VOL. 133 | NO. 154 | Monday, August 6, 2018
Memphis Real Estate Recap
Commercial Appeal, Amazon Eying New Locations
By Patrick Lantrip
262 Danny Thomas Place
Memphis, TN 38105
Permit Amount: $412 million
Project Cost: $330 million
Application Date: July 26
Owner: St. Jude Children’s Research Hospital
Architect: The Crump Firm
Contractor: Flintco Inc.
Details: The $412 million advanced research center at St. Jude Children’s Research Hospital took another step forward Thursday, July 26, when a new building permit application was filed for $330 million.
In May, a building permit application valued at $21 million was filed for the new research center’s foundation.
The 625,000-square-foot building is part of the hospital’s $1 billion capital expansion. The center will house six floors of labs focused on immunology, neurobiology, cell and molecular biology, gene editing, metabolomics, advanced microscopy, epigenetics, genomics, immunotherapy and RNA biology.
Flintco Inc. is the general contractor. The Crump Firm is the lead architect and Jacobs Engineering is designing the labs.
175 Toyota Plaza
Memphis, TN 38103
Lease Amount: 17,000 square feet
Tenant: The Commercial Appeal
Landlord: Hertz Investment Group
Details: The Commercial Appeal building was a nexus of local news coverage for Memphis and the Mid-South for nearly a half-century, but The CA won’t be operating out of its 495 Union Ave. location for the first time since the Ford administration.
Memphis Publishing Co., The CA’s parent company, has agreed to take 17,000 square feet in the Toyota Center, according to multiple sources with knowledge of the deal.
The Commercial Appeal will be taking over Sullivan Branding’s lease on the first floor of the Downtown office building, as the local advertising firm is in the process of right-sizing its staff.
Meanwhile, The CA’s long-time Medical District office building is under new ownership and is facing an uncertain future.
The Commercial Appeal’s move Downtown echoes similar patterns in the city’s office market, as more and more users are flocking back to the city’s core.
Orion Federal Credit Union, Wunderlich Securities and SouthernSun Asset Management are just a few of the big names that are in the process of relocating Downtown.
However, bringing new office product online in Downtown can be tricky because of the existing office rental rates in the submarket versus the implied rents from new construction.
The only large-scale development currently in works for Downtown is the 250,000- to 400,000-square-foot Class A tower planned as part of the One Beale development, which will break ground in January.
109 W. McLemore Ave.
Memphis, TN 38106
Project Cost: $595,000
Owner: Belz Investco
Details: Amazon is proposing an unusual development in South Memphis: A “permanent tent’’ to serve as a warehouse.
The world’s largest online retailer wants to build a triangular, 16,575-square-foot warehouse of taut fabric supported by steel-tube trusses and cables, according to construction documents filed with Shelby County Construction Code Enforcement Office.
That agency’s longtime administrator, Allen Medlock, said he was unaware of another Memphis warehouse made in such a way. The application for the building permit was submitted in late July.
The arched structure would rise on a basically empty asphalt parking lot at 109 W. McLemore, just east of Interstate 55. Belz Investco owns the 11.4 acres used by a trucking company. The construction cost is estimated at $595,000.
Plans show the 35-foot-tall building would have six overhead doors – three on each side – where vans can be loaded. Tractor-trailers would unload under an open-air, 2,150-square-foot breezeway at one end of the building. The structure also would house areas designated for a “station,” ready-to-ship desk, shift manager’s desk and water cooler, the plans show.
The site plan shows 43 regular parking spaces and 19 spaces for vans.
A ClearSpan Fabric Structures facility in Dyersville, Iowa, would supply the building components, documents show.
The proposed development would be the fourth and most unusual Amazon building in Memphis.
Traditional warehouse construction is being completed on a $70 million “receive center,’’ which will open by early next year at 3292 Holmes Road in the city’s vast, Southeast industrial area. The facility is expected to employ 575 people in an operation for receiving and repackaging goods for shipment to Amazon fulfillment centers.
Earlier in July, construction documents were filed on behalf of Amazon for the $10 million renovation of an existing warehouse at 5155 Citation, about two miles east of the receive center. The 400,000-square-foot building previously housed the AT&T Entertainment Group Supply Chain.
Amazon also has operated a warehouse at 6005 Freeport, also in Southeast Memphis.
7630 Polo Grounds Blvd.
Memphis, TN 38119
Sale Amount: $10.7 million
Buyer: VEREIT Inc.
Seller: Barclay Holdings XII LLC
Details: Phoenix-based VEREIT Inc. purchased the LA Fitness at 7630 Polo Grounds Blvd. on July 30, 2018, from Barclay Holdings XII LLC for $10.7 million, according to the Shelby County Register of Deeds.
LA Fitness makes up 1.6 percent of VEREIT’s total portfolio, according to the company’s website.
The 41,000-square-foot gym was built in 2014 on a five-acre lot at the corner of Winchester Road and Bill Morris Parkway.
The property was last appraised for $5.8 million, according to the Shelby County Assessor of Property.
According to VEREIT’s website, the company owns and actively manages a diversified portfolio of retail, restaurant, office and industrial real estate assets that have long-term net leases with quality tenants. Its portfolio includes approximately 4,100 properties in 49 states, as well as Puerto Rico and Canada.
Daily News staff contributed to this Real Estate Recap