2023 MMDC Real Estate Report

Page 1

MEMPHIS MEDICAL DISTRICT COLLABORATIVE Real Estate Year-End Report 2023


TABLE OF CONTENTS

03 - 05

Real Estate Investments

06 - 25

26 - 37

38 - 46

Real Estate Grants

Investments: Grow Fund and MMDIF

Neighborhood Planning


MMDC | MDD REAL ESTATE INVESTMENTS - 2023

MMDC | MDD REAL ESTATE - YTD 2023 INVESTMENTS Fund Quantity Amount of Investment Pre-Development

6

$30,000

Improvement

18

$198,843.20

PRI - Grow Fund

6

$570,000

MMDIF - Build Fund

3

$5,796,000

Total

33

$6,594,843.20


MMDC | MDD INVESTMENTS - MWBE ALLOCATION 2023

MMDC | MDD REAL ESTATE - YTD 2023 INVESTMENTS Fund MWBE Firms Amount of Investment Pre-Development

5 (83.3%)

$25,000

Improvement

10 (55.5%)

$108,421.01

PRI - Grow Fund

3 (50%)

$325,000

Total

18

$458,421.01


MMDC | MDD REAL ESTATE INVESTMENTS - 2023

MMDC | MDD REAL ESTATE - YTD 2023 Residential Total INVESTMENTS Fund Units Added

Development Costs

PRI - Grow Fund

73

$12,240,981

MMDIF - Build Fund

159

$17,433,895

Total

196*

$25,445,524*

*$4,229,352 and 36 units were subtracted from the combined Grow Fund/MMDIF costs due to the Broadmoor Apartments project being financed by both funds.


LIVE LOCAL RENTAL INCENTIVE - 2023 Anchor Institution

Applicants Approved

Amount Approved

Regional One Health

16

$24,500

ALSAC

3

$2,000

Methodist Le Bonheur

1

$500

Totals

18

$27,000


REAL ESTATE GRANTS BUDGET - FY2023 RE Grants Budget FY23 $230,000.00 Amount Dispersed

Amount Approved

Pre-Development

$25,000.00

$30,000.00

Improvement

$117,922.19

$198,843.20

Totals

$142,922.19

$228,843.20


REAL ESTATE GRANTS - FY2023

Type of Grant

Number of Grants

Minority and/or Woman Grant Recipients

Pre-Development

6

83.3% (5)

Improvement

18

55.5% (10)

Totals

24

62.5% (15)


REAL ESTATE GRANTS MAP - 2023

MAP LEGEND MEDICAL DISTRICT BOUNDARIES

PRE-DEVELOPMENT GRANT

IMPROVEMENT GRANT



PRE-DEVELOPMENT GRANT - 620 MADISON 620 MADISON - CAFE NOIR EDGE DISTRICT - CNCT. DESIGN MINORITY & WOMAN-OWNED Jasmine Settles, proprietor of Café Noir, is working to secure her first brick and mortar location. Jasmine identified 620 Madison with rehab currently in process.

CURRENT

cnct. design has completed construction drawings for build-out at 620 Madison. Café Noir is Memphis’ only Black Womanowned bookstore and café. INTERIOR RENDERING


PRE-DEVELOPMENT GRANT - 609 JEFFERSON 609 JEFFERSON - MA609, LLC

CURRENT

VICTORIAN VILLAGE - OOBA WOMAN-OWNED Owned by Mike Robison and Aimee Leeper, 609 Jefferson is currently listed as a commercial space for lease. The owners are currently weighing the options of converting what was once an Otis Elevator building into 3-4 units of residential housing if a commercial tenant is not secured. Architectural drawings were completed by the Office of Basic Architecture (ooba).

EXTERIOR SCHEMATIC


PRE-DEVELOPMENT GRANT - 609 JEFFERSON

EXTERIOR 3-D SCHEMATICS


PRE-DEVELOPMENT GRANT - 644 MADISON 644 MADISON - JEM DINING, LLC EDGE DISTRICT - CNCT. DESIGN WOMAN-OWNED Among the burgeoning commercial corridor of Madison Ave. is a new fine dining concept from Joshua and Emily Mutchnick. Joshua and Emily moved to Memphis to start their new concept after years managing restaurants throughout the United States. Architectural drawings were completed by cnct. design and buildout is currently underway. JEM is expected to open in the first half of 2024.

