One Beale (new) |Grand Hyatt, Hyatt Centric hotel, Caption by Hyatt hotel, apartments

[jjbradleyBrooklyn]

10 hours ago, MDC26 said:

The biggest problem is financing. One Beale is hundreds of millions. The Pinch and the walk are over $1 billion. First they have to raise some money, whether it’s from their own group, or from private equity. Then they have to go to a bank and ask for the rest.

The bank may look at it and see how many other hotel or apartment projects are going on to compete with it. They look at Memphis, compare demographics of a city that shows a loss of population on the last census. They look at the median household income. They probably base their decisions on those factors. Memphis isn’t the quickly growing hot market cities like Dallas, Nashville, Austin, or Charlotte. Either

Loew’s decided not to do it themselves, or they had multiple projects and couldn’t get financing for all of them due to the sluggish hotel market after COVID. The issue the the Grand Hyatt is the recent interest rate hikes. No clue where the Walk and Pinch projects are on their financing. 

Yeah, those are big financial asks. Plus in a lower earning, less robust market like Memphis, a lot more scrutiny and questions may surround if they'll make the right amount of money back on those developments. 

I read the Walk extended their tax incentives through the city of Memphis until year-end, back in April of this year, citing "financing is still being put together." As for the Pinch, I have no idea, but I do know that developer is pretty experienced, so we will see.

50 minutes ago, dxfret said:

Larger projects like this hotel are still happening in hot market like Nashville and Austin, but the looming recession, rampant inflation, and high cost of borrowing raise a lot of issues in a tepid market like Memphis. The Hyatt hotel stands the best chance of happening, but may need to be further postponed for a few years. I think the 100 North Main and Pinch district proposals will not happen. 

I think that's the biggest difference--and a big challenge for Memphis. The fact that Memphis is not a hot market--compared to the red hot Austins and Charlottes and Nashvilles of the world. 

Once financial markets grow sluggish or cool, markets like Memphis tend to see a lot of their projects become tabled or postponed or cancelled. 

Out of those 3: the Pinch, the Walk, and 100 North Main, all stand a risk of being tabled. But I think the one with the best experienced development leader is the Pinch, so he may be able to navigate and make something happen.

With 100 North Main, I have no idea, since that one is also a development with the city, and lord knows that could take an eternity to start.

As for the Walk, I think this one should have happened, had COVID not occurred. I think the Walk will eventually happen, in one development form or another, in the next few years--but just not now. I don't think the development team will be able to get financing. Maybe they'll surprise us, but I think the Walk gets shelved.

Edited July 19, 2022 by jjbradleyBrooklyn

[MDC26]

15 minutes ago, jjbradleyBrooklyn said:

Yeah, those are big financial asks. Plus in a lower earning, less robust market like Memphis, a lot more scrutiny and questions may surround if they'll make the right amount of money back on those developments. 

I read the Walk extended their tax incentives through the city of Memphis until year-end, back in April of this year, citing "financing is still being put together." As for the Pinch, I have no idea, but I do know that developer is pretty experienced, so we will see.

I think that's the biggest difference--and a big challenge for Memphis. The fact that Memphis is not a hot market--compared to the red hot Austins and Charlottes and Nashvilles of the world. 

Once financial markets grow sluggish or cool, markets like Memphis tend to see a lot of their projects become tabled or postponed or cancelled. 

Out of those 3: the Pinch, the Walk, and 100 North Main, all stand a risk of being tabled. But I think the one with the best experienced development leader is the Pinch, so he may be able to navigate and make something happen.

With 100 North Main, I have no idea, since that one is also a development with the city, and lord knows that could take an eternity to start.

As for the Walk, I think this one should have happened, had COVID not occurred. I think the Walk will eventually happen, in one development form or another, in the next few years--but just not now. I don't think the development team will be able to get financing. Maybe they'll surprise us, but I think the Walk gets shelved.

I actually think the 100 N Main is the most experienced developer.  That's probably a big reason they were the one who got it.  When you say 100 N Main is a development with the city, I don't think that really plays into it.  The city isn't developing it, they just bought it and is giving it to whomever they choose to develop it.  Orgel's group has finished the Tennessee Brewery, is finishing up the Oliver building on Front, and is in the middle of the Snuff District development.  It seems Intrator has less experience with development, and has mainly bought and sold existing multifamily.  He's got a couple projects on Main that are currently under construction, but both of those are smaller than the three I mentioned by Orgel.  

I think 100 N Main has the best chance of the 3 from happening.  I see it as the most important, as it is already existing, and if it doesn't happen, then that's a bigger blow, to lose the tallest building in the city.  I'm most worried about the Walk.  That is the one that has been planned the longest, and the one we've heard the least about since COVID.  The Pinch project has had movement lately with the changes in the height limits recently.  Plus, the new St Jude expansion plans will give it more of a boost.  

