VOL. 131 | NO. 140 | Thursday, July 14, 2016
Memphis Real Estate Recap
Madison Hotel Sells to Chicago-Based Hotel Group
By Daily News & Chandler Reports Staff
79 Madison Ave.
Memphis, TN 38103
Sale Date: June 21
Buyer: 79 Madison Avenue LLC
Seller: Wilmont Hotel LP
Loan Amount: $16 million
Loan Date: June 21
Lender: PFP Holding Co. IV LLC
Details: A Chicago-based hotel group has closed on its purchase of the Madison Hotel and several surrounding properties.
Aparium Hotel Group, working as 79 Madison Avenue LLC, acquired the Madison and three other parcels from the hotel’s operator, Wilmont Hotel LP, in a June 21 quitclaim deed just filed with the Shelby County Register’s Office. Those other parcels include 83 Madison Ave., which houses eighty3 restaurant and office space; and a banquet center that spans 9 S. Main St. and 11 S. Main St.
In addition, Aparium, working under the name 1 South Main LLC, acquired the first-floor and basement of the condominium building at 1 S. Main St. from Madison Hotel Memphis LLC.
Together the parcels wrap around the southwest corner of Madison and South Main.
No purchase prices were listed on the quitclaim deeds.
The two groups of properties are covered by separate payment-in-lieu-of-taxes agreements through the Center City Revenue Finance Corp., an affiliate board of the Downtown Memphis Commission. The larger group, including the hotel, are part of a 24-year PILOT that began in August 2000, while the condo parcels are part of a PILOT set to expire this December, according to the DMC’s active PILOTs list.
The CCRFC approved transferring the PILOT leases to Aparium at the board’s May meeting.
Along with its recent purchase, the buyer filed a $16 million loan through PFP Holding Co. IV LLC.
Aparium was founded in 2011 and bills itself as a sophisticated hotel chain that combines “the business acumen of large hospitality companies with the charm of boutique hotels, bringing the disparate forces together in bustling, smaller markets,” according to the company’s website.
The company currently operates two hotels in Wisconsin, according to the site, with five other hotels spread across several states set to open in 2016 and 2017.
225 Schillng Boulevard
Collierville, TN 38017
Completion: July 21, 2016
Owner: Boyle Investment Co.
Tenant: Helena Chemical Co.
Details: Construction is nearing completion on several new projects at Schilling Farms on an 11-acre site at the corner of Schilling and Winchester boulevards.
On Thursday, July 21, a new 50,000-square-foot Class A office building will open at 255 Schilling Blvd. Half of the space is pre-leased to Helena Chemical Co. and the other 25,000 square feet of ground-floor space is available for office or retail uses.
Helena Chemical’s expansion adds another piece to Boyle’s upscale, mixed-use development.
Construction also is underway on an adjacent 9,000-square-foot retail center, which will be ready for occupancy in October 2016.
The Carrington at Schilling Farms, an upscale multi-family community, opened in the summer of 2014 and demand has prompted construction on a second phase of the project, according to Boyle.
Carrington West at Schilling Farms is a 125-unit community of boutique apartments and townhomes which will be available for occupancy in fall 2016.
In addition to these new projects, approximately 33,000 square feet of contiguous ground floor space is available at Schilling Farms Business Center, a 62,000-square-foot Class A office/flex building. The one-story building has controlled access, 336 parking spaces and storage with rear load doors.
Schilling Farms is a 443-acre joint venture between Boyle Investment Co. and Harry Smith.
8570 North U.S. Highway 51
Millington, TN 38053
Project Cost: $36.8 million
Completion: First quarter 2017
Owner: Ryan Commercial Properties LLC
Details: Millington leaders broke ground Tuesday, July 12, on the $36.8 million Shops at Millington Farms development at 8570 North U.S. Highway 51.
The 125,000 square feet of retail space south of Veterans Parkway is being developed by Ryan Commercial Properties LLC.
It is being financed with tax increment financing approved by the city of Millington and Shelby County government that sends some of the property tax revenue generated by the development back into the project to pay infrastructure costs.
Tenants that have signed leases so far include Ross Dress for Less, Petco, Rack Room Shoes, Aspen Dental, Buffalo Wild Wings, Rue 21 and Dunham’s Sports.
The first outparcels on the property are expected to open by the end of 2016, with most of the center itself to open during the first quarter of 2017.