VOL. 133 | NO. 86 | Monday, April 30, 2018
Memphis Real Estate Recap
Memphis Army Depot, CA Building Get New Owners
By Patrick Lantrip
2028 Memphis Depot Pkwy.
Memphis, TN 38114
Sale Amount: $50 million
Sale Date: April 17, 2018
Buyers: Ares Management, Diamond Properties
Seller: Mayfield Properties
Loan Amount: $32.5 million
Borrower: John Jenkins
Lender: Allegiant Real Estate Capital Funding
Details: The 4.2 million-square-foot Memphis Depot Industrial Park just north of Memphis International Airport has sold for $50 million.
Atlanta-based Ares Management and Mount Kisco, New York-based Diamond Properties bought the 43-building industrial park and former U.S. Army supply depot from Mayfield Properties, the Dallas company that had owned it since 2011 under the name Memphis Depot Associates LLC.
Mayfield Properties partner John Jenkins signed the April 17 warranty deed on behalf of the sellers.
In conjunction with the purchase, Ares and Diamond – buying the property under the names Memphis Depot TIC LLC and DP 107 LLC – took out a $32.5 million mortgage through New York City-based Allegiant Real Estate Capital Funding.
Built in the early 1940s, the depot once served as a major employer for the Memphis area.
After the Army closed it in 1997, it underwent more than $30 million in capital repairs funded by a partnership between Shelby County government and the local economic development community.
Mayfield Properties’ $35.8 million purchase of the park in 2011 marked the first time the facility was owned by a private-sector firm.
The Shelby County Assessor of Property’s 2018 appraisal of the three parcels included in the sale totals $33.8 million.
185 Union Ave.
Memphis, TN 38103
Sale Amount: $28.9 million
Sale Date: April 19, 2018
Buyer: Continental Hospitality Group
Seller: Caray Watermark 1
Loan Amount: $28 million
Borrower: Mark Damante
Lender: Fifth Third Bank
Details: Columbus, Ohio-based Continental Hospitality Group has purchased the DoubleTree by Hilton Hotel Memphis Downtown for nearly $29 million.
Continental, doing business as King & Union Memphis Acquisitions LLC, bought the 185 Union Ave. hotel for $28.9 million, according to an April 19 warranty deed.
Daniel E. Hanan signed the deed on behalf of the sellers, Caray Watermark 1.
In conjunction with the purchase, Continental Hospitality filed a $28 million deed of trust through Fifth Third Bank with the Shelby County Register, also on April 19.
Continental Hospitality’s president of development Mark Damante signed that deed on behalf of his company.
The 192,431-square-foot hotel was built in 1927 and was last appraised for $16.7 million in 2017, according to the Shelby County Assessor.
495 Union Ave.
Memphis, TN 38103
Sale Amount: $2.8 million
Sale Date: April 23, 2018
Buyer: Twenty Lakes Holdings
Seller: Memphis Publishing Co.
Details: The Commercial Appeal building, 495 Union Ave., has been sold to a New York investment company for $2.8 million.
Memphis Publishing Co. sold the nearly 300,000-square-foot building to Twenty Lakes Holdings, doing business as 495 Union Avenue LLC, according to a warranty deed filed with the Shelby County Register of Deeds’ office Monday, April 23.
The same New York firm, doing business as 597 Beale Street LLC, bought the 5-acre parking lot behind the paper’s building for $1 million in a deed filed April 16.
The Commercial Appeal’s parent company, Gannett Co. Inc., put the newspaper’s building on the market last year as part of a series of cost-cutting moves that also included relocating its mailroom operations to Nashville and its digital printing operations to Jackson, Tennessee, resulting in the loss of 55 jobs.
Twenty Lakes’ portfolio includes more than 180 properties encompassing 2.3 million square feet in 29 states and specializes in acquiring underperforming and underutilized locations from legacy newspapers, according to its website.
Twenty Lakes recently acquired several other properties from Gannett, including the buildings housing the Courier & Press in Evansville, Indiana; the Patriot-News in Harrisburg, Pennsylvania; the Now Media Group in Waukesha, Wisconsin; and the Ventura County Star in Camarillo, California.
4040 Delp St.
Memphis, TN 38118
Lease Amount: 24,000 square feet
Tenant: Toof Printing
Tenant’s Agent: Henry Stratton, Colliers International
Landlord: Net Magan
Landlord’s Agent: Hank Martin, NAI Saig Co.
Details: Toof Printing, doing business as 670 S. Cooper St LLC, has signed a 24,000-square-foot lease in southeast Memphis to house its warehouse and distribution operations.
NAI Saig Co. vice president and business manager Hank Martin represented the landlord, Net Magan, in the five-year deal, while Henry Stratton of Colliers International represented the tenant.
Until recently, Toof Printing operated out of a location at 670 S. Cooper St. in Midtown, but that site was sold to Lehman-Roberts Co. for $2.3 million in January.
100 Peabody Place
Memphis, TN 38103
Lease Amount: 2,959 square feet
Tenant: Campaign for School Equity
Landlord: Constangy, Brooks, Smith & Prophete LLP
Landlord’s Agent: Darrell Cobbins
Details: Campaign for School Equity will have a new home in Downtown Memphis, as the local nonprofit has inked a 2,959-square-foot sublease at 100 Peabody Place.
CSE, which currently is housed in a shared space in Crosstown Concourse, will move into the former offices of the law firm Constangy, Brooks, Smith & Prophete LLP.
Darrell Cobbins, president and principal broker of Universal Commercial Real Estate, represented the law firm in the sublease.
Founded by Forbes’ 30 Under 30 Class of 2017 member Mendell Grinter, Campaign for School Equity’s mission is to ensure that all children, especially those of color, and families in Tennessee have access to high-quality education choices.