The Commercial Appeal

DHL plans ‘speculativ­e’ distributi­on facility

Building expected to cost $3.2 million

- Desiree Stennett

A new $3.2 million distributi­on facility could rise on a vacant lot owned by DHL Supply Chain near Tchulatech Drive and Tchulahoma Road in Memphis near the Tennessee-mississipp­i line.

A building permit for the approximat­ely 971,000-square-foot facility was filed Wednesday. According to the permit the project is “Subject and contingent upon receiving financial incentives from Tennessee.”

“That’s a speculativ­e building,” said Steve Hess, vice president of real estate developmen­t for DHL. Hess did not share any additional informatio­n about the plans for the project, the number of jobs that could be created, what kind of products would move through the facility or the value of possible incentives.

Despite the note on the permit about state incentives, state officials did not share any informatio­n about the project either.

Jennifer Mceachern, spokespers­on for the Tennessee Department of Economic & Community Developmen­t, said she “can’t comment on unannounce­d projects.”

The constructi­on company behind the project was listed as Arco National Constructi­on, a St. Louis company that has built industrial facilities all over the country.

The company has worked with many large companies including DHL, Amazon and Fedex. DHL purchased the 61-acre

lot from Belz Enterprise­s’ Southridge Industrial GP for about $1.7 million in December 2017, records show.

The permit filed Wednesday listed an address just to the north of the DHL property but both Belz Enterprise­s, which owns that property, and DHL confirmed that the work is planned for the DHL property to the south.

Desiree Stennett covers economic developmen­t and business at The Commercial Appeal. She can be reached at desiree.stennett@commercial­appeal.com, 901-529-2738 or on Twitter: @de si_stennett.

 ?? MACKENZIE SHUMAN/USA TODAY NETWORK ?? A new $3.2 million distributi­on facility could rise on a vacant lot owned by DHL Supply Chain in Memphis.
MACKENZIE SHUMAN/USA TODAY NETWORK A new $3.2 million distributi­on facility could rise on a vacant lot owned by DHL Supply Chain in Memphis.

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