Central Yards | mixed-use development with 350 apartments, retail, office space

[VSRJ]

This could be interesting. That's such an underutilized corner.

Memphis developer looks to build 350 apartments, retail, office space in Cooper-Young

https://www.commercialappeal.com/story/money/business/development/2020/10/30/midtown-memphis-development-cooper-young-apartments/6091717002/

Quote

 

A local developer wants to add hundreds of apartments in Cooper-Young, bringing more residential space — as well as retail and parking — to the trendy Memphis neighborhood.

Father-son developer duo Frank and Clayton Kemker are behind the plans near the intersection of Cooper Street and Central Avenue. 

Clayton Kemker’s company, RE&D Investments, LLC, filed an application with the Land Use Control Board Friday. The proposed development was first reported by the Memphis Business Journal. 

The project, dubbed Central Yards, is slated to have more than 350 apartments, retail space, office space, a flex space and two parking garages that will be accessible for residents and the public, which could be a welcome addition to a neighborhood currently strapped for parking spaces. 

Central Yards would be across Cooper from Memphis Made Brewing Co. and Aldo’s and a short walk from a variety of other bars, eateries and retail shops. 

 

From the MBJ article, it appears this is the property owned by the developers:

https://www.bizjournals.com/memphis/news/2020/10/30/clayton-frank-kemker-cooper-central-development.html

Edited January 13, 2021 by VSRJ

[VSRJ]

Development board approves $23M PILOT for Central Yards

https://www.bizjournals.com/memphis/news/2021/01/13/ccrfc-approves-central-yards-pilot.html

Quote

After questioning the developers' experience level, the Downtown Memphis Commission's Center City Revenue Finance Corp. (CCRFC) board approved a 20-year, $23 million tax break for Central Yards on Jan. 12.

Additional renderings:

Edited January 13, 2021 by VSRJ

[smeagolsfree]

Hey guys, thought I would drop in and post from Nashville Next Now what was posted about this project. Robert Looper the owner of this site normally has more renderings than the average person.

http://nashvillenownext.com/2021/02/11/now-was-next-a-look-at-whats-nowanext-at-central-yards-in-memphis/

Glad to see this forum is up and running!

 

[VSRJ]

On 2/12/2021 at 10:11 PM, smeagolsfree said:

Hey guys, thought I would drop in and post from Nashville Next Now what was posted about this project. Robert Looper the owner of this site normally has more renderings than the average person.

http://nashvillenownext.com/2021/02/11/now-was-next-a-look-at-whats-nowanext-at-central-yards-in-memphis/

Glad to see this forum is up and running!

 

Looks like the link has changed: https://nashvillenownext.com/2021/02/13/now-was-next-a-look-at-whats-nowanext-at-central-yards-in-memphis/

I'm really excited about this project. Judging by the renderings, it seems they've done a good job blending the new construction into the existing and storied character of Cooper-Young.

[GoodOmens]

Any news on this? They still have yet to go in front of the DRB but said in their original pilot application they wanted to start construction in Q2 2021...

[GoodOmens]

Going to the design review board next week. Seems some significant changes to building layout and garages. Seems they combined some buildings and eliminated a garage. Feels more sterile now...

 

https://downtownmemphis.com/wp-content/uploads/2021/10/Central-Yards-DRB-Application-21-4-2021.10.27.pdf

[DRG901]

From the Daily Memphian:

Central Yards submits new construction application - Memphis Local, Sports, Business & Food News | Daily Memphian

The four buildings would include

• Building A: a five-story precast concrete parking garage, joined by a four-story office structure with a rooftop pool amenity. Building A would be bounded by York Avenue on the north, Tanglewood Street on the west and a new access drive on the south and east. 
• Building B: a six-floor mixed-use building with commercial bays on the ground floor and apartments above. Building B would be bounded Central Avenue and an elevated railroad line to the north, a new private drive on the east and York Avenue to the south. This would be the development’s largest building, including over 20,000 square feet of retail and restaurant space on the ground floor. Brick and glass would be the primary building materials. 
• Building C: a five-floor mixed-use building with commercial bays on the ground floor and apartments above. Building C would be bounded by Central Avenue to the north, a new private street to the west and a new one-way access road to the south. Brick and glass would be the primary exterior materials, with a small portion of metal siding used as accent material. 
• Building D: a five-floor mixed-use building with commercial bays on the ground floor, apartments above, and an additional commercial space intended to be a bar at the fifth floor. Building B would be bounded by Cooper Street to the east, York Avenue to the south, a new private street to the west and a one-way access road to the north. Brick and glass would be the primary exterior materials on every side of the building, paired with metal panels used on the upper floors and as vertical elements that would break up the facade. 

