Bill Fleishman
Tucson, AZ (USA)
Role(s):
Founder/Owner/Principal
Memphis Hotel Partners
Find More Startups
Startup
Location:
Memphis
Industry:
Hospitality
Year Founded:
2010
Number Employees:
50-100 people
Business Stage:
Creation/Idea
Entity Type:
Limited Liability Partnership
Description:
Midtown Memphis
20- Story Hyatt Summerfield Suites
Adaptive Mixed Use Redevelopment
388,000 Square Foot Adaptive Reuse Building - Hotel/Retail/Parking reconfigured to include 167 Extended Stay Hotel Suites, 16,000 Square Feet of Commercial/Retail and 470-Space Parking Structure.
This 20-story tower divided horizontally into six separate sections - Top 5 floors are an original Holiday Inn 100-guest room prototype developed by founder Kemmons Wilson in the sixties with a restaurant and banquet space above; the mid-section is given to office space (173,000 useable area); lower seven floors are structured parking (470 spaces) with main floor lobby and commercial retail space. One underground floor is utilized for mechanical rooms, a separate bank entrance and limited below-grade parking. The roof has a swimming pool and elevator penthouse.
This transaction represents a unique opportunity. The property is part of the billion dollar UT Baptist Research Park development project presently underway in the medical district of Memphis. The Park Sponsor, Bio-Works Foundation is selling the building at well below replacement cost to facilitate a hotel amenity to compliment their project. The renovated hotel building will support LEED and renewable energy certifications. Proposed architectural designs embrace environmental sustainability. Equinox, along with MBF, is committed to a “green hotel” concept from the very beginning through hotel operations.
With a total project budget of $33,735,563 and combination of New Market Tax Credit (NMTC), Brownfield Economic Development Initiative (BEDI) / HUD Section 108 Loan Guaranty funding this project is conservatively forecast to generate an above average IRR over a seven year investment period.
Loan/Equity Structure:
NMTC “A” and “B” Loans $24,500,000
BEDI/HUD 108 Funding 6,000,000
Private Equity 3,235,563
$33,735,563