An apartment complex next to Shelby Farms sold this week for more cash than any other property that sold in Shelby County last year.
Birge & Held Asset Management spent $62 million on the Country Squire Apartments, a 972-unit complex located on the northeast corner of Walnut Grove Road and Germantown Parkway. It was the first purchase in the Memphis market for the Indianapolis-based apartment real estate firm.
“We wanted to be in Tennessee and were actively looking in Nashville, Knoxville and Memphis,” Birge & Held president Andrew Held said. “As we learned more about Memphis and the Cordova submarket, it checked all our boxes.”
Held’s company owns about 7,000 apartment units, mostly in the Midwest. He said Country Squire stood out to him because its size, location and age give it great upside potential.
“It hasn’t had a lot of money put into it over the years. It’s a little bit tired, but it’s in a great location,” Held said. “We see a tremendous amount of value in the asset but you’ve got to unlock it [by] spending money to bring it back to where it was 20 years.”
Held wouldn’t specify the amount of money he intends to spend during the renovation but said the interiors and exteriors will both receive significant updates.
Currently, the property’s apartments rent for about 75 cents per square foot; after the renovations, they could rent for 82 cents per square foot, Held said.
The complex, which was built in 1984, was last purchased for $49 million in 2013 by a joint venture of CLK Properties and RCG Longview.
ARA Newmark’s Blake Pera, Tommy Bronson and Gray Fiser represented CLK and RCG in their sale of the property.