In the recent past, I’ve written about the robust market in Memphis for new homes, both single family and condominiums. I’ve also written about how the high-end Class A commercial market is making a come back in Memphis. This week we look at the middle of the Memphis commercial real estate market. It’s beginning to be obvious that a rising sea floats all boats.
As most of us know it’s the really big guys in commercial real estate that get most of the attention because of the sheer size of the deals they put together. However, it’s the middle tier and even the lower tier activities that actually drive most of the market activity in the big picture. The volume of all these deals far exceeds the much fewer deals put together by the industry giants. Here we look at a few of the middle tier deals that are in work.
Renovating 1350 Concourse Ave
The old Sears building located at 1350 Concourse Ave is now known as the Crosstown Concourse. The renovation will create multiple retail outlets along with new housing in the form of condominiums. This aligns with the popular urban trend to bring housing, retail, and entertainment venues within walking distance for people living in the neighborhood. This business model remains popular with younger generations.
While the total renovation is expected to come to about $200 million, it will be done one project at a time. Currently underway is the Lost in the Cosimos. A 450-seat community theater that recently received permit approval. This multi use remodel expects to welcome its first residential tenants at the end of 2016, with commercial tenants and retail/restaurant entities moving in around March 2017.
Other Middle Tier Projects
At 409 S. Main St. stands a commercial building that is more than 100 years old. The multi use renovation is expected to create another South Main focal point. The first floor is planned to be converted into a food hall, the second floor will be tenant space, and the third floor will become an event center.
As an example of another middle tier project, in November 2015, Dyer and her partners, dba LaFamiglia LLC, purchased the building for $1.2 million from the Visible College of Music, according to the Shelby County Register of Deeds.
Do you see a trend here? Converting single use venues into multi use that attract tenants to the urban core. The revitalization of Memphis is beginning to gather steam.
Other middle tier commercial projects in work include:
- City Market and Quench Wine & Spirits are planning a new venue. This will be the third venue for entrepreneurs Hamida and Sunny Mandani.
- The Poplar Ave. McDonald’s is planning a nearly $1 million upgrade.
- Babalu Tacos & Tapas filed in September for a construction permit to put Memphis’ second Babalu in the new “6450” retail center in East Memphis, at an estimated cost of $500,000.
- The old Central Police Station located at 128 Adams and vacant for 34 years has been sold to NCE Realty & Capital Group for $2 million. A boutique hotel is planned for the site.
This is just the tip of the iceberg when it comes to middle tier commercial real estate in Memphis. It doesn’t even touch on all of the activity at the lower end of the market. While the big business names receive most of the limelight, it’s the middle and lower tiers of commercial real estate that are doing most of the heavy lifting to revitalize Memphis.
Please leave a comment if this article was helpful or if you have a question.
Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for 10 years. He also draws upon 30 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. With the Pacific Ocean a couple of miles in the opposite direction.