64-Unit Hedgemoor Square, 161-Unit Heritage Place Sold to Out-of-Town Investors

By Eliza Theiss, Associate Editor

Hedgemoor Square Apartments, a 64-unit East Memphis multifamily asset, has been purchased by an affiliate of St. Louis-based Gateway Commercial for $3.6 million, reports The Memphis Daily News. Operating as Summit Hedgemoor Square Apartments LLC, the entity picked up the Class B complex from Hedgemoor Square Apartments GP. In conjunction with the sale, the buyer filed a $2.7 million trust deed through Pulaski Bank of St.Louis.

According to real estate website PropertyShark.com, the latter had owned the 375 N Graham Street multi-building community since late 2000, when it paid $2.3 million. According to the website’s estimations, the community had a total market value of a little over $2.55 million in 2013.

Built in 1952, Hedgemoor Square occupies 5.65 acres and is comprised of seven buildings containing two-bedroom apartments and a pool.

Heritage Place

In other multifamily news, The Memphis Daily News reported the sale of Heritage Place, a 161-unit retirement center in Hickory Hill. Serenity Apartments at Hickory Hill LLC, an affiliate of Orlando-based Elevation Financial Group, picked up the asset for $1 million via a special warranty deed from NHP SH Tennessee LLC, and filed a $2.5 million loan through The Glenda G. Morgan Charitable Foundation Inc.

The 2990 Hickory Hill Road community features studio, one- and two-bedroom apartments with full kitchens and kitchenettes and amenities such as a fitness room, computer center, library, craft area and casual and formal dining area.

According to PropertyShark.com, the 1985-built eight-building community occupies 13 acres.  Valued at a little over $3.44 million in 2013, Heritage Place was last sold in early 2007, when NHP SH Tennessee LLC had paid a little over $11.85 million.  The previous owner had bought two other retirement communities around that time: Kennington Pointe for $10.1 million and Franklin Park for over $7 million.

An affiliate of Elevation Financial Group recently sold the 396-unit Serenity Towers low-income senior community to Global Ministries Fellowship for $12 million. (Details here)

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