The Clipper: 8-story office building, 250-room hotel in Downtown Memphis

[VSRJ]

What a day this has been for Downtown Memphis. First FedEx Logistics announces its new headquarters will occupy the former Gibson Guitar building, and now this!

The Clipper office tower, hotel pitched next to FedEx Logistics HQ at Gibson

Lots of good images, animation, etc. here: https://www.clippermemphis.com/

https://www.bizjournals.com/memphis/news/2019/02/12/office-tower-hotel-pitched-next-to-fedex-logistics.html

Quote

 

A New York developer and Memphis' Orgel family are preparing to develop an eight-story office building and 250-room hotel across MLK Jr. Avenue from the Gibson Guitar Factory building.

New York-based Somera Road Inc. and Billy and Benjamin Orgel announced the towers hours after FedEx Logistics announced it was locating more than 660 jobs in the former factory.

FedEx Logistics CEO Richard Smith said his company will occupy part of the new office building, as well, creating an "office campus" that Smith expects would eventually host at least 1,000 employees of the operating company.

“Along with the FedEx Logistics headquarters at the former Gibson Guitar Factory building, [this] will unlock massive opportunity for our business community and transform this southwest area of Downtown Memphis into a thriving campus for our growing company,” Smith said.

The 250,000-square-foot office building — which will be named "The Clipper" — will include 50,000 square feet of ground-floor retail space, multilevel parking, and "activated public greenspaces," a news release said.

The hotel will be built developed in partnership with Senate Hospitality, owners of the Westin Beale Street, located just a block away. Senate is currently considering multiple brands for the hotel, the release said.

"Our market research of the supply and demand dynamic Downtown … [has] affirmed that we truly can reimagine a block of Downtown Memphis by strategically activating and bridging this valuable corridor between Beale Street and South Main,” Somera managing director Ian Ross said. “The project will be a dynamic mixed-use, transformational connector.”

Somera paid $14.1 million to buy the Gibson building and the adjacent, 350-space parking lot from Gibson Brands Inc. in December 2017. Ross told the Memphis Business Journal at the time that his project would include a development on the parking lot, but he hadn't previously released details. The Orgels purchased a minority stake in the Gibson building's ownership in April 2018.

 

Edited February 12, 2019 by VSRJ

[Memphis4ever]

Man your fast I was about to post this, thanks.

[smeagolsfree]

Glad to see it for Memphis.

[East Side Urbanite]

Strong. Should offer some very nice views of the CBD.

WW

 

[James Owen]

There's word today that the development could become larger than initially proposed, according to MBJ.

Clipper developer seeks height exception, special use permit
Jacob Steimer
Staff Reporter, Memphis Business Journal

https://www.bizjournals.com/memphis/..._news_headline
 

Quote

The developers behind the buildings and the Gibson factory's overhaul are requesting permission from local officials to build a 19-story hotel and 20-story building that includes office space, retailers, and a parking garage. When the project was first announced Feb. 12, the news release listed an eight-story office building and a 250-room hotel of an unspecified height.

New York-based Somera Road Inc. and local developers Billy and Benjamin Orgel recently submitted an application to the Memphis & Shelby County Land Use Control Board, requesting a special use permit and height exception for the two buildings. In the application, the development team says, the hotel will complement the city's Dr. Martin Luther King Jr. Reflection Park and the new FedEx Logistics headquarters by doing away with a surface parking lot.

In the 20-story building, the parking garage would sit below the office space and include 1,000 spaces that would be used by both the office tenants and hotel guests. A skybridge would connect the hotel to the garage, according to the application.

 

[VSRJ]

That's not something you hear every day in Memphis! I'd be happy with it in its original form, though. Let's just get it off the ground. This could be a transformative project for that area.

[VSRJ]

And so it begins... 

Latest plan for The Clipper excludes hotel

Quote

The developers' news release states that brokers are already leasing space for the future Clipper office and retail space, but the original plans for a 250-room, full-service hotel are no longer mentioned. 

 

Edited July 22, 2019 by VSRJ

[James Owen]

4 hours ago, VSRJ said:

And so it begins... 

Latest plan for The Clipper excludes hotel

 

I read the article, and the impression I got was that the developers had decided to focus their efforts on getting the office component built first, which will now be 19 stories (9 floors of office space; 10 floors of parking; ground floor retail).  The green space right next to it would be a placeholder for a future second tower. Whether or not a hotel will go into that spot remains to be seen, but I think the developers decided to hold off because of other nearby hotel developments that are either planned or well underway (i.e., Hyatt Centric, Canopy (former Benchmark site), Aloft, Loews (currently in litigation), etc.).

