VOL. 132 | NO. 254 | Monday, December 25, 2017
Memphis Real Estate Recap
Downtown Hotel Revival; Two Companies Look to Expand in Southwest Memphis
By Patrick Lantrip
5050 E. Holmes Road, Memphis, TN 38118 (Map data ©2017 Google)
5050 E. Holmes Road
Memphis, TN 38118
Project Cost: $720,000
Application Date: Dec. 20, 2017
Tenant: Agilent Technologies
Details: Agilent Technologies has been awarded a 10-year Fast Track payment-in-lieu-of-taxes (PILOT) incentive to expand its facility at 5050 Holmes Road. The company said it will create 117 jobs paying an average salary of $40,670 excluding benefits.
In addition to the new jobs, Agilent will invest $720,000 at the facility, including $360,000 to renovate 220,635 square feet of the 454,713-square-foot facility and $340,000 to purchase new computer equipment and copiers.
Economic Development Growth Engine of Memphis and Shelby County staff projected a little more than $5 million in local tax revenue will be generated during the PILOT term, with a $1.6 million benefit to the applicant, for a 3.13 cost-to-benefit ratio.
Per terms of the PILOT, Agilent must spend at least $332,184 with Memphis and Shelby County certified minority and women business enterprises (MWBEs).
Headquartered in Santa Clara, California, and employing more than 12,500 workers worldwide, Agilent specializes in providing life sciences laboratories with instruments, software, services, consumables and applications focused in six key areas: food, environmental and forensics, pharmaceutical, diagnostics and clinical, chemicals and energy, and academia and research.
The expansion will make the Memphis logistics facility the company’s primary American distribution center.
4926 Southridge Blvd.
Memphis, TN 38141 (et al)
Project Cost: $4.2 million to $14 million
Application Date: Dec. 20, 2017
Tenant: Technicolor Videocassette of Michigan Inc.
Details: The EDGE board approved four expansion possibilities for Technicolor Videocassette of Michigan Inc., a division of France-based Technicolor SA that would retain 158 to 900 full-time positions in Memphis with an average annual salary of $45,675.
In an unusual twist, Technicolor will have until March 30 to notify EDGE officials which of the four scenarios they are choosing to base their PILOT award on.
Officials hope that the tax incentive package will shift the balance back to Shelby County, as Technicolor is also considering moving all or part of its local operations to locations in Fayette County; LaVergne, Tennessee; or Huntsville, Alabama.
The first scenario, which is the most lucrative, is a 15-year Expansion PILOT that would retain 916 jobs averaging $46,085 a year and result in $14 million of capital investment. The fourth scenario, which is the smallest, is a 10-year PILOT that would retain 158 jobs averaging $44,494 and result in $4.2 million in capital investment.
Meanwhile, scenarios two and three are both 15-year PILOTs that would retain 702 and 391 jobs, respectively, and result in capital investments ranging from $7 million to $10.7 million.
Depending on the scenario, up to four properties – 5215 S. Lamar Ave., 4155 E. Holmes Road, 4010 Holmes Road, and 4926 Southridge Blvd. – would be affected by Technicolor’s decision, with the Southridge property being the only one affected by all four scenarios.
Mandatory local business participation ranges from $754,328 for the smallest PILOT to $5.5 million for the largest.
Founded in 1910, Technicolor employs more than 17,000 people worldwide, including 7,678 in North America. The company’s DVD services operations occupy around 12 million square feet worldwide, including 4.1 million square feet of distribution space in Memphis.
1660 Stateline Road
Southaven, MS 38671
Project Cost: $1.7 million
Tenant: Henry Schein Animal Health
Details: Henry Schein Animal Health, an Ohio-based distributor of animal health products, has opened its new Southaven facility.
The 50,000-square-foot distribution center was the result of a collaboration with the Mississippi Development Authority, according to Henry Schein Animal Health North America president Fran Dirksmeier.
“It will greatly enhance our ability to fulfill our mission to provide the best customer experience possible,” Dirksmeier said in a release announcing the deal. “Henry Schein Animal Health is committed to being the total solutions provider for veterinary professionals, and we look forward to counting ourselves as proud members of the Southaven business community.”
The facility will result in 27 new jobs.
CBRE senior vice president Patrick Burke represented Henry Schein.
“We are proud that a company of this stature in the veterinarian supplies field would choose Southaven and DeSoto County for their newest distribution facility,” DeSoto County Economic Development Council president and CEO Jim Flanagan said.
164 Union Ave.
Memphis, TN 38103
Permit Amount: $600,100
Owner: Epiq Hotels Inc.
Tenant: Fairfield Inn & Suites by Marriott
Details: The owner of the former Benchmark Hotel at Union Avenue and South B.B. King Boulevard appears ready to move forward on the redevelopment of the partially gutted five-story hotel.
MNR Hospitality LLC, an affiliate of Goodlettsville, Tennessee-based Epiq Hotels Inc., has filed a $600,100 building permit application with construction code officials to renovate the 103,000-square-foot structure at 164 Union.
The application comes three months after signage went up along the hotel’s exterior stating the property would be redeveloped as a Fairfield Inn & Suites by Marriott, with a scheduled opening in 2019. The signage lists Cleveland Construction as the contractor and Pinnacle South as the project’s financier.
MNR bought the 124-room Benchmark in December 2012 for $3.2 million from RHG Memphis Hotel Inc. Last year, the company began demolishing the nearly 60-year-old building before running into financing issues that stalled the project.
The hotel, which closed in 2011, is situated on half an acre on the north side of Union west of South B.B. King. The Shelby County Assessor appraised it at $1.4 million this year.