VOL. 132 | NO. 244 | Monday, December 11, 2017
Out-of-Town Investors Buy Gibson Guitar Factory
By Patrick Lantrip
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.