[MDC26]

3 hours ago, GoodOmens said:

Going to the design review board next week. Seems some significant changes to building layout and garages. Seems they combined some buildings and eliminated a garage. Feels more sterile now...

 

https://downtownmemphis.com/wp-content/uploads/2021/10/Central-Yards-DRB-Application-21-4-2021.10.27.pdf

I'm sure a bunch of projects all over had to make changes due to construction cost increases

[GoodOmens]

Just now, MDC26 said:

I'm sure a bunch of projects all over had to make changes due to construction cost increases

That makes sense. However I'm not as excited about this now. I mean it's better then vacant land but the combining of buildings seems to make it blend less in with the neighborhood.  I liked how they were originally trying to blend the garages in with part of the apartments, which the new design eliminates. Makes it seem a lot more suburban now.

[DRG901]

I don't like what's being done with the parking garage building, but at least it's not on a main street.. otherwise, I don't dislike it.  Still a massive development bringing lots of residents and retail on a huge chunk of land that desperately needs an overhaul.

[GoodOmens]

https://centralyards.com/ is now dead.

I'm thinking this is another project killed by rising interest rates. Shame!

[MDC26]

3 hours ago, GoodOmens said:

https://centralyards.com/ is now dead.

I'm thinking this is another project killed by rising interest rates. Shame!

That sucks.  It was a really nice looking project and would have really made that an active area.  I think it was a father and son project that had only done smaller, single building projects before.  

[TheKernel91]

On 12/8/2022 at 1:21 PM, GoodOmens said:

https://centralyards.com/ is now dead.

I'm thinking this is another project killed by rising interest rates. Shame!

Hey, Is the website being down the only source? Not trying to come off questioning. It could be another reason for the domain inactive. 

[MDC26]

31 minutes ago, TheKernel91 said:

Hey, Is the website being down the only source? Not trying to come off questioning. It could be another reason for the domain inactive. 

No clue.  Could be jumping the gun.  The website may have just been to inform the public about the project, and since everything got approved, no need for the website anymore?  But, there's been no news in over a year, so who knows.  It could be in limbo.  

[smeagolsfree]

Trust me we have had our share of disappointments and cancelled projects in Nashville. Keep the chin up. It happens all the time and when money gets tight it happens a little more frequently. It used to happen a lot more before we entered this never-ending boom we are in now, but we still get some here and there. We also get projects that are reduced in size as well.

I can give a slew of cancelled projects over the past few years.

[JTM1]

On 12/9/2022 at 2:27 PM, MDC26 said:

No clue.  Could be jumping the gun.  The website may have just been to inform the public about the project, and since everything got approved, no need for the website anymore?  But, there's been no news in over a year, so who knows.  It could be in limbo.  

The pandemic stalled a lot of projects and I haven't heard anything about this development being shelved. 

[James Owen]

The Central Yards project in Midtown is dead (and has been for a while after a key investor got convicted on cryptocurrency charges). The owners have now put their properties up for sale.

Midtown's $76M Central Yards project ensnarled in federal conviction, $3.3B Bitcoin seizure

By Stephen MacLeod  –  Reporter, Memphis Business Journal

 

https://www.bizjournals.com/memphis/news/2023/07/10/central-yards-james-zhong-bitcoin-asset-seizure.html

[VSRJ]

What a bizarre story. Another break that Memphis can't catch. Sheesh.

[Memphisborn]

44 minutes ago, VSRJ said:

What a bizarre story. Another break that Memphis can't catch. Sheesh.

Tough break. Hopefully another developer will buy the land and do a similar project.

[JTM1]

This is an odd story.

 “The bankruptcy came as a result of the conviction of the project's financier, James Zhong. In 2012, Zhong unlawfully obtained more than 50,000 Bitcoin from the black market site Silk Road while he was a student at the University of Georgia. Federal investigators sought the missing cryptocurrency for years, and their search eventually took them to Zhong.”

There may be hope for this yet if another investing partner can be found or someone that's willing to build upon his vision. 

"Now, 15 parcels across 5.6 acres of prime land are being put up for sale. Cushman & Wakefield/Commercial Advisors has created a website for the property and has listed it on real estate websites such as LoopNet and Crexi."

