Australian real estate investment firm Drapac Capital Partners has sold the building at 2 Main St. in Downtown Memphis to California-based Studio Capital for $2.7 million.
The building currently houses a Walgreens, which covers the building’s basement and ground floor. The drug store recently underwent renovations, which included façade and lighting improvements, new windows, new signage and a new paint job.
Walgreens also signed a long-term lease at the site.
The 10,000-square-foot second floor is currently vacant.
The 23,362-square-foot building was purchased by Drapac in 2015 for $715,000.
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Drapac Executive Director of Property Max Cookes said the return on the property showed the success of the company’s investment model in Downtown Memphis.
“This latest sale is indicative of our ability to breathe new life into older buildings and bring them into a modern state that reflects the communities they serve,” he said in a news release. “Our investment thesis not only applies to future development sites, but also to existing properties that we are able to successfully reposition as prime real estate in an increasingly tight market.”
Drapac moved into the U.S. market in 2011, taking advantage of decimated land and building values. The company’s current portfolio includes more than 12,000 acres of land in multiple markets across the country.
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The Main Street building is the fourth Memphis property sold by Drapac. In February, Drapac sold 509 S. B.B. King Blvd. to developer Capital Square for $2.8 million. The firm has also sold properties located at 7 Vance Ave. and 324 South Front St. in recent years.
Drapac still owns the apartment building at 44 S. Front St.