CURRENT

INTERIOR RENDERING


PRE-DEVELOPMENT GRANT - 286 N MANASSAS 286 MANASSAS - RHOW PROPERTIES NORTH OF POPLAR - CNCT. DESIGN MINORITY-OWNED 286 N Manassas is led by minority developers Reggie Howard (Nashville) and local emerging developer, Chris Batts. The team is planning to go vertical on a 4-unit residential building in 2024, injecting gentle density within this neighborhood. Pre-development work was completed by cnct. design and included architectural drawings and a financial feasibility analysis.

CURRENT

SITE SKETCH


PRE-DEVELOPMENT GRANT - 32 N CLAYBROOK (2022 APPROVAL) 32 N CLAYBROOK - SMH PARTNERS GP MADISON HEIGHTS - URBANARCH SMH Partners GP, owned by Daniel Szymanek, Rob Mayer, and Thomas Hewgley, have been actively acquiring multi-family and office properties within Madison Heights. The pre-development grant assisted the group with architectural drawings to turn one of the common areas into an additional residential unit. Upon rehab, 32 N Claybrook will have 29-units of housing.

CURRENT


PRE-DEVELOPMENT GRANT - 1400 MADISON (2022 APPROVAL) 1400 MADISON - KROSSTOWN LLC MADISON HEIGHTS - DESIGN LOVE STUDIO MINORITY-OWNED Krosstown LLC is owned by emerging developer, Kinsey Thompson. Mr. Thompson plans to repurpose the former Krosstown Kleaners building into a mix of commercial units on the ground floor, and 3-4 residential units on the second floor. After architectural construction drawings were completed by Design Love Studio, permits are being filed to start the rehab process.



IMPROVEMENT GRANT - PEABODY/PAULINE PEABODY/PAULINE - FP MEMPHIS PEABODY-VANCE - SIDEWALK REPAIR

BEFORE

AFTER


IMPROVEMENT GRANT - 737 COURT 737 COURT - FAULKNER COURT APTS. EDGE DISTRICT - TREE SERVICE AND FENCE REPLACEMENT

BEFORE

AFTER


IMPROVEMENT GRANT - 405 MONROE 405 MONROE - LANDSCAPE SERVICES GROUP EDGE DISTRICT - FACADE IMPROVEMENT

BEFORE

AFTER


IMPROVEMENT GRANT - 405 MONROE 405 MONROE - SHEET CAKE GALLERY EDGE DISTRICT - TENANT BUILD-OUT

BUILD-OUT

COMPLETE


IMPROVEMENT GRANT - 667 MONROE 667 MONROE - P & J REALTY EDGE DISTRICT - SIDEWALK REPAIR

AFTER

BEFORE


IMPROVEMENT GRANT - 732 MADISON 732 MADISON - FRENCH TRUCK COFFEE EDGE DISTRICT - SIGNAGE

BEFORE

AFTER


IMPROVEMENT GRANT - 311 DUNLAP (2022 APPROVAL) 311 DUNLAP - PROXIMITY DEVELOPMENT, INC. NORTH OF POPLAR - EXTERIOR LIGHTING

BEFORE

AFTER



GROW FUND - MALONE PARK COMMONS MALONE PARK COMMONS - 606 N MAIN UPTOWN BORROWER - Jones Urban Development, (Local, Minority-Led) UNIT MIX - Phase I: 4 commercial units, 28 residential units; Phase II: 16 residential units Malone Park Commons is a vital development for the Medical District and beyond. Andre and Curtis Jones provide perhaps Memphis’ only new model of gentle and walkable urban density with a mix of uses.

IN PARTNERSHIP WITH


GROW FUND - VIET HOA MARKET VIET HOA MARKET - 40 N CLEVELAND MADISON HEIGHTS BORROWER - Viet Hoa Market (Local, Minority and Woman-Led) PRE-CONSTRUCTION CONDITIONS

PROJECT - Restoration of facade and enhancement of parking lot with landscaping and pedestrian realm improvements The family has been operating Viet Hoa within the Madison Heights neighborhood since the 1980's. This project gives the iconic international market a facelift.

IN PARTNERSHIP WITH EXTERIOR RENDERING


GROW FUND - VIET HOA MARKET


GROW FUND - 28 N CLAYBROOK SMH PARTNERS GP - 28 N CLAYBROOK MADISON HEIGHTS BORROWER - SMH Partners GP (Local) UNIT MIX - 8 residential units SMH Partners has been actively acquiring multifamily and office properties within the Madison Heights neighborhood. After a two-year lease back period to a local social services agency, 28 N Claybrook will be redeveloped to continue to provide affordable and workforce affordable housing.

