VOL. 133 | NO. 115 | Friday, June 8, 2018
$20M Permit Filed for Bakery Apartments
The team redeveloping the Wonder Bread bakery and several nearby properties has filed a $20 million building permit application for the apartment portion of the $73 million mixed-use project.
LRK was tapped to handle the design work, while Montgomery Martin Contractors will head up the construction.
The application lists SWH Partners as the property owner and tenant. Founded as Schaedle Worthington Hyde Properties in 1991, the Atlanta-based firm specializes in multifamily and mixed-use investments, including development and other value-creation strategies.
Lead developer Development Services Group announced plans last August for the bakery project, including nearly 300 upscale multifamily units, a 480-space garage and 150,000 square feet of office and retail space. Later that month, Orion Federal Credit Union confirmed plans to move its headquarters to the development.
– Patrick Lantrip
Univ. of Memphis Trustees Approve Tuition Freeze
University of Memphis trustees voted Wednesday, June 6, to freeze tuition for the next year after a 2.6 percent tuition hike this year. The freeze recommended by U of M president David Rudd puts tuition at $9,700 for a student taking 15 credit hours.
And the trustees approved raising the campus minimum wage for full-time employees to $10.60 an hour from the current $10.10 an hour. Rudd described the raise he recommended as incremental and to be followed by further pay steps. The action follows Shelby County Schools’ decision to raise its minimum wage to $15 an hour for full-time employees, while the city of Memphis approved a $15.50 hourly minimum wage for its full-time workers.
In other action, the U of M trustees approved a salary supplement of $50,000 for Rudd from private funds. The group also approved three new academic programs: doctorates in physical therapy and social work, and a Master of Science program in engineering management.
– Bill Dries
THM Buys Remaining Parcels Surrounding 100 North Main
New York-based Townhouse Management Co., doing business as THM Memphis Acquisitions LLC, has acquired the last two parcels that share a block with the 37-story 100 North Main building, which it plans to redevelop into a 600-room Loews hotel.
Listed as 0 Main Street and 0 Jefferson, the two parcels were purchased from Jefferson Partners for $1.7 million, according to a May 31 warranty deed. The two empty parcels total a combined 0.6 acres and were collectively appraised for $670,000 by the Shelby County Assessor this year.
The proposed renovation of the city’s tallest building carries a preliminary price tag of $400 million.
– Patrick Lantrip
2 More Tigers Taken in MLB Draft
University of Memphis players Riley Cabral and Tyler Webb were both selected in the 2018 Major League Baseball Draft. Cabral was selected in the 31st round by the Houston Astros, while Webb went to the Minnesota Twins in the 40th round. Previously, pitcher Jonathan Bowlan was selected in the second round by the Kansas City Royals.
Cabral came to Memphis after a successful two-year career at Chipola College, where he was drafted in the 16th round of the 2017 MLB Draft.
The Oklahoma City native recorded a 4. 85 ERA, a 6-5 record and one save in 17 appearances for the Tigers this season. He struck out 58 batters in 59 1/3 innings pitched.
Cabral is the first Memphis Tiger to be drafted by the Astros.
Webb’s selection marks the third-consecutive season that a Memphis outfielder has been drafted. Webb played two seasons at the University of Memphis after transferring from Galveston College. He compiled a .289 career batting average with 35 doubles, three triples and seven home runs. He drove in 52 runs and scored 71 runs in 107 career games played.
In his first season with the program in 2016, Webb batted .305 with 16 doubles and six home runs. He scored 43 runs and drove in 25.
Webb is the third Memphis Tiger to be drafted by the by the Twins and the first since Philip Chapman in 2011.
– Don Wade
International Paper Calls Off Bid for Smurfit Kappa
Memphis-based International Paper Co. has called off its bid for now to acquire Smurfit Kappa Group PLC, Europe’s largest maker of cardboard boxes, IP executives announced Tuesday, June 6.
The company’s statement said specifically IP will “not make an offer for Smurfit Kappa Groups PLC given the lack of engagement by Smurfit Kappa’s board of directors and management.”
“While we continue to believe in the strategic and financial potential of this combination, our commitment was to proceed in a disciplined manner that would create value for both sets of shareholders,” International Paper chairman and CEO Mark Sutton said in the same statement.
“Moving forward, we remain focused on executing our strategy and are excited about our outlook. We have many levers to create shareholder value and will be responsible stewards of our shareholders’ capital.”
International Paper made its first offer to buy the Irish company for $10.7 billion in February and put a revised $11 billion proposal on the table in March – both rejected by Smurfit leaders.
The Irish Takeover Panel, a regulatory body in Ireland, gave IP until June 6 to make a final binding offer on Smurfit in what would have amounted to a hostile takeover bid.
In May, International Paper indicated it probably would not submit a third bid to the panel and would instead try to talk with Smurfit leaders about an agreement short of a takeover.
With Tuesday’s formal confirmation, International Paper said it reserves the right within the next year to renew its bid for Smurfit Kappa.
– Bill Dries
SE Memphis Industrial Property Sells for $7.6M
Huntington Industrial Partners, doing business as HIP 3527-3543 Lamar Avenue LLC, has acquired a roughly 18-acre industrial property in southeast Memphis for $7.6 million.
Edgewood, Colorado-based Huntington purchased the parcel from Underberg Property Management, doing business as American Properties Co., according to June 1 warranty deed.
In conjunction with the purchase, Huntington took out a $5.1 million mortgage through Southern Farm Bureau Life Insurance Co.
Built in 1971, the 380,000-square-foot row of warehouses was appraised at $4.8 million by the Shelby County Assessor this year.
– Patrick Lantrip