VOL. 131 | NO. 205 | Thursday, October 13, 2016
Memphis Real Estate Recap
Southeast Memphis Portfolio Sells for $23.6 Million
By Madeline Faber
Memphis, TN 38118
Sale Amount: $23.6 million
Sale Date: Sept. 27, 2016
Buyer: Gateway McKinley Inc.
Seller: DP 73 LLC
Loan Amount: $12.9 million
Loan Date: Sept. 27, 2016
Lender: Natixis Real Estate Capital LLC
Details: Six warehouses and a parcel of vacant land in southeast Memphis have sold for a combined $20 million. The seller, Gateway McKinley Inc., purchased the seven properties in 2000 for $23.6 million.
DP 73 LLC, a company of New York-based Diamond Acquisitions LLC, purchased the portfolio in a Sept. 27 warranty deed.
The properties include:
• Class A warehouse at 4770 Malone Road. The 74,736-square-foot warehouse was built in 1994 and was most recently appraised at $1.9 million.
• Class A warehouse at 4350 E. Shelby Drive. The 164,200-square-foot warehouse was built in 1993 and was most recently appraised at $4 million.
• Class A warehouse at 4650 Shelby Air Drive. The 127,400-square-foot warehouse was built in 1987 and was most recently appraised at $2.8 million.
• Class A warehouse at 4570 Shelby Air Drive. The 127,400-square-foot warehouse was built in 1987 and was most recently appraised at $2.5 million.
• Class B warehouse at 4500 Atlantic Way. The 24,000-square-foot warehouse was built in 1987 and was most recently appraised at $538,900.
• Class A warehouse at 4401 Atlantic Way. The 458,480-square-foot warehouse was built in 1987 and was most recently appraised at $7.5 million.
• Three acres of vacant land at 4560 Shelby Air Drive that is appraised at $100.
The properties comprise a combined 68 acres. DP 73 LLC financed the purchase with a $12.9 million trust deed through Natixis Real Estate Capital LLC. James A. Diamond signed on behalf of the buyer.
825 N. Germantown Parkway
Permit Amount: $850,000
Completion: February 2017
Owner: Tim Heeren
Tenant: Freddy’s Frozen Custard & Steakburgers
Details: Freddy’s Frozen Custard & Steakburgers, a fast-casual restaurant chain, is coming to the Memphis market. Franchise owner Tim Heeren recently applied for an $850,000 building permit at 825 N. Germantown Parkway in Cordova.
He plans to raze an existing Pizza Hut and build a 3,000-square-foot Freddy’s restaurant, the first in the Memphis market.
He’s aiming for construction to begin in November with a mid-February opening. The Cordova location will be the first of an eight- to 10-store expansion, Heeren said.
He has purchased a site in Olive Branch at Goodman Road and U.S. 78, and he is also eyeing sites in Millington, Collierville and Midtown.
The Cordova location will employ between 60 and 80 people.
“The closest one is probably St. Louis … so the Memphis market was untouched at this point, so that’s what attracted us. It’s a great market to come in with a fast-casual design,” he said.
Memphis, TN 38106
Sale Amount: $18 million
Sale Date: Oct. 5, 2016
Buyer: BKEP Terminalling LLC
Seller: Ergon Terminaling Inc.
Details: Four industrial properties on Presidents Island have sold for $18 million.
Ergon Terminaling Inc. sold the properties in an Oct. 5 warranty deed to BKEP Terminalling LLC. Robert H. Lampton, president, signed on behalf of the seller.
The properties include:
• A Class C warehouse at 2081 Channel Ave. The 2,520-square-foot warehouse was built in 1986 and most recently appraised at $217,700.
• A Class C flex building at 2029 Channel Ave. The 990-square-foot property was built in 1960 and was most recently appraised at $626,300.
• A flex building at 1989 Channel Ave. The 5,787-square-foot property was built in 1997 and was most recently appraised at $656,300.
• A Class C warehouse at 1979 Channel Ave. The 10,150-square-foot warehouse was built in 1958 and was most recently appraised at $646,600.
477 S. Main
Memphis, TN 38103
Sale Amount: $2.5 million
Sale Date: Oct. 7, 2016
Buyer: Wessman Holdings LLC
Seller: Memphis College of Art Inc.
Details: A California-based investor has purchased the former Memphis College of Art graduate school at 477 S. Main St.
As The Daily News previously reported, Wessman Holdings LLC plans to turn the former Nesin Graduate School into an Arrive hotel. This will be the fourth location for the boutique hotel brand.
The 48,000-square-foot building went for $2.5 million in an Oct. 6 warranty deed. MCA purchased the building in 2010 for $400,000.
9435 Poplar Ave.
Germantown, TN 38138
Sale Amount: $1.8 million
Sale Date: Sept. 30, 2016
Buyer: Kneeland Downs Properties LLC
Seller: Patton And Taylor Properties
Details: A Germantown shopping strip has sold for $1.8 million in a Sept. 30 warranty deed.
Patton And Taylor Properties, a general partnership, sold the property at 9435 Poplar Ave. to Kneeland Downs Properties LLC.
The 10,080-square-foot shopping strip names Bikes Plus, Green China and State Farm among its tenants. The property was built in 2003 and was most recently appraised at $1.3 million.