Developer makes $1.1 billion, multi-block pitch for Pinch District
GREG AKERS | MEMPHIS BUSINESS JOURNAL
New York developer Tom Intrator has been buying up properties left and right Downtown, from South Main to the Pinch District.
Most of his plans for the south half of Downtown were crystallized with a battery of renovation projects Intrator estimates to cost $95 million.
Now, one day after South Main got a greenlight from the Downtown Memphis Commission's (DMC) Center City Revenue Finance Corp., Intrator has put a face on his Pinch plans.
And they're bigger; much bigger.
In a Nov. 13 release, his development company, 18 Main LLC, made public a two-phase overview with the Shelby County Commission for a $1.1 billion, multi-block project.
Luxury multifamily buildings, two hotels, retail with street-level access, office, and greenspace will commingle in the Pinch District between the expanding campus of St. Jude Children's Research Hospital and Bass Pro Shops at the Pyramid.
Phase one is estimated to cost $604 million, and phase two would run $486 million — not counting the costs of parking and infrastructure. The overall project would be comprised multiple skyscrapers of up to 20 stories — even higher if a big office tenant is signed — with 2.8 million square feet of space, 400 hotel rooms, and more than 1,500 residential units.
18 Main has spent $14 million on properties to date in the Pinch.
The developers haven't made a formal request yet, but they will be asking the City of Memphis, Shelby County, and the State of Tennessee to approve a 30-year PILOT (payment-in-lieu-of-taxes). Because that part of Uptown is already designated a TIF (tax increment financing) district, a second TIF can't be added. But, a PILOT could be. 18 Main will ask the DMC to bond against the project as if it's a TIF, and the developers would get the initial cash infusion that would bring instead of a tax abatement over 30 years.
Presuming approvals are granted, ground would be broken in 18 months, and phase one would be completed within two years.
A detailed break-down of the two phases, as provided by 18 Main, is at the bottom of this story.
The plan would build off the 2016 Pinch District Concept developed by LRK, the City, County, and the DMC.
“The Pinch Concept Plan is the reason we looked at the Pinch District,” Intrator said in a release. “That plan has informed our process, and without it, we wouldn’t be here.”
DMC president Jennifer Oswalt said two major benefits of the project would be office space for companies considering Downtown, and housing for St. Jude employees.
"St. Jude attracts people from all over the world, and we want them to have choices on where they live,” Oswalt said.
In addition to managing partner Intrator, 18 Main is comprised of partner Shay Yadin and VP of investments Joseph Ammar. Architecture firm LRK, construction firm Montgomery Martin, and communications firm DCA are also named as being involved in the project.
Phase one calls for:
Residential: 976,000 gross square feet / 801,000 net square feet, approximately 942 units
Hotel: 290,000 gross square feet / 240,000 net square feet, 406 rooms
Retail: 169,000 gross square feet / 160,000 net square feet
Office: 222,000 gross square feet / 200,000 net square feet (at least 150,000 square feet to be built spec at the start of the phase)
Total: 1.66 million gross square feet and 1.4 million net square feet of space
Phase two calls for:
Residential: 611,000 gross square feet / 501,000 net square feet, approximately 586 units
Retail: 47,000 gross square feet / 45,000 net square feet
Office: 531,000 gross square feet / 478,000 net square feet
Total: 1.19 million gross square feet / 1.02 million net square feet