Affordable Housing and Midtown High-Rise Sold

A private investor has purchased a 13.1-acre, low-income housing complex near Memphis International Airport

By Eliza Theiss, Associate Editor

A private investor has purchased a 13.1-acre, low-income housing complex near Memphis International Airport, reports the Memphis Daily News. Dr. Harvard Stephens paid $1.3 million, or $4,780 per unit, for the 272-unit Prescott Place Apartments. The Class D property is located at 3461 Steve Rd. and was built in 1972.

The property’s value has been steadily declining over the past years, and previous owner Prescott Place Apartment LP, based in Alabama, purchased it for $5.3 million. According to the Shelby County Assessor’s most recent appraisal, the property has a value of $2.8 million.

In further multifamily news, Kroger Co. purchased the 10-story Belvedere of Midtown multifamily property at 1745 Union Ave., reports the Memphis Business Journal. Operating as Kroger Limited Partnership, the company paid $2.6 million for the 146,000-square-foot high-rise building. Built in 1964, the property was previously owned by Belvedere Apartments Inc.

Though Kroger will reportedly keep the property for now, the company is more interested in the 1.12 acres the building stands on, as Belvedere of Midtown is adjacent to Kroger’s 39,723-suqare-foot Midtown store. The grocery store chain ultimately needs to secure ownership of the entire block so as to build a new store at the location. Kroger already owns three small tracts of land east of the existing 1941-built store but still needs more land to develop the planned first-class grocery store.

According to the Memphis Daily News, the purchase also includes Belvedere’s attached and front parking.  The Shelby County Assessor’s latest appraisal places the value of the property at $2.1 million.

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Photo credit: Google Maps

Chart courtesy of Apartment Association of Greater Memphis