News Summary
The Memphis City Council has canceled a $223.7 million loan for the Union Row project, signaling a shift in downtown developments. Despite the cancellation, the project will continue under new leadership and a revised financing structure. The ambitious Walk project aims to revitalize downtown Memphis with extensive new developments, including hotel rooms, office space, and residential apartments. Additionally, renovations for the 100 North Main building are underway, and new businesses, like the Hard Times Deli, are emerging in the Edge District, showing promising signs of growth in the area.
Memphis โ The Memphis City Council has recently approved the cancellation of a significant development loan intended for the Union Row project, indicating a shift in the landscape of the cityโs planned developments. On December 10, the council voted to cancel a $223.7 million loan for the Union Row LB, LLC, which was associated with The Walk development along Union Avenue. This decision comes after the developer expressed a desire to terminate the project altogether, with no construction having commenced at the site according to city inspection divisions.
Despite the cancellation of the loan, plans for The Walk project are set to continue under new leadership and financing structures. A representative from 25 Hits, an Atlanta-based consulting firm, indicated that the new ownership group is currently revising their development plans, with additional details expected to emerge in early 2025. The restructuring follows announcements made in July regarding changes in the development team and amendments to existing incentives provided by the Center City Revenue Finance Corp.
The Walk project, which is expected to play a pivotal role in the revitalization of downtown Memphis, has an ambitious first phase budgeted at over $741 million. This phase aims to create 349 hotel rooms across two Hilton brands, over 142,000 square feet of office space, and 702 residential apartments, along with retail space and a parking garage for 1,514 vehicles. The project has already seen coordinated efforts for financing, as evidenced by the Center City Revenue Finance Corp.โs approval of a closing extension for the project’s Payment-in-Lieu-of-Taxes (PILOT) program in December 2022.
In an intriguing parallel to urban development efforts, the renowned Hard Times Deli is preparing to open at 655 Marshall Ave in the Edge District. The Economic Development Growth Engine (EDGE) has approved a $25,000 Inner City Economic Development loan to support the deli, which is set to offer a delightful array of deli products. The opening of this establishment adds to the growing interests and investments in Memphis’ Edge District, marking it as an emerging hub for dining and commerce.
Simultaneously, renovation efforts continue for MEMPHISโ tallest building, the 100 North Main. This project has received an additional $1.8 million from EDGE, raising the total loan amount to $5 million. The overall estimated renovation cost for the historic high-rise is projected at $261 million, with a completion target set for fall 2027. Plans for the building include not just business offices but also residential apartments and even the historic spinning restaurant that once defined the building’s allure, along with a new parking garage. Despite facing numerous challenges stemming from the demands of renovating an older structure, progress is being closely monitored as the building has been vacant since 2014.
The recent developments in Memphis are indicative of a broader trend in downtown development strategies. Following a lackluster few months, with only five PILOTs approved since the implementation of a new policy in July, the Center City Revenue Finance Corp. has reinstated its previous PILOT program policy for a two-year period to encourage more development initiatives. This decision aims to stimulate interest and investment in the downtown area in the upcoming years.
While these development projects signal growth in the Memphis area, the real estate market has shown signs of fluctuation. Home sales in Memphis have experienced a noted decrease, with November 2024 sales down by 7.7% compared to the same month in the previous year. Year-to-date sales figures remain nearly unchanged, showcasing the complexities of the local housing market amidst ongoing developmental and revitalization activities.
As Memphis continues to evolve through its various projects and initiatives, efforts from both public and private sectors are crucial in shaping the city’s future, making it a focal point of development potential.
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Additional Resources
- The Walk Project in Downtown Memphis – Commercial Appeal
- Wikipedia: Memphis, Tennessee
- Loan for 100 North Main Project – Local Memphis
- Google Search: Memphis Urban Development
- Downtown Memphis Development Incentives Changed – Commercial Appeal
- Google Scholar: Memphis Development
- Memphis Apartments Uptown – Commercial Appeal
- Encyclopedia Britannica: Memphis
- Coalition Aims to Break Cycle of Poverty in Memphis – Tennessee Lookout
- Google News: Memphis Development News
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
