VOL. 132 | NO. 143 | Thursday, July 20, 2017
Memphis Real Estate Recap
Atlanta Retail Investor Makes $29M Purchase
By Patrick Lantrip
6005 Stage Road, Bartlett, TN 38134 (Map data ©2017 Google)
In this week’s Real Estate Recap, an 18-acre shopping center in the heart of Bartlett sells for $28.8 million, Ulta Beauty prepares to build out its space in Poplar Commons, and Dave & Buster’s continues work on its first Memphis location...
6005 Stage Road
Bartlett, TN 38134
Sale Amount: $28.8 million
Sale Date: July 2017
Buyer: Branch Properties LLC
Seller: Weingarten Realty
Details: A 198,103-square-foot shopping center in the heart of Bartlett has sold for $28.8 million.
In the deal, The Bartlett Towne Centre, located at 6005 Stage Road, was acquired by Atlanta-based private real estate investment firm Branch Properties LLC from Houston, Texas-based real estate investment trust, Weingarten Realty.
Built in 1989, the Kroger-anchored retail center sits on just under 18 acres at the southeast quadrant of Stage Road and Bartlett Boulevard. Earlier this year, the Shelby County Property Assessor appraised the property for $18.5 million.
According to documents filed with the Shelby County Register of Deeds, the shopping center has 27 other tenants besides Kroger, including Petco, Dollar Tree, Rent-A-Center and several restaurants.
Mark D. Stout, senior vice president/general counsel for Weingarten, signed the deed on its behalf, while Richard H. Ross, Branch Properties’ executive vice president and CFO, signed for the buyer.
4834 S Mendenhall Road
Memphis, TN 38141
Sale Amount: $6.1 million
Sale Date: July 2017
Buyer: Aaron Thomas Co.
Seller: Glencore Cotton Storage USA
Details: Los Angeles-based packing company Aaron Thomas Co. is growing its Mid-South footprint with the purchase of a 400,000-square-foot facility at 4834 S. Mendenhall Road from Glencore Cotton Storage USA.
Brad Murchison of Colliers International represented Aaron Thomas in the $6.1 million transaction, while Preston Thomas, also with Colliers International, represented the seller.
“The acquisition of 4834 S. Mendenhall by Aaron Thomas Co. was strategic in the fact that the building is in close proximity to their current operation located at 5649 Distribution Drive consisting of 240,000 square feet,” Murchison said. “The additional 400,000 square feet will provide Aaron Thomas the ability to meet the contract packaging demands of its current and future customer base that have the need to be serviced out of Memphis.”
Founded in 1973, Aaron Thomas is a full-service contract packaging company. The Memphis office opened in 1988.
Built in 1978, the 400,000-square-foot distribution facility includes a 150-foot-deep truck court, 22-foot clear height and 6,500 square feet of office space.
4572 Poplar Ave.
Memphis, TN 38117
Permit Amount: $450,000
Project Cost: $25 million
Application Date: July 2017
Owner: Seritage Growth Properties
Tenant: Ulta Beauty
Details: Ulta Beauty is preparing to build out its space in Poplar Commons, the East Memphis shopping center rising across from Oak Court Mall.
The cosmetics retailer is seeking a $450,000 permit application to work on the interior of its future location at 4572 Poplar Ave., inside the shopping center that will be anchored by Nordstrom Rack. No contractor is listed on the application.
Property owner Seritage Growth Properties is building the $25 million center on the site of the former Sears store at Poplar Avenue and Perkins Road Extended. In addition to Nordstrom Rack and Ulta, the 135,200-square-foot retail center will feature an LA Fitness gym, junior anchors, smaller retail stores and restaurants.
Following Sears’ closure in April 2016, Seritage razed the store and auto center on a nearby outparcel and began construction on the five new buildings that compose Poplar Commons. It pulled a permit in January for the build-out of Nordstrom Rack’s space.
The company’s latest earnings report, released in May, estimates the center will reach “substantial completion” in the third quarter.
Seritage is a publicly traded, self-managed real estate investment trust that spun off from Sears Holdings in 2015. The company has 235 wholly owned properties – of which 201 are leased to Sears Holdings – as well as 31 joint venture properties. Overall, its portfolio totals more than 42 million square feet across 49 states and Puerto Rico.
2765 Wolf Creek Parkway
Memphis, TN 38133
Permit Amount: $179,330
Application Date: July 2017
Owner: Brixmor Property Group
Tenant: Dave & Buster’s
Contractor: North American Roofing Services Inc.
Details: Popular adult arcade/restaurant Dave & Buster’s is continuing construction work on its first Memphis location.
Property owner Brixmor Property Group has filed a building permit application to install a new roof on the future Dave & Buster’s at 2765 Wolfcreek Parkway, near Wolfchase Galleria.
North American Roofing Services Inc. is the contractor on the $179,330 permit.
Brixmor announced in January that Dallas-based Dave & Buster’s would become the entertainment anchor of The Commons of Wolfcreek when it opens in a 43,500-square-foot space formerly occupied by Sports Authority. The restaurant is aiming to open in the fourth quarter.
100 Peabody Place
Memphis, TN 38103
Tenant: Constangy, Brooks, Smith & Prophete LLP
Tenant’s Agent: Darrell Cobbins, Universal Commercial Real Estate LLC
Landlord: Belz Enterprises
Landlord’s Agent: Gray Fiser, CBRE
Details: Constangy, Brooks, Smith & Prophete LLP, an Atlanta-based workplace law firm, has signed a 3,000-square-foot lease in the Peabody Place Office Tower in Downtown Memphis.
Darrell Cobbins, president and CEO of Universal Commercial Real Estate LLC, represented the tenant in the lease while Gray Fiser, senior associate broker with CBRE, represented the landlord, Belz Enterprises.
Founded in 1946, Constangy, Brooks, Smith & Prophete has a network of more than 180 lawyers at 32 offices in 15 states, including the Downtown Memphis office.