By: Jacob Steiner

On Aug. 1, Memphis-based The Partners Group officially merged with Nashville-based Capital Financial Group, both affiliates of Massachusetts Mutual Life Insurance Co.(MassMutual). The merger was driven by mutual respect and an increasingly competitive industry; and, it’s led to a prominent relocation for the Memphis part of the company.

Based on friendship
Tim Sinks, longtime CEO at Capital, got to know Jerry Corless when Corless first took over the Memphis MassMutual branch about six years ago. They started attending meetings and serving on committees together, and natural interactions kept arising, as each had employees who operated in the other’s city.

With every contact, Sinks said, he came to respect Corless more. “We found out that both of us really have an abundance mentality, and we became friends,” said Sinks. Through the friendship, each of them realized that their counterpart’s firm did some things significantly better than theirs did. The Memphis office, for instance, has a presence in the 401(k) market far beyond Nashville’s. The Nashville firm, in turn, has MassMutual’s No. 1 fee-based financial planning service in the nation.

Corless said the knowledge they would soon have access to that service is the primary reason he’s been able to hire more experienced advisors in the last year.

Other reasoning
Along with the realization of their complementary strengths, Sinks said he approached Corless about a merger because of the direction the financial planning industry is going. With increased regulations and an increasingly competitive industry, Sinks realized he needed to scale up. Combined, the companies will have about 150 financial advisors across five states and more than $2 billion in assets under management.

Since the firms started unofficially working together in January, that increased scale has already paid off, Corless said. “By combining our two firms together, there’s an exponential magnification of the advisor experience we’re able to produce by virtue of the increased scale,” Corless said. “[Since the merger], it’s far exceeded even what I hoped we could be at this point.”

Clark Tower
The combined firm has taken the Capital Financial name and is formally headquartered in the Nashville area, but Corless wants Memphians to know he’s still highly committed to the city. Making that statement is the main reason he gave for the firm’s pending move from 6070 Poplar Ave. to 17,500 square feet in Clark Tower.

“We wanted to drive a stake in the ground that even though we’re merging with a large company in Nashville, we’re still very committed to Memphis,” Corless said. “A tremendous financial commitment has been made in Clark Tower by the owners, so we felt that was the perfect place and perfect symbol of our commitment to the city.”

Corless was referring to $8 million recently spent on renovations to Clark Tower by owner In-Rel Properties. Part of those renovations were meant to better connect the tower to nearby restaurants, such as Hog & Hominy and Fino’s East Italian Deli. The tower’s proximity to those restaurants is much of what impressed Sinks, he said.

“From a tenant perspective, as far as places to eat and do business, that place knocks it out of the park,” Sinks said. Corless said he believes the firm’s new home will help it recruit more elite financial advisors.

In-Rel’s broker in the transaction, Colliers’ Ron Riley, said Capital Financial’s presence will help him recruit other tenants to the building. “It validates the plan we have put in place and provides momentum for those prospects we have working,” said Riley.

Capital Financial was represented in the transaction by Loeb Realty Group’s Barry Maynard.

Photo Caption:  A MassMutual firm in Memphis has merged with Capital Financial Group of Nashville and the new entity has leased the 23rd floor in Clark Tower, where it will operate under the Capital Financial Group name. 

By:  Patrick Lantrip

According to multiple sources close to the deal, the Memphis arm of MassMutual will merge with a Nashville-based financial group and move its combined operations into the 23rd floor of the Clark Tower.

Though it previously operated publicly under the MassMutual brand, Memphis-based firm The Partners Group will move out of its current location in the Triad Centre III now that it has merged with Nashville-based Capital Financial Group.

The new entity will operate under the Capital Financial Group brand and will occupy the entire 23rd floor of the recently renovated Clark Tower, taking approximately 17,000 square feet.

The Partner Group’s website has since been taken down and any remaining links now redirect users to Capital Financial Group’s homepage.

Currently, MassMutual works out of a little more than 10,000 square feet of combined space in two suites on the 5th floor of Highwoods Properties’ Triad Centre III, located at 6070 Poplar Ave.

