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State: More Property Appraisals Would Match Taxes to Market Values

Tennessee Comptroller Jason Mumpower is pushing a plan to increase the frequency of county property reappraisals to more closely match market values and stop local governments from losing tax revenue.

Mumpower, who floated the idea in May, told the Tennessee Lookout he plans to introduce a bill in 2024 to speed up the reappraisal schedule statewide.

“It’s just something everybody recognizes needs to happen in such a dynamic and growing state,” Mumpower says.

With 83,000 people moving into the state last year, seventh highest nationally, the state is suffering from a housing shortage, which is driving up real estate prices, according to Mumpower.

Yet real property is appraised by country property assessor offices only once every four, five or six years, depending mainly on the size of the county. Mumpower wants to move that up to every two, three or four years, and he’s considering requesting larger counties such as Shelby, Davidson, Hamilton, Knox, Rutherford, Williamson, and Wilson go to a yearly reappraisal.

Because of the lag time between appraisals, governments often have to discount property taxes by applying a sales ratio dealing with appraisals versus market values, which led 38 counties to experience “extraordinary revenue loss,” according to Mumpower.

Another 36 counties will suffer the same type of revenue loss next year, he says, thus the need to speed up reappraisal cycles.

“It is a modern practice. It is the global standard,” Mumpower says. 

Local property assessor offices would be in a constant state of reappraisal, and equalization boards might have to go through more hearings for contested appraisals.

But Mumpower contends counties and the state have the technology for annual reappraisals.

Officials such as Davidson County Property Assessor Vivian Wilhoite and Rutherford County Property Assessor Rob Mitchell also support the proposal. 

Mitchell says Rutherford lost $11 million over the last two appraisal cycles because market values outstripped property appraisals by such a wide margin.

An appraisal or sales ratio has to be applied in cases where a property is appraised at $300,000, for instance, but sells in a growing economy at $400,000 within two or three years before the property is appraised again. 

Wilhoite, a Metro Nashville mayor candidate this year and a former appraiser for the Tennessee Regulatory Commission, points out the state already does annual reappraisals on personal property, and she believes frequent appraisals will help property owners.

“Taxpayers won’t get that sticker shock,” Wilhoite says.

The Comptroller has an Office of State Assessed Properties, which reappraises some commercial, utility, and transportation properties annually.

Mumpower presented the plan to the Tennessee County Services Association, the Tennessee County Mayors Association, the Tennessee Municipal League, and the Tennessee Assessors Association and the Government Finance Officers Association and says it is “heralded” as a good idea from a “fairness” standpoint for taxpayers and local governments.

“There are tax dollars generated off of growth,” Mitchell says, but he notes county commissions still wind up missing out on revenue increases because of the way sales ratios are applied.

If appraisals are done every two years, the law doesn’t require the use of an appraisal or sales ratio, according to Mitchell.

In addition, assessors say disabled, elderly, and veteran property owners who receive property appraisal reductions will benefit from the proposal.

The Beacon Center, a libertarian group, issued a statement Monday saying it agrees with Mumpower that property taxes and housing costs “are becoming a larger issue in Tennessee,” though it contends the state has bigger problems with taxation.

“The timing of reassessments doesn’t change the underlying issues with property taxes,” Ron Shultis of the Beacon Center says in a statement. “Policymakers should create property tax caps across the board to give property owners protection from large unexpected tax hikes, as we are one of only four states without one. More frequent reassessments without a cap would make it easier for local governments to collect a windfall due to the truth in taxation law, as evidenced by what occurred recently in Nashville.”

The Beacon Center points to the 34 percent property tax increase in Metro Nashville four years ago, followed by a reappraisal when property values increased across Davidson County.

In April 2021, now-former Mayor John Cooper claimed the tax increase would be “reversed” because property reappraisals would show values increased countywide. Several Metro Council members disagreed with the mayor, saying his comments were misleading.

Under state law, counties are prohibited from having a tax revenue windfall from increases in property reappraisals. A certified tax rate from the state that equalizes revenues must be sent to counties following reappraisals, then the county’s governing body sets a new rate.

Tennessee Lookout is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Tennessee Lookout maintains editorial independence. Contact Editor Holly McCall for questions: info@tennesseelookout.com. Follow Tennessee Lookout on Facebook and Twitter.

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Bill Would Limit Calls, Texts Asking “Do You Want to Sell Your House?”

While the Memphis housing market may have cooled somewhat, a new bill would limit those pesky calls and texts from randos asking, “Do you want to sell your house?”

The “anti-harassment” bill would limit “the number of times that a real estate developer, business entity, or individual working on behalf of the developer or business entity [would be] permitted to contact a property owner to make an unsolicited offer to buy the property owner’s property.” 

That limit is one time per calendar year. That contact is through a call, text, email, mail, fax, or any other form of contact. Each contact beyond one is considered a separate violation. A call and two texts? That’s two violations. 

Break the rule and the person you contacted can report the contact to consumer affairs division of the Tennessee Attorney General’s Office. Under the proposed rule, that office would have to begin an investigation into the contact within 15 business days after the complaint is submitted. 

If a developer, business, or individual is found guilty of violating the rule, they can be fined up to $1,500. A court could also charge the violator with costs associated with the investigation and prosecution, including attorney fees.  

Sen. Charlane Oliver (Credit: State of Tennessee)

The bill is the first from new state Sen. Charlane Oliver (D-Nashville). In a post on Medium, Oliver called the behavior of these developers “predatory” and said it is shrinking “supply of affordable housing and taking advantage of longtime homeowners who may not know what their home is worth.” 

