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Downtown Memphis Development Gains Momentum with New Projects

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New construction projects in Downtown Memphis

News Summary

Downtown Memphis is experiencing a resurgence in development projects, driven by recent funding approvals and organizational changes. The Downtown Memphis Commission has approved a loan for renovations at 18 S. Main St., while The Walk project and Uptown Studios also progress despite setbacks. Additional funding has been allocated for the 100 North Main revitalization. These efforts signify a collaborative push towards improving the urban landscape, highlighting community investment in economic growth.

DOWNTOWN MEMPHIS is witnessing significant momentum in development projects following recent funding approvals and organizational restructuring, with notable changes at key sites. The Downtown Memphis Commission Center City Development Corporation has approved a development loan to assist the renovations of a prominent building located at 18 S. Main St.

The owner of the 18 S. Main St. site indicated that the previous owner had completed approximately 70% of the renovation work on the ground-floor commercial spaces. However, the second floor remains largely unfinished, described as a “cold dark shell,” indicating further development is necessary to complete the project.

Amid these developments, the Memphis City Council has canceled a $223.7 million loan intended for the Union Row project, following the developer’s decision to abandon the undertaking. Confirmation from the city’s construction and inspection divisions revealed that construction had yet to commence at the Union Row site. Despite this setback, an alternative initiative called The Walk project is moving forward with new leadership and financing plans. The new ownership group has enlisted the consulting firm 25 Hits to revise the development strategy and financial structure.

Further details regarding The Walk project are projected to be available in early 2025. Originally announced in 2018, The Walk encompasses 16 parcels of land, covering 29 acres along Union Avenue. This expansive project includes plans for a first phase costing over $741 million, incorporating 349 hotel rooms between the Tempo and Embassy Suites brands, along with more than 142,000 square feet of office space, 702 apartments, 27,000 square feet of commercial space, and a 1,514-vehicle parking garage.

The financing timeline indicates that the initial phase was expected to close funding by June 2024, but this deadline was missed. Currently, the overall financing is anticipated to finalize by December 31, 2025. Additionally, in December 2022, the Center City Revenue Finance Corporation had approved a payment-in-lieu-of-taxes (PILOT) extension, allowing the development some leeway to reorganize its financial backing.

In another significant move, funding for the renovation of 100 North Main has also seen an increase. The EDGE board voted to amend their loan agreement by allocating an additional $1.8 million to the $5 million loan previously approved, aiding a $261 million revitalization project. As of now, demolition work is advancing, reaching the 18th floor of the building. Plans for the renovated 100 North Main include a hotel, apartments, business offices, a parking garage, and a rotating restaurant, with completion of renovations targeted for fall 2027.

Adjacent to the historic Greyhound Station, plans are underway to develop the Uptown Studios as part of the larger Greyhound Dixie complex and former Schlitz Brewery site. The developer, November 6 Investments, aims to transform these locations into 77 residential units and 37,000 square feet of commercial space. Additionally, the property at 475 N. Main St. will house 450 storage units and 20 artist studios, marking a significant investment, as the lot was acquired in 2021 for $600,000.

Support for the Uptown Studios project is also reflected in the Economic Development Growth Engine for Memphis and Shelby County (EDGE) awarding a $2,185,000 C-PACER loan, which was later increased to $2,273,500 in February 2023. A 10-year payment-in-lieu-of-taxes (PILOT) was approved in September 2022, facilitating an estimated $40.7 million development for the Uptown Studios project. Furthermore, a $500,000 historic development grant from the Tennessee Department of Economic and Community Development has been designated for the Greyhound Station mixed-use project, with construction planned to commence following the completion of the Uptown Studios and Storage project.

These concerted efforts to revitalize Downtown Memphis highlight a community focused on economic development and improvement. With critical financial support and strategic planning, the future of the area appears promising as various projects aim to enhance the urban landscape.

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Additional Resources

HERE Memphis
Author: HERE Memphis

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