According to Highwoods’ website, these two suites will be available Jan. 1, 2018.

The decision to move to the Clark Tower comes several months after property owner In-Rel Properties finished an $8 million renovation of the iconic 668,505-square-foot high-rise, which included upgrades to the lobby and security desk, the addition of a 60-person conference center, updated common areas and restroom finishes, a new marquee entry on the south side of the building, pedestrian walking paths connecting to nearby retail and three new cooling towers.

In addition to Capital Financial Group, Memphis-based First Alliance Bank signed a 10-year lease this month to relocate its Poplar Avenue branch to Clark Tower, which is owned by In-Rel Properties.

First Alliance’s new 3,920-square-foot office will be located adjacent to Clark Tower’s lobby, and will offer full banking services and a drive-thru facility.

By:  Jacob Steimer

This winter, First Alliance Bank is planning to relocate its Poplar Avenue branch, currently located near Perkins Road, to the first floor of the recently renovated Clark Tower.

The bank signed a 10-year lease for a 3,920-square-foot space, which will include a drive-through facility, according to a Tuesday news release.

“This new, state-of-the-art office at Clark Tower is our commitment to continue serving this vibrant community for the long term,” First Alliance president Hunt Campbell said in the release.

In-Rel Properties Inc., owners of Clark Tower, recently spent $8 million overhauling the building’s lobby, walkways, elevator system and HVACsystem.

To see inside the recently renovated building, click through the slideshow attached to this story.

“We are excited and flattered to have First Alliance Bank join us,” said In-Rel CEO Kirk Cypel in the release. “They complement an already impressive list of financial and professional firms that occupy the tower.”

The tower is currently about 60 percent occupied, according to Colliers International’s Ron Riley, who represents In-Rel. That is roughly the same occupancy it had when its $8 million of renovations were completed in May.

By: Patrick Lantrip

Memphis-based First Alliance Bank has signed a 10-year lease to relocate its Poplar Avenue branch into a new facility inside the recently remodeled Clark Tower office building.

The new office will be located adjacent to Clark Tower’s lobby, and will offer full banking services and a drive-through facility.

“For the past 10 years, First Alliance Bank has operated in East Memphis and this new, state-of-the-art office at Clark Tower is our commitment to continue serving this vibrant community for the long term,” First Alliance Bank president Hunt Campbell said of the move.

Originally constructed in 1972, Clark Tower recently completed an $8 million renovation that included many of the common areas including the lobby, elevators and walkways, and now features a 60-person conference room and tenant game center.

“We are excited and flattered to have First Alliance Bank join us,” Kirk Cypel, CEO of Clark Tower LLC, said. “They complement an already impressive list of financial and professional firms that occupy the tower.”

By:  Patrick Lantrip

5100 Poplar Ave., Memphis, TN 38117

Project Cost: $8 million

Completion: May 2017

Owner: In-Rel Properties

Details: Commercial real estate firm Colliers International has announced the owner of Clark Tower, In-Rel Properties, has finished an $8 million renovation of the iconic East Memphis office building.

Upgrades to the roughly 650,000-square-foot building included work to the lobby and security desk, the addition of a 60-person conference center, updated common areas and restrooms finishes, a new marquee entry on the south side of the building, pedestrian walking paths connecting to nearby retail and three new cooling towers.

“The building is a canvas. Our goals are to capture a dominant share of the leasing activity in Memphis and draw significant new tenants into the vibrant East Memphis submarket,” In-Rel CEO Kirk Cypel said. “Since completion of the improvements, currently we are working with over 150,000 square feet of prospects.”

Colliers senior vice president Ron Riley said the improvements to the building will elevate it within the submarket.

“Clark Tower is located in the geographic heart of Memphis and the building presents a unique opportunity for tenants to be a part of a community that has local restaurants and retailers along with key national tenants such as Whole Foods and Houston’s,” Riley said. “Clark Tower serves as the hub for a five-minute walk to 13 restaurants, two grocery stores, a hotel and multiple local and national retailers.”

