PROPERTY & BUSINESS OFFERING - 531 S. Main Street MEMPHIS, TENNESSEE CONFIDENTIAL OFFERING MEMORANDUM - WREG.com
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PROPERTY & BUSINESS OFFERING 531 S. Main Street MEMPHIS, TENNESSEE CONFIDENTIAL OFFERING MEMORANDUM
Confidential Offering Memorandum Property & Business Offering 531 South Main Street Memphis, TN 28103
Table of Contents
HISTORY & FEATURES………………..…..6
EXECUTIVE SUMMARY .…………………9
SALES COMPARABLES…………………..14
MARKET OVERVIEW……….……...…….19
PHOTO GALLERY………………………..26
BECCA DICKERSON
OFFICE 901.278.4380
DIRECT 901.237.7729
BDICKERSON@SOWELLREALTORS.COM
WORTH WOODYARD
OFFICE 901.767.1998
DIRECT 901.273.6648
WORTH@WOODYARDREALTY.COM
STEVE WOODYARD, CCIM
OFFICE 901.767.1998
MOBILE 901.277.7731
STEVE@WOODYARDREALTY.COM
CONFIDENTIALITY AGREEMENT Woodyard Realty Corp. (“Agent”) has been engaged as the exclusive agent for the sale of that certain property commonly known as Earnestine’s & Hazel’s, located at 531 S. Main Street, Memphis, Tennessee 38127 (“Property”) by “Seller”. The material contained in the Offering Prospectus provided by Agent is confidential, furnished solely for the purpose of considering the purchase of the real property described therein, and is not to be used for any other purposes or made available to any other person or entity without the express written consent of Agent. Seller expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Neither a prospective purchaser nor Seller shall be bound in regard to the Property until execution of a written purchase agreement by both parties. Pro- spective purchasers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them. This Offering Prospectus, its contents, and any other information made available to you, whether disclosed orally or disclosed or accessed in written, electronic, or other form or media, and whether or not marked, designated, or otherwise identified as “confidential,” except such information which is a matter of public record or is generally available to the public, are of a confidential nature. By taking possession of and reviewing the information contained herein, the recipient agrees (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the Offering Prospectus or any of the contents to any other person or entity without the prior written authorization of Seller or Agent, and (iv) not use the Offering Prospectus or any of the contents in any fashion or manner detrimental to the interest of Seller and/or Agent. You shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent. If you have no interest in the Property at this time, please return this Offering Prospectus to: Woodyard Realty Corp., 5865 Ridgeway Center Parkway, Suite 300, Memphis, TN 38120. OFFERING DISCLAIMER Interested buyers should be aware that the Owner of the Property may have acquired the Property by foreclosure or deed in lieu of foreclosure, and that the Owner is selling, the Property in "AS IS" CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATION TIONS OR WARRANTIES OF ANY KIND OR NATURE, EXCEPT WARRANTY OF TITLE. Prior to and/or after contracting to purchase, as appropriate, buyer will be given a reasonable opportunity to inspect and investigate the Property and all improvements thereonthereon, either independently or through agents of buyer's choosing. Buyer shall not be entitled to, and should not, rely on the Owner or their agents as to (i) the quality, na- ture, adequacy and physical condition of the Property including, but not limited to, the structural elements, foundation, roof, appurtenances, access, landscaping, parking facilities and the electrical, HVAC, plumbing, sewage, and utility systems, facilities and appliances, (ii) the quality, nature adequacy and physical condition of soils and geology and the ex- istence of ground water, (iii) the existence, quality, nature adequacy and physical condition of utilities serving the Property, (iv) the development potential of the Property, its habita- bility, merchantability, or fitness, suitability or adequacy of the Property for any particular purpose, (v) the zoning or the legal status of the Property, (vi) the Property's or its opera- tions' compliance with applicable codes, laws, regulations, statutes, ordinances, covenants, conditions and restrictions of any governmental, quasi-governmental entity or any other person or entity, (vii) the quality of any labor and materials, (viii) the compliance of the Property with any environmental protection, pollution or land use laws, rules, regulations, orders or requirements including but not limited to those pertaining to the handling, generating, storing or disposing of any hazardous materials, and (ix) except as expressly provid- ed otherwise in an executed contract of sale, the condition of title and the nature, status and extent of any right-of-way, lease, right of redemption, possession, lien, encumbrance, license, reservation, covenant, condition, restriction and any other matter affecting the title. Although Owner's predecessors may have performed work, or contracted for work per- formed by third parties in connection with the Property, the agents shall not be responsible to buyer or any successor on account of any errors or omissions or construction defects of such predecessors and/or third parties. The Owner reserves the right to withdraw any Property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. Any offer to buy must be: (i) presented in the form of a non-binding letter of intent, (ii) incorporated in a formal written contract of purchase and sale to be prepared by or on behalf of the Owner and executed by both parties, and (iii) approved by any applicable federal agencies regulating Owner, Owner and such other parties who may have an interest in the Property. Neither the prospective buyer nor Owner shall be bound until execution of the contract of purchase and sale, which contract shall supersede prior discussions and constitute the sole agreement of the parties. Prospective buyers shall be responsible for their costs and expenses of investigating the Property. The information provided and to be provided with respect to Property being marketed was obtained from a variety of sources and OWNER HAS NOT MADE ANY INDEPEND- ENT INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED OR TO BE PRESENTED WITH RESPECT TO THE PROPERTY. OWNER, AND ITS AGENTS MAKE NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.
