VOL. 132 | NO. 165 | Monday, August 21, 2017
Downtown Lofts to Begin Second Phase
By Patrick Lantrip
In this week’s Real Estate Recap, 266 Lofts in Downtown Memphis begins its second phase, Peak Capital closes on a massive Cordova apartment complex, and a Chattanooga-based rock climbing gym purchases land in East Memphis.
266 S. Front St.
Memphis, TN 38103
Permit Amount: $595,000
Application Date: Aug. 16, 2017
Completion: Summer 2018
Owner: Vince Smith, Robert E. Mallory and John H. Dicken Jr.
Architect: Renaissance Group
Details: The area surrounding developer Vince Smith's project, 266 Lofts, located at the corner of Front Street and Martin Luther King Jr. Avenue, has already seen its share of changes since it broke ground last year, and it’s about to change even more.
Now that Phase I of the project has officially entered the leasing stage, Smith and his partners, Robert E. Mallory and John H. Dicken Jr., have their sights set on the next phase, which will include a courtyard, pool and 5,000 square feet of speculative retail space with a patio.
“The site previously contained a small, nondescript office building with over 150 surface parking spaces and crumbling sidewalks,” Smith said. “Now, 266 Lofts is home to an urban contemporary apartment building, adding vibrancy and activation to Downtown.”
Phase II is to break ground in the next 60 days and wrap up in the summer of 2018.
On Aug. 16, Smith filed a $595,000 building permit application with the Office of Construction Code Enforcement that listed Renaissance Group as the architect.
Price points at the 266 Lofts development are similar to, if not below, average price points for new units in Midtown and Downtown, Smith said.
“We might be slightly below market averages for new construction,” Smith said. “One-bed, one-bathroom spaces start at $1,175, or $1.50 per square foot, and two-bed, two-bathroom apartments range from $1,550 to $1,975, or $1.48 per square foot.”
Like many of the other multifamily projects in the Downtown area, Smith said they are after the coveted young professional demographic.
“We’ve already welcomed young professional residents from ServiceMaster and St. Jude,” he said. “Downtown density is growing, and we’re glad to accommodate new talent in the neighborhood.”
The developers have already filled 30 of the 77 units in Phase I.
On the retail side, Smith said they are in the very early stages of finding tenants, and have had preliminary talks with several restaurant/bar operators. But the partners are considering many types of retail tenants.
“We want the space to complement and add to the already incredibly strong amenities in the area,” he said.
2851 N. Houston Levee Road
Memphis, TN 38133
Sale Amount: $27.9 million
Buyer: Peak Capital Partners
Seller: Wesscorp Communities
Loan Amount: $22.1 million
Borrower: Jeff Danley
Details: Peak Capital Partners, a Utah-based apartment investment and management firm, has closed on The Charleston apartments in Memphis, the company has announced. Peak bought the property from Tennessee-based Wesscorp Investments.
“The Charleston is the final community of a five-property portfolio that Peak began acquiring last year,” said Jamie Dunn, founder and managing partner of Peak Capital Partners. “The Charleston is located in Cordova, one of the fastest-growing neighborhoods of Memphis. Peak Capital is excited to continue expanding our footprint in the Memphis market and appreciates the positive working relationship with Wesscorp.”
Wes Misenhelter, founder and CEO of Wesscorp Investments, said his company looks forward to future investment and development opportunities with Peak.
The Charleston includes 284 units in a newly built, gated community that offers one- to three-bedroom units. With The Charleston acquisition, Peak’s Memphis portfolio now totals 1,316 units.
Peak’s other four recent Memphis acquisitions from Wesscorp include The Orleans, Angelo’s Grove, Pinebrook Pointe and Grahamwood Place.
0 Humphreys Blvd.
Memphis, TN 38120
Sale Amount: $1.9 million.
Buyer: High Point Rock Climbing and Fitness
Seller: Boyle Investment Co.
Details: Chattanooga-based High Point Rock Climbing and Fitness Memphis, doing business as High Point Memphis LLC, has purchased an undeveloped tract of land adjacent to Christian Brothers High School from Boyle Investment Co., doing business as BIC HH Partnership, for $1.9 million.
Matthew Hayden signed the deed as treasurer on behalf of Boyle.
Earlier this month, High Point submitted plans to develop a 31,600-square-foot rock climbing facility 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 had not closed on the property, but planned to do so “within the next couple of weeks.”
The application will be reviewed by the Land Use Control Board on Sept. 14.
595 Danny Thomas Place
Memphis, TN 38105
Permit Amount: $2.3 million
Application Date: Aug. 16, 2017
Owner: St. Jude Children’s Research Hospital
Tenant: St. Jude Children’s Research Hospital
Architect: Rusty Foster, principal with Evans Taylor Foster Childress Architects
Engineer: Rodney Hubbard, MEDFAC Engineering
Details: St. Jude Children’s Research Hospital has filed a $2.3 million building permit application with construction enforcement officials for interior renovations at 595 Danny Thomas Plaza.
Rusty Foster, principal with Evans Taylor Foster Childress Architects, and Rodney Hubbard with MEDFAC Engineering were tapped to handle the design work.
Earlier this month, St. Jude filed a $2.6 million building permit application for interior renovations on its 545 Danny Thomas Blvd. facility. Additionally, the hospital filed a $1.1 million building permit application in July to install a new nuclear magnetic resonance, or NMR, laboratory.