VOL. 133 | NO. 71 | Monday, April 9, 2018
Memphis Real Estate Recap
New Details on Downtown Hotel, Clark Tower Lands Another Tenant
By Patrick Lantrip
477 S. Main St.
Memphis, TN 38103
Application Date: April 10
Owner: South Main Hotel LLC
Tenant: Arrive Hotel
Details: The developers of a 62-room Arrive Hotel planned for the former Memphis College of Art graduate school at 477 S. Main St. are seeking approval from the Center City Revenue Finance Corp. for a change of ownership and timeline extension.
The original development team, Wessman Holdings LLC, purchased the property in late 2016, with principal John Wessman saying at the time that the California-based company was attracted to Downtown because of the growth of boutique hotels and abundance of vacant buildings.
The following February, Wessman’s team filed the first building permit and the CCRFC awarded the project a 15-year payment-in-lieu-of-taxes incentive.
But two days after the PILOT was approved, Riverside County District Attorney’s Office in California filed a criminal complaint against Wessman in a public corruption case that included former Palm Springs, California, Mayor Stephen Pougnet.
Now, after more than a year of silence, the project appears to be moving forward without Wessman.
In a March 30 letter of intent filed with the CCRFC, attorney Chad Wilgenbusch of Baker, Donelson, Bearman, Caldwell & Berkowitz PC stated the developers “determined that it was in the best interest of the project to restructure the corporate existence of the project.”
Under the new structure, the initial applicant of the project, 477 Memphis Hotel LLC, will be replaced by South Main Hotel LLC, and the project development will be led directly by its manager, Los Angeles-based Arrive Hotels & Restaurants.
The CCRFC board will review the project during its Tuesday, April 10, meeting.
335 Stiles Drive
Memphis, TN 38127
Permit Amount: $12.8 million
Project Cost: $9.6 million
Application Date: March 2018
Owner/Tenant: PeroxyChem LLC
Contractor: O’Brien & Gere Inc.
Details: PeroxyChem is continuing work on the chemical production facility it is building at 335 Stiles Drive, near the M.C. Stiles Wastewater Treatment Plant in Memphis.
The Philadelphia-based chemical manufacturer has filed a $12.8 million building permit application with the Office of Construction Code Enforcement that calls for “construction of a chemical blending facility with a control building and tank farm and piping.”
PeroxyChem’s new plant will make peracetic acid, a disinfectant that has been used in the food industry for more than 30 years and is now being used in water treatment applications. In this case, it will be used to treat wastewater at the Stiles plant as part of a new disinfection process.
The Economic Development Growth Engine for Memphis and Shelby County (EDGE) awarded PeroxyChem a seven-year payment-in-lieu-of-taxes incentive in November for the nearly 109,000-square-foot facility. In its PILOT application, the company said it planned to invest $9.6 million in the new facility and create 15 jobs with an average salary of $76,566, including benefits.
The Stiles plant sits on more than 100 acres of city-owned land where the Mississippi and Wolf rivers meet. PeroxyChem is leasing an unused portion of that property from the city. At a groundbreaking in December, city leaders said the PeroxyChem facility will save the city money in sewer treatment costs while also creating local jobs with a focus on hiring minority-owned subcontractors.
5100 Poplar Ave.
Memphis, TN 38137
Lease Amount: 6,479 square feet
Tenant: New Horizons Computer Learning Center
Landlord: In-Rel Properties
Landlord’s Agent: Ron Riley, Collier International
Details: IT training company New Horizons Computer Learning Center has signed a deal to occupy 6,479 square feet of office space on the second floor of In-Rel Properties’ Clark Tower.
With more than 300 locations in 70 countries, New Horizons Computer Learning Center has provided independent IT training to more than 30 million students and companies.
“When we purchased the Memphis franchise, we were looking to relocate the office immediately to a location within the Memphis area to better serve our clients and employees,” Scott Riggs, senior vice president of New Horizons, said in a release. “After an exhaustive search, Clark Tower was the ideal place for us. The location is perfect and the amenities within Clark Tower will benefit our employees and our clients.”
The Memphis franchise is owned by Austin, Texas-based 5 Point Enterprises LLC, the company’s largest franchise ownership group, with 34 franchise locations in the Midwest and southeastern U.S.
“Securing New Horizons Computer Learning Center is a testament to the improvements made to the building and its location,” said Ron Riley, senior vice president of Office Leasing at Colliers International Asset Services.
3292 E Holmes Road
Memphis, TN 38118
Permit Amount: $8.7 million
Project Cost: $72 million
Application Date: April 4
Owner: IDI Gazeley
Contractor: Intelligrated Services LLC
Details: Amazon has filed an $8.7 million building permit application for its impending distribution center in southeast Memphis.
The permit to install a metal conveyor and material handling equipment was filed with the Office of Construction Code Enforcement on April 4.
Intelligrated Services LLC was listed as the contractor on the application.
In October 2017, Amazon confirmed it was planning a $72 million, 615,440-square-foot receive center in Memphis that would employ 600 workers. The facility will collect and repackage products for distribution to fulfillment centers across the country.
Later that month, the online retailer was awarded a 15-year payment-in-lieu-of-taxes incentive by EDGE to establish the receive center.