Global Memphis Shelby
Global Memphis Shelby, LLC was acquired by GSP on November 23rd, 2020. The acquisition is a former Sears property located at 1200 Southland Mall, Memphis, TN. The property (“Global Memphis Shelby”) is part of the historic neighborhood of Whitehaven in South Memphis, generally bound by Brooks Road, the Mississippi Stateline, the Illinois Central Railroad and Airways Boulevard. Memphis city records indicate that $49 million worth of building permits were pulled for new development in Whitehaven in 2019, including permits for two company facilities that will create 100 new jobs starting at $50,000 per year. According to the Greater Whitehaven Economic Redevelopment Corporation, the next push for the area is to increase sit down restaurants in order to keep residents dining within the community. The former Sears property is located next to the busiest intersection in Whitehaven with more than 50,000 cars per day. The 5-mile radius includes a population of 140,301 people, 50,202 households and a median household income of approximately $54,000.
Memphis’ economy is strongly tied to the advanced manufacturing, agribusiness, transportation and logistics sectors, supporting overall job creation between 2015 and 2019. Major employers include FedEx, ServiceMaster, International Paper, AutoZone and St. Jude Children’s Hospital. Memphis MSA is the 43rd largest metro in the U.S. with a population of over 1.3 million. The population grew by 3.8% between 2010 and 2018 and is projected to grow 2.3% between 2018 and 2023. Self-storage use in Memphis has been strong and the average asking rent in the metro area hit a historical high of $1.09/SF in Q3 2020. Self-storage occupancy also hit a historical high of 94.8% in Q2 2020, reflecting leasing strength in the market. The trend is expected to continue due to the lack of new supply in the market. The former Sears closed its doors in March 2019 and GSP acquired the property on November 23rd, 2020. The acquisition includes the former Sears building consisting of 152,085 gross SF plus the former Sears Auto Center, which consists of 10,000 gross SF. GSP acquired the property for significantly below replacement cost. We expect to reduce the cost basis of the self-storage facility by selling retail pads in a high traffic area. The total equity and debt for the project equals $11,800,000.