Developer buys in Medical District, in negotiations for more property
Madison19 | Memphis Business Journal
With his first development project starting vertical construction this week, Eduardo Sanchez is already looking toward what's next.
Sanchez — who found his initial business success in the staffing industry — entered the development world with 569 N. McLean Boulevard. On Oct. 9, he bought a 19-unit Medical District apartment building called The Madison19, and he told the Memphis Business Journal he's under negotiations to buy two more properties nearby.
”The Medical District is going to change a lot,” Sanchez said. "[The economy] is getting back to normal very soon. And, we believe that, no matter what, people need a place to live.”
The Madison19 was built in 2008. Sanchez paid $2.1 million for it, fully occupied. His hope is that, with significant interior renovations, he can push rents to $1.90 per square foot. A one-bedroom unit is currently about $1.40 per square foot, according to apartments.com.
He said he's confident in the Medical District because of the ongoing activity with projects like The Rise Apartments and the investments on Marshall Avenue John Halford, Pat Magruder, and Austin Magruder are planning to make. Sanchez said he's friends with the Magruders and their visions for the district align.
Sanchez moved to Memphis from Mexico 22 years ago. He started his staffing firm, Supreme Staffing, six years ago. This year, the staffing business will generate about $30 million in revenue, he said, as the pandemic has brought growth.
”A lot more [logistics] companies are coming here," Sanchez said. ”Finding qualified candidates is always a challenge. ... All the distribution centers are pretty much working 24 hours because everybody is buying online.”
Sanchez said he's always been interested in construction and buildings, so entering the development world made sense.
One winter morning a few years back, he ate brunch at Café Eclectic and fell for the vacant building at 569 N. McLean Boulevard. The next morning, he submitted an offer for it.
He ended up demolishing the building — unable to make the numbers work on a renovation — but he says he loves the development he is replacing it with, which should be completed within six months. He said he will hold onto it long after it’s built.
While The Madison19 is fairly new and 569 N. McLean will be brand new, Sanchez said he's a big fan of old, challenging buildings and that the properties he's in the midst of purchasing fit that description.
”Bringing back life in [historic] buildings is just awesome," he said. Along with the Medical District, Sanchez said he has his eyes on Summer Avenue. He's trying to buy land for apartments and retail along the corridor but hasn't found good land available.
CREDIT: Jacob Steimer | Lead Reporter, Memphis Business Journal
