Mixed-used project in Edge District up for sale
A notable mixed-use development project in Downtown Memphis is up for sale.
The former Heartbreak Hotel site at 633 Monroe Ave. in the Edge District is up for sale. Owner and developer Jon Hodge listed the building on his business Instagram page on April 11. The sales price is $1.2 million.
In April 2022, Hodge’s Cordovabased Its Not Me Its You, LLC was approved for a 10-year payment-in-lieuof-taxes (PILOT) from the Center City Revenue Finance Corp., an affiliate board of the Downtown Memphis Commission (DMC) for redevelopment work proposed at the site. The 11,872-square-foot building dates back to 1903.
Hodge said the building has undergone significant interior renovations and repair to keep the property preserved. The work done has left the building ready for tenant improvements for the next buyer or developer.
The $2.8 million renovation plan included turning the three-story building into a mixed-use property with commercial/restaurant space on the ground floor and five residential units along with a rooftop patio. In June 2022, the Design Review Board, an affiliate board of the DMC, approved design plans for the project which included a set of murals on the building on both the eastern and western facing sides.
Hodge said the reason for the sale is due to resources. His development firm has had significant traction pick up in other markets they have investments and projects in compared to the Monroe Avenue development and had to make a decision to pivot resources and financing into those markets.
The PILOT incentive has a closing deadline for May 9, 2024. With DMC
guidelines any potential PILOT transfer requires board approval. Transfers have happened, but often after a PILOT is closed and significant construction has been completed. If a PILOT is not closed, a transfer can still happen, however, it would also require the incoming development team to accept the exact same design and site plans that were approved in April 2022.
Its Not Me Its You LLC, which is a partnership between Hodge and Reuben “Tripp” Atkinson III, purchased the property for $700,000 in February 2022, according to the Shelby County Register of Deeds.