VOL. 132 | NO. 249 | Monday, December 18, 2017
Memphis Real Estate Recap
Possible Trader Joe’s Update, New $35M Airport Facility
By Patrick Lantrip
In this week’s Real Estate Recap, a new development in the saga of Germantown’s Trader Joe’s, Memphis International Airport begins work on a new $35 million facility, and Central BBQ announces a new a location...
2130 Exeter Road
Germantown, TN 38138
Sale Amount: $8.1 million
Sale Date: Dec. 11, 2017
Buyer: Wicker Park Capital Management
Seller: Robert H. Schwab
Details: Developers planning renovations of the old Kroger location at 2130 Exeter Road have bought out the property’s previous owners in a multimillion-dollar deal.
Savannah, Georgia-based Wicker Park Capital Management, doing business as 2130 Exeter Road Holdings, has acquired the site from previous owner Robert H. Schwab for $8.1 million, according to warranty deed filed with the Shelby County Register on Dec. 11.
The site in question has become somewhat of a real estate enigma recently, largely due to the on-again-off-again speculation surrounding the future of the area’s first Trader Joe’s location.
Most recently, the developers filed a $90,000 building permit application to begin façade work on the building earlier this month.
Prior to filing that permit, 2130 Exeter Road Holdings’ final site plan was approved by the Germantown Planning Commission on Nov. 7.
While no specific tenants were named on the building permit during the planning commission meeting, Germantown Economic and Community Development director Cameron Ross said at that time the new developers were actively recruiting tenants who will offer a significant reduction in the number of daily grocery deliveries at the store.
The ballad of Trader Joe’s, which initially began in the fall of 2015, hit its first road bump in June 2016 when a Trader Joe’s spokesperson announced the store’s opening would be pushed back from the third quarter of 2016 to sometime in 2017.
Six months later, prior developers Centennial American Properties, working as CAP Germantown LLC, filed a $2.5 million building permit application that called for interior and exterior renovations to the former Kroger. Among the changes were modifications to the front wall “to create a new look on the front facade” and “interior modifications (shell only) for Trader Joe’s and future mercantile tenants.”
A representative with Trader Joe's told The Daily News at that time the project would likely be pushed back again, this time until 2018.
Trader Joe’s website still lists the 2130 Exeter Road location as “coming 2018.”
4150 Louis Carruthers Drive
Memphis, TN 38118
Permit Amount: $35 million
Owner: Memphis-Shelby County Airport Authority
Tenant: Memphis International Airport
Details: Memphis International Airport has filed a $35 million building permit application to construct a 121,700-square-foot airfield maintenance facility at 4150 Louis Carruthers Drive.
No contractor was listed for the new permanent facility, which will house Memphis International’s airfield maintenance and airport police personnel; bids for the project are expected to go out next month.
In February, A&B Construction Co. filed a $381,843 building permit application with the city-county Office of Construction Code Enforcement to build a temporary maintenance facility at 4121 Runway Road. The Memphis-Shelby County Airport Authority board approved A&B’s contract for the temporary facility in January after the company’s bid bested offers from three other companies.
3315 Hacks Cross Road
Memphis, TN 38119
Sale Amount: $2.7 million
Buyer: Judith Obermeir
Seller: Faropoint Ventures
Seller Rep: Brian Califf, Elliot Embry NAI Saig Co.
Details: A 15,400-square-foot retail center around the corner from FedEx’s World Headquarters has been purchased by a California investor for $2.7 million.
Judith Obermeir of San Luis Obispo bought the center at 3315 Hacks Cross Road from Israeli investment firm Faropoint Ventures, which had purchased it in June 2016 for $2.2 million.
In a little more than a year, Faropoint was able to stabilize the property, which was 100 percent occupied at the time of closing, by leasing up the remaining vacant space.
NAI Saig Co. executive vice president Brian Califf and vice president Elliot Embry represented Faropoint in the leasing and disposition of the asset.
Faropoint has been busy in the Memphis market recently. In November, the company sold Trustmark Centre, 5350 Poplar Ave., for $19.3 million. Fresh off that sale, it paid a combined $19.3 million for the Lipscomb & Pitts Building, 2670 Union Ave. Extended, and Poplar Towers, 6263 Poplar Ave.
At the time, Califf said the acquisitions showed Faropoint’s commitment to the Memphis market, adding the company was “actively seeking new office and industrial deals to purchase by year end and into the first quarter of next year.”
6201 Poplar Ave.
Memphis, TN 38119
Tenant: Central BBQ
Landlord: LK Real Estate Holdings LLC
Details: Central BBQ LLC announced Thursday, Dec. 14, that it will open its fourth Memphis area restaurant along the Poplar Avenue corridor.
The new restaurant at 6201 Poplar Ave. will occupy space that formerly housed LYFE Kitchen and is expected to open in late spring 2018. The site is located between Poplar and Park avenues just east of Ridgeway Road in the heart of Memphis’ Class A office market.
Webb Wilson, president of Central BBQ LLC, said the company is pleased to continue growing in Memphis.
Craig Blondis, co-founder of Central, said the new location will offer the same “award-winning barbecue served with a side of Southern hospitality that Memphians and out-of-towners deserve and have come to expect.”
Earlier this year, Central BBQ entered into an agreement with Kemmons Wilson Cos. to expand its brand and begin opening its first stores outside the Memphis market.
Central has been in business for 15 years and is a perennial winner of barbecue contests.