From Binghampton to Shelby Farms, Memphis' multifami market hits its stride
BRED Residential | MBJ
Multifamily residential is a highly competitive market, with an army of developers out there trying to gain an edge with a project that will attract residents to Memphis — to a hot part of town, or to what they hope will be the next hot part of town. Here are the finalists in the BRED Residential category.
City and partners appreciate Binghampton project — Winner
The 8.2 acres that make up Tillman Cove hasn't been much to speak of for a while. But, a few years ago, the City of Memphis and area stakeholders identified it as having serious potential.
The City's Division of Housing and Community Development (HCD) bought the Tillman property in 2018 and issued an RFQ for development in February 2019. In July 2019, the City awarded the deeply blighted area to Nashville-based Elmington Capital Group. The firm plans to build 45 senior living units, 150 apartments, 23 two-story townhomes, and 4,500 square feet of retail.
The project will likely include a mix of market-rate and affordable residences, which Paul Young — the City's HCD director — said could help hold off gentrification in the neighborhood.
Elmington has proposed partnerships with Binghampton-based Center for Transforming Communities and Nickson General Contractors, which was founded by Binghampton resident Octavius Nickson. The legal representative on the deal was Dwayne W. Barrett with Reno & Cavanaugh PLLC.
Elmington has experience with affordable housing development. It built Uptown Flats, Crescent Bluff, and Patterson Flats and is currently developing Forum Flats and the market-rate Dwell at Shelby Farms.
The new Tillman Cove project could help accomplish multiple goals of the Memphis 3.0 plan. It's expected to open in early 2021.
Entities involved in deal:
City of Memphis, Division of Housing and Community Development
Elmington Capital Group
Binghampton Development Corp.
Dwayne W. Barrett, Reno & Cavanaugh PLLC
Tigers recruit apartment renovations near campus
Over the past few years, the University of Memphis has been improving in athletics, academics, and research.
In 2019, U of M was ranked by U.S. News rind World Report for the first time, and the Tiger football team made it to the Cotton Bowl.
The recent success has spurred developers Doug Banerjee and Ari Firoozabadi to take action near campus, as the two will be providing more living places for students.
Back in October, they bought 78 vacant apartments for nearly $2 million at 3341 and 3427 Southern Ave., which are located two blocks from each other.
Banerjee said he liked the “price per pound” and the momentum on South Highland Street. The duo teamed up with local architect and developer Austin Magruder, and the trio now plans to provide more living options for students with their project, called Campus Heights.
Hoping to present a more affordable choice for students, the group will rent the apartments for less than $1.50 per square foot.
They hope to have the project done by May.
Entities involved in deal:
Doug Banerjee and Ari Firoozabadi, Greysteel Co.
Austin Magruder, PKM Architects
Veto takes plunge with tax break near Shelby Farms Park
In early 2018, Arlington Properties’ $38 million, 270-unit apartment project was dead in the water: sewage water.
The City of Memphis had realized the 35—square—mile Fletcher Creek sewage basin — which Arlington Properties’ project is located in — was at capacity, and was telling developers sewer connections were no longer available.
This was bad news for Arlington, which had the property under contract and had put six months of work into developing it. But, without sewage service, the development firm would have to walk away.
Local officials worked on solutions, and a new tax break was created by the Economic Development Growth Engine (EDGE) for projects affected by the sewer capacity issue.
Arlington Properties was the first to be granted the new incentive, worth almost $600,000. That was enough for the developer to move forward with a storage tank plan.
Now off the ground, the 23-acre property will be named Velo at Shelby Farms — vélo is the French word for bicycle. The target demographic is young adults who would theoretically take advantage of the adjacency to Shelby Farms Park and the Greenline.
Apartments are expected to average 1,100 square feet and rent for about $1,400 a month.
The project will likely be completed in mid-2021.
Renasant Bank granted Arlington a $28 million mortgage for the project.
Entities involved in deal:
Arlington Properties
Renasant Bank
Jim Rainer, Newmark Knight Frank
EDGE
City of Memphis
Underwood finds his place on Park
Some people told Adam Underwood to steer clear of Park Avenue, but this didn't stop him and Campbell Clinic CFO Daniel Shumate from dropping $435,000 on a vacant, three-story office building along the street.
Underwood is trusting other advisors, who have told him he's on the cutting edge of the area's revival. The developer plans to retrofit the facility into a 38- unit apartment building.
Underwood is also talking to multiple local coffee shops about placing a location in 1,500 square feet of the building's ground floor.
The president of Mellon Consulting Group, Underwood has invested in single- family real estate for 15 years. But, this is his first commercial development.
His work could help rejuvenate the area, as Park's commercial buildings have received little in t since the 1970s. The old office building Underwood bought was constructed in 1960.
With financing from Landmark Community Bank, the project is expected to cost around $4.5 million. It could just be the beginning for Underwood, who hopes to build another apartment building behind the first.
J. Clay Cole of Wardlow, Wardlow & Cole PLLC was the legal representative on the deal.
Entities involved in deal:
Adam Underwood, Mellon Consulting Group
Daniel Shumate, Campbell Clinic
J. Clay Cole, Wardlow, Wardlow & Cole PLLC
Landmark Community Bank
Burroughs Digs Deep for Downtown Development
Those looking for a shorter commute to Grizzlies games and the rest of Downtown could soon have a new living option, thanks to local businessman Tyrone Burroughs and the City of Memphis.
In July, after an RFQ, the city awarded him 2.1 acres for development over several other developers.
There, Burroughs plans to build 56 apartments, five cottages, and 3,900 square feet of retail on the city-owned property, located on the west side of Fourth Street, just south of FedExForum.
While he presented the apartments as market-rate units, he said he was open to including affordable spaces.
Burroughs owns two additional acres on the east side of Fourth that will also be included in the development.
He has experience developing vacant properties and operates numerous local businesses — including The Lofts at Union Alley, Rizzo's Diner, and R.S. Lewis & Sons Funeral Home.
Entities involved in deal:
Tyrone Burroughs, First Choice Sales & Marketing Group
City of Memphis
Credit: Memphis Business Journal
