VOL. 132 | NO. 218 | Thursday, November 2, 2017
Trustmark Centre Sells for Nearly $20M
By Patrick Lantrip
An iconic East Memphis office building has switched hands for $19.7 million.
Nashville-based Magnolia Capital Investments has purchased the Trustmark Centre located at 5350 Poplar Ave. from Israeli investment group Faropoint Investments.
Avison Young principals Shane Soefker and Jacob Biddle represented Magnolia in the transaction, while NAI Saig Co. executive vice president Brian Califf and vice president Elliot Embry represented Faropoint.
“Trustmark Centre is a true class B+ asset that is perfectly located along the Poplar Corridor in the East Memphis submarket,” Soefker said. “This asset sits in a part of East Memphis that is strategically located inside the loop and benefits from both an exceptional quality of construction and phenomenal access.”
In addition to its central location in the East Memphis portion of the Poplar Corridor, the 164,247-square-foot office high-rise boasts a 93.5 percent occupancy rate that includes tenants Evergreen Packaging, Trustmark National Bank, Southern Eye, National Foundation for Transplants and Aetna.
“Trustmark Centre has a Class A location and tenant mix,” Califf said. “Elliot (Embry) did an excellent job stabilizing the building from when Faropoint bought it through new leases and renewals, and made it a very attractive asset for investment.”
The building will also be the new location for Avison Young’s Memphis office.
“This acquisition enables us to relocate our offices into a prominently located building, while accommodating future growth plans for our operations,” Soefker said.
Specializing in the acquisition, management and re-positioning of office, industrial and retail properties, Magnolia Capital Investments also owns several notable buildings in Tennessee, including the CMT Building where County Music Television is headquartered, and the 15-story mixed-use Terrazzo building, both in Nashville, and Two Center Square in Knoxville.
“Given the ideal location and the partnership’s strategic business plan, which includes numerous building renovations while providing superior management, this property is positioned well to benefit from the continued demand for quality office assets along the Poplar Corridor,” Soefker said.
Built in 1973 on more than 3.5 acres near the intersection of Poplar Avenue and Estate Drive, the Trustmark Centre was appraised this year by the Shelby County Property Assessor for $14.3 million.
Even though Faropoint, which only owned the building for about a year, wasn’t actively marketing the asset for sale, Califf said the deal turned out to be a win-win for all parties involved.
“Faropoint is actually going to be reinvesting the capital into more Memphis assets before the end of the year,” he said.