“Tennesseans are being displaced due to rising housing costs, driven by corporate greed, unchecked growth and gentrification,” Oliver said in the post. “I’m filing anti-harassment legislation to enact penalties on predatory developers who pressure homeowners into selling their property. We must help families protect their most valuable asset and those who want a path to homeownership.”

The idea for the legislation came as Oliver said she watched “schemers” target older homeowners after the 2020 tornado struck Nashville.  

No one should suffer incessant harassment just because they own a home.

Sen. Charlane Oliver (D-Nashville)

“No one should suffer incessant harassment just because they own a home,” Oliver said. “It’s time for the legislature to create some guardrails to protect Tennesseans, and especially our senior citizens, from these deceptive, high-pressure tactics.”

For a deep dive on the issue in Memphis, read the Flyer’s 2020 cover story from Chris McCoy here.

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Homeownership: Is It Out of Reach for Young Buyers?

A recent post detailing median apartment asking rents for May 2022 has gone viral on social media. The comments section on the story, “Rents across U.S. rise above $2,000 a month for the first time ever” by Chris Arnold, is rife with speculation, commiseration, and accusation.  

The story, which was posted by NPR, details numbers from a Redfin report that shows that asking rents for available apartments had risen 15 percent from a year ago, and had also risen above $2,000 a month for the first time. The post received a mix of reactions, with many agreeing that these numbers are “unsustainable.”

“Mainly it’s because we have a lack of housing inventory available,” explains Amy Schaftlein, executive director of United Housing, a nonprofit affordable housing agency.

According to Schaftlein, at the beginning of the Covid-19 pandemic, rates were low, causing more people to “rush into the market,” in order to to take advantage of low interest rates. 

She continues, “Because rates were some of the lowest that we’ve seen, you have a whole bunch of people trying to get into homeownership, and we haven’t been building new homes, especially at the starter home level in about 10 years. So the Great Recession has really stopped new home builds from happening over the last 10 years.”

Schaftlein explains that these historically low rates, combined with historically low inventory, led to a rush in demand, which in turn pushed up housing prices across the board. That is not just at selling price. The same applies for rent.

“You’re having people on the lower-rent side being able to stay in their homes because of the eviction moratorium and some of the rent assistance, but then you’re not seeing new rents or new homes coming,” says Schaftlein.

Factoring this in with inflation and rising costs, the Federal Reserve has had to raise interest rates, which causes people who are homeowners and “stuck at these low rates” not to move.

“With an overly competitive real estate market with millennials and GenZ’ers not able to get in because it’s too competitive to get a home loan, many people gave up,” Schaftlein continues. “Even millennials with a higher income represent a huge increase in the amount of rent applications.”

Those who can afford to buy, and are opting to stay out of the home ownership market, are choosing to stay out due to the highly competitive nature of the market, pushing them to move toward renting, which causes rent prices to go up, Schaftlein says.

There are a number of reasons why younger people are not qualifying for loans in a timely fashion, such as student debt, as well as new trends in employment.

“We’re working differently,” Schaftlein says. “A lot of people that are contract workers aren’t going to be able to show that 24-month work history necessarily, because they may be entrepreneurs, or do more contract type of work.”

Schaftlein says that this type of work is typically harder for loan officers and lenders to underwrite, which, in turn, makes it harder for the applicants to qualify to get mortgage loans, even if they have the income and show it in the bank.

Remote work has also removed the pressure for people to “put down roots,” Schaftlein says. This allows people the freedom to move around and have more flexibility in their jobs, which she believes also contributes to the idea that younger people are no longer considering being homeowners.

Another factor is out-of-town investment by larger companies, who can afford to invest capital unavailable to individual buyers. As the Flyer’s Toby Sells wrote in his 2019 cover story “Dream Denied,” “More and more Memphians are missing out on the American Dream, especially if you consider homeownership a centerpiece of that dream. Wall Street corporations are sucking up homes in struggling neighborhoods, spitting them back out as rentals, and — in doing so — sucking out wealth and access to upward mobility, particularly in African-American communities.”

Still, while many are postponing the dream of being homeowners, there are still those who prefer that option.

“Rent prices definitely scare me,” 22-year-old Yazmeen Berkley says.

“I hear my peers talk about how high the rent is and how they have to make ends meet or how they’re tired of bills and although that will be my reality soon, I’m really thankful right now that it’s not.”

Berkley has decided to stay home with her parents, as they told her that they weren’t “rushing her to move out of the house.” It’s an option that is not available to everyone. But taken along with Schaftlein’s comment about millennials (who are now between 26 and 41 years old) representing an increase in the number of rental applications, it helps show a change in the age at which Memphians are attempting to achieve homeownership.

T’airra Fuller, 27, has lived in Collierville for two years for “an elevation in her career.” Fuller lost her job during the pandemic, and had to move back to Mississippi. Six-months later, Fuller says that rent had gone up to $1,100 and says that she is now paying $1,200 in rent. While she is paying for location and a promise of safety, she prefers to be in the process of purchasing a home.

“The house thing isn’t going too great right now,” Fuller says. “It’s kind of hard being a single woman and you’re the only one bringing income into the household. I had to take on another job. I quit my second job [retail], but I’m working on having my own independent call center, because it’s hard. You have to make ends meet. Some people have two incomes coming in, I have one.”