May 8, 2017

By: Jacob Steimer

In-Rel Properties just dropped $8 million overhauling Clark Tower – focusing on the building’s lobby, elevator system, HVAC system and a new conference center.
The company’s next goal, according to CEO Kirk Cypel, is making the building more fun and unique.
“It’s a serious work environment, but that doesn’t mean we can’t have fun with it,” Cypel said.
New outdoor lamps will light up the building in different colors, and the fun will also include a new, 8th-floor game room with ping pong tables, pool tables and video games.

“I have no idea if that’s an amenity that tenants will use. … But if tenants use it, I’d reinvest in it,” Cypel said.
Cypel’s hoping much of Clark Tower’s individuality will come from future, “diverse” tenant renovations that will dramatically change the feel of the building from one floor to the next.
“The building is a canvas,” Cypel said.
Another way In-Rel is trying to bring uniqueness to the building is through leveraging its next-door neighbors, such as Porcellino’s Craft Butcher, Hog & Hominy and Bangkok Alley.
In 2015, the company worked with Fleming Architects, MEMFix, Cushman & Wakefield/Commercial Advisors and surrounding businesses to conduct a walkability study. In recent months, the company removed the fences between Clark Tower and the restaurants and painted paths to them in the tower’s parking lot. More substantial walkways are still in development, Cypel said, as are other beautifying initiatives.
Currently, the 670,000-square-foot building is about 40 percent vacant, but the recent renovations have drummed up about 150,000 square feet of interested users in the last 90 days, according to Colliers International’s Ron Riley — the building’s broker.
“The reception has been night and day from 2003 [when the building was last renovated with a $1.5 million investment],” Riley said.
Cypel said he has been particularly excited by the buzz the new, 60-seat conference center has created.

April 26, 2017

By:  Marty Finley

The sale of the 26-story Meidinger Tower is final.

Florida-based In-Rel Properties has closed on the property in a $32 million deal. The seller was an affiliate of New York-based real estate investment firm Torchlight Investors, which has acquired more than $20 billion in commercial real estate debt investments since its inception.

The Class A office tower at the corner of Fourth Street and Muhammad Ali Boulevard exceeds 331,000 square feet and is 97 percent leased. The building has a mix of professional firms and technologically inclined companies, including Computershare Inc., Mountjoy Chilton Medley LLP, River Road Asset Management LLC, Cotiviti and Seiller Waterman LLC. Louisville Business First also is a tenant.

The tower is managed by Louisville-based NAI Fortis Group, which will be retained by In-Rel Properties as property manager, In-Rel CEO Kirk Cypel recently told me.

Holliday Fenoglio Fowler L.P. and NAI Fortis Group partnered to market the property for sale on behalf of Torchlight Investors, which bought Meidinger Tower for $16.6 million in a foreclosure sale in 2013.

The Holliday Fenoglio Fowler team was led led by managing director Ralph Smalley and senior managing director John Merrill. Mark Wardlaw and Lenisa Alvey were the leads on the sales process for NAI Fortis Group, according to a news release.

“Louisville is a vibrant city with its own unique character, combining aspects from both Midwestern and Southern cultural influences,” Merrill said in the news release announcing the sale. “As a result, Meidinger Tower, with its outstanding location within the heart of the city, was attractive to investors from throughout the Southeast and Midwest.”

The building was renovated in 2006 and Cypel told me has no immediate renovation plans in mind. Instead, the new owner will maintain the property and review it regularly for possible upgrades.

In-Rel has about 3.5 million square feet of commercial space in its portfolio, which ranges from stabilized properties in the vein of Meidinger Tower to older properties that require renovations.The company operates in Alabama, Georgia, Florida, Kentucky, Oklahoma and Tennessee.

Cypel said In-Rel owns commercial properties in cities such as Memphis, Tenn.; Birmingham, Ala.; Oklahoma City; Tampa, Fla.; and Fort Lauderdale, Fla., and is opportunistic about expansion into new cities if the deal makes sense. He said the company evaluates each deal by the quality of the real estate, not what sector it fits into.

