A new professional office building is being developed at 535 West Main in Tupelo, adjoining the existing Spain House which will be renovated. The two-story, multi-tenant building to be built at 535 West Main is sized at 37,100 square feet and is currently being pre-leased. Spain House is a smaller, two-story 3,900 square foot structure that is ideally suited for a single tenant.
Location This office development is located within Downtown Tupelo, on a half-block site defined by West Main Street to the north, Madison Street to the west, and Magazine Street to the south (see the attached maps). Main Street is four-lanes wide, whereas Madison and Magazine are two-lanes wide. Highway 45 intersects with Main Street toward the east, while Highway 78, future Interstate 22, is located two miles to the north. Site Plan Concept A full city block is defined by West Main Street, Madison Street, Magazine Street, and Church Street (see attachments). Calvary Baptist Church occupies the eastern half of this block, with The McCarty Company occupying a restored home next to 535 West Main. The development s two buildings, 535 West Main and Spain House, will occupy the western half of this city block with parking to their rear. The intent is to create a campus-like environment across the complete block, with sidewalks and landscaping allowing ease of pedestrian movement. The buildings are highly connected to the community. Within onehalf mile, there is pedestrian access to banks, a post office, the Lee County library, restaurants, governmental offices, medical offices, a beauty shop, and a dry cleaner. Other amenities within walking distance include a convenience store, a laundry, day care, a hardware store, a pharmacy, and an alterations shop. Schools, churches, community theater, a museum, a supermarket, and a park with a jogging track complement the residential neighborhoods nearby. Automobile access to the campus will be available at two points along Madison Street, which has a signaled intersection with West Main. Additional automobile ingress and egress will be available via Magazine Street.
535 West Main The 535 West Main office building will offer an attractive architectural design, both compatible with existing nearby development in the neighborhood and providing all of the modern features and amenities that today s tenants expect. The intent is to deliver both beauty and high-performance. The Lease-Up Process. The building is now in the pre-leasing phase. Construction will start once an adequate level of leasing has been achieved, with occupancy scheduled for early to mid-2009 (see timing below). Building Concept. This is a two-story office building, with an L shaped footprint. Access will be via two points of entry, one from West Main Street and one from the south nearest the tenant parking area. An interior hallway on the first floor will connect both of these entrances (see the attachments). Each floor will have a comfortable and well-lit lobby, with two elevators providing vertical movement within the building. Each lobby will provide access into the tenant suites as well as access to interior hallways. Well-sized ladies and men s restrooms will be located on each floor. For fire safety, three staircases will be provided, and the building will be sprinklered. The building will be designed to provide as much natural light into the interior as practical. The dimensions of the overall footprint have been set to allow efficient office suites to be developed on each floor. Building Size. The gross size of the building is 37,100 square feet, with 18,550 square feet of gross area on each floor. The building s design is suitable for a single-user, with card-only elevators available to limit access to the second floor. Similarly, the building is compatible with two full-floor tenants. The building s common area reduces the occupied office space area to 30,658 square feet. The potential subdivision of each floor is addressed below. LEED Certification. This new office building at 535 West Main is intended to be certified by the U.S. Green Building Council (see www.usgbc.org) for Leadership in Energy and Environmental Design, becoming one of only a handful of LEED buildings in Mississippi. The LEED certification process is a voluntary, consensusbased process encompassing design, construction, and building operations. The process encourages efficiency in site planning, water management, energy management, construction and finishing materials, indoor air quality, and innovative design to produce environmental, economic, and health and community benefits. Parking. Adequate surface parking will be provided behind both 535 West Main and Spain House. This parking area will be appropriately landscaped and also lighted for evening use. A drop-off curb will be located near the south entrance to 535 West Main, both for the convenience of tenants and for delivery services such as UPS and FedEx. Specific areas will be designated for visitor parking. Also, a number of handi-capped parking spaces will be provided as required by the City of Tupelo. Though the buildings are located in the central business district of Tupelo, all parking will be on site. It will not be necessary to park on the street or in public parking lots.