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“Nothing Is off the Table” for Two Rare Vacancies on Beale Street

Beale Street’s seemingly unending chain of neon has two dim links, and the street’s manager hopes to make them shine again. 

The Downtown Memphis Commission (DMC) is looking for proposals from businesses to fill two “extremely rare” vacancies on a street that has long been Tennessee’s top tourist destination. 

These spaces once housed Black Diamond bar (its still-swinging sign calls it “The Jewel of Beale“) and Tater Red’s Lucky Mojos and Voodoo Healing (known to most as just Tater Red’s and as the place on Beale you could get a pack of smokes, a Coke, and a Memphis-themed, penis-shaped souvenir hex candle).

Black Diamond closed in 2012, according to a Flyer story at the time, on an expectation that Tater Red’s would expand into the space. Tater Red’s remained open but struggled through the pandemic. The shop continued operating through November 2020, though the owner Leo Allred said he was considering closing. Red’s closed temporarily in January 2021 and was closed for good by at least September 2021.       

The DMC opened requests for proposals for the two empty spaces in April. Proposals are due by May 20th. Finalists will be interviewed late June/early July. Tenant selections and lease negotiations are expected to run until early August.  

“We think it’s a great opportunity for any business that wants to experience the vibrancy of Beale Street,” said DMC president Paul Young. “It’s one of the top tourism destinations in the state of Tennessee and in the nation, quite frankly.”

The opportunity on Beale is, indeed, rare, Young said. Other spaces on Beale are vacant but those spaces have leases. Negotiations on those leases are underway. The vacancies in the former Black Diamond and Tater Red’s locations are “open, free, and clear,” Young said. 

In the past, lease holders have been able to sell their leases to new tenants. (This is the way new businesses have traditionally secured a space on the street, Young said.) They negotiate terms and, then, must get approval from the city of Memphis. 

So, these deals come to city leaders with terms already secured. Young said the deals for the Black Diamond and Tater Red’s locations will be the first time in a long time the city has been able to offer open solicitations on Beale Street real estate. 

Young said he wasn’t sure when the last time this opportunity arose on the street. When he asks other Beale Street merchants about it, they can’t remember either, he said. 

The DMC is marketing the locations — 151 Beale, 153 Beale, and 155 Beale — as one. The whole suite offers 3,300 square feet of interior space featuring bathrooms, a kitchen, two entrances on Beale, and a 2,500-square-foot rear patio space. All of it is sandwiched between King Jerry Lawler’s Hall of Fame Bar & Grille and B.B. King’s Blues Club.

Merchants and visitors have said they’d love to have more on Beale open during mornings and day times, Young said. But “nothing is off the table,” when it comes to the vacant locations.

“We want to see what’s out there and who is interested in being on the street,” Young said. “So, this really is an open solicitation.”         

DMC president Paul Young said 2020 was a “tough year” for Beale businesses but they “rebounded pretty well” in 2021. Business is trending up in 2022, he said, though it’s still not back up to some of its peak periods from the past. But the rising trend line has continued, especially as the Grizzlies have continued a run in the NBA playoffs. 

Because of Covid, tourism spending in Tennessee fell by $7.7 billion between 2019 and 2020, according to the latest figures from the Tennessee Department of Tourist Development. Tourism dollars fell by about $1.2 billion between those years, from about $3.7 billion in 2019 to about $2.5 billion in 2020. 

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Should You Invest in Real Estate or Stocks?

The choice between stocks and real estate as investments is a bit of a false dichotomy. Obviously, we can include both in our portfolio, but most people tend to choose one or the other. It’s been said that everyone is deep down either an Elvis fan or a Beatles fan (but not both), and in the same way, most people either believe in the value of the stock market or they believe in the value of real estate. There’s not much gray area in between.

Real estate generally has a lower expected return than stocks, for good reason. While there can be spurts of strong real estate performance, Robert Shiller’s data shows that real returns (aka after inflation) in the U.S. housing market have been only about 0.8 percent per year since 1890. Even this return may be an anomaly — the increasing availability of mortgage loans and current low interest rates probably contributed. This makes sense: If real estate outperformed inflation meaningfully over time, as decades turn into centuries housing would become completely unaffordable. According to S&P, the real returns of U.S. stocks since 1872 has been around 6.8 percent — a vastly larger number.

There are many good reasons to own your own house, but an eventual financial windfall is not as attractive as you might think. Many of us know people who owned a house for a short time and sold it just a few years later, ending up with a large lump sum. These things happen, but in the last 40 years (through June 30th) the median home price in the U.S. has only risen from $69,400 to $374,900, which seems like a healthy 5.4x return. However, the S&P 500 has risen from 131.21 to 4327.58, a 32.7x increase (that’s not even including dividends). We all need a place to live, but putting up as little capital as possible for a place to stay and investing the rest has historically been a better financial decision over any reasonably long period than owning (and maintaining!) a house.

Real estate seems to make a lot of money due to leverage, or borrowed money. By putting up, say, 10 percent of the purchase price of a $100,000 house, 1 percent appreciation on $100k turns into 10 percent appreciation on your $10,000 investment. But it works the other way, too — the equity in real estate can vanish quickly in a downturn, as we saw around 2008. You can borrow money to leverage up stocks, but it seems recklessly risky to most investors. Real estate prices are typically less volatile than stocks, but real estate leverage creates a real risk that many buyers don’t seriously consider, probably because the price of your house is not quoted daily on an exchange.

