VOL. 132 | NO. 4 | Thursday, January 5, 2017
Memphis Real Estate Recap
Nordstrom Rack Files $1.5M Permit for Memphis Store
By Patrick Lantrip
4572 Poplar Ave.
Memphis, TN 38117
Permit Amount: $1.5 million
Project Cost: $25.2 million
Application Date: December 2016
Completion: Fall 2017
Owner: Seritage Growth Properties
Tenant: Nordstrom Rack
Architect: MG2 Corp.
Details: Nordstrom Rack is moving one step closer to opening an East Memphis location in 2017.
The retailer has filed a $1.5 million building permit application with the city-county Office of Construction Code Enforcement for its store at 4572 Poplar Ave. in the future Poplar Commons retail center.
The application, which calls for “interior tenant improvement,” lists MG2 Corp. as the architect.
This is the third multimillion-dollar permit filed for the Poplar location since Seattle-based Nordstrom Inc. announced plans for a 33,000-square-foot Nordstrom Rack on the site of the former Sears store at 4570 Poplar Ave. Nordstrom Rack is the off-price division of upscale retailer Nordstrom.
In June, Seritage Growth Partners applied for a $10.5 million permit for a single-story retail building at 4572 Poplar Ave., labeled as building 1, and two separate $2.5 million permits for shell construction at 4546 Poplar and 4562 Poplar, which were labeled as buildings 2 and 4, respectively.
Nordstrom Rack is just one piece of Seritage’s plans for Poplar Commons, located at the northwest corner of Poplar and Perkins Road Extended. According to an earnings report Seritage released in November, the company will develop a total of 135,200 square feet at a cost of $25.2 million.
In addition to Nordstrom Rack, beauty retailer Ulta has been confirmed as a tenant. Seritage’s November earnings report also calls for new buildings to house additional junior anchors, smaller retail shops and restaurants.
As of Sept. 30, Seritage’s portfolio included interests in 266 retail properties totaling more than 42 million square feet of leasable space. The company operates a Nordstrom Rack in Brentwood, Tenn., and a Nordstrom store in Nashville.
495 Watkins St.
Memphis, TN 38104
Permit Amount: $1.6 million
Application Date: December 2016
Tenant: Memphis Education Fund
Architect: ANF Architects
Contractor: Grinder Haizlip Construction Inc.
Details: Memphis Education Fund has begun work on its new Crosstown Concourse location.
Contractor Grinder Haizlip Construction Inc. filed a $1.6 million building permit application for tenant infill on the 13,995-square-foot area designed by ANF Architects.
Memphis Education Fund is a nonprofit organization that was originally created in 2014 as Teacher Town, with the hopes of attracting teachers to Memphis.
In November, Chalkbeat Tennessee reported that Teacher Town changed its name to Memphis Education Fund and adopted the new goal of improving the lowest-scoring 10 percent of schools in the city.
MEF will join several dozen other nonprofit, retail, medical and educational organizations in the mixed-use Crosstown Concourse, which is scheduled to officially open May 13.
8000 Centerview Pkwy.
Cordova, TN 38018
Sale Amount: $47.8 million
Sale Date: Dec. 22, 2016
Buyer: Real Capital Solutions
Seller: DRA Advisors LLC
Loan Amount: $43.9 million
Loan Date: Dec. 22, 2016
Maturity Date: Dec. 22, 2019
Lender: UMB Bank
Details: A large office park near the intersection of Germantown Parkway and Walnut Grove Road in Cordova has been sold for nearly $48 million.
New York-based DRA Advisors LLC, acting as DRA CRT Germantown Center LP, sold six parcels to Real Capital Solutions, acting as EAT-1615 LLC, for $47.8 million.
The six-building, 535,000-square-foot office complex known as Germantown Park sits on 40 acres and was developed between 1987 and 1999, according to the Shelby County Assessor of Property.
The warranty deed filed on Dec. 27 was signed by Valla Brown, who is the director of asset management for DRA Advisors LLC, and Linda G. Levy, who is listed as the manager of EAT-1615 LLC.
EAT-1615 also signed a mortgage with UMB Bank for $43.9 million that was filed on the same day. According to the deed of trust, the last payment is due Dec. 22, 2019, unless extended to 2022.
According to Graham Riley, vice president of commercial acquisitions for Real Capital Solutions, the investment company was interested in Memphis because of the current strength of the office market.
Riley said the company has short-term plans to fix up the properties, but when it comes to long-term plans, everything from selling off the parcels individually to retaining them for the foreseeable future is on the table.
This marks the second acquisition by Colorado-based Real Capital Solutions in 2016. In October, the Horizon Business Center, a flex warehouse development on the north side of Interstate 40 near Wolfchase Galleria, was bought for $6.3 million.
In that deal, Real Capital Solutions bought the 23,750-square-foot building at 2525 Horizon Lake Drive and the 41,300-square-foot building at 2565 Horizon Lake Drive from MM Industrial Memphis LLC.
Riley also said Real Capital Solutions may look to acquire more properties in Memphis and is looking forward to working with local brokers, especially in the office market.
22 N. B.B. King Blvd. and 28 N. B.B. King Blvd.
Memphis, TN 38103
Sale Amount: $5.9 million
Sale Date: Dec. 29, 2016
Buyer: 22 North Third LLC
Seller: Bluff City Partners LLC
Loan Amount: $3 million
Loan Date: Dec. 29, 2016
Borrower: Roger K. Patterson
Lender: State Bank and Trust Co.
Details: A Downtown Memphis hotel property has sold for $5.9 million.
A Georgia business named 22 North Third LLC purchased the Econo Lodge Downtown and its garage, located at 22 N. B.B. King Blvd and 28 N. B.B. King Blvd., from Bluff City Partners LLC in a Dec. 29 warranty deed. Mabra Holeyfield signed the deed as chief manager of Bluff City Partners.
Built in 1957, the 211,864-square-foot, low-rise hotel/motel sits on two parcels totaling half an acre at the southeast corner of B.B. King Boulevard and Court Avenue. The Shelby County Assessor of Property most recently appraised the two parcels at a combined $2.4 million.
In conjunction with the purchase, 22 North Third LLC filed a $3 million loan through State Bank and Trust Co. Roger K. Patterson signed the mortgage as manager of 22 North Third LLC.