Pie factory faces fate in crumbling market
A dilapidated warehouse long included in the eclectic fabric of a historic Midtown neighborhood is now for sale and facing an uncertain fate, after year-old plans to renovate the site failed to materialize. The 35,475-square-foot Keathley Pie Factory building, 2271 Young Ave., within the Cooper-Young community, was recently listed at a cash-only price of $350,000, said Crye-Leike Commercial agent Tucker Beck.
Included in the 0.94-acre site is the warehouse space fronting Young Avenue, a paved and fenced parking lot on New York Street, and a 10,000-square-foot addition, which faces Philadelphia Street. The property is zoned light commercial (C-L). "Were really interested in moving it," Beck said. Since the property is listed as an "all-cash" deal, Beck said the sellers might be willing to "substantially" discount the price. Offers will be considered on a case-by-case basis, he said. Last April, real estate development firm Southwest Inc. announced it had signed a one-year lease with option to buy the property.
Southwest president James Yancey said his firm planned to convert the vacant warehouse into about 30 residential lofts, ranging in price from $80,000 to $140,000. He estimated the project would cost $1.2 million. But, one year later, the warehouse remains vacant and deteriorated with no signs of renovation work. Yancey could not be reached for comment by press time.
Beck said he was not familiar with the project. According to Cooper-Youngs National Register nomination application, the pink Keathley warehouse, originally built in 1940, exemplifies how industrial and commercial buildings were successfully integrated into Cooper-Youngs residential community, distinguishing it from other historic Midtown neighborhoods known primarily for their housing stock.
The Keathley Pie Co., which began in 1930 in the Keathley family kitchen at 997 S. Cox St., quickly grew into a nationally recognized brand name after converting to mass production at the Young Avenue site. Known for its small pecan pies, Keathley pies were nicknamed "nickel pies" because of their original price. Judith Johnson, Memphis Heritage executive director, said although the building is not individually listed on the National Register, it is part of the Cooper-Young Historic District, which would qualify buyers interested in renovating the building for historic tax credits. The credits, 20 cents on the dollar for certified renovations of historic buildings, are federal tax credits designed to encourage rehabilitation of certified historic properties to be used for income producing purposes. But, since the neighborhood is not a protected landmarks district, Johnson said a potential buyer could just as easily demolish the structure.
After years of neglect and bad maintenance, both Johnson and Beck said the building is in "rough" shape, and might be an appropriate demolition candidate despite its historical significance in the community. However, nearby residents such as Jim Kovarik strongly oppose the possible demolition of the building. "Its an absolute treasure," Kovarik said. "Its a cool piece of history and a substantial building.Theres no reason not to go in there and make something very cool out of it again."
As a community association board member, Kovarik said neighborhood activists have discussed numerous converted uses for the building including multi-family housing and an open-air farmers market. However, until the city offers inner-city development incentives such as tax freezes and infrastructure assistance, he said costly revitalization projects such as the Keathley renovation would remain cost prohibitive for many private developers.
In lieu of direct incentives, underlying factors such as the areas increasing property values resulting from the concentrated efforts of the Cooper-Young Community Development Corp. could make the site appealing to both commercial and residential developers. For example, the CYCDC has targeted streets to the immediate east and west of the warehouse, New York and Philadelphia, as part of long-term redevelopment projects in which blighted properties are either renovated or replaced with new homes, and filled with first-time buyers.
Another potential factor is the possibility of Memphis Area Transit Authority extending the trolley line in front of the property along Young Avenue, Beck said. MATA is currently considering the route as part of its bid to extend trolley service to the airport.