Water heaters, HVAC systems, and roofs require repair and replacement on uncertain timelines. Owners of houses often underestimate these costs, as well as property taxes, eventual remodels, and the countless nitpicky expenses of ownership. As a landlord, the risk of just one bad renter can eclipse years of profits, and the 2020 lockdowns introduced a new risk of months to years of non-paying tenants with no legal or financial recourse.

Fortunes have been made in real estate, but in my opinion, it’s a hard way to make “easy” money. I’m a big fan of diversified stock and bond portfolios that include some real estate exposure through real estate investment trusts, or REITs. That’s the kind of real estate investment that doesn’t call you in the middle of the night about a broken pipe!

Gene Gard is Chief Investment Officer at Telarray, a Memphis-based wealth management firm that helps families navigate investment, tax, estate, and retirement decisions. Ask him your question at ggard@telarrayadvisors.com or sign up for the next free online seminars on the Events tab at telarrayadvisors.com.

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‘Eviction Crisis’ Plagues Memphis’ Fast-Growing Rental Market

United Housing/Facebook

Memphis is the fastest-growing rental market in the country and the city faces an “eviction crisis,” according to experts at Tuesday’s inaugural State of Memphis Housing Summit.

It was a day of far-ranging discussions around housing that delved into topics like gentrification, redlining, the affordable housing gap, and the connection between housing and health. Speakers included government officials like Memphis Mayor Jim Strickland, Shelby County Mayor Lee Harris, and Paul Young, the city’s director of Housing and Community Development. But the summit also brought in real estate brokers, academics, lawyers, nonprofit leaders, and housing advocates from across the city and the country.

One discussion focused on the impacts absentee owners have on Memphis neighborhoods. In it, experts described a massive rental market here but one largely controlled by out-of-state, Wall-Street-backed investor groups that one speaker said ran their businesses here much like the mafia would.

Memphis was listed as the fastest-growing rental market in the country in a 2018 Zillow study, which found that 56 percent of single-family homes here were rented, not owned. It’s a massive statistic given more than three-quarters of the city’s housing stock is comprised of single-family homes. Investor groups and large corporations own 95,604 of those properties. Of those properties, more than 40 percent of their owners reside out of Tennessee.

With this boom in single-family rentals, has come a rising level of evictions from homes here. Austin Harrison, a researcher from Georgia State University and a housing consultant, told the Housing Summit crowd gathered at the Memphis Botanic Gardens Tuesday that the ”eviction crisis” here ”destabilizes families and communities.”

From 2016 to April 2019, 105,338 eviction notices were filed in Shelby County General Sessions Civil Court, according to Harrison. In 2016, 4,593 evictions were filed in New Orleans, 5,909 were filed in Birmingham, and 17,169 were filed in Richmond.

In that same year, 31,633 eviction notices were filed in Memphis. Notices here went out to nearly 21 percent of all Memphis renters. Renters who got eviction notices were predominantly African American, Harrison said.

Ben Sissman, a Memphis-based foreclosure prevention attorney, said most evictions here happen simply because the tenant does not make enough money to pay rent. But investor groups will use eviction or threat of eviction to squeeze money from tenants.

“These Wall Street guys — if you think of them in the same mindset as the mafiosos — they are predatory landlords,” Sissman said. “They’re selling high and doing no work. They deny responsibility for what they’re doing. All they want is the rent money and nothing else.”

Sissman described the strategy as “pump and dump.” Harrison called it “milking” the market.” They agreed, though, that the strategy is to buy homes in bulk for little, getting as much money for them as they can, and moving on.

“All these guys want to do is to maximize the short-term gain,” said Harrison. “They don’t inspect the properties. You’ll hear stories about mold, or the plumbing or the electricity not working. They don’t fix anything.”

United Housing/Facebook

But Harrison explained 90 percent of landlords are ”good actors.” The rest, though, are buying up large portions of housing stock and they’re doing it all over the country.

However, Nedra Reddit, a real estate broker in Memphis, said the city does “have a major problem” with absentee landlords here “but not as big as we’d like to sit around and discuss it.”

“I believe we’re just hiding behind ’we don’t know who they are,’” Reddit said. “We know who they are. I represent the National Association of Real Estate Brokers. Cheryl Muhammad is our president. Call her if you want to know what to do with an absentee landlord.

“We have in place a way to locate everybody and we’d like to let Memphis know we are here as the central point of contact for any housing need, whether someone isn’t paying their mortgage and they’re about to lose (their home) or they can’t get their landlord to fix the water heater.”

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Rebuilding Millionaires Row

Nearly 150 people, mostly clad in black suits and dresses, are gathered on the lawn of the Woodruff-Fontaine House on a chilly All Saints’ Day evening. They’ve come to pay their respects to Memphis and Shelby County Film and Television commissioner Linn Sitler, who’s lying in a casket in front of the century-old mansion.

Of course, Sitler isn’t actually dead. She’s just pretending. And as her friends — U of M dean Richard Ranta, filmmaker Mike McCarthy, and NARAS head Jon Hornyak — deliver faux eulogies, they’re also raising funds to breathe new life into the Victorian Village neighborhood.

The “Night at the Village” fund-raiser, which also featured a requiem choral evensong at St. Mary’s Episcopal Cathedral on Poplar and a bagpipe procession down Orleans Avenue, raised $3,400 for the Victorian Village Community Development Corporation (CDC).

