The historic Dermon Building Downtown is poised for a $17.1 million makeover.
Developers Nick and Sam Patel have filed a 12-year payment-in-lieu-of-taxes (PILOT) application with the Center City Revenue Finance Corp., an affiliate board of the Downtown Memphis Commission, for the redevelopment of the 97-year-old building.
The 10-story, 90,000-square-foot building at 46 B.B. King Blvd. will be renovated into 103 residential units with 2,000 square feet of flexible, mixed-use space on the ground floor, according to the PILOT application.
The renovations will also include an outdoor pool area for residents and a dog park.
Dermon Building residential unit breakdown
Dermon Capital Group, bought the Dermon Building in January 2016 for $1.5 million, according to the Shelby County Register of Deeds.
The company also owns the adjacent parking lots along Court Avenue. The developers plan to use those adjacent lots for parking and are working on a potential agreement with the Hotel Indigo owners for use of the hotel’s parking garage. Construction is expected to cost $17,108,112.
Pending the necessary permit approvals and financing, the developers plan to begin construction in the third quarter of 2023.
Construction is estimated to finish in the fourth quarter of 2024, according to the PILOT application.
Sam Patel’s Cordova-based company, Hospitality Builders of America Inc., is the general contractor for the project. Memphis-based Shapiro and Co. Architects is the architect for the development.
The PILOT application is on Center City Revenue Finance Corp.'s agenda for its Tuesday, Aug. 9, meeting.