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The Heights General Partnership

ID: ED20220901
Inner City Economic Development Loan
County Comission District: 7 | City Council District: 5,9

Summary

The Heights General Partnership (“Applicant”), led by Drew Joyner, Octavious Nixon and Chris Hendrix, was awarded a $75,000 Inner City Economic Development (ICED) Loan to help complete roofing, other exterior repairs and interior renovations at three contiguous parcels made up of 3393 Summer, 3437 Summer and 610 National. Total project costs are $1,794,570 excluding the $1,400,000 purchase price. Remaining work that qualifies for the ICED program is $477,367.

Mr. Joyner has an extensive history with the United States Army and has been investing in Memphis area real estate since 2006. Mr. Nickson has built a career in the construction industry and has been President of Nickson General Contractors since 2015. Mr. Hendrix, who previously led the construction job training program for the Binghampton Development Corporation, is Vice-President of Nickson General Contractors.

The 54,001 square foot property is a commercial strip center that can house up to fifteen businesses. The development team purchased the property and then invested more than $1.3 million replacing historic storefronts, addressing structural issues, repairing deteriorated masonry, and stopping water from penetrating the building. Unfortunately, that construction process uncovered additional exterior and interior issues that must be addressed before tenants can occupy the restored spaces.

The ICED loan will help The Heights General Partnership complete restoration of this 1925 era property, removing blight and improving the overall neighborhood quality of life in a Census Tract that is severely distressed based on poverty rate, unemployment and median family income.

The intersection of Summer and National is a priority Accelerate Anchor in the Memphis 3.0 Comprehensive Plan. The project is supported by the Heights CDC and the Summer Avenue Merchants Association.

While the Economic Development Finance Committee has traditionally restricted ICED Loans to a maximum of $25,000, to one business and to one property per borrower, this project is an extraordinary case. It is made up of three parcels with three buildings operating as one facility. It will house multiple neighborhood-serving businesses ranging from an events center to a fitness center, hair and nail salons to tax services, scooter sales, a dental lab, a small corporate office, a small church and two new restaurants. It will eliminate blight in a priority area for the City of Memphis.

Loan Term:

3 years

Interest Rate:

Not applicable

Projected New Jobs:

40

Projected Retained Jobs:

10

Average Payroll:

Not applicable

Loan Amount:

$75,000

Loan Use:

Not applicable

Total Projected Capital Investment:

$402,367
Real Property:
Not applicable

Acquisition:
Not applicable

Construction:
Not applicable

Renovation:
$333,340

Machinery & Equipment:
Not applicable

Furniture, Fixtures, Office:
Not applicable

Equipment:
$46,295

Fees & Soft Costs:
$22,732

Permanent Working Capital:
Not applicable

Miscellaneous:
Not applicable

Approved

9/21/2022

Closing

Not applicable

The Heights General Partnership

3393 Summer Ave, Memphis, TN 38122