Spain House This development includes an existing and wellmaintained structure called Spain House, located directly at the corner of Main and Madison. For generations, the Spain Family has held a leadership role in Tupelo. The development team has committed to the renovation of this two story 1930 s structure, which has regional historical significance, but no substantial governmental restrictions or requirements. Spain House will be renovated for a single tenant, with occupancy to take place once renovation is completed (see timing below). It is the desire of the develop-ment team to work closely with the appropriate tenant to evaluate Spain House in the context of the tenant s business needs, to customize the physical renovations and adjustments to best meet the tenant s goals, to quantify the cost and timing of such renovations, and to expedite the work program once a lease is executed. LEED certification could also be pursued for Spain House. Tenant Environment The 535 West Main office building will offer features to benefit both its tenants and the work environment of their employees. The focus will be on occupant comfort and building efficiency. Building systems will be designed to improve employee productivity and satisfaction. Employee and client privacy will be enhanced by properly designing the acoustic environment. Operating expenses are moderated by effective systems design, which has a positive impact on expense pass-through s (see lease terms below). Window design combined with interior space design will moderate annoying exterior sunlight while exploiting natural lighting, which has a positive impact on employee satisfaction and the building s energy consumption. Smart lighting controls will automatically adjust ceiling light levels as appropriate. The high-efficiency, high-filtration HVAC system (heat, ventilation, and air conditioning) will circulate the air at an optimum number of cycles per hour. Modern electronic controls will allow precise temperature selection, which advances thermal comfort within the building. From a technical perspective, the building s systems will provide adequate electrical service and communications wiring for any tenant s needs. In addition, the structure will be designed to accommodate the special loads generated by tenants with substantial filing needs. Finally, the tenant s connection to the outside environment will be addressed by window placement, by landscaping around the building and its entrances, and by easy tenant access to outdoor sitting areas. The grounds between 535 West Main and Spain House will be developed to create a peaceful park-like outdoor environment.
Available Space For full-floor tenants, the first floor at 535 West Main provides 15,035 square feet of space while the second floor provides 15,623 square feet of space. Each floor can be divided into individual suites. On the first floor, the suite at the northwest corner of the building is sized at 3,755 square feet. The east side of the first floor offers 11,280 square feet that could be divided into three individual suites at 2,065 square feet, 3,600 square feet and 5,615 square feet (see the enclosed floor plans). Regarding the second floor, the northwest corner facing Main Street is sized at 4,378 square feet. The east side of the second floor totals 11,245 square feet and can be subdivided similarly to the first floor (addressed above).
Tupelo Overview The City of Tupelo is located within Lee County, an hour-and-a-half drive south-east of Downtown Memphis along four-lane Highway 78 (future Interstate 22). Tupelo is the economic center of several counties across three states (Mississippi, Tennessee and Alabama) and is the geographic midpoint between Memphis and Birmingham. Growth. Economic growth has been steady over several decades, with the Tupelo population above 36,000 and the Lee County population at 79,000. The area has received favorable rankings by Site Selection Magazine and is now home to more than 220 manufacturing and distribution operations. This is the number one manufacturing county in Mississippi (see www.cdfms.org for additional details). Employment. Excluding the impact of Toyota (addressed below), the largest non-government employers in the area are North Mississippi Health Services (4,300 employees), Ashley Furniture (4,000), Lane Furniture (3,600), Cooper Tire and Rubber Company (1,500) and MTD Products (900). The furniture industry has a long history in the area and the Tupelo Furniture Market is the second-largest of its type in the United States. Education. The public school system received the national Excellence in Education Award in 1984 and 2000. Half the elementary schools in Tupelo have been designated Blue Ribbon Schools and the perstudent spending is the highest in the State. More than 98 percent of schoolage children attend the public schools and the high school graduation rate exceeds 88 percent. Advanced education is available at three major institutions within an hour s drive: the University of Mississippi (13,700 students), Mississippi State University (16,100), and the University of Memphis (20,400). Health Care. North Mississippi Health Services, based in Tupelo, is the largest non-metropolitan hospital in the United States and serves a 22-county region with more than 430 physicians. The focus of its medical activities is at a 650-bed hos-pital in Downtown Tupelo.
