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VOL. 132 | NO. 99 | Thursday, May 18, 2017

Faropoint Acquires Massive Industrial Portfolio for $33.1M

By Patrick Lantrip

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Looking to continue its recent trend of bullish activity in the Memphis market, Faropoint Ventures has acquired a 1.1-million-square-foot industrial portfolio for $33.1 million. Details on that and more commercial real estate news in this week's Real Estate Recap...

3474 Winchester Road
Memphis, TN 38118

Sale Amount: $33.1 million

Sale Date: May 11, 2017

Buyer: Faropoint Ventures

Seller: Greenfield Partners LLC

Details: Looking to continue its recent trend of bullish activity in the Memphis market, Faropoint Ventures has acquired a 1.1-million-square-foot industrial portfolio for $33.1 million.

The seller was Greenfield Partners LLC, a Connecticut-based private equity firm. 

Brian Califf, executive vice president with NAI Saig Co., represented Faropoint in the $33.1 million deal, while Shane Soefker and Jacob Biddle, principals of Avison Young, brokered the deal.

“Faropoint is already in the market with a large portfolio,” Califf said. “They’ve been seeing a lot of rental growth with commercial property in the last few years and they really wanted to increase their presence so we actively sought out this deal.”

Known as the Memphis International Airport Center, the nine-building portfolio sits within a 133-acre master planned industrial and flex space park.

Califf said Faropoint will continue to maintain the property as a Class A industrial park and will upgrade the inside of buildings accordingly as leases come up for renewal.

The portfolio is 93 percent occupied; tenants include FedEx, Kohler, the United States Postal Service and DHL.

“The remaining 7 percent that we can lease out is very nice space,” said Califf, who will head up leasing efforts for Faropoint along with NAI Saig’s Elliot Embry.

The nine buildings are all located within a quarter-mile of Memphis International Airport and the FedEx Super Hub and boast 24- to 30-foot clear height ceilings, high-density sprinkler systems and ample dock doors.

Belz Enterprises will handle property management.

In addition to this acquisition, Faropoint owns more than 500,000 square feet of office and retail space in the Mid-South, including the 77,000-square-foot Champion Hills Office Park at 3725 Champion Hill Drive, Orleans Place in East Memphis and a 60,639-square-foot Class B retail center in Midtown it acquired in December 2016.

In April, the company sold the Shops of Wolflake, a Bartlett retail property, to a local investment group for $5 million.

2743 Ketchum Road
Memphis, TN 38114

Sale Amount: $6 million

Sale Date: May 12, 2017 

Buyer: Odin Properties 

Seller: Asia Capital Real Estate

Loan Amount: $7 million

Loan Date: May 12, 2017

Borrower: Philip Balderston

Lender: Keybank

Details: Philadelphia-based real estate investment firm Odin Properties, doing business as Medley Apartments, has purchased four multifamily properties from Asia Capital Real Estate for a combined $6 million, according to paperwork filed with the Shelby County Register of Deeds.

The first parcel purchased was the 188-unit El Dorado Apartments, 2743 Ketchum Road, which sold for a little over $2 million. The complex was built in 1971 and sits on just less than 8 acres, according to the Shelby County Assessor of Property, who appraised it at $2 million this year.

The second parcel encompasses the Longview Heights Apartments, an eight-unit collection of townhouse-style apartments at 1949 Philsar St. in South Memphis, which Odin purchased for $1.8 million. The townhomes were built in 1950 and last appraised for $260,300.

In the third deed, Odin paid $1.1 million for the Longview Gardens Apartments, which includes 11 eight-unit apartments at the corner of Dison Avenue and South Orleans Street. Those units also were built in 1950 and appraised for a combined $1.3 million in 2017.

Lastly, Odin purchased the 83-unit Barron Court Apartments, 3015 Barron Ave., for just under $1 million. The property sits on roughly 2.7 acres and was built in 1973, according to the assessor, who appraised it at $1 million this year.

Richard T. Allorto signed all four warranty deeds on behalf of Asia Capital Real Estate doing business as AML 1002, 1003, 1004 and 1005, respectively.

In conjunction with the purchase, Odin took out a $7 million mortgage with Ohio-based Keybank.

Philip Balderston, Odin’s founder and CEO, signed the deed of trust on behalf of Medley Apartments.

555 Compress Drive
Memphis, TN 38106

Permit Amount: $1 million

Application Date: May 2017 

Owner: FedEx Ground Package System Inc.

Tenant: FedEx Ground Package System Inc.

Architect: BL Cos.

Engineer: BL Cos. 

Contractor: Poerio Inc. 

Details: FedEx Ground is seeking a $1 million building permit for an addition to the existing gateway building at its 555 Compress Drive location.

The permit application filed with the city-county Office of Construction Code Enforcement also calls for new on-site sidewalks, pavement and fences, and the restoration of an existing parking lot.

Pennsylvania-based Poerio Inc. is listed as the contractor, while Connecticut-based BL Cos. is slated to handle the architecture and engineering.

The 37-acre site was last appraised for $8.6 million and currently houses a 245,593-square-foot truck terminal that was built in 2001, according to the Shelby County Assessor of Property.

PROPERTY SALES 38 38 20,670
MORTGAGES 45 45 23,790
BUILDING PERMITS 187 187 42,781
BANKRUPTCIES 57 57 13,237