Memphis College of Art selling a dozen buildings

The Memphis College of Art has listed for sale its dozen Midtown properties: Dormitories, apartment buildings, art studios and potential retail space.

The total estimated market value is $13 million to $15 million, not counting the school's headquarters, Rust Hall. That building is also being marketed, but in a more nuanced way because it is in Overton Park on land owned by the city.

The college and its commercial broker, Cushman & Wakefield/Commercial Advisors, will manage the sales in a way that ensures the dwindling enrollment has housing, classrooms and studio spaces until the school closes after the May 2020 graduation.

More: Memphis College of Art closing: Many respond with shock and dismay

The art school will occupy Rust Hall until that last graduation while it sells its dozen nearby properties just south of Poplar Avenue.

"MCA will retain residency in Rust Hall through the teach-out period of May 2020,'' president Laura Hine said. "And in the sale of the real estate assets south of Poplar, we will be mindful of our students' educational and housing needs. We are committed to our students and will have them in mind during every step of the process.''

The school announced in October it will close because of dropping enrollment and $7 million in real estate debt.

Enrollment was 307 last fall, is 282 now and is projected to be 145 this fall and 70-80 students in the fall 2019, Hine said Friday. The school once had a peak enrollment of nearly 450 students.

The properties for sale comprise three apartment buildings; two dormitories; four art studio/office buildings; one single-family home; one mixed-use (office/retail/apartment) building; and one vacant lot.

The buildings include:

-- The high-design modern dormitories Metz and Fogelman Halls at 139-149 N. Barksdale. They total 26 units containing 92 bedrooms, plus gathering/studio space on the top floors. "We think somebody will have serious interest as an institutional use or conversion to multifamily,'' said Larry Jensen, president and chief executive of Cushman & Wakefield/Commercial Advisors;

-- Parkside Apartments, 1979 Poplar, with 20 units. "There's an awful lot of interest we think by apartment investment companies,'' Jensen said;

-- Tucker Place, 124 Tucker, with nine apartment units;

-- At the Park apartments, 165 Rembert, with eight units on Rembert;

-- Gibson Hall/Overton House, 1935 and 1949 Poplar, with office and retail on the ground floor and four second-floor apartments;

-- Four studio buildings, 148-152-155-158 N. Tucker, most of which the college converted from duplexes. "They moderneized those buildings,'' Jensen said, adding the buildings could be used for studios, for offices or converted to residential use;

-- Hudson House, a single-family home at 157 Rembert;

-- And a vacant lot at 162 N. Tucker.

Rust Hall will also be marketed for sale even though the college will continue using it until May 2020. The late and locally renowned modern architect Roy Harrover designed the building, which opened in 1959.

The college owns Rust Hall but has a ground lease with the City of Memphis, which owns the land.

Asked about the level of interest shown from potential buyers for Rust Hall, Jensen responded, "We've had some calls about it continuing as some form of an art environment. It's a pretty good size building. There's an awful lot of infrastructure.

"I think it could be some kind of community-gathering use.''

College officials want to see Rust Hall continue to be used for art purposes, indicated Hine, who added that college and city officials have met about Rust Hall's future.

"We feel it's iconic, sacred space. It's designed for an art institution,'' she said. "It's full of equipment for an art institution and we feel it's pretty sacred ground for the visual arts.''

A consortium of organizations could use Rust Hall to serve both the visual and performing arts, Hine said. "None of that has started to gel. There are people who are expressing an interest. ... But no formal discussion has taken place around that kind of issue.''

The college is also working with the Overton Park Conservancy about the facility's future.

"The city owns the land and the college owns the building,'' Hine said. "In the event of the college closure there's a reversion clause that Rust Hall goes back to the city.''

The dozen properties just across Poplar from Overton Park and the art school are not all contiguous, but are clustered wtihin a few blocks of each other.

"I do think it is a unique opportunity and listing in this area,'' said Matt Weathersby, a principal with Cushman & Wakefield/Commercial Advisors. "We don't often see mixed-use properties like this going on the market, particularly in the Midtown area. A very sought-after area.''

In some cases, buildings that are purchased before the school closes will be leased back to the school so students can continue using them.

The commercial real estate firm will issue a call for offers in late March.

It's possible but unlikely that one buyer would acquire all the school's properties, Jensen said.

For more information, visit commadv.com/memphis-college-of-art-properties or call Cushman & Wakefield/Commercial Advisors at (901) 366-6070.