Apartment Property in the Bluff City Auctioned for $3.6M, Half of its Market Value
- Jun 25, 2013
Several apartment transactions ran through the Greater Memphis Area multifamily market recently, though none have topped the $43.6 million sale price ringed in by the 500-unit Riverset recently, not even those similarly sized.
Although not a luxury development, the recently sold 432-unit Jamesbridge Apartments, located in the Raleigh/Bartlett submarket of the city, was acquired for a price far below what Riverset fetched. According to the Memphis Business Journal, California-based Advantage Way LLC paid $3.6 million for the asset at an auction set by lender Jamesbridge Holdings LLC, about half of its market value.
According to real estate website PropertyShark.com, the 351,020-square-foot apartment complex sits on a 29.76-acre lot that has a land value of $2,916,800 and a building value of $4,383,200, for a total market value of $7,300,000. Built in 1986 the 3689 James Road apartment complex features a swimming pool and a 1,628-square-foot multi-use office building and clubhouse. Water features abound throughout the property.
According to The Memphis Daily News’ coverage of the same transaction, the Class C apartment asset was purchased through a special warranty deed in early June. The previous owner, an affiliate of CWCapital Asset management LLC acquired the property earlier this year, after the asset went into foreclosure after defaulting on its purchase loan. Previous owner Jamesbridge Group picked up the multifamily complex in 2006 for $15.7 million. According to the same source, the 1986-built complex comprises 24 three-story apartment buildings featuring 18 one- and two-bedroom apartment units.
Other apartment transactions included the 361-unit Fielder’s Square Apartments near the AutoZone Park baseball stadium. According to The Memphis Business Journal, LMS Real Estate Investment Management LLC and Avison Young Investments LLC have this property under purchase contract for an undisclosed amount. A $4 million to $5 million renovation investment has been revealed by the buyers.
Image courtesy of Jamesbridge Apartments’ Facebook page