Not too many years ago it was uncommon to see realty companies venture out of their state to purchase land. However, with the population increase and thriving real estate market, more companies are attempting to make an impact beyond their backyard. That’s the case of Denver, Colorado-based Confluent Development, who recently purchased a ‘prime’ piece of real estate in East Memphis, Tennessee. The property is located along the Interstate-240 corridor in East Tennessee.
Confluent, purchasing the land as DR-HRA (Germantown) LLC, recently purchased the 3.2-acre property from Tennessee-based Dunavant Enterprises, which is doing business as Grandview Memphis LLC. According to the deed filed with the Shelby County Tennessee Register’s Office, the deal was made on February 13th for $4 million. The property was last appraised by the Shelby County Assessor in 2017 for $1.7 million. Though Confluent paid more than twice the appraisal amount, executives at the company are confident in its long-term return on investment. The deed was signed by senior vice president and CFO of Confluent Jonathan Rankin and Senior Vice President of real estate operations William O. Hagerman of Dunavant.
The piece of real estate can be found along Interstate 240 north of the intersection of Poplar and Briarcrest Avenues. The plot is located in a prime office district and will most likely to use for further office space in the area.
Confluent was established in Denver in 2015 with the merger of Denver-based real estate firms Confluent Development Services and MVG Development Inc. The company specializes in office and industrial projects. According to their website, Confluent has completed more than 100 projects and approximately 10 million square feet in development.
The purchase continues a growing trend of real estate companies venturing off to different regions of the country and different states when land in their own area is difficult to come by. Denver, Colorado has seen a construction boom over the last ten years which has left many companies grasping for any type of land to develop. Instead of fighting low inventory and skyrocketing prices, many developers have tried their hands in more affordable areas. Whether this trend is good or bad for the market may not be known for several more years and studies.
Special thanks to the home loans Denver experts at First National Financing for sponsoring this post.