VOL. 133 | NO. 31 | Monday, February 12, 2018
Memphis Real Estate Recap
Hotel Indigo, Trader Joe’s Move Ahead
By Patrick Lantrip
22 N B.B. King Blvd., Memphis, TN 38103: Atlanta-based Three P Partners has filed a $5 million building permit application with the Office of Construction Code Enforcement to construct a 118-room Hotel Indigo at the corner of North B.B. King Boulevard and Court Avenue.
Permit Amount: $5 million
Application Date: Feb. 2
Owner: Three P Partners
Tenant: Hotel Indigo
Architect: brg3s architects
Details: New Orleans-based Expotel Hospitality will oversee development and management of the property with Memphis-based brg3s architects handling the design work.
Developed by Holiday Inn founder Kemmons Wilson in 1957, the 200,000-square-foot structure is now slated to be the city’s first Hotel Indigo.
Scheduled to open in mid-2018, the new hotel will feature approximately 3,000 square feet of private dining, event and meeting space; a fitness center; and a renovated pool with cabana bar.
According to Expotel’s website, the development team is “in discussions with several nationally recognized, chef-driven restaurant groups with whom they will collaborate on the culinary program for the restaurant that looks onto the corner of B.B. King and Court and affords an opportunity to create a uniquely urban dining experience.”
2130 Exeter Road
Germantown, TN 38138
Application Date: Feb. 8
Owner: 2130 Exeter Road Holdings
Tenant: Trader Joe’s
Details: The saga of Trader Joe’s in Germantown has had more than its fair share of ups and downs over the last several years, but those all appear to be in the rear view mirror, as the first tangible plans listing the popular grocer have surfaced.
On Thursday, Feb. 8, the Germantown Design Review Commission subcommittee reviewed Trader Joe’s application for its location in the Germantown Collection shopping center.
Though previous plans for the 2130 Exeter Road site have been reviewed and approved by various planning boards in Germantown, this is the first time Trader Joe’s has been listed as the tenant.
The first hint that the on-again-off-again project was finally coming to fruition was a $750,000 building permit application citing “tenant buildout” for Trader Joe’s that was filed with the Shelby County Office of Construction Code Enforcement on Jan. 26.
The future of Trader Joe’s in the Memphis area was most recently cast into doubt in May of 2017 when Centennial American Properties, the previous developers of the planned Trader Joe's location, told The Daily News they were pulling out of the project.
However, the project again began to show signs of life several months later when Savannah, Georgia-based Wicker Park Capital Management, doing business as 2130 Exeter Road Holdings, took over the project.
On Nov. 7, 2017, 2130 Exeter Road Holdings’ revised site plan was approved by the Germantown Planning Commission.
In December, Wicker Park purchased the parcel of land outright from previous owner Robert H. Schwab for $8.1 million.
529 S. Front St.
Memphis, TN 38103
Project Cost: $1.6 million
Application Date: March 8
Owner: 529 S. Front Street LLC
Architect: Larry Clark
Details: A local investment group is seeking a nine-year tax break from the Downtown Memphis Commission to construct a new mixed-use building where the Downtown Blue Monkey once stood at 529 S. Front St.
If approved, the new three-story, 7,500-square-foot building would feature approximately 5,000 square feet of ground-floor restaurant space with four rental units located upstairs.
The project carries a $1.6 million price tag and would be ready to begin construction within three months of receiving PILOT (payment-in-lieu-of-taxes) approval from the DMC’s Center City Revenue Finance Corp.
Currently, the 0.63-acre vacant lot generates $1,433 in city and county taxes annually.
DMC staff estimates that during the nine-year PILOT, taxes would rise 537 percent to $9,130 annually, or $69,278 in total.
The local investment group, operating under the name 529 S. Front Street LLC, consists of Michael and Rebecca Johnson, Chris Jameson, George Hampton, Larry Clark, George Bogy, Vernon Delashmit and Carl Jordan.
The project’s development team also consists of architect Larry Clark, Development Studio LLC and a yet-to-be-named general contractor.
0 Diana St.
Memphis, TN 38104
Project Cost: $1.9 million
Application Date: March 8
Owner: PMT Investments LLC
Tenant: The Flats at Overton Square
Architect: Arch Inc.
Contractor: CBI Construction Co.
Details: PMT Investments LLC, a new business partnership between Aaron Petree, Cliff McLemore and Ed Thomas III, is seeking an 11-year tax abatement to construct a 16-unit apartment building on the periphery of Overton Square.
Dubbed The Flats at Overton Square, the 11,000-square-foot building is slated to fill in a vacant lot on Diana Street near its intersection with Monroe Avenue, and carries a $1.9 million price tag.
The development will include four “live/work” units on the bottom floor and 12 traditional housing units upstairs ranging from 500 to 915 square feet. The development team consists of architect Arch Inc., engineers McCaskill & Associates, Fowler Engineering and Innovative Engineering Services, and general contractor CBI Construction Co.
Though PMT is an independent venture consisting of Loeb Properties’ Petree, CBI Construction’s McLemore, and Colliers International’s Thomas, the group is partnering with Loeb to use the Overton Square brand.
Currently, the property generates $1,824 in annual property taxes. The DMC staff estimates that taxes would increase by 481 percent to $10,601 annually during the life of the 11-year PILOT for a total of $116,611 if approved, versus $20,064 over 11 years if it is not approved.