History & Features History 6 Timeline Spotlight on Features
History & Features
Earnestine and Hazel’s is more than just a cool dive bar, it represents the history of
Memphis. It represents the soul, jazz, and blues that echoed into the streets and the
legends like B.B. King, Tina Turner, and Aretha Franklin that went there for solace. But
most of all, Earnestine & Hazel’s represents what Memphis is all about—great music,
Present Dive Bar & Lounge
great food, and great times.
Day
The building that would become Earnestine and Hazel’s started out as a pharmacy in the late
‘30s. And it ran as any old pharmacy would until the owner, Abe Plough, created a product
that could “straighten the hair out.” Abe later went on to make the famous Coppertone sun-
1992 Russell George purchased the
tan lotion and, overwhelmed with his mounting financial success, gave the building to two hair
building and turned it into a two
stylists that were using his product upstairs – Earnestine & Hazel.
story dive bar.
The two sisters turned the building into a café. Meanwhile, Earnestine’s husband, a street pro-
moter named Sunbeam, opened a nearby music joint called Club Paradise, which hosted
legends like B. B. King, Tina Turner, Aretha Franklin, and Motown. Throughout the next 20 years, 1950s Abe Plough sold building to beauty shop own-
these musicians walked from Club Paradise to Earnestine & Hazel’s each night so they could ers upstairs, Earnestine & Hazel. They went
get food, tell stories & find action from women upstairs. The good times rolled until the ‘70s, on to turn the downstairs pharmacy into Ear-
when Club Paradise got boarded up with the rest of downtown Memphis. nestine & Hazel’s Soul Food Café with live
music and upstairs brothel.
Between the late ‘80s and early ‘90s, Russell George promoted and danced for a band called
the Icebreakers. After finishing up with them, he met with another nightclub operator who pro- (Late) 1930s Building sold to Pharmacist, Abe Plough.
posed Russell turn the property into a bar. Russell was hesitant at first, but after investigating He rented out the upstairs to a beauty shop.
the building on a rainy day in ’92 and remembering the old mystique of downtown Memphis, Plough created a hair straightening product
he thought, “I figure I can make a living here.” (and later Coppertone sunscreen) that
brought him millions.
1930s Building functioned as a Dry Goods Store
1918 Building was built and functioned as
a church
History & Features | 6
History & Features
Great Food & Great Music
SOUL BURGER JUKE BOX
The Soul Burger began as an experiment. In its infancy, it was Most jukeboxes are driven by mechanical parts; ours is driven by
plastered with every topping under the sun – lettuce, gourmet ghosts. And in their free time, they rummage through the best
cheese, and other items we’re not allowed to mention. But, selection of soul, jazz, and blues in the country, picking tunes
after trying to keep up with the countless combinations, we soon that eerily sync to the moment. Don’t believe us? Ask the ladies
remembered the old adage – “Keep it simple, stupid” – and who came in to celebrate a divorce and immediately heard
never looked back. A bun, patty, onions, cheese, pickle, and the jukebox select “D.I.V.O.R.C.E.” by Tammy Wynette. Or ask
“Soul Sauce” are all that’s needed to make our delicious burger. the businessman who heard “That Smell” by Lynyrd Skynyrd after
And if you don’t think that’s enough, pay $30 bucks for a fancy telling a story about how bad it smelled after his co-worker
burger somewhere else. Then come back to Earnestine and threw up in a cab.
Hazel’s, repent for your sins, and munch on the Soul Burger’s
delicious simplicity.
History & Features |7
History
BEST DIVE BAR
Earnestine & Hazel’s represents
what Memphis is all about—great
music, great food and great times.
