Medical District Apartments Sell for $5.2 Million

Published on: May 23, 2017

Patrick Lantrip, Memphis Daily News

A 128-unit apartment high-rise in the Memphis Medical District has sold for $5.2 million.

Axon LLC, which has ownership based both in Memphis and California, bought the Park Tower Apartments, located at 57 N. Somerville St., from California-based Memphis Medical Redevelopment Group LLC.

In conjunction with the purchase, Rick Wood and Jon Van Hoozer of Financial Federal Bank arranged $4.5 million in acquisition financing for the property.

“The new buyers own another mid-rise in the Midtown area, so this is a natural progression in their Medical District acquisition program,” Wood said in a statement.

Built in 1957, the nine-story building is on 1.7 acres on the west side of Somerville Street between Jefferson Avenue to the north and Court Avenue to the south, according to the Shelby County Assessor of Property, whose 2017 appraisal of Park Tower is $3.6 million.

Axon plans on implementing a $750,000 upgrade, which will include two new elevators, exterior painting, replacement of HVAC components and a new lobby, fitness room, common area finishes, and an expansion of the ground-level commercial space.

Memphis Medical Redevelopment Group purchased the 95,727-square foot building in 2009, also with financing by Financial Federal Bank, and renovated it in 2009 and 2015.

“The new owner and management team are confident that the occupancy can be sustained at over 90 percent, leased at a higher rental structure than what is being offered in 2017,” Van Hoozer said. “There is nice rental upside on more upscale, well-located product in Midtown.”