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VOL. 132 | NO. 104 | Thursday, May 25, 2017

Medical District Apartments Sell for $5.2 Million

By Patrick Lantrip

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A medical district apartment switches hands in a multimillion-dollar deal, a Downtown developer plans an apartment complex near FedExForum, and a California investor buys a local industrial portfolio. Details in this week’s Real Estate Recap...

57 N. Somerville St.

Memphis, TN 38104

Sale Amount: $5.2 million

Sale Date: May 2017

Buyer: Axon LLC

Seller: Memphis Medical Redevelopment Group LLC

Loan Amount: $4.5 million

Lender: Financial Federal Bank

Details: A 128-unit apartment high-rise in the Memphis Medical District has sold for $5.2 million.

Axon LLC, which has ownership based both in Memphis and California, bought the Park Tower Apartments, located at 57 N. Somerville St., from California-based Memphis Medical Redevelopment Group LLC.

In conjunction with the purchase, Rick Wood and Jon Van Hoozer of Financial Federal Bank arranged $4.5 million in acquisition financing for the property.

“The new buyers own another mid-rise in the Midtown area, so this is a natural progression in their medical district acquisition program,” Wood said in a statement.

Built in 1957, the nine-story building is on 1.7 acres on the west side of Somerville Street between Jefferson Avenue to the north and Court Avenue to the south, according to the Shelby County Assessor of Property, whose 2017 appraisal of Park Tower is $3.6 million.

Axon plans to invest $750,000 in upgrades, which will include two new elevators, exterior painting, replacement of HVAC components and a new lobby, fitness room, common area finishes, and an expansion of the ground-level commercial space.

Memphis Medical Redevelopment Group purchased the 95,727-square-foot building in 2009, also with financing by Financial Federal Bank, and renovated it in 2009 and 2015.

“The new owner and management team are confident that the occupancy can be sustained at over 90 percent, leased at a higher rental structure than what is being offered in 2017,” Van Hoozer said. “There is nice rental upside on more upscale, well-located product in Midtown.”

444 Vance Ave.

Memphis, TN 38126

Permit Amount: $18.2 million

Application Date: May 2107

Owner: Elmington Capital Group

Contractor: Patton & Taylor Enterprises

Details: Elmington Capital Group is ready to continue its spree of Downtown multifamily development.

The Nashville-based company, doing business as ECG Forum GP LLC, is seeking four building permits totaling $18.2 million to construct apartments southeast of FedExForum.

Patton & Taylor Enterprises is listed as the contractor on the permit applications filed with the city-county Office of Construction Code Enforcement.

The largest permit, worth $9.1 million, calls for a four-story apartment building at 290 Turley St. Meanwhile, two additional three-story apartment buildings are planned for 269 S. Danny Thomas Blvd. and 444 Vance Ave., and are valued at $4.8 and $2.1 million, respectively. The fourth $2.1 million permit is for 331 S. Danny Thomas Blvd. and simply states new construction of multifamily.

The developers also sought and gained approval from the Memphis City Council on Tuesday, May 23, to close an alley between Ponotoc and Vance avenues and close a portion of Ponotoc west of Danny Thomas Boulevard as part of the project, which is being called Forum Flats.

Elmington is also developing Uptown Flats, which will bear 155 units at the northwest corner of North Main Street and Saffarans Avenue, and Patterson Flats, which will include 175 units between East Butler Avenue and East G.E. Patterson Avenue.

3605 Knight Road

Memphis, TN 38118

Sale Amount: $8.6 million

Buyers: JB State LLC, La Paz Viejo Co. LLC

Seller: Huntington Industrial Partners

Details: Huntington Industrial Partners, doing business as Artemis HIP Corporate Park LLC, has sold three warehouses in Southeast Memphis to a pair of West Coast investors for a combined $8.6 million.

The buyers are Colorado-based JB State LLC and California-based La Paz Viejo Co. LLC, which will split the undivided interest 75 percent/25 percent respectively as tenants in common.

The first parcel in the portfolio is a 68,866-square-foot Class B warehouse located at 3605 Knight Road that was built in 1986. The second parcel is a 68,492-Square-foot Class A warehouse built in 1991, and the third is an 81,720-square-foot Class A warehouse also built in 1991.

The three parcels were appraised for a combined $6.5 million in 2017 by the Shelby County Assessor of Property.

1204 W. Poplar Ave.

Collierville, TN 38017

Sale Amount: $2.5 million

Buyer: TH Magnolia Sands

Buyer's Representative: Bryan Evans (NAI Saig Co.)

Seller: Gill Retail GP

Seller's Representative: Patty Bullock (Gill Properties)

Details: A Collierville retail center at 1204 W. Poplar Ave. has sold for $2.5 million.

Bryan Evans with NAI Saig Co. represented the buyer, TH Magnolia Sands, in the purchase of the 7,562-square-foot building. Patty Bullock with Gill Properties represented the seller, Gill Retail GP.

Built in 1986, the Class A shopping center sits on 1.2 acres on the north side of West Poplar between Bray Station Road and Poplar View Parkway. The Shelby County Assessor of Property appraised it at $1.9 million this year.

Evans will become the leasing agent for the property; however, the building is currently 100 percent occupied with a Plato’s Closet and Once Upon a Child.

PROPERTY SALES 36 154 6,546
MORTGAGES 34 94 4,129
BUILDING PERMITS 201 554 15,915
BANKRUPTCIES 43 126 3,396