That money, along with a combination of public and private funds, will go toward the CDC’s plan to revive what was once the city’s most upscale neighborhood. At the turn of the century, Italianate Victorian and Second Empire mansions lined Adams Avenue, but the city’s “urban renewal” project of the 1960s razed most of those structures. Now only a handful of historic homes are left in Victorian Village, and the CDC plans to use them as a springboard for new development.

“Between the Victorian Village’s boundaries — Danny Thomas, Poplar, Manassas, and Madison — there are 25 structures on the National Historic Register. This is the only concentration of historic architecture from that century in the city,” says Scott Blake, the executive director of the CDC and a longtime resident of the neighborhood. “The way to support those historic assets is to build a residential neighborhood around them.”

Since the village falls in the Center City Commission’s central business improvement district, the agency commissioned a redevelopment study by Looney Ricks Kiss Architects in 2004. The resulting plan calls for single and multi-family housing built in a style to complement the existing Victorian-era structures. It also suggests improvements to the two city parks in the area, sprucing up existing apartments and businesses, and connecting the museum houses with a green boulevard for walking tourists.

Though the plan was developed four years ago, it is finally gaining momentum, with the first few homes now built along Jefferson. The city also hopes to reopen the Mallory-Neely and Magevney museum houses, and millions of dollars in improvements to the adjacent medical district are well underway.

“We want places for the doctors and staff of the medical district to live in the area, and we’re looking for housing that runs the price spectrum,” says Beth Flanagan, director of the Memphis Medical Center. “Victorian Village will be such a gem for the Medical Center.”

Millionaires Row

In 1845, a pair of brothers from New Jersey traveled to Memphis to expand their carriage-building business. Though one brother returned to the Garden State, Amos Woodruff decided to stay put. He became head of the Memphis City Council, and president of two banks and owned a railroad company, a hotel company, an insurance company, a cotton business, and a lumber firm.

by Justin Fox Burks

Gate detail

By 1870, Woodruff’s rise to prominence had earned him the money to build a magnificent house at 680 Adams Avenue, which was then considered the outskirts of the city.

“He told his wife if she’d come down from New Jersey to live in Memphis, he’d build her a really nice house,” says historian Jeanne Crawford, a docent at the Woodruff-Fontaine House. “From looking at tax records, we’ve determined that it cost him $40,000 to build this house. You couldn’t build a garage for that now.”

Woodruff’s home, now open for daily tours as the Woodruff-Fontaine House, became one of many ornate mansions along Adams, known as Millionaires Row. Wealthy cotton merchants and the city’s most elite families lived in the neighborhood.

“Their entertainment was very neighbor-oriented. They played bridge with one another and poker. And when they had a bash, it was a real bash,” Crawford says. “I’m sure it was a charming time for those with money.”

But as the city grew, many of the families eventually migrated east to newer neighborhoods such as Central Gardens. By the 1950s, many of the mansions sat empty. Others had been converted into tenement housing.

“It was kind of seamy. There were lots of winos living in these houses, and my house was in shambles,” says Eldridge Wright, the neighborhood’s longest surviving resident, who lives in a grand 1880 home across from the Mallory-Neely House. “It was not a very attractive neighborhood back then. But to me, even the houses that were dilapidated had great charm.”

Wright moved into the neighborhood in 1955, first occupying a brick carriage house that once sat behind his family’s Victorian home on Jefferson. The main home was razed by the city in the mid-’60s, when Jefferson was widened. Its destruction was part of a massive urban renewal project that demolished most of the Victorian homes in the area.

Wright moved to his house on Adams shortly after his family’s main home was razed. But he wasn’t about to stand back and watch the city destroy the entire neighborhood.

“We formed a group to try and save some of the homes. They had plans to demolish the Fontaine House and Mallory-Neely House, and we were able to stop that,” says Wright, who is lovingly referred to the “Mayor of Victorian Village” by current residents. “At the time, I’d rather have been drawn and quartered than give a speech in front of the City Council, but I knew that I had to make a point to save these places.

“I appealed to Mayor Henry Loeb that this place could be such a nice tourist attraction if Memphis would save these homes. That idea appealed to him, and I think it was on that basis that we were finally able to preserve a few of them,” Wright says.

Thanks to Wright’s efforts, a few remnants of the lavish Victorian era in Memphis remain. The Woodruff-Fontaine House, now under city ownership but leased by the Association for the Preservation of Tennessee Antiquities (APTA), is now the only home open to the public.

by Justin Fox Burks

Jeanne Crawford

The other city-owned museums — the Mallory-Neely House at 652 Adams and the Magevny House at 198 Adams — were open for tours until 2005 when they were temporarily closed due to city budget cuts.

Operated under the city-funded Pink Palace Museum system, the homes originally were slated to reopen this year. But Pink Palace officials still are working on a funding plan, which should be complete by the end of the city’s fiscal year.

The James Lee House, an 1848 mansion next door to the Woodruff-Fontaine House, sits empty, its dark and gloomy windows reflecting Orleans and Adams avenues. Though it’s managed by the APTA, the nonprofit preservation group doesn’t have the funds to renovate and open it for tours.

“We’re in the middle of a proposition for the CCC to put [the James Lee House] out for public bid for renovation and restoration,” Blake says. “A private entity, whether it’s one of the hospitals wishing to use it as office space or just someone who would like to open a bed and breakfast, would actually purchase the house and do the restoration according to strict standards.”

