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VOL. 132 | NO. 220 | Monday, November 6, 2017

Iconic E. Memphis Office Building Sells for $19.7M

By Patrick Lantrip

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Nashville-based Magnolia Capital Investments has purchased the Trustmark Centre located at 5350 Poplar Ave. from Israeli investors, Faropoint Ventures. Faropoint intends to reinvest proceeds from the sale to buy other Memphis properties.

5350 Poplar Ave.
Memphis, TN 38119

Sale Amount: $19.7 million

Buyer: Magnolia Capital Investments

Buyer Rep: Shane Soefker and Jacob Biddle, Avison Young

Seller: Faropoint Ventures

Seller Rep: Brian Califf and Elliot Embry, NAI Saig Co.

Details: 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 investors, Faropoint Ventures.

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.

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 Evergreen Packaging, Trustmark National Bank, Southern Eye, National Foundation for Transplants and Aetna.

The building will also be the new location for Avison Young’s Memphis office.

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 still turned out to be a win-win for all parties involved, as Faropoint intends to reinvest proceeds from the sale to buy other Memphis properties.

2670 Union Ave.
Memphis, TN 38112 (et al.)

Sale Amount: $19.3 million (combined)

Buyer: Faropoint Ventures

Buyer Rep: Brian Califf, NAI Saig Co.

Seller: Morning Calm Management

Seller Rep: Johnny Lamberson and Terry Radford, CBRE Memphis

Details: Fresh off of the sale of the Trustmark Centre, Faropoint Ventures has acquired two more substantial office assets.

The Lipscomb Pitts Building, located at 2670 Union Ave. Ext., and Poplar Towers, located at 6263 Poplar Ave., were both purchased by the Israeli investment firm for $19.3 million using the capital Faropoint accrued from the aforementioned deal.

Brian Califf, executive vice president NAI Saig, represented Faropoint while Johnny Lamberson and Terry Radford with CBRE Memphis represented the sellers, Morning Calm Management, which was doing business as IR-Poplar Towers LLC and IR-Lipscomb and Pitts Building, respectively.

Since this latest acquisition also includes the high-end restaurant Fleming’s, and an AT&T store, it adds more than 218,000 square feet of office space and 14,000 feet of retail space along the Poplar Corridor to Faropoint’s portfolio.

The 2670 Union Extended building was 90 percent occupied at closing and is anchored by Lipscomb Pitts Insurance.

Poplar Towers, which was formerly anchored by Regions Bank, was only 59 percent occupied at closing. However, Califf said Faropoint is planning a multimillion-dollar renovation to the building in the next seven to nine months that will give the building a whole new appearance inside and out. Currently, Carty and Co. is the building's largest tenant.

Lee Hunter with Capstar Bank financed the Poplar Towers acquisition while First Capital Bank in Germantown financed the Lipscomb Pitts acquisition.

4895 Citation Drive
Memphis, TN 38118

Sale Amount: $13.8 million

Buyer: Exeter Property Group

Seller: Treeview Real Estate Advisors

Details: Pennsylvania-based real estate investment management firm Exeter Property Group made its fifth significant local investment within a month, purchasing a 400,000-square-foot industrial property in southeast Memphis for $13.8 million.

Located at 4895 Citation Drive west of Pleasant Hill Road, the 21-year-old warehouse sits on more than 21 acres and was last appraised for $13.1 million by the Shelby County Property Assessor.

Teresa Tsai, founder and CEO of Treeview Real Estate Advisors, signed the deed on behalf of the sellers.

This acquisition marks the fifth Memphis industrial property Exeter has bought in the past several weeks, for a total investment of more than $72 million.

Last week, Exeter acquired two properties from New York-based Treeview for a combined $34.5 million: a 700,000-square-foot Class A warehouse at 4755 Southpoint Drive and a 500,000-square-foot warehouse at 5015 Citation.

Earlier in October, Exeter bought two southeast Memphis properties from San Francisco-based developer Prologis Inc. for a combined $23.8 million. Those warehouses are at 5295 Logistics Drive and 5305 Logistics Drive, about 3 miles southeast of the Citation Drive properties.

0 Highland St.
Memphis, TN 38111

Development: Ellsworth planned development

Type: Gated, single-family home development

Units: 22 homes, estimated to cost $335,000 to $350,000 each

Developer: Patton & Taylor Enterprises

Details: Between the success of Highland Row, the revitalization of the Highland Strip, and the University of Memphis’ own plans to build a land bridge across the Southern Avenue railroad tracks, the demand for real estate surrounding the university is soaring.

Which is why Cameron Taylor and Lee Patton of Patton & Taylor Enterprises jumped at the chance to acquire a prime parcel of vacant land taking up almost a whole block of Ellsworth Street between Midland and Central avenues.

The second-generation contractors became aware of the parcel while helping Indiana-based development firm Milhaus build Highland Row, which is located immediately to the east of the site.

The two partners said that while the project doesn’t have an official name yet, the Ellsworth planned development is slated to be a 22-unit gated single-family community with rear entry and secure garages.

Tentatively, the plans call for the houses to range from 2,000 to 2,500 square feet, with an expected price tag of $335,000 to $350,000.

PROPERTY SALES 89 339 12,708
MORTGAGES 42 227 7,982
BUILDING PERMITS 171 518 29,639
BANKRUPTCIES 32 129 6,029