Cypel told me before the deal closed that his firm feels strongly about the Louisville market as it has watched it evolve over the past several years. He said the city is moving in an interesting direction with the completed construction of the Ohio River Bridges Project, the renovation and expansion of the Kentucky International Convention Center downtown and new hotel and residential developments in the works.

Meidinger Tower’s position next to the Fourth Street Live entertainment complex also is a plus, with Cypel noting that real estate is all about location.

“It’s just an exciting place to be. I just think it’s only going to get stronger,” Cypel said.

This is In-Rel’s first Louisville acquisition, but second in Kentucky. The firm owns the 238,000-square-foot Chase Tower in downtown Lexington.

Louisville, Kentucky

By: Marty Finley

A Florida real estate investment firm has one of Louisville’s largest downtown office towers under contract and should close on the acquisition later this month. Kirk Cypel, CEO of Lake Worth, Fla.based In-Rel Properties, said his firm plans to close on the purchase of the 26-story Meidinger Tower on South Fourth Street by late April. The current owner is New York-based DOF IV Meidinger Tower LLC, which purchased the tower in 2013 for $16.6 million in a foreclosure sale. Cypel declined to disclose the negotiated purchase price. The building ranked sixth on Louisville Business First’s largest office buildings list for 2016 based on leasable square footage, with roughly 331,000 square feet.

The building has a mix of professional firms and technologically inclined companies, including Computershare Inc., Mountjoy Chilton Medley LLP, River Road Asset Management LLC, Northwestern Mutual and Seiller Waterman LLC. Louisville Business First also is a tenant. The tower is managed by Louisville-based NAI Fortis Group, which will be retained by In-Rel Properties as property manager if the deal goes through, Cypel said. “They’ve done a good job with the building,” he said. Jon Seiz, president of NAI Fortis Group, said the building is 96.7 percent leased. This will be In-Rel’s first Louisville acquisition, but second in Kentucky. The firm owns the 238,000-square-foot Chase Tower in downtown Lexington.

Cypel said his firm feels strongly about the Louisville market as it has watched it evolve over the past several years. He said the city is moving in an interesting direction with the completed construction of the Ohio River Bridges Project, the renovation and expansion of the Kentucky International Convention Center downtown and new hotel and residential developments in the works.

Meidinger Tower’s position next to the Fourth Street Live entertainment complex also is a plus, with Cypel noting that real estate is all about location. “It’s just an exciting place to be. I just think it’s only going to get stronger,” Cypel said of Louisville. “I wish there was more of a residential component downtown, but I think it’s coming.” Cypel also pointed to Louisville’s historic architecture and a push by developers to creatively reuse several downtown buildings for office, retail and other uses as a draw to the market. Furthermore, he praised the strong tenant mix inside Meidinger Tower, calling it a stabilized tower with no need for major renovations. “The bones of the building are very good,” he said. Because the building has received a refresh in recent years, he said his firm’s goal is to maintain the quality of the tower and assess it each year for possible tweaks.

In-Rel has more than 3 million square feet of commercial space in its portfolio, which ranges from stabilized properties in the vein of Meidinger Tower to older properties that require renovations. The company operates in Alabama, Georgia, Florida, Kentucky, Oklahoma and Tennessee. Cypel said In-Rel owns office, retail and some residential properties in cities such as Memphis, Tenn.; Birmingham, Ala.; Oklahoma City; Tampa, Fla.; and Fort Lauderdale, Fla., and is opportunistic about expansion into new cities if the deal makes sense. He said the company evaluates each deal by the quality of the real estate, not what sector it fits into. “You don’t grow for the sake of growth,” he said. “You grow when you find great opportunities.” The company stays away from what Cypel called “gateway cities,” such as New York, Chicago and Washington, D.C. In those cities, he said, the institutional players are deeply entrenched and are throwing “silly money” around on real estate. Louisville, in comparison, is a less-volatile market that doesn’t see the dramatic ups and downs of a giant city. “You can make a living (here) and don’t have to compete with the world,” he said.