CELEBRITY CUSTOMERS HAUNTED ATTRACTION
Most notably Mick Jagger, Ray Named one of the most haunted
Charles, Aretha Franklin, & Justin places in Memphis. People hear
Timberlake. Mike Jagger and Keith voices upstairs and employees say
Richards wrote the hit song “Brown that the jukebox occasionally turns
Sugar” after their visit to Earnestine itself on to play eerily-appropriate
& Hazel’s. tunes. Earnestine & Hazels has
FEATURED IN MOVIES & MAJOR
been known to have ghost tours of
MAGAZINES
the building.
Earnestine & Hazel’s has been
featured in 9 movies including 21
Grams (2003), Elizabethtown (2005)
& Black Snake Moan (2006). It has
also been featured in Esquire &
Playboy Magazines.
History & Features |8
Executive Summary Property Information 10 Assets Property Financials Map / Aerial
Executive Summary
Property Information
Asking Price: $975,000
Year Built: 1918
Current Use: Bar/Lounge
Site Size: 0.05 acres
Building Square Feet: 5,000
Stories: Two stories
Parcel Number: 002107 0021
Zoning: SM (South Main)
Construction: Brick
HVAC: Central on 1st Floor, Window Units on
2nd floor
Parking: Surrounded by Public Parking Lots
Property Information | 10Assets
Assets
First
Second
Floor (Itself) $29,510.00
Nate’s $8,895.00
Kitchen $7,002.90
Hallway $2,565.00
Black Room $730.00
Pinball Room $1,500.00
5 Spot Front $5,009.00
Room
Office $4,665.00
5 Spot Bar $38,973.50
Room
White Kitchen $1,450.00
First Floor: $81,225.40
Liquor Room $1,260.00
Additional
Roof $2,500.00 Dry Storage -
Attic Mechani- $2,890.00 Red Room $280.00
cal Room
Second Floor Total: $20,615.00
Basement $600.00
Additional Spaces Total: $5,990.00
Total Assets Value: $107,830.40
Assets | 11Property Financials
Earnestine & Hazel’s Property Financials 2020
Rental 80 GE Patterson $14,400.00
Permits $1,900.00
Insurance $6,116.98
Property Taxes (Shelby $3,539.70
County)
Property taxes (Shelby $387.59
County)
Property taxes (Memphis $2,793.30
City)
Property taxes (Memphis 503.10
City CBID)
Depreciation N/A
Interest Expense N/A
Telephone & Internet $2,604.00
Total Fixed Costs $32,244.67
Gross Sales
2017 2018 2019 2020
$425,765.00 $533,619.96 $537,144.15 COVID-19
Property Financials I 12Map / Aerial
Map | 13Sales Comparables Neighborhood 15 Sales Comparables
SOUTH DISTRICT MAP & SPOTLIGHT
Earnestine & Hazel’s
South District Neighborhood Anchors:
Central Station
Tom Lee Park
Big River Crossing
Blues Foundation
National Civil Rights Museum
Neighborhood |15Map
Neighborhood |16COMPARABLE DATA
Sales Comparables
Sales Comps |17Sales Comparables
Sales Comps | 18MARKET OVERVIEW MEMPHIS OVERVIEW 20 South Main Downtown Employment Top Industries Top Attractions
South Main District Overview
South Main Development
Businesses and people are investing in South Main more than ever before. with more than $500 million in
new projects planned or underway in this one-square-mile neighborhood! Perhaps because of its au-
thentic, creative vibe. Or its remarkable architectural assets. Or its proximity to the core of Downtown
Memphis and the Mississippi River. Whatever the reason, South Main is poised for thoughtful, dynamic
growth. Here's what's in the works:
Recent Urban Renewal Projects in Memphis
Multimodal Connector Project, $30M Central Station Redevelopment, $55M
Downtown Memphis received a $15M federal A movie theater, hotel, restaurant and
transportation matching grant that will make apartments are included in plans to rede-
infrastructure improvements along Main velop the 100-year-old Central Station and
Street from Uptown through South adjacent property.
Main, including new sidewalks, street
paving and plantings. Work is under- Hotel Chisca Renova on, $30M
way now.
ACCOLADES
Old Dominick Distillery, $5M
This 100-yr old building was vacant and
blighted for decades. The Chisca was ren-
ovated and reopened in 2015. More than
The conversion of this 1920s 54,000-square- 60 years after the first broadcast of an Elvis
foot warehouse on Front Street includes a song (That’s Alright Mama), these walls are
distillery, tasting room, gift shop and the na- now home to 159 apartments, the Tuscan
tionally-acclaimed Gray Canary Restaurant. and Sicilian cuisine of Catherine & Mary’s
Daily tours are available in addition to fre- Restaurant, and the fast-casual Swanky’s.
quent events and music.
