VOL. 133 | NO. 11 | Monday, January 15, 2018
Memphis Real Estate Recap
Memphis Hilton Sale, New FedEx Hub Building Highlight Busy Week
By Patrick Lantrip
939 Ridge Lake Blvd.
Memphis, TN 38120
Sale Amount: $31 million
Sale Date: Jan. 3, 2018
Buyer: Linchris Hotel Corp.
Seller: Davidson Hotels and Resorts
Loan Amount: $32.5 million
Loan Date: Jan. 3, 2018
Borrower: Glenn Gistis, CFO of Linchris
Lender: Western Alliance Bank
Details: The Memphis Hilton, the iconic cylindrical hotel located at 939 Ridge Lake Blvd. in East Memphis, has sold for $31 million.
Hanover, Massachusetts-based Linchris Hotel Corp., doing business as LCBV Memphis Investment LLC, purchased the 314,782-square-foot hotel from Atlanta, Georgia-based Davidson Hotels and Resorts, doing business as RBD Memphis LLC.
Davidson Hotels and Resorts senior vice president and general counsel Crystal Beasley signed the Jan. 3 warranty deed on behalf of the sellers.
Meanwhile, Lincris took out a $32.5 million construction mortgage through Phoenix, Arizona-based Western Alliance Bank.
Linchris chief financial officer Glenn Gistis signed the warranty deed on behalf of new owners.
Built in 1979, the 405-room hotel sits on 8.7 acres near Poplar Avenue and Interstate 240, and was last appraised for $25 million by the Shelby County Assessor of Property.
2333 Sprankle Ave.
Memphis, TN 38118
Permit Amount: $35.4 million
Application Date: Jan. 8, 2018
Owner: Memphis-Shelby County Airport Authority
Tenant: FedEx Corp.
Details: Memphis-based FedEx Corp. is preparing to expand operations at its World Hub at Memphis International Airport.
The shipping company has filed a building permit application with construction code officials for a new $35.4 million building at 2333 Sprankle Ave.
The permit for the new building at FedEx’s Memphis World Hub came the same day as the as the official opening of the FedEx Shanghai International Express and Cargo Hub located at Shanghai Pudong International Airport.
The 134,000-square-meter Chinese facility, which is the largest of its kind at Shanghai Pudong International Airport, will be able to process up to 36,000 packages and documents per hour.
More details about the new facility at Memphis International were not immediately available.
4755 Southpoint Drive
Memphis, TN 38118
Project Cost: $25 million
Application Date: Jan. 17, 2018
Owner: Exeter 4755 Southpoint LLC
Tenant: The Northwest Co.
Details: The Northwest Co., an industry leader in manufacturing “branded home textiles,” is seeking a 10-year tax abatement from the Economic Development Growth Engine for Memphis and Shelby County to open a distribution facility in southeast Memphis.
Northwest is planning to invest more than $25 million in a 700,000-square-foot distribution facility with office space that will create 25 permanent jobs averaging $34,250 per year and 150 part-time and seasonal jobs that would be equivalent to 75 full-time jobs averaging $29,000, according to the Roslyn, New York-based company’s Fast Track PILOT application.
If approved, Northwest would save $4.9 million during the course of the decade-long payment-in-lieu-of-taxes plan, while generating $5.1 million in local tax revenues for a 1.03 cost-to-benefit ratio.
The EDGE board will review Northwest’s request Wednesday, Jan. 17.
Northwest Co. is known for producing throw blankets and other household products that are branded with sports and entertainment properties. It has 175 employees in five countries worldwide.
6060 Primacy Pkwy.
Memphis, TN 38119
Sale Amount: $14.1 million
Sale Date: Jan. 9, 2018
Buyer: Priam Capital
Seller: Lone Star Funds
Seller’s Rep: Terry Radford and Johnny Lamberson, CBRE
Loan Amount: $9.3 million
Loan Date: Jan. 9, 2018
Borrower: Abhishek Mathura, Priam Capital
Lender: First Tennessee Bank N.A.
Details: Nashville-based Priam Capital has secured another East Memphis office property in a multimillion-dollar deal.
Priam Capital, doing business as Primacy III LLC, bought the 130,000 square foot office building at 6060 Primacy Pkwy. from Lone Star Funds doing business as LSREF2 Newtown for $14.1 million, according to a Jan. 9 warranty deed filed with the Shelby County Register.
CBRE’s Terry Radford and Johnny Lamberson represented the sellers in the deal.
In conjunction with the purchase, Priam took out a $9.3 million mortgage with First Tennessee Bank National Association that was signed by Priam co-founder and partner Abhishek Mathura. In April, Priam bought Primacy II, a 123,265-square-foot East Memphis office building located at 6055 Primacy Parkway near the intersection of Ridgway Road and Park Avenue, from The Southland Cos. for $16.6 million.
In conjunction with that purchase, Priam took out a $10.6 million mortgage on the property, through Missouri-based RGA Reinsurance Co.
Less than a week later, Priam, doing business as 8700 Trail Lake LLC, bought the 60,000-square-foot Tournament Trails building in southeast Memphis from Tournament Trails Office Building I LLC for $8.3 million.
In conjunction with that purchase, Priam Capital took out a $5.4 million mortgage, also with RGA Reinsurance Co., that will mature on May 1, 2024.
5555 E. Raines Road
Memphis, TN 38115
Lease Amount: 403,000 square feet
Tenant: Meguiar's Inc.
Tenant’s Rep: Mike Gordon, CRESA
Landlord: Raines Road Title Holder LP
Landlord’s Rep: Brian Califf, NAI Saig Co.
Details: Car care product manufacturer Meguiar's Inc. has executed a new lease for 403,000 square feet in the Raines Distribution Center at 5555 E. Raines Road.
NAI Saig Co. executive vice president Brian Califf represented the landlord, Raines Road Title Holder LP, while Mike Gordon with CRESA represented the tenant in the transaction.
Based in Irvine, California, Meguiar's is one of the leading manufacturers of car care products in the U.S.