Situation
In-Rel Properties acquired the Clark Tower in 2003 from a REIT that was exiting the Memphis market. Completed in 1972, the 34 story, 650,000 square foot property’s occupancy at the time of purchase was approximately 72% and subsequently dropped to approximately 64% after a corporation relocated from the building to out of state.
In-Rel set four key objectives for the property: first, restore luster to the faded landmark and again make the Clark Tower a destination for high quality tenants; second, introduce technology to the property never before seen in the Memphis market; third, develop a restaurant outparcel and lease it to a high visibility restaurant operator; and fourth, reintroduce the property to the brokerage community.
Development
To create the new Clark Tower, In-Rel implemented an extensive capital improvement project to update dated mechanical systems and replace finishes in the lobby, elevators and common areas. The stately lobby level and security guard’s desk required update. We replaced the flooring with a white marble, constructed wood accent walls, introduced two water features and installed new artwork featuring local artists. We also implemented a program to extensively modernize the mechanical systems of all fourteen elevators.
New technologies were introduced first in Memphis through our company’s renovation of Clark Tower. The Captivate Network, a digital display providing news and information, was installed in all twelve passenger elevator cabs. Dated tenant directories were replaced with digital touch-screen directories providing flexibility and an updated look to the lobby.
Because the Clark Tower’s attached parking garage provides ample parking for both tenant and visitors, In-Rel realized an immediate opportunity to develop an outparcel on the surface parking lot along Poplar Avenue, one of the highest traveled streets in Memphis. As a result, we executed a ground lease for a new to Memphis dinner only restaurant concept, Carrabbas Italian Grill.
Value Created
Since acquiring the Clark Tower, In-Rel has created value through capital investment and leasing. The extensive renovation and newly created outparcel carried out by our company increased a new awareness of the Clark Tower not present in years. Clark Tower offers professional tenants a choice: a landmark address, flexible floor plates, ample covered parking and unparalleled amenities in the Memphis market.
Since the 2003, In-Rel implemented an aggressive marketing and leasing program resulting in an increase in occupancy to approximately 90% by 2006.
