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Link Apartments Broad Avenue

Project Number: 20200301
Pilot Type: Residential
Status: Approved
Parcel ID: 033020 00015
County Commission District: | City Council District:

Summary

The EDGE Board of Directors approved a project at this location for the Broad Avenue Mixed Use Development in June of 2018. A new application was submitted due to changes in project partners, size, design and scope. This project, its Term Sheet and the information contained herein is being treated as a new application that supersedes the previous approval.

Grubb Management, LLC (“Applicant”) was awarded a 15-year Residential PILOT to construct approximately 350 apartment units at the intersection of Broad Avenue and Bingham Street. Grubb Properties is the lead developer in partnership with the Memphis-based landowner, Loeb Properties. Charlotte-based BB+M Architecture along with Memphis-based Shapiro & Company, Pickering Civil Engineering, and Dalhoff Thomas are providing design work. VCC from Little Rock is the general contractor.

The Residential PILOT will support the redevelopment of property originally built in 1945 as a Sears warehouse. The existing buildings are largely vacant and functionally obsolete, in very poor condition and will be razed to create the site for new construction. The water tower will remain. The project will consist of two four-story buildings (three stories visible from Broad Avenue) containing an estimated 31 studio apartments, 211 one-bedroom units, 108 two-bedroom units, and 377 off-street parking spaces.

The project will complement the style and scale of buildings found on the south side of Broad Avenue and preserve views of the iconic water tower. All units will feature stainless steel appliances, granite countertops, and glass tile backsplashes, contemporary cabinets, hardwood-style plank flooring, stackable washers and dryers, and modern amenities such as USB outlets and pendant lighting. Resident amenities will include a swimming pool, grilling stations, lawn and garden areas, yoga and fitness rooms, mail center, dog wash, and a cycle center.

Financial assistance is needed to deliver new class-A multi-family living space to Binghampton, continuing the revitalization along Broad Ave, increasing population density in historic parts of Memphis. The Applicant has committed to reserving 20% of the project, or approximately 70 units, for Moderate income residents.

Parcel 033020 00015 (2542 Broad) is 7.36 acres and contains a 222,671 square foot industrial warehouse to be demolished. Only real property investments on this site will be included in 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 Payroll:

Not applicable

Annual Retained Direct Payroll:

Not applicable

Total Capital Investment:

$69,000,000
Real Property Investment:
$58,000,000

Personal Property Investment:
Not applicable

Community Reinvestment Credit (CRC):
Not applicable

Capital Investment not in PILOT:
$11,000,000

Projected Tax Revenue:

$7,171,313

Projected Taxes Abated:

$17,607,750
City: $7,766,250 (75%)
County: $9,841,500 (75%)

Benefit/Cost Ratio:

0.41

Projected MWBE/LOSB Spending:

$14,145,315

Incentive Provided:

$17,607,750

Compliance Information

Not applicable

Approved

3/18/2020

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

Link Apartments Broad Avenue

2542 Broad Avenue, Memphis, TN 38112