Mane Street Memphis: Memphis Stone & Gravel sold; Northside Square breaks ground
Tennessee Secretary of State Tre Hargett made a brief visit in Memphis last week.
On Dec. 4, Hargett met with leadership at US Biologic inside their Memphis manufacturing facility at Agricenter International near Shelby Farms Park.
“We want Memphis to thrive,” Hargett said.
The discussion was the first of hopefully several, for US Biologic and state officials. The team, led by CEO Mason Kauffman and President Chris Przybyszewski, largely wanted to introduce themselves to Hargett and enter preliminary conversations for potential funding for future facility and campus expansions.
US Biologic is looking at a three-phase expansion at its current Memphis facilities. The second phase would be an expansion at its 5,000-square-foot rapid response center, which cost $1 million to develop.
That expansion would add another 15,000 square feet to the facility and an additional 25 jobs. Two more 30,000-square-foot expansions are planned to add a vaccine production center and a global headquarters and research and development center. In total, the four-phase development would add 110 jobs and cost an estimated $96 million ($10 million in equipment and furnishing costs).
US Biologic tentative expansion timeline
Phase 1: Rapid Response Center | 5,000 square feet | Completed
Phase 2: Rapid Response Center expansion | 20,000 square feet | 2025
Phase 3: Vaccine Production | 30,000 square feet | 2027
Phase 4: Global HQ /R&D Center | 30,000 square feet | 2028
US Biologic develops several vaccines including a Lyme disease vaccine distributed through the company’s LymeShield Station device. The device holds approximately 100 pellets in each of its six compartments, the pellets are spray-coated with the Lyme disease vaccine and the station is placed in a location where mice discover the pellets. The vaccine is administrated through the mice after they have digested the pellets. As the mice come in contact with ticks, the disease isn't passed on from mice to tick. It effectively eliminates a key component to the spread of the disease. (Lyme disease in humans and pets is passed through contact with the borrelia burgdorferi bacteria. That initial transfer of bacteria begins with contact between mice and ticks.)
In May, my colleague and Commercial Appeal education reporter John Klyce wrote a great feature during his time with the Memphis Business Journal about the LymeShield Station and its application.
Hargett said that article was how he first discovered US Biologic and its connection to Memphis.
While any potential partnership and funding with the state is still in its adolescence, Hargett said he was impressed at the scope of work US Biologic was developing. He was also impressed at the commitment the Agricenter is looking to create including a potential $30 million expansion plan for its Innovation District.
Kaufman said the Innovation District expansion is Agricenter plans, but it bodes well for the entire campus including US Biologic. He said the ability to have a year-round research lab where the soil can be tested is vital for agricultural companies on the campus and helps improve research for US Biologic.
“At the Agricenter we have a blank canvas,” US Biologic Chief Regulatory Officer Steve Zatechka said. Zatechka added the Agricenter has the capacity for approximately 30,000 acres of experimental farmland.
The company currently studies and understands several pathogens carried by animals, such as Lyme disease. Przybyszewski said the company is also working on a chewable gummy vaccine for influenza. Ultimately, instead of getting an annual flu shot, we would be able to digest a gummy-like vitamin with the same vaccine, he said.
Przybyszewski also highlighted the location of Memphis from a logistics standpoint and the ability the area has to distribute any vaccine.
While the Dec. 4 meeting didn’t yield any specific news or headlines, it was a meeting of note I wanted to highlight. It also was a meeting that shows how several of these economic development deals begin and manifest over time.
They start with an introduction and conversation.
Without further ado, let’s take a look at what else is happening around the region in this week’s Mane Street Memphis. (Spoiler alert: We’ve got two notable groundbreakings.)
Lehman-Roberts/Memphis Stone & Gravel acquired by a California company
On Dec. 5, California-based Granite Construction acquired Memphis-based Memphis Stone & Gravel along with its partner company Lehman-Roberts. The deal was financed via a $150 million term loan along with other capital via Granite including existing revolver and cash.
“Our team is excited to join Granite as we enter the next phase of our evolution,” said Pat Nelson, Lehman-Roberts and Memphis Stone and Gravel president, in a statement. “We look forward to continuing to provide our many valued customers with the highest quality aggregates and asphalt paving services for many years to come.”
Lehman-Roberts and Memphis Stone & Gravel have partnered since 1972. Lehman-Roberts operates seven ashplant plants and is responsible for paving several historic roadways throughout Memphis including U.S. 51 connecting Memphis to Millington in the late 1940s. Memphis Stone & Gravel operates three stone and gravel mines along with a fourth currently under construction.
