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1544 Madison Partners

Project Number: 20171002
Project Type: Residential
Parcel ID: 01703100012
County Commission District: 01 | City Council District: 05

Summary

1544 Madison Partners was awarded a 15-year Residential PILOT to construct 217 apartment units at the corner of Madison Avenue and North Avalon. The project will be owned by a partnership of Orgel Family, L.P., Three Madison Investments, LLC, Berlin Boyd, Adam Slovis, Benjamin Orgel, Jay Lindy and Michael McLaughlin.

The Residential PILOT will support the redevelopment of the site formerly occupied by BellSouth that is now a vacant lot. Four new buildings will be constructed on the site ranging from three to five-stories. An existing two-story building will be renovated. The project will consist of 181 one-bedroom units, 36 two-bedroom units, 5,000 square feet of commercial space and 256 off-street parking spaces.

All apartments will feature a modern open kitchen and living concept, nine-foot smooth ceilings, wood floors, stainless steel appliances and granite countertops with European-style cabinetry. Most units will feature an exterior covered balcony. Resident amenities will include a media lounge, 24-hour fitness center, a business center and bike storage.

Financial assistance is needed to deliver new class-A multi-family living space to Midtown, increase population density in historic parts of Memphis and ensure profitability of this $24,775,069 investment. The developer has committed to reserving 32% of the project, or 70 units, for Low to Moderate income residents. The project is supported by the Memphis Medical District Collaborative consistent with the Residential PILOT policies.

In 2017, this property produces $29,463 a year in property taxes. Staff projects this will increase to $166,720 a year or $2,500,800 of local total tax revenues to be received during the PILOT term. The benefit to the developer is estimated to be $411,769 a year or $6,179,535 across the life of the PILOT.

PILOT Term:

15

Projected New Jobs:

Not applicable

Projected Retained Jobs:

Not applicable

Total Jobs:

Not applicable

Projected Average Payroll of New Jobs:

Not applicable

Projected Average Payroll of Retained Jobs:

Not applicable

Annual New Direct/Indirect Payroll:

Not applicable

Annual Retained Direct/Indirect Payroll:

Not applicable

Total Capital Investment:

$24,775,069
Real Property Investment:
$21,653,510

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$3,121,559

Projected Tax Revenue:

$2,500,800

Projected Taxes Abated:

$6,179,535
City: $2,700,457 (75%)
County: $3,479,078 (75%)

Benefit/Cost Ratio:

.40

Projected MWBE/LOSB Spending:

$6,496,433

Incentive Provided:

$6,179,535

Compliance Information

Not applicable

Approved

10/18/2017

Ramp up Period

2

Closing

Not applicable

Effective

Not applicable

Lease Begins

Not applicable

Lease Expires

Not applicable

Amended

Not applicable

Property Details

Lease Began

Not applicable

Lease Expires

Not applicable

1544 Madison Partners

1544 Madison Ave, Memphis, TN 38104