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VOL. 132 | NO. 244 | Monday, December 11, 2017

Out-of-Town Investors Buy Gibson Guitar Factory

By Patrick Lantrip

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145 Lt. George W. Lee Ave., Memphis, TN 38103: Investment firms in New York and Miami have purchased the Gibson Guitar Factory property in Downtown Memphis and an additional warehouse Gibson Brands Inc. owns in Nashville.

Sale Amount: Undisclosed

Sale Date: Dec. 13, 2017

Buyer: Somera Road Inc., Tricera Capital

Seller: Gibson Brands Inc.

Details: In what was described as a “complex transaction,” real estate investment firms Somera Road Inc. of New York and Tricera Capital of Miami have teamed up to buy the iconic Memphis property, which is situated due west of the FedExForum and just south of the Beale Street entertainment district. 

The transaction, which is expected to close on Dec. 13, includes the 150,000-square-foot factory and showroom located at 145 Lt. George W. Lee Ave. and a 350-space parking lot at 0 Pontotoc Ave. Financial terms of the sale were not immediately available.

The new owners have indicated that they are still determining the best use of the property and have tapped Andy Cates and Andrew Phillips of Colliers International for property management and leasing services.

The Daily News originally broke the news that Gibson Brands was selling its guitar factory and adjacent parking lot across South B.B. King Boulevard from FedExForum on Oct. 20.

At the time, a representative of the sellers told TDN that while Gibson won’t be leaving Memphis anytime soon, the owners felt the current location was too big for what they need.

The next day, the guitar maker confirmed that it was putting its Downtown Memphis factory on the market and announced plans to build and lease a new facility at an undisclosed location nearby to improve product quality, increase production capacity and potentially increase local employment.

At the time, CEO Henry Juszkiewicz said Gibson Brands was seeking a buyer that would allow Gibson to continue to operate in the current location while the new facility is under construction, according to the announcement.

Founded in 1894, Gibson produces musical instruments, consumer electronics and professional audio equipment. Along with the Memphis factory, it has production facilities in Nashville and in Bozeman, Montana.

The 24,080-square-foot Nashville warehouse, which sits on a half-acre in the North Gulch district, was also acquired by Somera Road and Tricera Capital for $6.83 million, The Tennessean reported on Nov. 14.

3300 Ridgecrest Road Ext.

Jackson, TN 38305

Project Cost: $31 million

Application Date: Dec. 5, 2017

Tenant: Toyota Boshoku Tennessee LLC

Expansion Size: 143,000 square feet

New Jobs: 139

Details: Automotive components manufacturer Toyota Boshoku Tennessee LLC is planning to create 139 new jobs in West Tennessee by expanding its operations in Jackson.

With this $31 million expansion, Toyota Boshoku will add 143,000 square feet to its current facility in Jackson and will consolidate welding operations and add new equipment to its Madison County location, resulting in 139 new jobs.

“Tennessee is known for its strength in the automotive sector and it is because of companies like Toyota Boshoku that the automotive industry in Tennessee continues to grow and excel,” Tennessee Gov. Bill Haslam said in a release.

Toyota Boshoku America Inc. serves as the Western Hemisphere arm of its Kariya, Japan-based parent company and employs more than 11,000 people in 18 locations throughout the U.S., Canada, Mexico, Brazil and Argentina.

“The support from the city of Jackson and Madison County has been greatly appreciated since 2001,” said Toyota Boshoku Tennessee president Kimihiko Sumino.

600 Jefferson Ave.

Memphis, TN 38105

Sale Amount: $3.1 million

Sale Date: Dec. 5, 2017

Buyer: Methodist Healthcare Memphis Hospitals

Seller: Urban Child Institute

Details: Methodist Healthcare Memphis Hospitals has purchased a 69,280-square-foot building in the Medical District for $3.1 million, according to a Dec. 5 warranty deed.

In the sale, Methodist purchased the Class B office building from the Urban Child Institute, a local nonprofit that moved into a fourth-floor suite in Crosstown Concourse.

Gary Shorb, UCI’s executive director who previously served as CEO of Methodist Le Bonheur Healthcare, signed the deed of sale on behalf of UCI.

Built in 1975 and sitting on 2.3 acres near the intersection of Jefferson Avenue and Neely Street, the property was appraised for $5.3 million this year by the Shelby County Assessor of Property.

1280 W. Poplar Ave.

Collierville, TN 38017

Sale Amount: $6.5 million

Sale Date: Dec. 1, 2017

Buyer: Wright Investments

Seller: Crews Development

Loan Amount: $7.3 million

Loan Date: Dec. 1, 2017

Maturity Date: November 2021

Lender: State Bank and Trust Co.

Details: Wright Investments has purchased the Hampton Inn at 1280 W. Poplar Ave. in Collierville for $6.5 million, according to a Dec. 1 warranty deed.

Wright, doing business as HIMC LLC, bought the property from Memphis-based Crews Development, which was doing business as SGR LLC.

Jason Crews, acting as chief manager, signed the deed on behalf of the sellers.

In conjunction with the acquisition, the new owners took out a $7.3 million mortgage with State Bank and Trust Co. that will mature in November 2021.

Located on West Poplar east of Shea Road, the 44,724-square-foot hotel was built in 1997 and sits on 3.6 acres.

The Shelby County Assessor of Property most recently appraised it at $4.6 million.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 74 74 17,939
MORTGAGES 95 95 20,660
FORECLOSURE NOTICES 0 0 2,693
BUILDING PERMITS 141 141 36,977
BANKRUPTCIES 59 59 11,485
BUSINESS LICENSES 17 17 5,865
UTILITY CONNECTIONS 27 27 6,857
MARRIAGE LICENSES 41 41 4,090