Memphis Medical District Investment Fund Opens Funding With Adaptive Mixed-Use Redevelopment
MEMPHIS, Tenn. (December 9, 2021) – Following the July launch of the Memphis Medical District Investment Fund (MMDIF), the Fund marks its first investment with news today Uptown’s Greyhound Complex will soon be home to a mixed-use development financed by Pathway Lending and Financial Federal. The development will repurpose two historic commercial buildings into loft apartments and a destination retail and entertainment space at 525 N. Main St. and new construction for artist studios and self-storage on the adjacent lot at 475 N. Main St.
November 6 Investments bought the property in January 2020, and partners Bill Ganus, Susannah Herring and Gabe Velasquez closed a financing gap and completed the mix of capital sources needed to realize the $33.9 million redevelopment of the site that includes a $2.25 million loan from Pathway Lending. Other capital sources include a loan from Financial Federal, the senior lender and primary capital provider, along with Historic Tax Credits, local public incentives, and developer equity.
“The MMDIF was created for the purpose of accelerating development in the Medical District, so it was important to get started quickly with the right kinds of deals,” said Hank Helton, Pathway Lending’s Executive Vice President. “This transaction is a great example of the type of catalytic activity all the partners in the Fund envisioned would occur by providing a mix of housing, retail and commercial space, and community amenities for current and future residents, while showcasing the area’s rich history.”
The Greyhound Complex redevelopment calls for converting the larger building, originally constructed in 1936-37 for Memphis entrepreneur Frederick “Fred” Smith, Sr. into 45 loft-style apartments with new multifamily construction for an additional 25 units, and transforming the second building, built in 1902 as a stable for the old Schlitz Brewery and later used as bus storage, into a destination retail and entertainment space with a mix of retail, restaurants, and event and office space. On the adjacent lot, construction of a new building with artist studios and self-storage units will create a way for occupants of like spaces in the former bus barn to relocate and remain in the area. The property, the only surviving commercial property associated with Smith, Sr.’s business career, will host 56,700 residential and 30,004 commercial square feet.
“The Greyhound will bring together places for people to live, work, and play while respecting the building’s rich architectural history and storied past,” said Rory Thomas, President of the Memphis Medical District Collaborative. “It is also a great example of how a diverse development team can bring creativity to bear that will benefit the larger community.”
Established in July 2021, the Memphis Medical District Investment Fund is a $30 million capital fund created to spur inclusive real estate development and to finance transformative residential and mixed-use real estate projects in the Memphis Medical District. While the District is home to several large hospital systems, medical education providers, over 30,000 employees and students and more than 10,000 residents, decades of disinvestment in area neighborhoods have resulted in high poverty rates and a lack of adequate housing and commercial options. The fund collaborators include Pathway Lending, the Memphis Medical District Collaborative, First Horizon, Regions Bank, Truist, The Kresge Foundation and The Hyde Family Foundation.
Developers and community members interested in learning more about the Memphis Medical District Investment Fund may contact Tracy Buckley, MMDIF Director, at (901) 560-5737 or tracy.buckley@pathwaylending.org.
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About Pathway Lending
Founded in 1999 and based in Nashville, Pathway Lending is a community development financial institution (CDFI) certified by the U.S. Department of the Treasury. It has grown to become a major lending institution in the Southeast, propelling meaningful economic growth in communities across the region. In 2020, Pathway Lending made more than $46.1 million in loans and delivered 15,790 hours of technical assistance and education. Get to know our mission and the stories of the entrepreneurs and communities we serve at PathwayLending.org.
About The Memphis Medical District Collaborative
The Memphis Medical District Collaborative is a community development organization working with anchor institutions to strengthen the connections, communities, and campuses in the Memphis Medical District so they are more vibrant, prosperous, and equitable. Learn more at mdcollaborative.org.
About November 6 Investments
November 6 Investments, LLC is a WMBE private real estate investment and development firm focused on key projects in the vibrant, rapidly growing Memphis market. November 6 Investments specializes in value-add mixed use, adaptive reuse of historic properties in mid-tier markets, and turnaround or opportunistic real estate investments.
