Memphis continues to thrive both as a residential and commercial center of the southeast. Evidence of this is the new $17.9 million multi-use complex planned for the South Main neighborhood. The development group formed as 266 Developer LLC plans a 145 unit complex to be located at 266 S. Front St., on the southeast corner of Front and Dr. Martin Luther King Jr. Avenue. Not surprisingly, the name of the project is 266 Memphis Lofts.
Major investors in the new group include Robert Mallory and Vince Smith Jr. who are already involved in developing the nearby projects of the Printer's Alley and The Annex Lofts. They have now partnered with John Dicken Jr. on the new 266 Memphis Lofts project. The project involves tearing down a one-story office building on the 1.7 acre site to make room for three new buildings that include two three-story apartment buildings and a one-story commercial building. The largest apartment building will be 76,000 square feet and the other will be 60,000 square feet. The third 8,000 square foot building is intended to be mixed use commercial space designed for a restaurant, entertainment, and bar tenants.
The design follows the modern urban trend of combining residential units with desired nearby amenities by connecting the three buildings through a common courtyard. The majority of apartments will be one-bedroom micro apartments while including a few two-bedroom units. These should appeal to the younger, unmarried generation to help keep downtown bustling for years to come.
Construction is scheduled to be completed during the winter of 2017 but the first building should be on-line in the spring of 2016 with first construction starting in March of 2015. The construction team is still in the development stage but the required $14.6 million in financing is already in place.
Although most of the plans are in place, the purchase of the property is not yet complete. For that to happen, the development group must first secure a 10-year, $2.6 million tax incentive from the Center City Revenue Finance Corp. That is hoped to be finalized at the upcoming Center City Revenue Finance Corp. meeting on Oct. 14. The tax break is known as a payment-in-lieu-of-tax (PILOT) incentive.
Once the PILOT incentive is secured (a firm requirement), the property will be purchased, the design will begin, and hopefully the project will be completed on schedule. The final result will be more revitalization to downtown Memphis.
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Author bio: Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years. He also draws upon 25 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 in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.