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Castle Retail Group

ID: ED20180701
Inner City Economic Development Loan
County Comission District: 10 | City Council District: 06, 08

Summary

EDGE Economic Development Finance Committee awarded Castle Retail Group, dba Cash Saver, a $100,000 EDGE Loan amortized at 2% interest across a seven-year term to complete equipment financing for a new $1.1 million, 31,000 square foot supermarket located at 1977 South Third Street in South Memphis.

Once home to a nationally recognized grocer, this new store will create approximately 50 full-time equivalent grocery store positions at an average wage of $12.00 per hour. Filling this space with a grocery is critical to creating the necessary foot traffic to sustain and support retailers remaining in the approximately 125,000 square feet of commercial space and to attract new retailers to approximately 50,000 square feet of vacant retail space

EDGE Loan recipient, Castle Retail Group operates four independent Cash Saver Cost-Plus Food Outlets in Memphis, TN. Through a collaboration with Associated Wholesale Grocers (AWG), the Cash Saver concept was designed to offer deep discounts while still offering a large assortment of high quality products, U.S. Number One Grade produce and premium meats. Cash Saver stores focus on lower rent locations, simple store designs, and reduced advertising and overhead costs.

Previously in July 2018, EDGE Board of Directors awarded Southgate Center a 15-year Community Builder PILOT; thereby helping to reduce property taxes passed through to the grocery. The landlord of the property has secured refrigeration cases and storage equipment, along with agreeing to tenant finish work. In addition, T­­­he Works Community Development Corporation is financing $460,000 for working capital and inventory for the grocery store. The project is supported by the South Memphis Alliance.

Loan Term:

7

Interest Rate:

2%

Projected New Jobs:

50

Projected Retained Jobs:

Average Payroll:

$25,044

Loan Amount:

$100,000

Loan Use:

point of sale equipment meat & deli department scales

Total Projected Capital Investment:

$1,087,500
Real Property:
Not applicable

Acquisition:
Not applicable

Construction:
Not applicable

Renovation:
Not applicable

Machinery & Equipment:
Not applicable

Furniture, Fixtures, Office:
Not applicable

Equipment:
Not applicable

Fees & Soft Costs:
Not applicable

Permanent Working Capital:
Not applicable

Miscellaneous:
Not applicable

Approved

7/11/2018

Closing

Not approved

Castle Retail Group

1977 South Third Street, Memphis, TN 38109