VOL. 132 | NO. 89 | Thursday, May 4, 2017
New York Firm Pays $23M for 3 Germantown Hotels
By Patrick Lantrip
7750 Wolf River Blvd., 9314 Poplar Pike and 9320 Poplar Pike, Germantown, TN 38138 | Sale Amount: $23 million
Sale Date: April 28, 2017
Buyer: AR Global Investments
Seller: Summit Hotel Properties
Loan Amount: $18.4 million
Loan Date: April 28, 2017
Maturity Date: May 1, 2022
Details: AR Global Investments, a New York-based asset management firm, has purchased a trio of Germantown hotels for a combined $23 million from Austin, Texas-based Summit Hotel Properties, according to three warranty deeds filed with the Shelby County Register of Deeds on April 28.
In the most expensive of the three acquisitions, AR Global, doing business as HIT SMT CY Owner, paid $10.7 million for the 90-room Courtyard by Marriott at 7750 Wolf River Blvd. in Germantown. The hotel, which was built in 1997, sits on 2.7 acres on the north side of Wolf River Boulevard east of Germantown Road, and the Shelby County Assessor’s 2017 appraisal is $5.2 million.
In the other two transactions, the firm purchased the Residence Inn at 9314 Poplar Pike for $8.1 million and the adjacent 80-room Fairfield Inn & Suites at 9320 Poplar Pike for $4.2 million. Those hotels are on the north side of Poplar Pike west of the street’s intersection with Poplar Avenue, and their 2017 appraisals are $4.5 million and $3.3 million, respectively.
Christopher Eng, Summit’s executive vice president and general counsel, signed all three deeds as secretary of Summit Hospitality I Inc.
An $18.4 million mortgage was also filed in conjunction with the three purchases. The mortgage, which was taken out through Citibank, will mature on May 1, 2022.
AR Global is one of the largest external managers of direct investment programs in the U.S. and has raised and invested more than $30 billion in capital, according to the firm’s website. Summit is a publicly traded real estate investment trust with 82 hotels across 23 states.
4150 Louis Carruthers Drive/Memphis, TN 38118 and 2491 Winchester Road/Memphis, TN 38116
Permit Amount: $4.2 million
Application Date: April 2017
Owner: Memphis International Airport
Tenant: Memphis International Airport
Architect: The Pickering Firm
Contractor: F & F Construction
Details: Memphis International Airport has filed two building permit applications totaling $4.2 million with the city-county Office of Construction Code Enforcement.
One permit, valued at $2.8 million, calls for the renovation of existing space at 2491 Winchester Road. F & F Construction Co. is listed as the contractor, The Pickering Firm as the architect and Aero Systems Engineering as the engineer.
The other permit, valued at $1.5 million, calls for the demolition and expansion of an existing building at 4150 Louis Carruthers Drive. That application lists F & F Construction Co. as the contractor and The Pickering Firm as the engineer.
The permits fall under a larger umbrella of infrastructure improvements that recently began at Memphis International Airport, including an updated $214 million plan to completely overhaul Concourse B, where almost all of the airport’s operations will be consolidated upon completion.
5155 Lamar Ave.
Memphis, TN 38118
Permit Amount: $1.8 million
Application Date: April 2017
Owner: Nike Inc.
Tenant: Nike Inc.
Details: Nike Inc. has filed a $1.8 million building permit application with the city-county Office of Construction Code Enforcement to install a rack system at its 5155 Lamar Ave. warehouse.
EZ-Erectors is listed as the contractor.
In March 2016, Nike filed its first permit for $1.5 million to “install industrial storage racks” at the southeast Memphis warehouse. The next month, it applied for an additional $1.7 million permit for the “installation of an elevated platform structure.”
The international shoe and sports apparel giant also operates distribution centers on Winchester Road and in Frayser.
The 706,802-square-foot Class A warehouse on Lamar was built in 2002 and sits on more than 38 acres, according to the Shelby County Assessor of Property. It was appraised at $24.6 million this year.
960 S. Third St.
Memphis, TN 38106
Permit Amount: $1.5 million
Project Cost: $2.9 million
Application Date: April 2015
Owner: Calvary Rescue Mission
Tenant: Calvary Rescue Mission
Contractor: Linkous Construction Co.
Details: Calvary Rescue Mission is moving ahead with its new homeless shelter.
The mission, located at 960 S. Third St., filed a $1.5 million building permit application with the city-county Office of Construction Code Enforcement for new construction. Linkous Construction Co. was listed as the contractor.
In 2015, Calvary launched an appeal to raise $2.9 million for a new shelter on its current South Third Street site.
Plans for the new mission north of Gaston Park include classrooms, rehab counseling, job training and mental health assessments. The new center will also meet Americans with Disabilities Act standards and feature dormitories, a kitchen, and showers and restrooms.
Calvary’s current building is a church that Holiday Inn sold to the ministry for $1. It moved into the facility in April 1972 after having several other locations in the city, including its original location at 863 Jackson Ave.
The mission was founded by Milton Hatcher, a Memphis barber, in 1967 and is operated with private donations.