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With the merger, Granite has an estimated 2024 revenue target between $3.8 billion to $4 billion, according to NASDAQ reports.
Granite is headquartered in Watsonville in Santa Cruz County, along the central coast of California. The company was founded in the 1800s and was incorporated in 1922.
The Works breaks ground on $78 million Northside Square
One of the most anticipated mixed-use projects in Memphis broke ground on Dec. 8. The $78 million Northside Square will convert the former Northside High School site at 1212 Vollintine Ave. into a mixed-use development with affordable housing units on the upper floors.
The high school has been vacant since 2016. Memphis-based The Works Inc. are the developers behind the project in partnership with ComCap Partners. Memphis-based LRK is the architect for the project.
The Northside High redevelopment project was awarded a 10-year payment-in-lieu-of-taxes (PILOT) from the Memphis and Shelby County Economic Development Growth Engine (EDGE) in February 2022. The Works closed on the PILOT last month. In July 2022, the project was rebranded as Northside Square.
Construction is expected to take an estimated 20 months with Northside Square opening in 2025.
Sissy’s Log Cabin reopens East Memphis store
On Dec. 11, the Mid-South jewelry franchise opened its new location at 4542 Poplar Ave. inside the Laurelwood Shopping Center.
In April 2022, the Arkansas-based retailer announced plans for a new Memphis location along with its partnership with the Memphis Grizzlies and FedExForum.
The 9,000-square-foot store is open 10 a.m.-6 p.m. Monday-Saturday and 1-5 p.m. Sunday. Sissy’s Log Cabin opened in the 1970s and has six locations throughout Arkansas and Tennessee.
Memphis Chamber takes over workforce development task force
On Nov. 29, the Greater Memphis Chamber of Commerce announced it will take over as interim fiscal agent and administrator for the Greater Memphis Workforce Development Board.
On Nov. 16, the Chamber’s board of directors voted unanimously in favor of taking over the six-month interim role. The Workforce Development Board oversees federally funded labor development programs throughout Shelby, Fayette, Lauderdale and Tipton counties.
In the interim role, the Chamber will be responsible for administrating and distributing federal funds to local and regional vendors and through various programs and initiatives.“This collaboration with Shelby County Government lets us scale the work we’re already doing to equip people with the skills and training they need to prosper," Memphis Chamber President and CEO Ted Townsend said in a statement. "In the months ahead, we look forward to continuing to serve our community, which was recently named one of the nation’s fastest-growing job markets."
Edgeview at Legends Park breaks ground
On Dec. 7, Memphis Housing Authority and Pennrose broke ground on the 99-unit Edgeview at Legends Park development.
The senior living development is located at 981 Peach Ave. in the Medical District. It is expected to open in 2025.
“There is a pressing need for accessible, high-quality housing options for Memphis residents — not just those who currently qualify for public housing assistance,” Memphis Housing Authority CEO Dexter Washington said in a statement. “Edgeview at Legends Park is not just a development; it's a crucial response to the demand for affordable, independent living for our city’s senior population.”
All residential units will be eligible for Project-Based Vouchers, meaning the development will be 100% affordable. (Rent will be limited to 30% of residents' adjustment monthly income. A portion of units will be reserved for residents who qualify at 25% below the region’s medium income.)
The development will have senior amenities to support healthy living for elderly residents along with one- and two-bedroom units. Seven units will be specifically designated for elderly veterans with incomes at or below the 30% area median income, according to a news release.
The development is a public-private partnership between Memphis Housing Authority and Pennrose. Additionally, financing from bonds, low-income housing credits, state and local financing along with contributions from the City of Memphis, Memphis and Shelby County Community Redevelopment Agency, and the Tennessee Housing Development Agency.
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Cordova Kroger reopens after $1.9 million investment
On Dec. 6, Kroger Delta Division announced the grand reopening of its Cordova location at 676 N. Germantown Parkway.
The grocery store underwent a $1.9 million investment and is part of a $10 million investment from Kroger between six Memphis area locations. In October, Kroger invested $2 million at its 283 Kirby Parkway location.
The Cincinnati-based grocer operates in 35 states with 121 retail stores in Tennessee. Kroger Delta Division is based in Memphis and operates 93 stores throughout West Tennessee, Arkansas, Kentucky, Missouri and Mississippi.
Mane Street Memphis is a bi-weekly commercial real estate and economic development roundup.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679 or via X: @neilStrebig
This article originally appeared on Memphis Commercial Appeal: Granite Construction acquires Lehman-Roberts, Memphis Sand & Gravel