"The sale may be the end of the Central Yards project in its proposed form. Kemker is trying to find partners and new investors to potentially buy up the project, but given the development environment and the project's history, he is facing challenges. He still believes in the project and hopes whomever buys the land will see his vision through."

"Everything that I talked about when we brought this project to light — about improving the community and being proud of building something in Memphis — is still 100% true," Kemker told MBJ. "It still means a lot to me. And that's why if I can find a way to get into an investment group, I'd love to do that and still see some semblance of that promise and that vision come to light."

If another developer step in, there are a few changes that I would like to see made and some things added. 

[MDC26]

30 minutes ago, JTM1 said:

This is an odd story.

 “The bankruptcy came as a result of the conviction of the project's financier, James Zhong. In 2012, Zhong unlawfully obtained more than 50,000 Bitcoin from the black market site Silk Road while he was a student at the University of Georgia. Federal investigators sought the missing cryptocurrency for years, and their search eventually took them to Zhong.”

There may be hope for this yet if another investing partner can be found or someone that's willing to build upon his vision. 

"Now, 15 parcels across 5.6 acres of prime land are being put up for sale. Cushman & Wakefield/Commercial Advisors has created a website for the property and has listed it on real estate websites such as LoopNet and Crexi."

"The sale may be the end of the Central Yards project in its proposed form. Kemker is trying to find partners and new investors to potentially buy up the project, but given the development environment and the project's history, he is facing challenges. He still believes in the project and hopes whomever buys the land will see his vision through."

"Everything that I talked about when we brought this project to light — about improving the community and being proud of building something in Memphis — is still 100% true," Kemker told MBJ. "It still means a lot to me. And that's why if I can find a way to get into an investment group, I'd love to do that and still see some semblance of that promise and that vision come to light."

If another developer step in, there are a few changes that I would like to see made and some things added. 

Here’s more on the crime: https://www.justice.gov/usao-sdny/pr/us-attorney-announces-historic-336-billion-cryptocurrency-seizure-and-conviction#:~:text=U.S. Attorney Damian Williams said,an over %243.3 billion mystery.

https://decrypt.co/125081/us-government-dumps-seized-silk-road-bitcoin?amp=1

Too bad they didn’t get construction going sooner and get the project built before the feds caught up with Zhong. It’s not like all the recovered bitcoin is going to pay someone back. Silk Road got shut down and it’s owner is serving life in jail. 

[JTM1]

15 hours ago, MDC26 said:

Here’s more on the crime: https://www.justice.gov/usao-sdny/pr/us-attorney-announces-historic-336-billion-cryptocurrency-seizure-and-conviction#:~:text=U.S. Attorney Damian Williams said,an over %243.3 billion mystery.

https://decrypt.co/125081/us-government-dumps-seized-silk-road-bitcoin?amp=1

Too bad they didn’t get construction going sooner and get the project built before the feds caught up with Zhong. It’s not like all the recovered bitcoin is going to pay someone back. Silk Road got shut down and it’s owner is serving life in jail. 

Thank you. That was a detailed and interesting read on Zhong, Kemker’s investor. I am dumfounded that he didn’t take a deeper dive into this guy’s financials.

When this development was first announced, I was under the impression that Kemker was partnering with the group that developed the corner on Sam Cooper and E Parkway. I am not sure why I was thinking that.

If he doesn’t find any partners to invest, he has definitely made it easier for the buyer of the property to develop it. I personally would like to see a modest change, but it’s going to be interesting to see what comes next, because I am sure one of those cutthroat developers were waiting to pounce on this property. 

[VSRJ]

I do wonder how the Liberty Park mixed-use development will affect things. I believe construction has already started. Is there enough demand in that area for two mixed-use developments?

[MDC26]

1 hour ago, JTM1 said:

Thank you. That was a detailed and interesting read on Zhong, Kemker’s investor. I am dumfounded that he didn’t take a deeper dive into this guy’s financials.

When this development was first announced, I was under the impression that Kemker was partnering with the group that developed the corner on Sam Cooper and E Parkway. I am not sure why I was thinking that.

If he doesn’t find any partners to invest, he has definitely made it easier for the buyer of the property to develop it. I personally would like to see a modest change, but it’s going to be interesting to see what comes next, because I am sure one of those cutthroat developers were waiting to pounce on this property. 

If your investor's financing is from BTC and he just tells you he got in early on it, and has a bunch, then I don't know what else you could have done.  No way to find out that he stole it from Silk Road.  Credit score and banking records won't do you any good.