Impact of Toyota Toyota announced its selection of Tupelo in February 2007 for a new $1.3 billion manufacturing plant to be developed on 1,700 acres located at an interchange with Highway 78, future Interstate 22. The site is adequately sized to allow the 1.5 million square foot plant to expand over time. A governmental alliance was formed in 2001 to attract a firm such as Toyota to northeast Mississippi; this site in the western suburbs of Tupelo was then identified in 2003; and site engineering was completed during 2003-2004. The official groundbreaking for Toyota Motor Manufacturing Mississippi (TMMS) took place in April 2007 (see www.cdfms.org/wellspring for additional details). Toyota will open a training office in Downtown Tupelo in fall 2007; initial plant employment is estimated at 2,000 workers; and payroll is projected to exceed $80 million per year. Highlander SUV s will start coming off the assembly line in 2010, with production projected at 150,000 vehicles per year. Based on the history of other Toyota plants, expansion in both employment and production is antici-pated. Typically, 5 to 10 Tier One suppliers locate near a Toyota plant such as this, representing potentially an additional 3,000 jobs for the Tupelo area. The first suppliers to announce their arrivals are Toyota Auto Body and Toyota Boshoku, creating 760 combined jobs at two plants costing a total of $260 million. In summary, Toyota s Tupelo plant represents another addition to the Southern Automotive Corridor which already includes Nissan and Kenworth in Mississippi; Toyota, Mercedes-Benz, Honda and Hyundai in Alabama; Toyota, Nissan and Saturn in Tennessee; and Hino in Arkansas. Development Team This office development in Downtown Tupelo is being created by Ruff and Brodeur LLC, assisted by its architects and design professionals at The McCarty Company (Richard McCarty and Christian Reed, Tupelo), by its construction specialists at Grace Construction Company (Lance Forsdick, Memphis), and by its leasing advisors at Crye-Leike (Brian Boatner, Tupelo). Phil Ruff and Dick Brodeur have a combined 50 years of real estate experience, both in development projects and in operating properties. They have earned their experience in Tupelo and in Memphis, and in major commercial property markets across the United States.
Timing Spain House will be available for occupancy once its renovation program is completed. Depending upon the particular renovation program best suited to the tenant, as described above, occupancy could occur within six to nine months of lease execution. Namely, by way of example, a lease agreement executed between landlord and tenant on January 1, 2008, could allow occupancy in the July 1 to October 1, 2008, period. The design and construction of 535 West Main will require approximately 14 to 16 months once pre-leasing targets have been met. For example, in the event the required pre-leasing is achieved by January 1, 2008, then move-in could occur in the March 1 to May 1, 2009, window. Lease Terms Lease rates are currently being quoted in the range of $ to $ per square foot of office space occupied, with the specific rental rate negotiated with a particular tenant dependent upon the size of that tenant s space commitment, the length of the initial term of that lease, and the extent of that tenant s build-out requirements. This element within the tenant lease can be viewed as base rent. Base rent includes a tenant build out allowance of $35 per square foot. An annual base rent adjustment in proportion to general cost-of-living increases will be included within each lease. Also, each lease will include an adjustment factor that reflects the common area used by all tenants in addition to the office space they occupy. Each lease will incorporate an operating expense pass-through that reflects that particular tenant s pro rata share of expenses associated with operating and maintaining the building and its common areas. Such areas will include utilities, property insurance, property taxes, building maintenance, grounds maintenance, and similar items. Each prospective tenant should review the appropriate lease summary available from the leasing manager, identified below. Brokers Crye-Leike cooperates with other licensed brokers. Possession of this presentation package by a broker, by itself, does not constitute a relationship between that broker and Crye-Leike. Interested brokers should contact Mr. Boatner and ask for the proper registration document, which will register the broker and the broker s prospective tenant with Crye-Leike, as well as define the compensation agreement between Crye-Leike and that particular broker. Revisions This leasing presentation is current as of November 2007, but will be revised over time as the design and construction process continues. Prospective tenants should confirm they have received the latest project information. Contact: Interested parties should contact Mr. Brian Boatner, Crye-Leike, at (662) 680-9355. Mr. Brian Boatner Tel: (662) 680-9355 Crye-Leike Fax: (662) 680-8418 2000 North Gloster Cell: (662) 401-8787 Tupelo, MS 38804 Email: brian.boatner@crye-leike.com