[jjbradleyBrooklyn]

4 hours ago, MDC26 said:

I actually think the 100 N Main is the most experienced developer.  That's probably a big reason they were the one who got it.  When you say 100 N Main is a development with the city, I don't think that really plays into it.  The city isn't developing it, they just bought it and is giving it to whomever they choose to develop it.  Orgel's group has finished the Tennessee Brewery, is finishing up the Oliver building on Front, and is in the middle of the Snuff District development.  It seems Intrator has less experience with development, and has mainly bought and sold existing multifamily.  He's got a couple projects on Main that are currently under construction, but both of those are smaller than the three I mentioned by Orgel.  

I think 100 N Main has the best chance of the 3 from happening.  I see it as the most important, as it is already existing, and if it doesn't happen, then that's a bigger blow, to lose the tallest building in the city.  I'm most worried about the Walk.  That is the one that has been planned the longest, and the one we've heard the least about since COVID.  The Pinch project has had movement lately with the changes in the height limits recently.  Plus, the new St Jude expansion plans will give it more of a boost.  

Ahh, I see, that makes sense about 100 N Main. Maybe that one does stand the best chance of getting done--will be a long time coming. 

And regarding the Pinch, St Jude being right there is a huge added benefit. That area has high visibility too from I-40 and the pyramid to the west. It could happen--I'll be watching closely as it potentially moves forward.

I agree that the Walk is super worrisome. I think they said they had until year end to confirm financing. My question is this--why are they struggling to get financing for only phase I of the project? If all phases total roughly a billion, the first phase is probably in the 200-300 million range. Yeah, I get that even this amount is a whole LOT, but it is a relatively normal amount for new high rise/skyscraper construction of 2-3 buildings or so. I suppose a combo of factors may be the answer? Rise in construction costs, interest rates rising, impending recession looming and Memphis being a more high risk market/low earning market.

 

[Memphis4ever]

Grand Hyatt Construction

 

 

[MDC26]

19 hours ago, Memphis4ever said:

Grand Hyatt Construction

 

 

Well, I wouldn't call it construction.  Especially since it's not a for sure thing yet.  Just doing prep-work.  

[VSRJ]

Yeah...if the deal falls through, I guess it will just be a pit-iful eyesore for years to come. I need to be more optimistic, but it's challenging at times.

[jjbradleyBrooklyn]

3 hours ago, VSRJ said:

Yeah...if the deal falls through, I guess it will just be a pit-iful eyesore for years to come. I need to be more optimistic, but it's challenging at times.

LOL. I bet this one happens, though. Of all the larger-scale  Memphis developments, this one, and those at St Jude, are safe bets that should move forward. 

As for the Pinch, 100 N Main and the Walk? Those 3 are much, much more iffy and I'd be very surprised if all 3 happened. I'd bet only 1 will, and if it's the Pinch or the Walk, only partial smaller phase developments to start.

[Memphis4ever]

11 hours ago, VSRJ said:

Yeah...if the deal falls through, I guess it will just be a pit-iful eyesore for years to come. I need to be more optimistic, but it's challenging at times.

They are literally hammering the retaining wall in the ground to dig out the basement this project is fine they have done too much to not continue.  Plus the mayor has already said they will come up with some terms for the agreement.  The backstop funding was just a just in case not due to a lack of committed funding.  Hyatt has invested in all the other hotels this hotel will definitely stay booked as it will be the only hotel of its kind in the city for a few years.  They have closed off beale street and blocked off the adjacent parking lot and fenced it in way before this deal even came up the project is happening.

[TheKernel91]

On 7/25/2022 at 1:38 AM, Memphis4ever said:

They are literally hammering the retaining wall in the ground to dig out the basement this project is fine they have done too much to not continue.  Plus the mayor has already said they will come up with some terms for the agreement.  The backstop funding was just a just in case not due to a lack of committed funding.  Hyatt has invested in all the other hotels this hotel will definitely stay booked as it will be the only hotel of its kind in the city for a few years.  They have closed off beale street and blocked off the adjacent parking lot and fenced it in way before this deal even came up the project is happening.

Thanks for the reinsurance. That's a good thing to know now.

[The Guardian of Memphis]

On 7/26/2022 at 9:47 AM, TheKernel91 said:

Thanks for the reinsurance. That's a good thing to know now.

Most definitely. Would've liked for it to be more taller, but new construction is good construction. We start of small, then build larger the next time.

[Memphisborn]

18 hours ago, The Guardian of Memphis said:

Most definitely. Would've liked for it to be more taller, but new construction is good construction. We start of small, then build larger the next time.

Hopefully we can do a 26 story or Better @ civic plaza. That site is still a great location. Sheraton may decide to do something there. 

[James Owen]

20 minutes ago, Memphisborn said:

Hopefully we can do a 26 story or Better @ civic plaza. That site is still a great location. Sheraton may decide to do something there. 