They even have an updated website for the project: https://www.memphisclipper.com/

[VSRJ]

1 hour ago, James Owen said:

I read the article, and the impression I got was that the developers had decided to focus their efforts on getting the office component built first, which will now be 19 stories (9 floors of office space; 10 floors of parking; ground floor retail).  The green space right next to it would be a placeholder for a future second tower. Whether or not a hotel will go into that spot remains to be seen, but I think the developers decided to hold off because of other nearby hotel developments that are either planned or well underway (i.e., Hyatt Centric, Canopy (former Benchmark site), Aloft, Loews (currently in litigation), etc.).

They even have an updated website for the project: https://www.memphisclipper.com/

I hope you're right. I've just learned not to get my hopes up, especially when it comes to office space.

[Memphis4ever]

I Think this will happen because Fed Ex will need room to expand into the office and the 10 floor parking garage is definitely needed.  I think this office building will actually happen.  Developers are still waiting on large hotels since there are about 9hotels under construction currently downtown for about 1200 rooms.  Just like in Nashville , I think developers want to see what happens after the convention center and its hotel is complete.  Many thought Nashville would have too many rooms but obviously that was wrong.

[James Owen]

7 hours ago, Memphis4ever said:

I Think this will happen because Fed Ex will need room to expand into the office and the 10 floor parking garage is definitely needed.  I think this office building will actually happen.  Developers are still waiting on large hotels since there are about 9hotels under construction currently downtown for about 1200 rooms.  Just like in Nashville , I think developers want to see what happens after the convention center and its hotel is complete.  Many thought Nashville would have too many rooms but obviously that was wrong.

They're also paying attention to the current saga going on between Schulte (current owners of the 600-room Sheraton; pitched plans for a new 300-room JW Marriott right next door), Loews (planning new 550-room hotel along Civic Center Plaza), and Townhouse (owners of 100 North Main; wants to convert into a new 500-room hotel) and how that all plays out in court.

[VSRJ]

2 hours ago, James Owen said:

They're also paying attention to the current saga going on between Schulte (current owners of the 600-room Sheraton; pitched plans for a new 300-room JW Marriott right next door), Loews (planning new 550-room hotel along Civic Center Plaza), and Townhouse (owners of 100 North Main; wants to convert into a new 500-room hotel) and how that all plays out in court.

And in the meantime, absolutely nothing will happen. Memphis is such a hard city to follow sometimes, especially when it comes to new construction. We've mastered the art of adaptive reuse — now let's update the skyline.

[James Owen]

The story is behind a paywall, but it appears FedEx may be looking to lease most if not all of the space inside the proposed office tower in addition to the former Gibson plant space.

Exclusive: FedEx nears lease of new Downtown tower

Jacob Steimer
Staff Reporter, Memphis Business Journal

https://www.bizjournals.com/memphis/news/2019/08/15/exclusive-fedex-nears-lease-of-new-downtown-tower.html?iana=hpmvp_memp_news_headline

Quote

FedEx Logistics is in advanced negotiations to lease part of The Clipper office building, which could also become home to FedEx Express and FedEx Services employees.

 

[VSRJ]

This is great news, definitely makes me feel more confident about this actually happening.

[VSRJ]

Sigh. This is why I’m so hesitant to get excited about major developments like this.

FedEx postpones plans to lease space in proposed Downtown Memphis skyscraper

https://www.commercialappeal.com/story/money/2019/12/06/downtown-memphis-fedex-the-clipper-gibson-guitar/4356634002/

[MLBrumby]

That's a bummer. I know Fedex is a good corporate citizen for Memphis, but they could step up their game by taking space in a new skyscraper downtown.  And I'd hope they're pulling back on this project b/c they think 8-stories is too puny for a prominent corporate profile. They really could do a lot to help downtown reach its next level if they commit to space in a new tower. It might even help with recruiting corporate talent. 

[dxfret]

I’m not surprised at FedEx postponing.  I think it spells trouble for this project.  FedEx could definitely step up its corporate game in its own hometown.  They have always favored campus offices in far out East Memphis.  I’m also concerned that they are putting more resources into  expanding facilities at the Indianapolis airport and merely renovating the airport hub at Memphis.  The NY Times did an in depth recent story about how FedEx has paid practically zero taxes in recent years and it cited their growth in Indy as opposed to Memphis.  I also think dropping Amazon deliveries was a very bad move that FedEx will quickly regret.  FedEx has never done for Memphis anywhere near what they should have done.