A real estate investment trust out of Pittsburgh is finalizing a contract to buy its fourth property in Downtown Memphis. This time, it’s a historic South Main Street building turned apartment development.
According to documents filed with the Downtown Memphis Commission (DMC), Alpha Residential Trust LLC has entered into a purchase and sale agreement with Downtown Developers LLC to buy The Washburn at 60 South Main St.
The five-story building at 60-62 South Main was converted into a mix of ground floor commercial space and 42 upper-level loft-style apartments for approximately $8.5 million in 2007.
Alpha Residential Trust, acting as Alpha Washburn Properties LLC in this transaction, is asking the DMC’s Center City Revenue Finance Corp. (CCRFC) to transfer the payment-in-lieu-of-taxes (PILOT) lease for the property in advance of the sale.
In September, the CCRFC board approved Alpha Residential Trust LLC’s request for PILOT lease reassignments for the Annex Lofts, Printer’s Alley and Cabinet Shop Lofts.
According to a letter submitted to the CCRFC, Alpha currently owns six properties, comprising of 175 total units. Owned by Jide A. Famuagun and Lawunmi A. Famuagun, the company acquires and invests in small to mid-size multifamily developments in advancing mid-size markets.
“Once Alpha has identified a community with a vibrant multifamily market, Alpha will invest in multiple properties in that community,” said Alpha legal representative Ken C. Foltz in a letter to the CCRFC. “Memphis is one of those communities. Alpha intends on continuing to acquire additional properties in Memphis.”
The CCRFC board will consider the PILOT lease reassignment at its meeting Tuesday, Nov. 15.
About Alpha Capital Partners
Alpha Capital Partners is a Pittsburgh-based real estate investment firm that acquires student-housing, multi-family and medical offices in fast-growing markets. The company is the leader in the small balance real estate space and has delivered higher-than-expected margins and risk-adjusted returns. Alpha Capital Partners is continuously growing its portfolio and currently owns 18 properties in growth markets across the United States.
For additional information, visit www.alphacapitalpartners.com.