Financial Federal Bank Finances Park Tower Apartments
Published on: May 23, 2017
The Memphis office of Financial Federal Bank has arranged $4.5 million in acquisition financing for a mid-rise apartment property located in the Midtown submarket of the Memphis Medical District.
Park Tower Apartments sold for $5,250,000 to Axon, LLC, which has ownership in Memphis and California. Memphis Medical Redevelopment Group, LLC from California had purchased the 95,727-square foot building in 2009, which was also financed by Financial Federal Bank.
“The new buyers own another mid-rise in the Midtown area, so this is a natural progression in their Medical District acquisition program,” said Rick Wood of Financial Federal Bank, who, along with Jon Van Hoozer, arranged the bridge loan financing.
Axon, LLC has purchased the 9-story, 128-unit property with an extensive renovation and upgrade plan. Built in 1965, the asset has undergone renovations in both 2009-2010 and 2015-2016.
The $750,000 upgrade will include two new elevators, exterior painting, replacement of HVAC components and a new lobby, fitness room, and common area finishes. The commercial space on the ground level will be expanded beyond the 5,000 square feet currently leased to third parties.
“The new owner and management team are confident that the occupancy can be sustained at over 90%, leased at a higher rental structure than what is being offered in 2017,” said Van Hoozer. “There is nice rental upside on more upscale, well located product in Midtown.”