VOL. 133 | NO. 93 | Wednesday, May 9, 2018
One Commerce Square Office Tower Up for Sale
By Patrick Lantrip
One Commerce Square, the fourth-largest building in Memphis, has hit the market. The 29-story high-rise office tower and four-story annex, located at 40 S. Main St., also comes with a leasehold interest in a roughly 500-space parking garage, according to real estate brokerage firm CBRE’s Deal Flow listing.
Though no asking price is listed, the Shelby County Assessor of Property appraised the Class A Downtown office tower, which tops 400,000 square feet, for $27.5 million this year.
One Commerce Square’s current ownership has invested more than $5 million in capital improvements since 2010 that included new roofs, modernizing the elevators, LED lighting in the garage, chiller replacements, and upgrades to the lobby and common areas, according to the listing.
The 63,230-square-foot annex was built in 1929 and was once the headquarters for the National Bank of Commerce, which constructed the 391,440-square-foot tower in 1972.
Currently the annex is used as an upscale event rental space known as The Columns that can host as many as 800 people.
One Commerce Square is owned by Memphis Commerce Square Partners LLC, a partnership that includes Karl and Gail Schledwitz, Terry Lynch, Gary Prosterman and Worthington Hyde Partners (which includes AutoZone founder J.R. “Pitt” Hyde III, John Pontius and Robert Worthington).
The partnership bought One Commerce from U.S. Bank for $7.6 million in late 2010 and received a 20-year payment-in-lieu-of-taxes incentive from the Center City Revenue Finance Corp.
The deal was set in motion when Pinnacle Airlines Corp. inked a 13-year lease to become the anchor tenant in the 29-story office tower. But just 2 1/2 years later, the regional air carrier had moved its headquarters to Minneapolis, leaving a 170,000-square-foot vacancy in the building.
In June 2017, Wunderlich Securities Inc. announced it would be moving its corporate headquarters from East Memphis to One Commerce Square, where it will occupy about 30,000 square feet on the 16th and 18th floors.
The building is currently 71.9 percent leased, according to CBRE’s listing.