VOL. 132 | NO. 158 | Thursday, August 10, 2017
Cordova Apartment Community Sells for $27.9M
By Patrick Lantrip
2851 N Houston Levee Road, Cordova, TN 38016 (Map data ©2017 Google)
The Charleston, a 284-unit apartment community on the east side of Houston Levee Road just south of U.S. 64, has sold for $27.9 million, marking a new chapter for a property that was built just last year.
2851 N Houston Levee Road
Cordova, TN 38016
Sale Amount: $27.9 million
Buyer: Peak Capital Partners
Seller: Wesscorp Communities
Loan Amount: $22.1 million
Borrower: Jeff Danley
Details: The Charleston, a 284-unit apartment community on the east side of Houston Levee Road just south of U.S. 64, has sold for $27.9 million, marking a new chapter for a property that was built just last year.
In the transaction, Provo, Utah-based Peak Capital Partners, doing business as PC Charleston LLC, purchased the 24-acre parcel from local developer Wesscorp Communities, doing business as Charleston HL Apartment Community LLC.
Charles W. Misenhelter, signed the deed on behalf of the sellers.
The 379,731-square-foot complex, located at 2851 N. Houston Levee Road, was appraised at $23.1 million this year, according the Shelby County Assessor of Property.
In conjunction with the purchase, Jeff Danley, Peak Capital’s founder and managing partner, took out a $22.1 million mortgage with KeyBank on behalf of PC Charleston.
Wesscorp began The Charleston project in 2014 when the company purchased the vacant 24-acre parcel for $1.3 million. A year later, the company obtained $30 million in construction financing from the Memphis office of Financial Federal Bank.
The complex was designed to house 12 units per acre. One-bedroom units average more than 900 square feet, while two- and three-bedroom units average almost 1,200 square feet.
Construction on the project wrapped up in November.
Brianna Mann and Rose Ann Houge of Peak Management Group have been tasked to handle the leasing. After five months, occupancy is already up to 60 percent, according to Wesscorp’s website.
The Charleston’s sale is the final piece in Peak Capital’s acquisition of five Wesscorp apartment communities in Memphis. The deal, which was announced in February 2016, totaled 1,316 units.
The other four properties – The Orleans at Walnut Grove, Grahamwood Place Apartments and Pinebrook Pointe Apartments in Memphis, along with Angelo’s Grove in Marion, Arkansas – were existing communities whose sale closed within a few months of the announcement. But because construction on The Charleston had not been completed, the sale was delayed until now.
Peak Capital’s acquisition of the Wesscorp portfolio marked the company’s entrance into the area.
Peak Capital and its affiliates own properties in 10 U.S. markets, according to the company, and its assets include a mix of conventional, affordable and student apartments. Along with the five Memphis-area assets it purchased from Wesscorp, Peak owns five communities in the Nashville area.
545 S. Main St.
Memphis, TN 38103
Permit Amount: $1 million
Project Cost: $55 million
Owner: Memphis Area Transit Authority
Tenant: Memphis Area Transit Authority
Details: Work on the $55 million Central Station renovation is continuing as a roughly $1 million building permit application has been filed with construction officials.
The permit calls for renovations and additions to 545 S. Main St. Memphis Area Transit Authority as listed as the owner and tenant. LRK Inc. and DPC Engineering are listed as the project’s architect and engineer, respectively, and Zellner Construction Services as the contractor.
The Central Station redevelopment project will include a Malco theater, boutique hotel, apartments, restaurants, retail and infrastructure improvements.
8010 Stage Hills Blvd.
Bartlett, TN 38133
Sale Amount: $2.6 million
Buyer: Cambridge Franchise Group
Seller: D3 Bartlett LLC
Details: A nearly 18,000-square-foot office building in Bartlett has sold for $2.6 million.
Cambridge Franchise Group, doing business as CFH Real Estate LLC, purchased the building where its parent company, Garnett Station Partners, is located.
The site’s previous owners, D3 Bartlett LLC, purchased the site from Medarm Inc. in August 2016 for $1.4 million.
Cambridge Franchise Group is the Burger King franchise management arm of Garnett Station, which also operates Maaco and Fridababy divisions. Currently, CFG operates 85 Burger Kings in seven states, and is expected to own more than 120 by the end of the year, according to its website.
The 3-acre site was appraised this year by the Shelby County Assessor for $1.5 million.
0 Humphreys Blvd.
Memphis, TN 38120
Buyer: High Point Climbing and Fitness
Seller: Boyle Investment Co.
Details: Chattanooga-based High Point Climbing and Fitness has submitted plans with development officials to open a Memphis location adjacent to Christian Brothers High School in East Memphis.
According to the plans, High Point Memphis LLC plans to erect a 31,600-square-foot rock climbing facility on a 2.7-acre tract of land that backs up to CBHS’ baseball field near Humphreys Boulevard and Walnut Grove Road.
In a letter of intent, engineer Michael Rogers with Fisher & Arnold Inc. informed Office of Planning and Development officials that High Point Memphis has not yet purchased the property, but is listed as the owner because “they will be closing on the property within the next couple of weeks,” Rogers wrote.
The Shelby County Assessor of Property has appraised the site at $548,800.
It is currently owned by BIC H Partnership, a Boyle Investment Co. subsidiary.
The Land Use Control Board will review High Point Climbing and Fitness’ application Sept. 14.