Across from the Woodruff-Fontaine House, restaurateur Karen Carrier’s successful Mollie Fontaine Lounge operates in an 1886 home that was built as a wedding gift for Mollie Fontaine Taylor, whose family occupied the Woodruff-Fontaine House after the Woodruffs moved out.

The lively tapas lounge at 679 Adams was Carrier’s first home in Memphis after relocating here from New York in 1985. She still runs her catering business, Another Roadside Attraction, in the carriage house behind Mollie’s. Carrier first converted the home into Cielo, a white-tablecloth French restaurant, in 1996, when she moved her family to East Memphis. Cielo got a hip, new facelift last year when it became Mollie’s.

“At Mollie’s you can take in the ornate architecture,” Carrier says. “You don’t have a tour guide telling you where to go. You can sit down, look around, and really take it all in.”

Some of the other historic structures, like the Lowenstein Mansion and the Pillow-McIntyre House, are privately owned and used as residences or law firms. But thanks to the urban renewal era, the neighborhood also is peppered with unattractive apartment complexes, warehouses, and industrial buildings from the 1960s.

Rising from the Ashes

Jocelyn and James Henderson consider themselves pioneers. The couple, an attorney and Memphis policeman, respectively, relocated from Harbor Town to a new town home on Jefferson in June.

“We can shape the Victorian Village neighborhood,” says Jocelyn, seated at a breakfast nook in her modern kitchen. “We can mold it into a safe neighborhood where my son Jordan can play outside.”

The Hendersons’ home is one of three new town houses adjacent to Blake’s two historic homes — built in 1863 and 1867 — at the corner of Jefferson and Orleans. Blake, who runs a company that provides design resources for museum exhibitions and the performing arts, designed the new houses.

by Justin Fox Burks

Eldridge Wright

The single-family homes, built in a style that complements the nearby Victorian architecture, are models for the future in-fill housing called for in the Victorian Village redevelopment plan. But Blake says there’s room in the neighborhood for multi-family housing as well.

“It’d be great if families came in and tried to build Victorian mansions, but that’s not likely,” Blake says. “But someone could build a six-unit condominium that looks like a Victorian mansion. You could even do mansion-style office buildings, especially considering how close we are to the Medical Center.”

As for Jocelyn Henderson, she loves being able to walk downtown from her home, and some days, when she’s scheduled to work at the Shelby County Juvenile Court, she can walk across the street to the courthouse on Adams. But she says a few things are missing from the neighborhood — namely, a small grocery store, a coffeehouse, and a bigger selection of restaurants.

The Victorian Village redevelopment plan calls for more mom-and-pop retail shops, restaurants, and other amenities. Currently, ICB’s Discount Store is the village’s only retail market, and there are just a few neighborhood restaurants, like Neely’s Barbecue and Mollie Fontaine Lounge.

When Carrier lived in the neighborhood in the mid-1980s, she remembers the area being a tourist hotspot, since all three museum homes were open to the public.

“There were so many tourists, they would tour the museums and then come knock on my door, thinking my house was open to the public too,” Carrier says.

After the city closed two of the museums, the tourist crowds faded. But with plans to reopen the Mallory-Neely and Magevney homes, there’s talk of building a green boulevard or park that would connect the museum houses on Adams to Jefferson.

“To make the neighborhood walkable, you have to have cross streets and not just the long blocks that we now have running east to west,” Blake says. “We need to make some short streets that run north and south, and we’d like to do them with a green median.”

Not much can be done with unattractive existing structures, like the Shelby County maintenance facilities, the Crime Victims Center, and the Memphis Fire Department maintenance facilities.

“If those were to become available for reuse at some point, we’d have to look at which ones would be worth keeping and which ones could have something else built in their place,” says Steve Auterman, the master plan’s designer from Looney Ricks Kiss.

Auterman says the group is working with owners of some of the dated apartment buildings in the neighborhood, like the 312-unit Edison high-rise on Jefferson.

by Justin Fox Burks

Jocelyn and James Henderson

“They may decide to improve the structure that’s already there or take part of it down and replace it with more desirable apartments,” Auterman says.

Pest Control

There are two parks in Victorian Village — Morris Park on Poplar and Victorian Village Park on Adams. Victorian Village Park is a mostly empty green space dotted with a few park benches, which typically double as beds for the homeless. Morris Park’s only draw is a public basketball court, but most residents are afraid to use it.

“Morris Park is a little scary,” Blake says. “There’s drug dealing and prostitution in the park, and it’s not welcoming to the community.”

The city parks department is working with the Victorian Village CDC on a plan for enhancing the parks and making them safer.

“But to deal with the park, you have to deal with the area around it,” Blake says. “Every building that faces Morris Park, like the Memphis Housing Authority offices and Collins Chapel, needs to develop a program where there’s 24-hour observation in the park. We may even build some townhouse apartments that look over it. When you have a presence like that, it sends the roaches scuttling.”

Homeless people from the nearby Union Mission on Poplar often find their way into the village, creating the perception that the area is unsafe. Though violent crime isn’t typically a problem, burglaries persist.

Since the Hendersons moved in this summer, they’ve had two car break-ins.

“James was parking his car on Jefferson, and three weeks ago, someone busted out his windows,” Jocelyn says. “They also tried to break into my mom’s car, which was parked on Jefferson, a couple days later.”

A check of Memphis Police crime statistics from the past 30 days reveals 21 thefts from vehicles in a half-mile radius of Adams and Orleans. There were seven residential burglaries and two business burglaries reported during that same time.

