VOL. 132 | NO. 190 | Monday, September 25, 2017
Memphis Real Estate Recap
GPAC Planning New Open-Air Venue
By Patrick Lantrip
1801 Exeter Road, Germantown, TN 38138 (Map data ©2017 Google)
1801 Exeter Road, Germantown, TN 38138
Owner: Germantown Performing Arts Center
Tenant: The Grove at GPAC
Details: The Germantown Performing Arts Center has announced plans to develop a new 1.5-acre open-air performance center that will be located due north of its current location at 1801 Exeter Road.
Dubbed The Grove at GPAC, the center hopes the new venue will attract new audiences by providing an alternative option for performances.
Local architectural firm archimania was tapped to handle the project’s design work that will focus on conservation, sustainability and reduction of impact on the environment, and will include a covered stage with a high-definition, permanent video wall.
“There will be an outdoor bar and seating area, several VIP areas and a covered, hardscaped area in front of the stage for VIP seating, dancing or an orchestra,” GPAC’s executive director Paul Chandler said in a release. “With capacity for 1,200 to 2,000, the space will be suitable for both ticketed and free events, with food truck spaces and electrical outlets, plenty of parking and access for sound and production equipment delivery.”
Chandler said he envisions using The Grove for festivals, national and regional touring shows, local artist showcases, concert movies and films, simulcast concerts from indoors, performances by other users, and outdoor receptions and events.
3400 Players Club Parkway
Memphis, TN 38125
Sale Amount: $39 million
Buyer: Group RMC
Seller: Highwoods Properties Inc.
Loan Amount: $34.3 million
Borrower: Alexander Massa
Lender: Rialto Capital
Details: Highwoods Properties Inc. has sold a massive portion of its portfolio in Southwind to a New York-based investment group for $39 million.
Doing business as Highwoods Reality Limited Partnership, Highwoods Properties sold the 3400 Players Club Parkway office building, its two Shadow Creek office buildings, four office centers and a 2-acre parcel of land, all located near the FedEx World Headquarters and TPC Southwind golf club.
The buyer is Group RMC, which purchased the portfolio under the name Southwind Memphis Reality LP.
Jeffery D. Miller, Highwoods’ executive vice president, general counsel and secretary, signed the deed on behalf of the North Carolina-based real estate investment trust.
“We developed the buildings over a period of years and thought now would be a good time to sell,” Steve Guinn, senior vice president of Highwoods Properties’ Memphis office, said. “Sometimes you have to prune your portfolio, if you will, to help grow and I think that’s what we’re looking to do here.”
According to the Shelby County Assessor of Property, the sites are spread out across more than 30 acres and were appraised for about a combined $46 million.
Meanwhile, in conjunction with the purchase, the new owners took out a $34.3 million mortgage that was signed by Alexander Massa through Rialto Capital, acting as FS CREIT Originator LLC, according to a deed of trust filed with the Shelby County Register of Deeds.
This transaction marks Group RMC’s first foray into the Memphis market, according to its website.
CBRE senior vice president Johnny Lamberson and first vice president Terry Radford represented the seller in the transaction.
0 Monroe Ave.
Memphis, TN 38104
Project Cost: $24 million
Owner: Loeb Properties, LRC2 Properties, MMI Hotel Group
Tenant: Hilton or Marriott
Details: The developers of a $24 million Overton Square hotel and a Canadian elevator company looking to build its first U.S. facility in Memphis have been awarded tax incentives to move ahead with their projects.
The Economic Development Growth Engine of Memphis and Shelby County on Wednesday, Sept. 20, approved Loeb Properties’ request for a 15-year payment-in-lieu-of-taxes abatement to build a 100-room boutique hotel in Overton Square.
Loeb is partnering with boutique hotel developer LRC2 Properties and hospitality management company MMI Hotel Group on the $24 million hotel, which is slated to be built at the southwest corner of Cooper Street and Trimble Place, south of Madison Avenue. The plans also call for a rooftop restaurant and structured parking on the 1.2-acre site.
EDGE staff projected the PILOT would save the development team $6.1 million and the project would generate $5.4 million in local tax revenues over the course of the 15-year abatement.
4290 Delp St.
Memphis, TN 38118
Sale Amount: $3.5 million
Buyer: Trident Capital Group
Seller: RNB Interests, BRB Interests, BAK Interests
Loan Amount: $2.3 million
Borrower: Peter Walter
Lender: Aetna Life Insurance Co.
Details: Wellesley, Massachusetts-based Trident Capital Group has purchased a 150,000-square-foot industrial facility in the airport submarket for $3.5 million.
Trident, doing business as TCG 4290 Delp LLC, bought the warehouse at 4290 Delp St. from a group of investors comprised of three individual entities, according to a warranty deed filed with the Shelby County Register Sept. 19.
Ronald Baumgarten with RNB Interests controlled 55 percent of the selling entity, while Brett Baumgarten with BRB Interests and Brett Keeshin with BAK Interests controlled 22.5 percent each.
Built in 1973, the one-story warehouse sits on a 9.4-acre parcel on the southeast corner of Delp Street and Pilot Drive. The Shelby County Assessor’s 2017 property appraisal is $2.6 million.
In conjunction with the purchase, Trident took out a $2.3 million mortgage with Aetna Life Insurance Co. Peter Walter signed the deed of trust on behalf of Trident.
Founded in 2008, Trident Capital Group was formed to acquire, manage and redevelop industrial properties in primary and select secondary markets.