Local commercial sales in 2012 were up 2.5 percent from 2011 with 743 sales recorded, according to real estate information company Chandler Reports.
Total sales revenue was up 36 percent from last year with $1 billion in sales compared to $799 million in 2011.
The top five CRE sales of 2012 were:
- Carriage Crossing – $54 million
- Southpark Distribution Center – $37 million
- Forum I office building at 6750 Poplar Ave. – $33 million
- The Madison at Schilling Farms Apartments – $32 million
- Legends at Wolfchase Apartments – $30 million
That was Mike Conley’s one-word tweet not long after the Grizzlies traded Rudy Gay to the Toronto Raptors Wednesday afternoon in a three-team deal that, more than anything, signifies change is going to be the one constant for a while under new majority owner Robert Pera and right-hand man Jason Levien.
For Grizzlies fans who were tempted to think the earlier deal that sent Mo Speights, Wayne Ellington, Josh Selby and a protected first-round pick to Cleveland and saved the team more than $6 million in salary and a $4 million luxury tax bill meant the team had achieved its short-term goals, the trade of Gay had to be a shock (center Hamed Haddadi also went in the deal).
Certainly, Conley’s tweet communicates shock. But truthfully, we shouldn’t be that surprised. The Memphis NBA franchise is now in the hands of people who really have little or nothing in common with the old-guard NBA and they have to operate the team in a new-world economy where the luxury tax is ever more punitive. That’s not palpable for a new owner in a small market.
We all deal with financial realities we don’t necessarily like in our daily lives. Only our decisions are typically on a much smaller scale. If we have to cut back, we drive the car an extra year or two and maybe downsize the next vacation. But if you’re Robert Pera, tough decisions are bigger. You bring in John Hollinger, the analytics expert from ESPN, and his metrics tell you Gay may be athletic and graceful but ultimately is only an average NBA player. Yet he’s making more than $16 million this year and is due more than $37 million over the next two seasons. That’s not average pay. That’s not logical if you’re one the signing the checks.
So whether Grizzlies fans like it or not, the deal makes a lot of sense from where Pera sits. We won’t go into all the details of every player involved the trade now, but veteran Tayshaun Prince comes from Detroit and several things are immediately apparent: he’s older (almost 33), cheaper (around $7 million per season), a better 3-point shooter, a more tenacious defender, and less athletic. At worst, it looks like a push. Plus, the Grizzlies are getting a couple of young forwards. And yes, that may mean the larger plan could include parting with Zach Randolph after the season. But that’s a “wow” for another day.
Bob Loeb joked about how he’d been a “new urbanist” now for two years during his Tuesday speech to the Memphis Society of Industrial and Office Realtors, where he prefaced to repopulate and invest inside the Parkways.
“I’ve have had a lot of fun doing it,” Loeb said. “I’m hoping the economics support it.”
Loeb said Memphis “has a lot of area for not many people,” echoing a sentiment that Downtown Memphis Commission president Paul Morris has shared on multiple occasions.
“Memphis starts on the Mississippi River with its development and somehow or another, like all cities, this sprawl kicks in,” Loeb said. “It’s 340 square miles of city to distribute fire, police and education services within and not enough people. What we need to do is get back into the urban core.”
Loeb recommended the brokers in the room read up on Josh Whitehead’s three-part blog post for Smart City Memphis on South Parkway, East Parkway and North Parkway.
And he ended his talk with a quote from George Kessler, widely regarded as one of the fathers of urban planning in America who designed Overton Park and the Parkway system:
Planning should be comprehensive. Even though a grand urban design could only be realized in bits and pieces, and over a long period of years, still we should always know where we are going. Each bit and piece should be understandable by reference to the great plan of which it is a part. Planning must also be relevant to the particular city: its geography, its economic character, all its local peculiarities.”
The Downtown Memphis Commission has released its 2012 Year End Report, full of good information about stories The Daily News has been following and will continue to follow:
The DMC in 2012 opened 25 new businesses and completed developments totaling $139 million. Click here and here for more progress.
2012 was the most profitable year ever for Magna Bank since its founding in 1999, the bank announced today.
Magna recorded a profit of $3.1 million in 2012, a 24 percent improvement over 2011. The bank’s assets were up 12.1 percent, loans were up 10.8 percent and deposits were up almost 10 percent.
The bank originated $22.4 million in new SBA loans. It originated $353 million in residential first mortgage loans, a 36 percent jump from 2011, and the bank originated $189 million in new commercial real estate loans in 2012.
During the fourth quarter, Magna investors got a special dividend payout of 27 cents a share.