VOL. 131 | NO. 110 | Thursday, June 2, 2016
Memphis Real Estate Recap
Nordstrom Rack-Anchored Center Gets $15.5M Construction
By Madeline Faber
4572 Poplar Ave.
Memphis, TN 38117
Permit Amount: $10.5 million
Project Cost: $15.5 million
Completion: Fall 2017
Owner: Seritage Growth Partners
Tenant: Nordstrom Rack, Ulta and others
Details: The developer of the Poplar Commons shopping center, which will open in fall 2017, has applied for its first construction permits for the 135,000-square-foot center.
The largest permit Seritage Growth Partners is seeking is $10.5 million for a single-story retail building at 4572 Poplar Ave., labeled as building 1.
Seritage also applied for two separate $2.5 million permits for shell construction at 4546 Poplar, labeled as building 2, and 4562 Poplar Ave., which is labeled as building 4.
A permit has not yet been filed for building 3.
In February, Nordstrom Inc. announced that it would open a 33,000-square-foot Nordstrom Rack store on the site of the Sears at 4570 Poplar Ave. That store will be demolished to make way for the single-story shopping center. Beauty retailer Ulta also has been confirmed as a tenant.
Struggling with dwindling sales, Sears formed Seritage as a public real estate investment trust in 2015 and sold 235 of its Sears and Kmart properties to the REIT for $2.6 billion. Among them were the Sears stores in Wolfchase Galleria and on Poplar Avenue, as well as outparcels on Poplar leased to On the Border and Avis Car Rental.
3417 Plaza Ave.
Memphis, TN 38111
Lease Length: Terminated May 30
Square footage: 7,900
Tenant: Laser Quest
Landlord: Finard Properties
Landlord’s Agent: Rick Smith
Details: Laser Quest, a longtime tenant at the Poplar Plaza Shopping Center, has closed. Rick Smith, director of property management for Finard Properties, said that increased lease rates, among other factors, led Laser Quest to decide to not renew its lease. Laser Quest opened in 1996 as part of a wave of tenants that changed the face of the East Memphis shopping center. Old Navy, Spin Street and Petco opened at the same time. About a dozen of those mid-1990s tenants still remain. Smith said Laser Quest’s corner-spot location and proximity to a $20 million, newly opened Kroger, will make the vacant bay attractive to a number of national tenants. Laser Quest’s lease was for 7,900 square feet, but Smith said Finard is open to reconfiguring adjacent spaces to make it 10,000 square feet.
5100 Poplar Ave.
Memphis, TN 38137
Permit Amount: $1.2 million
Project Cost: $6 million
Owner: Clark Tower LLC
Contractor: Dan Walker Associates Inc.
Details: Clark Tower’s lobby is getting a facelift.
Dan Walker Associates Inc. recently filed a $1.2 million building permit for “existing first floor lobby renovation” at the East Memphis tower.
Last summer, property owner In-Rel Properties Inc. announced that it planned $6 million in capital improvements for Clark Tower, including a lobby redesign, new elevator cabs and improvements to the attached, secured parking garage.
Clark Tower, at 5100 Poplar Ave., is one piece of a redevelopment strategy leveraged by In-Rel and carried out by management group Cushman & Wakefield/Commercial Advisors.
In-Rel owns both Clark Tower and the adjacent I-Bank Tower at 5050 Poplar Ave.
The Florida-based real estate group plans to unite the 16-acre office campus with increased connections to surrounding restaurants and retail.
In-Rel plans to transform the area into a walkable campus and improve the two Class B office towers to bring them up to Class A status.
5349 Airline Road
Arlington, TN 38002
Project Cost: $2.4 million
Completion: Fall 2016
Owner: Dr. Purvisha Patel and Dr. Dharmesh Patel
Tenant: Advanced Dermatology & Skin Cancer Associates
Architect: Ledford Engineering and Planning LLC
Details: Advanced Dermatology & Skin Cancer Associates, which has offices in Germantown and Olive Branch, is building a new office in Arlington.
The 14,500-square-foot building will house skin cancer treatment services, cosmetic dermatology procedures and spa treatments.
The $2.4 million building will open this fall at 5349 Airline Road, at the corner of Milton Wilson Boulevard.
Ledford Engineering and Planning LLC is the architect on the project.
2140 to 2150 W. Poplar Ave.
Collierville, TN 38017
Sale Amount: $3.5 million
Sale Date: May 20, 2016
Buyer: PHC Country Club Collections LLC
Seller: 2140-2150 Poplar Avenue Holdings LLC
Loan Amount: $1.4 million
Loan Date: May 23, 2016
Maturity Date: June 15, 2026
Lender: Wells Fargo Bank
Details: 2140-2150 Poplar Avenue Holdings LLC, a company of Maryland-based CW Capital Asset Management LLC, sold a Collierville shopping center in a May 20 warranty deed to PHC Country Club Collections LLC for $3.5 million.
The shopping center, which stretches from 2140 to 2150 W. Poplar Ave., includes Bangkok Alley and Chiropractic Memphis among its tenants.
According to the Shelby County Assessor of Property, the center was built in 2004 and bears 24,480 square feet. It was most recently appraised at $2.6 million.
In conjunction with the sale, PHC Country Club Collections signed a $1.4 million mortgage for the property with Wells Fargo Bank. The loan was signed May 23, 2016, and matures June 15, 2026.