MATA wants new apartments

Central Station units sought on vacant land

MATA is seeking a new private partner to build more residences and manage the existing property at historic Central Station.

The Memphis Area Transit Authority’s request for proposals identifies a 5-acre vacant section on the backside of Central Station that’s ripe for construction of up to 40 units per acre.

The spot faces Front Street, and sits adjacent to the Memphis Farmer’s Market grounds and across the Canadian National track from the eightstory Central Station.

This Phase 2 of Central Station’s redevelopment starts at time of hot demand for apartments, especially Downtown. The submarket leads the Memphis area for occupancy and rent per square foot, according to the latest CB Richard Ellis Memphis MarketView report.

The $23 million Phase 1 redevelopment at 545 S. Main was fi nished in 1999. The work restored a deteriorating and mostly vacant Central Station at Main and G.E. Patterson. That project has proved to be a success over the past 13 years, said Tom Fox, MATA’s deputy general manager.

The existing 63 apartments in the mixed-use facility stay above 90 percent occupied. The seven commercial spaces, comprising 40,000 square feet on the lower floors, are fi lled with tenants. And the banquet hall and conference space generates $100,000 a year in rent revenue, Fox said.

Taxpayers do not subsidize the building’s main-

tenance and operations, he said.

But MATA’s current managing partner in the public/private venture does not want to stay once its 15-year contract for developing and managing Phase 1 ends by January 2015.

The Alexander Company, based in Madison, Wis., focuses more on rehabbing historic properties than managing facilities, Fox said.

Financing of the Phase 1 redevelopment included $14 million in federal funds from the Federal Transit Administration. That means future development on the property must be transit friendly to avoid the risk of having to repay federal money.

“We want to make sure it’s a transit-oriented development,” Fox said of the residences. For example, the sidewalks would likely be connected to other modes of transportation and the parking would not be overbuilt.

“One of the main things that influences transit use is the availability and cost of parking,” he said. “If there’s too much or it’s too cheap, it tilts the playing field toward people using automobiles instead of transit.”

The existing apartments include 51 in the upper six floors of the main building. Thirty-eight are one-bedroom and 25 are two-bedroom. Another dozen apartments are in a separate one-story building on the 17 acres.

The renovated Central Station has been an anchor for redevelopment in the South Main Historic District.

Central Station generates about 170 passengers daily for Amtrak’s City of New Orleans. Also running next to the building are the Main Street and Riverfront Trolley lines, which carry more than 1 million riders annually.

Proposals from developers/property managers are due to MATA by 11 a.m. Dec. 20.