Unlikely we'll see anything get built along Civic Center Plaza any time soon. Also, the Sheraton next door to the convention center changed management teams recently (Davidson replacing Shulte), so it may be a good minute before we see any definitive plans put in place to renovate and/or expand the existing property.

[The Guardian of Memphis]

2 hours ago, Memphisborn said:

Hopefully we can do a 26 story or Better @ civic plaza. That site is still a great location. Sheraton may decide to do something there. 

I hope so. We need to look ahead and plan for future possible expansion of the Convention Center. So the only logical way to expand is up or to the east. Don't know if that would happen, but it's a thought. They could build something brand new on the current site and replace the outdated version they have now. The landscaping and grounds look outdated too, so that needs to be upgraded. Maybe close off Exchange completely and build something new there? 

The Civic Center site is a good location. Something definitely could go there. As well as apartments.  

[MDC26]

6 hours ago, The Guardian of Memphis said:

I hope so. We need to look ahead and plan for future possible expansion of the Convention Center. So the only logical way to expand is up or to the east. Don't know if that would happen, but it's a thought. They could build something brand new on the current site and replace the outdated version they have now. The landscaping and grounds look outdated too, so that needs to be upgraded. Maybe close off Exchange completely and build something new there? 

The Civic Center site is a good location. Something definitely could go there. As well as apartments.  

The best expansion opportunity is to the West. Between Front St and Bass Pro Dr and Adams to the South and the Front St exit ramp to the North. It could be elevated over the Riverside Dr ramps like Kansas City’s convention Center is elevated over I670. If you wanted to go crazy you could take it further over Bass Pro Dr to Harbor. It wouldn’t be the end of the world if those ramps were taken out either. That would take a lot of money, though. $500-$750 million money if we wanted to be comparable size to Nashville/Kansas City/New Orleans convention centers. 

[Memphis4ever]

Grand Hyatt work continues 

Restaurant at Hyatt Caption

[DRG901]

Happy 901 Day

City reaches deal on One Beale Grand Hyatt financing - Memphis Local, Sports, Business & Food News | Daily Memphian

[VSRJ]

Great news!!

[MDC26]

Yay!

In the last 40 years, this will only the second building that reaches 20 floors (Raymond James Tower 1985 - 21)

Also, will be just the 8th structure built in the last 40 years to reach 200 ft  (Raymond James Tower 1985 - 403ft,  Airport Control Tower 2011 - 336ft,  Memphis Pyramid 1991 - 321ft,  LeBonheur Tower 2010 - 251ft,  One Memphis Place 1985 - 221ft,  Tower at Peabody Place 1997 - 202ft,  Artesian 2015 - 201ft.) 

 

Edited September 1, 2022 by MDC26

[nashville born]

I was fortunate enough to stay at Nashville's GH on opening weekend and christen a room AND I hope to do the same for this sister property in a couple years (good Lord willing and the creek don't rise)!

[The Guardian of Memphis]

7 hours ago, MDC26 said:

Yay!

In the last 40 years, this will only the second building that reaches 20 floors (Raymond James Tower 1985 - 21)

Also, will be just the 8th structure built in the last 40 years to reach 200 ft  (Raymond James Tower 1985 - 403ft,  Airport Control Tower 2011 - 336ft,  Memphis Pyramid 1991 - 321ft,  LeBonheur Tower 2010 - 251ft,  One Memphis Place 1985 - 221ft,  Tower at Peabody Place 1997 - 202ft,  Artesian 2015 - 201ft.) 

 

I believe we won’t have to wait that long for the next one. The best is yet to come. 

Edited September 2, 2022 by The Guardian of Memphis

[Memphis4ever]

I told yall they were building this building, they have been diggin hard down there for a month.

[Memphisborn]

2 hours ago, Memphis4ever said:

I told yall they were building this building, they have been diggin hard down there for a month.

Glad it moving forward. We needed this.

[MDC26]

DMC approves financing.   Everything is a go.  Supposed to be open December 2024. 

https://dailymemphian.com/section/business/article/30913/ccrfc-approves-grand-hyatt-one-beale-financing-memphis

[Memphisborn]

2 hours ago, MDC26 said:

DMC approves financing.   Everything is a go.  Supposed to be open December 2024. 

https://dailymemphian.com/section/business/article/30913/ccrfc-approves-grand-hyatt-one-beale-financing-memphis

Glad  to see it moving forward. This is going to bring a lot to city. Roughly 750 rooms altogether Grand Hyatt, Hyatt centric, Hyatt caption and what a lot of people don’t mention is the fine dining 3 of them and the additional meeting space 

[nashville born]

On 9/13/2022 at 1:44 PM, MDC26 said:

DMC approves financing.   Everything is a go.  Supposed to be open December 2024. 

https://dailymemphian.com/section/business/article/30913/ccrfc-approves-grand-hyatt-one-beale-financing-memphis

This is probably helping drive the Sheraton action...