VOL. 132 | NO. 234 | Monday, November 27, 2017
Lenox Park Buildings Sell for $5.3 Million
By Patrick Lantrip
This week's Real Estate Recap features the sale of two Class A office buildings totaling more than 200,000 square feet; a residential development being planned near a proposed new elementary school in Germantown; and more.
6625 and 3175 Lenox Park Blvd.
Memphis, TN 38115
Sale Amount: $5.3 million
Sale Date: Nov. 17, 2017
Buyer: Lenox Park A and Lenox Park B
Seller: CWCapital Asset Management
Seller’s Rep: Shane Soefker and Jacob Biddle
Details: Lenox Park A and Lenox Park B, a pair of office buildings each exceeding 100,000 square feet in southeast Memphis, have sold for a combined $5.3 million, according to a Friday, Nov. 17, deed filed with the Shelby County Register.
In the deal, Bethesda, Maryland-based CWCapital Asset Management, doing business as 6625 Lenox Park Boulevard Holdings LLC, sold the two Class A buildings at 6625 and 3175 Lenox Park Blvd. near the Kirby Parkway exit of state Route 385 to Lenox Park A LLC and Lenox Park B LLC, respectively.
Shane Soefker and Jacob Biddle, principals at Memphis’ Avison Young office, represented the sellers in the deal.
Mark Knobloch, CWCapital’s senior vice president, signed the deeds on behalf of his company.
The 6625 Lenox Park building was built in 1997 and sits on 6.7 acres. It was appraised for $4.5 million by the Shelby County Register in 2017.
Meanwhile, 3175 Lenox Park sits on $7.8 acres and was built in 1996. It was appraised for $6.7 million this year.
79 Madison Ave.
Memphis, TN 38103
Notice Date: Nov. 17, 2017
Owner: Aparium Hotel Group
Tenant: The Madison Hotel
Details: The Madison Hotel, an upscale high-rise hotel in Downtown Memphis, has informed state officials that it will be temporarily shutting down its food and catering services, which will affect 33 workers.
According to a Worker Adjustment and Retraining Notification, or WARN notice, filed with the Tennessee Department of Labor and Workforce Development Nov. 17, owners Aparium Hotel Group are planning to shut down eighty3 and the Skylight Terrace on Jan. 15, while the hotel renovates and rebrands its food services.
The notice did not say if the affected workers would be permanently displaced or rehired when the renovations are completed sometime “early next year.”
Multiple calls to Aparium were unreturned by press time.
Originally built in 1905, the nearly 80,000-square-foot hotel located at 79 Madison Ave. was acquired by Aparium in July 2016 in a quit claim deed from Wilmont Hotel LP.
No purchase price was listed on the quit claim deed, but Aparium did file a $16 million loan through PFP Holding Co. IV LLC in conjunction with the transaction.
The hotel was appraised for $14.7 million by the Shelby County Assessor in 2017.
Founded in 2011, Aparium bills itself as a sophisticated hotel chain that combines “the business acumen of large hospitality companies with the charm of boutique hotels, bringing the disparate forces together in bustling, smaller markets,” according to the company’s website.
3258 Forest Hill-Irene Road
Germantown, TN 38138
Application Date: Nov. 21, 2017
Owner: Charles and Irma Schaeffer and the Reaves Family Partnership
Builder: John Duke
Details: Looking to capitalize on its proximity to Germantown’s new elementary school site, developers have submitted an application to planning officials for 117-lot subdivision near the southwest corner of Forest Hill-Irene Road and Poplar Pike.
Since 32 of the site’s more than 40 acres are zoned for Residential Estate and General Commercial, the development team, which consists of builder John Duke and property owners Charles and Irma Schaeffer and the Reaves Family Partnership, have submitted a rezoning request to the Germantown Planning Commission.
In a letter of intent to Germantown Economic and Community Development director Shelia Pounder, Greg Marcom, project manager with the The Reaves Firm Inc., said there is a waning market for estate-sized lots.
“The Reaves Family has owned this land for over 10 years with very little interest from developers to build estate-sized lots,” Marcom said. “With the recent sale of the school land to the south, we feel like this is a significant change in use to the surrounding area. This change creates the perfect opportunity to develop a subdivision where families can live near a school that their children can safely walk to and attend.”
Marcom said the proposed neighborhood would also be within walking or biking distance to commercial activity on the north side of Poplar Pike.
The property originally became zoned for residential estates in 1987 when it was recorded in the Oaks Subdivision, which was in unincorporated Shelby County at the time.
However, only one house was built in the subdivision and the land was eventually annexed by the City of Germantown on July 26, 2000.
Since plans call for the site to be accessed by two full-service drives located off Forest-Hill Irene, the developers commissioned civil engineer Martin Lipinski to conduct a traffic impact analysis of the proposed subdivision. The analysis showed “the impacts of this traffic on the improved Forest Hill-Irene roadway to be minimal,” according to Lipinski, who found the site will generate 94 morning trips in the peak period and 122 trips in the afternoon peak period.
The City of Germantown is currently acquiring rights-of-way and designing a roadway improvement and waterline extension project on Forest Hill-Irene from Poplar Pike to Winchester Road.
Construction on the roadway improvement is expected to begin in the first quarter of 2018 and wrap up in the second quarter of 2019, which would be before the proposed subdivision is completed.
The subdivision plans will be reviewed by a Germantown Planning Commission Subcommittee Tuesday, Nov. 21, before being presented to the full commission on Dec. 5.
If approved by the planning commission, the rezoning application will advance to the Germantown Board of Mayor and Alderman for approval through three readings.