taken on the entire third floor of the historic Cotton Exchange building on Union Avenue and renovated the space to better suit its employees, of which there are 175 in Memphis and 205 firm-wide.
The firm’s PR and digital strategy teams are housed in the new space on the third floor.
The space was designed to encourage interaction and collaboration between team members. Features include offices along the exterior that have glass panels that let in natural light from windows.
There are three breakout meeting areas, including two large meeting tables and a “mini living room,” complete with a sectional and coffee table for informal meetings and co-working. There’s also a hotel-style workspace that functions as an office for non-Memphis employees, such as visiting Archer Malmo team members from Austin, Texas.
The expansion brings the agency’s total footprint in The Cotton Exchange to more than 48,000 square feet. The agency added 4,000 new square feet for a total of 7,000 on the third floor.
3690 S. Houston Levee Road
Collierville, TN 38017
Sale Amount: $4.3 million
Buyer: Orchard Fellowship
Seller: Hackmeyer Properties
Details: The Orchard Church, acting as Orchard Fellowship, has purchased the former Prairie Life/Omni Fitness building at 3690 S. Houston Levee Road in Collierville from Hackmeyer Properties for $4.3 million. Tanis Hackmeyer said that her real estate firm structured a creative wraparound mortgage, which allowed the church to take ownership of the property in advance of their capital campaign.
The 57,000-square-foot property was built in 2004 and was most recently appraised at $2.7 million.
Hulet Gregory with Marathon Realtors represented The Orchard, and Shane Soefker and Jacob Biddle with Avison Young worked with Hackmeyer Properties.
5274 Riverdale Road
Memphis, TN 38141
Sale Amount: $1.4 million
Sale Date: Aug. 16, 2016
Buyer: Alcy-Ball Community Church
Seller: Riverdale CEC LLC
Loan Amount: $1.3 million
Loan Date: Aug. 17, 2016
Maturity Date: March 17, 2019
Lender: Riverdale CEC LLC
Details: Divine Life Church, acting as Alcy-Ball Community Church, has purchased a 70,000-square-foot former Schnucks store at 5274 Riverdale Road for $1.4 million.
The DESCO Group Inc., the managing group for seller Riverdale CEC LLC, signed the Aug. 16 warranty deed.
According to data from the Shelby County Assessor of Property, the 2016 appraisal of the building is $1.9 million.
It was constructed in 2001 and is situated on 8.5 acres.
In conjunction with the purchase, the church filed a $1.3 million deed of trust through Riverdale CEC.
Divine Life Church currently is located at 1019 Ball Road off of Elvis Presley Boulevard.