But Carrier says the break-ins along Adams Avenue have dropped since she hired security for Mollie’s.

“When I had Cielo, there was a big crime problem. People would be all dressed up and they’d walk to their cars and their windows would be smashed,” Carrier says. “But from day one at Mollie’s, we’ve had security from the time we open until we close at 3 a.m. We haven’t had any more trouble.”

Blake says most of the vagrants likely enter from the village’s northern border along Poplar Avenue. The plan calls for some much-needed sprucing up in that area with high-density rental and condo units built in a style similar to the apartment buildings from the 1920s across from Overton Park in Midtown.

“Right now, that area is homeless shelters and trashy pawn shops and the back side of Juvenile Court. So you need a good imagination to picture what it might look like,” Blake says. “Poplar is our front door to downtown, and right now, it’s like Whack-a-Mole with all the people hanging out in the street.”

Though it may be hard to control the homeless population, the county’s planning to build a 30,000-square-foot forensic center along Poplar in the Juvenile Court parking lot. Because of the nature of the operation, the building will require security and that may curb some of the crime.

There’s no set timeline for the Victorian Village redevelopment plan, and funding will come from a variety of sources. Victorian Village recently was selected as a Preserve America Community through a White House initiative that recognizes communities that are using their historic assets for economic development and community revitalization. The designation makes Victorian Village eligible for certain federal grants.

New commercial businesses and multi-family rental developments may also be eligible for PILOT tax freezes through the CCC.

For now, Blake is happy to see a few new residents and increased enthusiasm in the neighborhood.

“Part of our mission is to raise awareness, and it’s great to see people taking an interest,” Blake says. “For so long, this place was just languished and forgotten.”

by Justin Fox Burks

Scott Blake

Categories
Hot Properties Real Estate

Wooded Wonderland

In the 1950s, sprawling ranch houses were all the rage. Many of these new residential areas had been flat farmland and were easy to build on. Land was cheap and lots were large.

By the 1960s, most of the best flat land already had sprouted housing. The split-level decreased the lot width needed by making at least a third of the building’s footprint into an upper level, and, equally important, the stepped plan could be easily sited on rolling land.

The interior layout of the split-level was very attractive to families. Ranch houses merely zoned sleeping quarters to one end and all of the public rooms and the garage to the other. There was little separation between noisy playrooms and more adult spaces.

A split-level placed the playroom and newly ubiquitous television downstairs. All the sleeping spaces were on the upper level, and that left the entry, living, dining, and kitchen together on the mid-level — a half flight of stairs away from everything.

The hilliest real estate around Memphis is just north of town. It’s always a surprise and a delight to leave the flat city behind and cross the Wolf River into the undulating, spring-fed hills of that stretch from Frayser to Raleigh. It’s no wonder folks used to take the train from Binghampton to Raleigh Springs as a restorative.

This split-level was built in 1960 on the northwest edge of Frayser in Georgian Hills. The lots are quite deep, and the area is heavily wooded. It’s ever so bucolic and a good reminder that you’re only a hop and a skip away from Shelby Forest.

Usually in a split-level, the lower level housed the playroom and the garage. Here, the plan was altered, placing the garage adjacent to the dining room and kitchen and allowing a mother-in-law wing to be attached behind the garage. The playroom benefited, because it is less disturbed and has a limestone fireplace with gas logs and direct connection to a covered rear patio.

The mid-level has been recently upgraded with a ceramic tiled entry and kitchen. The kitchen has all-new oak cabinets and a spacious plan. The dining and living rooms have both had narrow white-oak floors refinished to look just like new.

Upstairs, there is a rear corner master bedroom with private bath and two closets. The main bath has been zoned for better use by dividing the double vanity into one room and the toilet and tub with shower into a separate space.

The rear yard is a for-real getaway. Besides the covered patio and lawn, there is a storm shelter that would be perfect if your kid makes music. There is also a two-level deck that steps down to an area planted with ferns and hostas with a gravel walk leading to a hidden gazebo. It’s a wooded wonderland only minutes from the city.

1691 Georgian Drive

Approximately 3,000 square feet

4 bedrooms, 4 baths

$159,000

Owner/agent: Glenn Moore Realty, 377-1057

Categories
Opinion

Gloom and Doom Be Gone!

Nothing against Wall Street, New York City, or investment bankers, but the pain is mostly theirs, and better them than us. Really, how many people at Lehman Brothers and Merrill Lynch do you know? Maybe there will be a disastrous ripple effect soon enough, but this is not like a hurricane or a Great Depression. In keeping with the contrarian mind-set of this column, here are some encouraging views:

The windshield appraisal. One good way to assess property is to tear yourself away from your television, computer, or newspaper and go look at it. Memphis has come a long way. Ten years ago, there was blight at Union and Third where there is AutoZone Park, Toyota Plaza, and the downtown elementary school, a parking lot where there is FedExForum, and a railroad yard where there is South End.

The best untold story in Memphis is the vanishing inner-city housing projects and their replacement with new housing that looks as sharp as anything in the suburbs. The difference between Lamar Terrace and University Place on the west side of Interstate 240 or between College Park and LeMoyne Gardens or between Hurt Village and Uptown is astonishing. “It makes a statement when you come across the bridge from Arkansas or up from Mississippi,” says Housing and Community Development director Robert Lipscomb. “People used to think Memphis was horrible.”

