VOL. 133 | NO. 56 | Monday, March 19, 2018
Memphis Real Estate Recap
Riviana, Ebrofrost Continue Work On $26M Frozen Food Facility
The Daily News
2360 Prospect St.
Memphis, TN 38106
Permit Amount: $3.1 million
Project Cost: $26.5 million
Application Date: March 2018
Owner: Riviana Foods
Tenant: Riviana Foods/Ebrofrost North America
Details: Riviana Foods’ South Memphis rice facility is growing again. The Houston, Texas-based company has filed a $3.1 million building permit application for site work at the 2360 Prospect St. plant it shares with Ebrofrost North America, the U.S. arm of German rice and pasta manufacturer Ebrofrost Holding GmbH.
The two companies partnered about a year ago on plans for a multimillion-dollar facility to process and distribute frozen rice, pasta and grain products. The plans included Ebrofrost leasing and renovating part of Riviana’s 1970s-era Prospect Street facility, which is just southwest of The Links at Pine Hill golf course, and building a new warehouse onto the building.
The permit comes after the Economic Development Growth Engine board on Feb. 21 approved an application to amend the payment-in-lieu-of-taxes incentive it awarded Ebrofrost last April. Originally, the company was awarded a seven-year PILOT for the project, which was to include a $26 million capital investment and create 16 jobs with a median base salary of $48,477.
The amendment increases the PILOT to eight years after the company increased the capital investment to $26.5 million, with plans to create 19 new jobs with a median salary of $60,654.
164 Union Ave.
Memphis, TN 38103
Loan Amounts: $6.9 million, $1 million
Loan Date: March 9, 2018
Maturity Date: n/a
Borrower: MNR Hospitality LLC
Lender: Laxmi Hospitality Group LLC ($6.9M), Mahesh Kisan ($1M)
Details: The owner of the former Benchmark Hotel Downtown has taken out two loans secured by the partially demolished property at 164 Union Ave.
MNR Hospitality LLC took out a $6.9 million loan through Laxmi Hospitality Group LLC and a $1 million second loan through Mahesh Kisan, according to separate March 9 trust deeds filed with the Shelby County Register’s Office. Kisan is listed as a member of and registered agent for MNR Hospitality, which has owned the property since 2012.
The former hotel has drawn controversy since MNR began tearing it down in 2016 before running into financing issues that stalled the project with the building only partially demolished.
Signage went up along the hotel’s exterior in September stating it would be redeveloped as a Fairfield Inn & Suites. Three months later, MNR pulled a $600,100 building permit application to renovate the structure, but no tangible improvements were made.
The Downtown Memphis Commission announced Jan. 31 it was taking legal action against MNR over the condition of the site, and the next day, Shelby County Environmental Court Judge Larry Potter ruled it a public nuisance but said he wouldn’t sign the official documents, giving the parties time to settle on redevelopment plans. Potter retired March 1.
The next hearing on the matter is scheduled for Thursday, March 22.
3425 Austin Peay Highway
Memphis, TN 38128
Sale Amount: $6.2 million
Sale Date: Feb. 23, 2018
Buyer: RSM Ventures LLC
Seller: Tabani Raleigh TN LLC
Loan Amount: $5 million
Loan Date: Feb. 23, 2018
Maturity Date: March 9, 2021
Lender: The Bancorp Bank
Details: A large retail strip center across Austin Peay Highway from the former Raleigh Springs Mall has sold for more than $6 million as the city of Memphis prepares to build its Raleigh Town Center concept on the site of the razed mall.
RSM Ventures LLC, which lists an address in Brooklyn, New York, bought the 114,197-square-foot Raleigh Springs Marketplace, at 3425 Austin Peay Highway, from Dallas, Texas-based Tabani Group for $6.2 million, or $54.11 a square foot.
Tabani, doing business as Tabani Raleigh TN LLC, had purchased the Class C center in December 2007 for $7.1 million.
Built in 1983, Raleigh Springs Marketplace sits on 8.6 acres on the west side of Austin Peay south of Yale Road and is anchored by Save-A-Lot and Christ Community Health Services. The Shelby County Assessor of Property’s 2017 appraisal is $5 million.
The sale comes as the city moves ahead with its plan for a town center concept where the 1970s-era Raleigh Springs Mall once stood. The project, approved in 2013, includes a new Raleigh branch public library, police and traffic precinct, city-owned skate park and 11-acre lake with a walking trail.
Demolition of the mall wrapped up last year, and the city pulled $25 million in building permit applications in recent weeks for the project.
2094 Trimble Place
Memphis, TN 38104
Tenant: 17 Berkshire
Landlord: Loeb Properties
Landlord’s Agent: Aaron Petree
Details: Loeb Properties Inc. has signed a new tenant at 2094 Trimble Place in Overton Square.
Pastry and cake bakery 17 Berkshire is taking 1,038 square feet, with plans to open this spring. Construction on the buildout of its space is ongoing.
Aaron Petree, vice president brokerage for Loeb Properties, represented the landlord in the transaction.
Local owner Nuha Abuduhair has operated 17 Berkshire since 2015. It specializes in elegant cakes, macarons, pastries and chocolates. The name comes from the address in Memphis where she grew up.
In its new Overton Square storefront, 17 Berkshire will feature Abuduhair’s handmade pastries served with specialty artisanal teas and coffees, along with a curated selection of boutique items.
The bakery also offers custom celebration cakes and pastries available by special order.