Southgate Center developers, Union Realty Company General Partnership, was awarded a 15-year Community Builder PILOT to redevelop a 208,297 square foot shopping center at 1897 South Third Street.
The recent departure of two major food and retail anchor tenants has left the property is suffering from 39% vacancy. The developer proposes to renovate the center and lease the vacant 31,000 square foot grocery store to a new operator with substantial supermarket experience. Following the grocery store lease, the developer will recruit two junior anchor tenants and fill five small retail shops.
The $6,802,200 investment into the property includes exterior upgrades, tenant finishes and grocery store equipment. This investment will create 47 full-time grocery store positions and 60 part-time retail positions in adjacent space. This will equate to 92 Full-Time-Equivalent jobs at an average annual wage of $24,960.
More than 55,000 people live within a three-mile radius with median household incomes of $34,600. The project’s Census Tract is severely distressed with a 52% poverty rate and 32% unemployment rate. Financial assistance is needed to provide healthy food options to the neighborhood, remove blight, complete renovation of the building, create jobs and improve the overall neighborhood quality of life consistent with the Community Builder PILOT policies.
The project is supported by the South Memphis Alliance. EDGE Staff projects $4,524,365 in local total tax revenues to be received during the PILOT term of this project and a $1,159,291 benefit to the Union Realty Company General Partnership.