VOL. 132 | NO. 129 | Thursday, June 29, 2017
$18.5 Million Permit Filed for Central Station Project
By Patrick Lantrip
In this week’s Real Estate Recap, developers pull an $18 million permit for the Central Station overhaul, another new Downtown hotel is in the works and the new Laurelwood bookstore gets a restaurant...
545 S. Main St.Memphis, TN 38103
Permit Amount: $18.5 million
Project Cost: $55 million
545 S. Main St., Memphis TN 38103 (Google Maps)
Application Date: June 2017
Owner: Central Station Collaborative
Tenant: Kemmons Wilson Cos.
Contractor: The Robins & Morton Group
Details: The developers of Central Station, located at 545 S. Main St., filed an $18.5 million building permit application with the city-county Office of Construction Code Enforcement to convert the existing building from residential apartments to a hotel.
The Robins & Morton Group was listed as the contractor on the permit, while Kemmons Wilson Cos. was listed as the tenant and Central Station Collaborative as the owner.
The permit is the latest step in the $55 million redevelopment project, which includes a boutique hotel, apartments, restaurants, retail and significant infrastructure and landscaping improvements to the surrounding South Main area spearheaded by Henry Turley Co. and Community Capital.
Most recently, a $5 million building permit application for the foundation of a new seven-screen movie theater at 45 E. G.E. Patterson St. was filed in March.
235 Union Ave.
Memphis, TN 38103
Permit Amount: $6 million
Application Date: June 2017
Owner: The Beale Street Hotel Group
Tenant: Hospitality Builders of America
Contractor: Hospitality Builders of America
Details: A long-awaited Downtown hotel project finally takes a step forward.
The Beale Street Hotel Group has filed a $6 million building permit application with the city-county Office of Construction Code Enforcement to build a new 115-room hotel across from AutoZone Park, home of the Memphis Redbirds.
Hospitality Builders of America was listed as the contractor and tenant.
Located at 235 Union Ave., the 1.2-acre site is currently a parking lot. It was appraised for $1.4 million this year.
In September 2013, Nitinkumar Patel purchased the property for $1.4 million, according to Shelby County property records.
CENTRAL STATION (Daily News/Andrew J. Breig)
And in December of that same year, Turkey Creek Hospitality signed a licensing agreement with Hilton Worldwide to develop a 140-room Hilton Garden Inn at 235 Union Ave., the site of a former structured parking facility at the corner of Union and Fourth Street. Knoxville-based Turkey Creek Hospitality would own and operate the new hotel, records showed.
387 Perkins Road Ext.
Memphis, TN 38117
Landlord: Laurelwood Shopping Center
Details: The soon-to-open bookstore in Laurelwood Shopping Center is getting a restaurant called Libro, an Italian word for “book.”
Sabine Bachmann, who owns the restaurants Ecco in Overton Park and Fratelli’s at Memphis Botanic Garden, is bringing the restaurant to the East Memphis bookstore.
Thanks to the new bookstore and Libro, as well as new retailers J. McLaughlin and Babcock Gifts, Laurelwood is now almost filled to capacity. The shopping center also just finished a large renovation project, doing away with the tan and green colors for a sleeker new look.
The center now features gray tones with clean awnings and European stone that adorns the columns. The shopping center is also peppered with new planters to beautify the outdoor walkways.
420 S. Germantown Parkway
Cordova, TN 38018
Lease Amount: $69,459
Lease Length: Three years
Tenant: Wing King
Tenant’s Agent: Daniel McPhail, NAI Saig Co.
Landlord: Wolf River Commons 8, LLC
Landlord’s Agent: Brian Califf, NAI Saig Co.
Details: The Wolf River Commons Shopping Center, located at 420 S. Germantown Parkway, is now fully leased as a three-year, $69,459 deal will bring a Wing King into the last 1,335-square-foot bay.
Daniel McPhail with NAI Saig Co. negotiated the lease on behalf of the tenant, Yuanos Lewis, while Brian Califf, also with NAI Saig, represented the landlord, Wolf River Commons 8, LLC. Built in 2003, the Wolf River Commons Shopping Center is located near Germantown Parkway’s intersection with South Walnut Bend Road in Cordova. It is anchored by a Lowe’s and is also home to Wolf River Popcorn.
2571 N. Hollywood St.
Memphis, TN 38127
Project Cost: $16 million
Application Date: June 21, 2017
Owner: G2 Ventures
Details: With all of the new development buzzing around Downtown, Midtown and East Memphis, it could be easy to overlook the addition of a new grocery store, but for some Frayser residents, it could mean everything.
The Frayser Gateway, a proposed $16 million, 97,000-square-foot grocery-anchored shopping center at 2571 N. Hollywood St. was awarded a 15-year tax incentive by the Economic Development Growth Engine for Memphis and Shelby County Wednesday, June 21. The tax abatement paves the way for the first development of its kind in Frayser in more than three decades.
The overarching goal of the project is to use the nearly 20-acre abandoned site to land a 20,000- to 45,000-square-foot grocery tenant that would provide much-needed relief to neighborhoods east, south and west of the site that are USDA-certified food deserts.
If completed, the Frayser Gateway would employ 165 part-time employees plus 11 managers, which would equate to 136 full-time-equivalent jobs with an average base salary of $23,294, according to the application.
Of the $16 million in total project investment, $1.5 million is for the purchase of the property, $12.8 million will go toward new construction and site improvements, and the remaining $1.8 million will be spent on soft costs.
The applicants will have to spend $3.2 million of construction costs with certified minority and women business enterprises (MWBEs) in Memphis and Shelby County.
In total, the payment-in-lieu-of-taxes (PILOT) incentive would offer a $4.5 million benefit to the applicants, while generating $7.7 million in local tax revenues for a 1.73 cost-to-benefit ratio.