Realism and the housing market. Linda Sowell has been selling houses in Memphis for 30 years. “Interest rates came down today to 5 and three-quarters percent,” she said this week. “There was a time when I would jump over a car for that. I was doing this when interest rates were 18 percent, and I couldn’t even look people in the eye when I quoted a rate to them. It was embarrassing to tell them what the notes were.”

Sowell sees things slowly improving, but meanwhile, vintage Memphis is on sale. Two Sowell listings on South Belvedere near Peabody, one of the priciest and most beautiful streets in Midtown, are under $1 million.

“People are nervous, but sellers are being more realistic,” she said. “The thing that’s hurting us most is people coming here from out of town can’t sell their homes.”

Their loss is our gain. FedEx hub employees are handling 1.5 million shipments a night, and FedEx is expanding into the old National Guard facility. “When volume isn’t growing much, we bring as much volume as we can through Memphis to minimize costs,” says John Dunavant, vice president in charge of the Memphis hub.

Intelligent long-term investors. Memphians Mason Hawkins and Staley Cates were winners of Morningstar’s Fund Manager of the Year Award in 2006, the industry equivalent of the Oscar or Pulitzer. In the semiannual report to shareholders in the Longleaf Partners mutual funds in August, this is what they wrote:

“We do not know how long economic uncertainty and shareholder fear will last. Bear markets do not die of old age. The mispricing, however, is providing the opportunity to own high-quality companies with terrific five-year outlooks.” And this: “There is plenty of panic in the air. Historically, the best time to invest has been when owning stocks has felt the worst.”

Corporate survivors. Banks with a big presence in Memphis have been especially volatile. Whether you have made or lost a lot of money depends partly on when you got in. The “Memphis Skyline Portfolio” of First Horizon, SunTrust, and Regions is down about 60 percent this year but up nearly 100 percent since bottoming out in July, suggesting all three will survive. Three of Regions/Morgan Keegan’s mortgage-backed bond funds continue to lead The Wall Street Journal’s quarterly list of “worst-performing bond funds,” but Morgan Keegan investment banking and brokerage business is a big plus for Regions, earning $92 million more in the first six months of 2008 compared to 2007. The biggest public companies in Memphis are not going the way of Lehman Brothers. The “Memphis Fortune 500 Portfolio,” including FedEx ($90), AutoZone ($133), and International Paper ($30), is up 6 percent since April.

The fun/fan index. You can see the Marshall Tucker Band for $5 at the Mid-South Fair this weekend. And thousands will pay $25 for a wristband and that much more on food. The Southern Heritage Classsic last week drew more than 50,000 fans. Tiger football stinks, but basketball starts in a couple of months. If the Grizzlies struggle at the gate, owner Michael Heisley is the one who will feel most of the pain; the local ownership share has shrunk. College hoops should be fun in 2009, with the Tigers nationally ranked and FedExForum hosting the NCAA men’s tournament Sweet Sixteen and Elite Eight games.

Categories
Hot Properties Real Estate

Room To Roam

This is a great example of suburban housing built right after WWII, at the point when the car replaced the trolley as America’s principal means of transportation and open land beyond the inner city became easily accessible.

In 1941, Leroy King built a grand Colonial Revival house on his country estate between Park Avenue and Quince, just east of the property where Hugo and Margaret Dixon built in 1940. After the war, the estate was divided and sold. Harding Academy bought the house and grounds at the corner of Park and Cherry to use for its campus. The rear of the King estate was known as the Grove because of the magnificent stand of hardwoods there. In the 1950s, this was platted into a subdivision of huge lots, all more than an acre, carved out of the old-growth trees and named, appropriately, King’s Grove.

Ranch-style houses were the most popular housing type for the new suburbs, with sprawling plans, often only one or two rooms deep, and facades made broader by a garage appended to the end near the kitchen. They had low rooflines and front porches that morphed into a narrow, covered walk meant to shelter guests from the drive to the central entry.

Exterior materials tended to reflect the modern, casual lifestyle and were generally low-maintenance — such as the vertical, pecky cypress board-and-batten siding and the front porch with heavy timber columns and a broken-tile floor on this house.

Inside, this custom-built house is nicely zoned, with all the bedrooms to one end and the public spaces to the other. The kitchen, breakfast, and master bedroom are laid out along the back, with big picture windows to open the interior to the verdant, private rear yard. The combined living and dining rooms are across the front with large windows sheltered by the covered walkway.

The bedroom wing is up several steps, further distancing it from the public rooms. The master, at the far rear corner, has two nicely outfitted walk-in closets and a capacious bath with separate tub and shower. Both the bedroom and bath open to a private deck shaded by mature tulip poplars.

The den has a trendy wet bar and a fireplace faced with thin Arkansas stone, stacked in the manner popularized by Frank Lloyd Wright. Behind it and down a step is a family/media room with access to the rear brick terrace. The kitchen looks across the breakfast room to the backyard. The custom cabinetry is topped by rich Brazilian granite, and the island is accented with two fab brushed-aluminum ceiling fixtures that are obviously original and wonderful.

This is a stylish house that is now in the center of Memphis, sited on a property that offers garden opportunities as well as plenty of space for expansion. If you dream of owning a ranch with room to roam, you can do everything here but rustle cattle.

1205 Fairmeadow

Approximately 3,600 sq. ft.

4 bedrooms, 3 baths, 2 half-baths; $369,000

Realtor: First National Realty, 255-2745

Agent/owner: Brian Mallory, 870-4663