South Main | 20DOWNTOWN OVERVIEW DOWNTOWN SUBMARKET
D O W N T O W N is more than the Central Business Improvement District (CBID). It is the Memphis brand. It is Beale Street, the Mighty Mississippi, the Orpheum and the Na onal
Civil Rights Museum. Home to established publicly-traded companies and aspiring startups, Downtown has recently a racted the $200m Loews, the city’s second conven on cen-
ter hotel, slated to open in 2023.
MAIN STREET HISTORIC ARTS DISTRICT
Museum Lo s residents are within a block from the entertainment and dining op ons along and surrounding Main Street, one of the city’s trendiest neighborhoods, featuring hip
restaurants, bohemian shops, galleries and bars with a high walkability popular with today’s urban renter base.
RIVER ATTRACTIONS
On the banks of the Mississippi River, Tom Lee Park is a 30-acre park that is home to two of Memphis’ most popular events—the Beale Street Music Fes val is a 3-day fes val hos ng
over 60 musical acts on mul ple stages in diverse genres. The Memphis in May BBQ Fes val is the world’s largest park BBQ cooking compe on that draws teams from around the
world for the coveted grand champion prize.
HISTORIC BEALE STREET
Museum Lo s is less than a mile from Historic Beale Street, Tennessee’s most visited tourist a rac on and the epicenter of blues music. With over 26 nightclubs and restaurants,
Beale Street offers a vibrant night.
Also nearby are the FedEx Forum, a 19,000 seat arena that Is home to the NBA Grizzlies and the University of Memphis Tigers basketball, and Autozone Park which houses the Mem-
phis Redbirds, an AAA affiliate of the Memphis Cardinals, and the Orpheum.
Downtown | 21MEMPHIS OVERVIEW Employment
GLOBAL LOGISTICS HUB
The Memphis MSA is the 5th largest metropolitan area in the Southeast. Its strategic geographic loca on has consistently sustained it as a na onal leader in logis cs, home to the
world’s largest cargo airport with a an economic impact of $26.3 billion and a supply chain connec vity that reaches markets around the world. With a popula on of over 1.3 million
residents, the “Bluff City” has a broad economic base with diverse employment opportuni es, nineteen colleges and universi es, and three Fortune 500 companies’ headquarters:
FedEx, Interna onal Paper, and AutoZone. Greater Memphis is a cultural hotspot brimming with revitaliza on and growth. In 2019 the city celebrated its 200th anniversary.
CENTRAL BUSINESS IMPROVEMENT DISTRICT
Downtown Memphis serves over 69,000 employees in the Central Business Improvement District (CBID) with a high concentra on in the government, financial and medical sectors.
Notable corporate headquarters include First Horizon, Raymond James, AutoZone, Service Master, Memphis Light, Gas and Water, and St. Jude Children’s Hospital. Other Downtown
employers include the offices of federal, state, county, and city governments, criminal and civil courts, and many law offices.
MEDICAL DISTRICT
Within the boundaries of the CBID is the Memphis Medical District,
which serves over 30,000 people. Its anchor ins tu ons collec vely
represent over 20,000 employees and 10,000 students and have
$2.7 billion in operating budgets with $3 billion in planned
expansions.
The Memphis Medical District Collaborative has spearhead-
ed initiatives for growth in the areas of real estate development,
community and economic development, small businesses, place-
making and quality pubic spaces.
Memphis | 22MEMPHIS OVERVIEW Top Industries
TRANSPORTATION / LOGISTICS MAJOR EMPLOYERS
Busiest Cargo Airport in the U.S.
Employer Industry Employees
3rd Largest Rail Center in the Na on
Fi h Largest Inland Port in the U.S.