IN PARTNERSHIP WITH


GROW FUND - 656 POPLAR 400 N MAIN LLC - 656 POPLAR NORTH OF POPLAR BORROWER - 400 N Main LLC (Local) UNIT MIX - 1 Commercial Unit (5,860 SF) 656 Poplar sits on a critical corridor connecting the Medical District to downtown proper. The rehabilitation and activation of this block is important to spur development throughout the Poplar Triangle. The development team is actively looking for a tenant for this property.

IN PARTNERSHIP WITH


GROW FUND - BROADMOOR APARTMENTS CLEVELAND CROSSING LLC - 290 S CLEVELAND MADISON HEIGHTS, UNION & CLEVELAND BORROWER - Cleveland Crossing LLC (Local) UNIT MIX - 36 residential units The Grow Fund is being layered with Pathway Lending and the MMDIF to fund this project. This property is positioned on a key gateway into the Medical District, in close proximity to Anchor Institutions (Methodist, SCO), and will be across the street from a future BRT station.

IN PARTNERSHIP WITH


GROW FUND - 628 MADISON CALIBER HOMES, LLC - 628 MADISON EDGE DISTRICT BORROWER - Caliber Homes LLC (Local, Minority-Led) UNIT MIX - 3 commercial units; 13 residential units Upon stabilization, this project will fit nicely into the mixed-use developments along Madison Avenue and the Edge District.

IN PARTNERSHIP WITH



MMDIF BUILD FUND - 339 MADISON MALLORY MADISON LLC - 339 MADISON EDGE DISTRICT UNIT MIX - 10,571 SF Flex Commercial Space; 2 short-term residential units The MMDIF was used at 339 Madison to provide the current owners with permanent financing after stabilizing the building.

IN PARTNERSHIP WITH


MMDIF BUILD FUND - THE COURTS APARTMENTS RED ACE CAPITAL - 1300 BLOCK OF COURT AVE MADISON HEIGHTS UNIT MIX - 121 residential units; 5 buildings Red Ace utilized the MMDIF as gap financing for redevelopment costs. The redevelopment of these units within one block provides much needed housing along the Madison and Cleveland Corridors.

IN PARTNERSHIP WITH


MMDIF BUILD FUND - THE BROADMOOR APARTMENTS CLEVELAND CROSSING LLC - 290 S CLEVELAND MADISON HEIGHTS UNIT MIX - 36 residential units Pathway Lending and the MMDIF are in senior position for this loan covering acquisition and rehab costs. With the anticipation of the Bus Rapid Transit line, having remodeled units will be essential for development along Union.

IN PARTNERSHIP WITH


PLANNING - MEDICAL DISTRICT FORM BOOK Produced in collaboration with architectural firm, Office of Jonathan Tate (OJT), the Medical District Form Book is a resource to democratize development and provide “missing middle” housing typologies. Housing Types within Form Book: Single Family Home Single Family Home + ADU Duplex Fourplex 8-unit multifamily building Construction drawings have been completed for the single family home + ADU, and duplex typologies.


PLANNING - MEDICAL DISTRICT FORM BOOK Single family home

Single family home + ADU


PLANNING - MEDICAL DISTRICT FORM BOOK Duplex

Fourplex


PLANNING - MEDICAL DISTRICT FORM BOOK 8-unit Building

8-unit Building


PLANNING - CLEVELAND CORRIDOR Conducted by LRK, the Cleveland Corridor Vision Book studied three nodes along Cleveland and within the Medical District: Crosstown Concourse Madison Heights Union/Cleveland Throughout the planning process, the MMDC and LRK teams connected with a variety of public, private and neighborhood stakeholders.

Study Area


PLANNING - CLEVELAND CORRIDOR Each node within the Cleveland Corridor carries unique sets of challenges and opportunities within the built, social and institutional fabrics.

By approaching each node as a piece of the Cleveland puzzle, the study is able to define development patterns contextualized to the public realm and built needs of each neighborhood.


PLANNING - PROPERTY MAP & VACANT AUDIT Vacant Property Audit Completed in February 2023, found 472 vacant or abandoned parcels within the Medical District.

District Property Map Public map available on MMDC website to show vacant parcels, and commercial properties available for lease or sale.


STAY LOCAL HOMES - 1010 FOREST Rehab of formerly blighted single family home After listing 1010 Forest for sale at approximately $50,000 below market value, the home was repositioned as a rental unit for $1,600/month. The home’s tenant moved in on September 1, 2023, starting a model that can be continue to be replicated through “Stay Local Homes.”


DISTRICT DEVELOPMENTS IN THE NEWS


MEMPHIS MEDICAL DISTRICT COLLABORATIVE Real Estate Year-End Report 2023


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