Memphis skyscraper faces tall troubles
Owners of Memphis’ tallest building, 100 North Main Downtown, face foreclosure by a lender and appointment of a receiver to oversee remedies to a lingering anti-neglect case.
The 38-story building’s primary lender has served notice of a Nov. 18 foreclosure sale because of owner IMH Memphis LLC’s failure to meet loan terms.
On Thursday in Shelby County Environmental Court, Judge Larry Potter said he’s been asked to appoint a receiver to take over management of the empty office building at Main and Adams.
Attorney John Ryder, representing first mortgage holder Shadow Tree Income Fund B LP and others, said the foreclosure sale could be forestalled by payments from the building owner.
“They have the right to come forward and tender payment,” Ryder said.
Ryder said the receivership order, expected to be signed by Potter later Thursday or Friday, would name real estate firm Cushman & Wakefield / Commercial Advisors to manage the building and cleanup work required to eliminate code violations.
Potter and Steve Barlow, the city of Memphis’ anti-blight attorney, hailed the receivership move as good news for a building that has stood vacant and unrehabilitated for more than two years.
“I’m very pleased to announce there are some very positive things that are going to occur,” Potter said in court Thursday morning. He said building owners, the lender and the city agreed to the proposed receivership.
Barlow said, “We’re very encouraged and believe this will result in a prompt resolution.”
The Environmental Court case has dragged on since fall 2015 as representatives of IMH Memphis and the city sparred over the owner’s inability to make repairs inside the building and clean up debris that’s considered a hazard to firefighters.
Ryder said his client stepped into the court action in an effort to protect its security interest in the building.
IMH Memphis bought 100 North Main in August 2015 and took a $2.8 million loan from White Plains, N.Y.-based Shadow Tree, according to Shelby County Register of Deeds records..
The previous owner, One Hundred North Main LLC, bought the building from a longtime owner in 2013, emptied it of tenants and proposed a nearly $100 million development that never gained traction.
Larry Weissman, attorney for IMH Memphis, had previously told Potter’s court that building owners have been working to secure $60 million to $70 million in financing to pay for conversion into apartments and commercial space.
A prominent address Downtown for companies after its 1965 completion, 100 N. Main was listed on the National Register of Historic Places in 2015, although the 1986 book “Memphis: An Architectural Guide” described it as “one of the least interesting” buildings in the center city. The tower was designed by Memphis architect Robert Lee Hall, who also designed Clark Tower in East Memphis.