VOL. 132 | NO. 29 | Thursday, February 9, 2017
Memphis Real Estate Recap
Permit Filed for Boutique Arrive Hotel Downtown
By Patrick Lantrip
477 S. Main St.
Memphis, TN 38103
Permit Amount: $5.3 million
Application Date: February 2017
Owner: Wessman Development LLC
Tenant: Wessman Development LLC
Contractor: Montgomery Martin Contractors
Details: A new boutique hotel slated to open on South Main is taking a big step forward.
Montgomery Martin Contractors filed a $5.3 million permit for renovations to the former Memphis College of Art graduate school at 477 S. Main St.
Wessman Development LLC is listed as both the owner and tenant on the permit.
In September 2016, California-based Wessman Holdings bought the five-story building from MCA with plans to convert it into an Arrive Hotel, which is a boutique “lifestyle” brand targeting millennials.
In December, the Memphis City Council approved a special-use permit for the hotel.
A mile north, Wessman is converting the two-story former Leader Federal Bank building at 158 Madison Ave. into a national-brand boutique hotel.
Both projects are slated to open in 2018.
5400 Poplar Ave.
Memphis, TN 38119
Sale Amount: $5.7 million
Sale Date: Jan. 31, 2017
Buyer: Priam Capital
Seller: HBAM Member Services
Loan Amount: $4.3 million
Maturity Date: July 27, 2022
Lender: Paragon Bank
Details: Nashville-based Priam Capital has expanded its Memphis portfolio with the purchase of a 45,000-square-foot office building along the Poplar corridor.
Priam, acting as 5400 Poplar LLC, purchased the office building at 5400 Poplar Ave. from HBAM Member Services for $5.7 million, according to a Jan. 31 warranty deed filed with the Shelby County Register of Deeds.
James Reid, acting as president of HBAM, signed the warranty deed on behalf of the seller.
The 45,058-square-foot Class B office building was constructed in 1984 and sits on 2.1 acres at the northeast corner of Poplar and Valleybrook Drive, according to the Shelby County Assessor of Property. It was appraised at $4.2 million in 2016.
In conjunction with the purchase, 5400 Poplar LLC and Priam Capital filed a $4.3 million mortgage with Paragon Bank, the property’s anchor tenant.
Priam Capital principal Abhishek Mathur signed the mortgage as president of 5400 Poplar LLC. The loan will mature July 27, 2022.
In July, Priam paid $8.6 million for the Grove Park Building at 4515 Poplar, located in front of Oak Court Mall.
The Grove Park Building, Priam’s first venture into the Memphis market, had an occupancy rate of 96 percent at the time of the deal, with a mix of medical, financial services and retail tenants.
Michael Donahoe, vice president of Avison Young, brokered the sale of 5400 Poplar. Cushman & Wakefield/Commercial Advisors was selected to manage the building.
1350 Concourse Ave.
Memphis, TN 38104
Permit Amounts: $550,000 and $450,000
Application Date: January 2016
Owner: Crosstown Concourse
Tenants: The Curb Market and Tech901
Contractor: Grinder, Taber & Grinder Inc.
Details: With the Crosstown Concourse’s grand opening just a few months away, two more organizations have filed permits for tenant infill.
Grinder, Taber & Grinder Inc. filed two building permits with the city-county Office of Construction Code Enforcement totaling $1 million.
Locally owned grocery store The Curb Market and nonprofit education center Tech901 were listed as the tenants in the $550,000 and $450,000 permits, respectively.
Both permits list 1350 Concourse Ave. as the address.
The Crosstown Concourse’s grand opening will be held May 13.
4121 Runway Road
Memphis, TN 38118
Permit Amount: $381,843
Application Date: January 2016
Owner: Memphis-Shelby County Airport Authority
Tenant: Memphis-Shelby County Airport Authority
Contractor: A & B Construction Co.
Details: A & B Construction Co. filed a $381,843 building permit with the city-county Office of Construction Code Enforcement for alterations at 4121 Runway Road.
Memphis-Shelby County Airport Authority is listed as both the owner and tenant and ANF Architects is listed as the architect on the permit.
On Jan. 20, the airport authority’s board of commissioners approved A & B Construction Co.’s contract for a temporary airfield maintenance facility.
“In order to occupy those while we build a new airfield maintenance facility, we need to ready these facilities,” MSCAA president and CEO Scott Brockman said at the time.
Four companies bid for the job, but only two met the airport’s Disadvantaged Business Enterprise Program requirements – Chris Woods Construction Co. and A & B Construction, the latter of which submitted the winning bid of $1.65 million.