FedEx Corp. Distribu on 30,000
$1.7m Grant to Increase Rail Capacity by 15% Shelby County School District Educa on 16,000
150 Markets can be reached over night United States Government Government 13,700
49,920 Distribu on Employees
Tennessee State Government Government 12,400
Methodist Le Bonheur Health Care Healthcare 10,900
MANUFACTURING Bap st Memorial Health Care Healthcare 8,700
Naval Support Ac vity Mid-South Military 7,500
1045 Manufacturing Firms
36,831 Local Employees City of Memphis Government 6,700
$72.5 Billion GMP Shelby County Government Government 5,800
2nd Busiest Medical Device
Walmart Stores, Inc. Retail 5,300
Manufacturing Center
UT Health Sciences Center Healthcare 4,200
The Kroger Company Retail 4,100
St. Jude Children’s Hospital Healthcare 3,700
HEALTHCARE
DeSoto County School District Educa on 3,700
64,620 Employees Memphis Light, Gas & Water U lity 2,700
$36.7 Million UTHSC Educational Facility
ServiceMaster Global Holdings Service 2,500
$2.7 Billion Economic Impact
The University of Memphis Educa on 2,400
#1 Hospital for Pediatric Cancer
Interna onal Paper Manufacturing 2,200
First Horizon Na onal Corpora on Financial 2,200
Industries | 23MEMPHIS OVERVIEW Top Attractions
DOWNTOWN MEMPHIS BROOKS MUSEUM
Downtown is more than the Central Memphis Brooks Museum of Art ,
Business Improvement District founded in 1916, is the oldest and
(CBID). It is the Memphis brand. It is largest art museum in the state of
Beale Street, the Mighty Mississippi, Tennessee. It aims to move Down-
the Orpheum and the National Civil town into a new $105m facility over-
Rights Museum. Home to established looking the Mississippi River by
publicly-traded companies and aspir- 2024. The new Brooks will be the
ing startups, Downtown has recently jewel in the crown of a newly animat-
attracted the $200m Loews, the ed and accessible Memphis river-
city’s second convention center ho- front.
tel, slated to open in 2023.
BEALE STREET MEMPHIS IN MAY
Beale Street, the Official Home of Memphis in May, an $8 million non-
the Blues, is considered America’s profit organization, is recognized
Most Iconic Street. Declared a Natio n- around the world as one of North
al Historic Landmark, the street is America’s leading festivals, hosting
now home to three blocks of night- the city’s largest events such as the
clubs, restaurants and shops in the Beale Street Music Festival and the
heart of Downtown Memphis. With World Championship Barbecue Cook-
its rich history and lively atmos- ing Contest. In 2019 it had a record
phere, Beale Street is must a see. setting economic impact of $149.9
million.
FEDEX FORUM RIVERFRONT
FedEx Forum, home to the Memphis The $60m Tom Lee Park Transfo r-
Grizzlies and the University of Mem- mation to bring 5 new buildings, an
phis Men’s Basketball Team, has be- open-air canopy, 250,000 SF of open
come a premier venue in Downtown lawn space, coupled with immersive
Memphis. The FedEx Forum has also landscape environments aimed to
hosted many concerts of chart top- accommodate a diversity of activi-
ping stars, including Justin Timber- ties, corporate events and major
lake, Taylor Swift, Bruno Mars, and public festivals. The design improves
more. park access from Downtown.
Top Attractions | 24MEMPHIS OVERVIEW Top Attractions
GRACELAND CIVIL RIGHTS MUSEUM
Home of the King, Graceland is a The National Civil Rights Museum,
National Historic Landmark with over is Memphis’ second most visited
500,000 visitors each year. The 2nd tourist attraction. A complex of museums
most famous home in America after and historic buildings, its exhibits trace
the White House, its recent $137m the history of the Civil Rights Move-
expansion, including the “Guest ment in the United States from the
House at Graceland” hotel and 17th century to the present.
200,00 SF of new exhibits, museums,
and performance space, has an est.
economic impact of $1.1 billion.
MEMPHIS ZOO SHELBY FARMS At 4,500 acres, Shelby Farms is
The Memphis Zoo spans 70 acres one of the twenty largest urban
and is home to more than 4,500 animals. parks in the U.S., covering five times
Ranked as America’s No. 1 zoo by the area of Central Park in NYC. A
TripAdvisor, it is one of only four highly popular recreational amenity,
zoos to exhibit giant pandas. The it was recently expanded with a
Memphis Zoo is dedicated to preserving promenade, paved bike and pedestrian
wildlife through educa on, conserva on trails, pavilions for BBQs, a boat-
and research. house, an amphitheater, visitor’s and
event center, gift shops and a
lakeside restaurant.
OVERTON SQUARE BASS PRO SHOPS The Memphis Pyramid, formerly
The Overton Square Theater used as sports arena, re-opened in
District, recently revitalized, is today 2015 as the Bass Pro Shops megastore,
home to thriving businesses anchored which includes shopping, a hotel,
by five live-performance theaters restaurants, a bowling alley, and an
and a movie theater. A local land- archery range, with an outdoor ob-
mark, this arts and entertainment servation deck adjacent to its apex.
district is a destination for locals and
visitors alike. It is slated to add the
16 million 106-key hotel The Mem-
phian late 2020.
Top Attractions | 25PHOTO GALLERY Earnestine & Hazel’s 27 Interior—Downstairs Interior—Upstairs & 5 Spot
INTERIOR—DOWNSTAIRS
5 Spot (Leased Space) on 80 GE Patterson INTERIOR—UPSTAIRS
You can also read
