Exclusive: Where Downtown high-rise's redevelopment stands
By Stephen MacLeod – Reporter, Memphis Business Journal
November 19, 2024
Constellation Properties, led by Stuart Harris, is moving forward with plans to redevelop the iconic Sterick Building, one of the most recognizable structures on the Memphis skyline.
While full construction has not yet begun, activity around the tower is increasing. Drones are scanning the building, and workers are inspecting and cleaning the façade of the neo-Gothic structure as the project moves from planning toward execution.
“We’ve figured out the big problems on the design and engineering,” Harris said. “At this point, we’re working through the big challenges on the financing.”
Costs and timeline challenges
The development team has addressed key technical hurdles, including modernizing heating and cooling systems, improving ceiling heights, and updating the nearly century-old tower to meet current building standards.
Attention has now shifted to assembling the project’s financing and incentives. Rising construction and labor costs have made the process more complex.
“We’re working through the challenges of today’s environment,” Harris said. “It requires a very precise, thoughtful approach. We don’t want to compromise the quality of the building, so that’s extending the timeline.”
Construction was initially expected to begin in mid-2025, but that timeline may shift as the capital stack is finalized. The team expects to present plans to incentive boards, including the Downtown Memphis Commission, sometime in 2025.
Harris said the goal remains to restore the Sterick’s historic status as the “Queen of Memphis.”
Broader neighborhood development
Beyond the tower itself, Constellation Properties is working on surrounding sites to help activate the area.
The group has filed a variance to relocate an existing car rental operation from a surface lot on Madison Avenue into a 350-space parking garage it owns near Hotel Indigo.
“We have a retail space in the garage that fits them well and allows their vehicles to be kept secure and covered,” Harris said. “It keeps the business in the neighborhood while making better use of the garage.”
The current car rental lease is set to expire at the end of the year. The lot is part of the same parcel as the Sterick Building, giving the development team flexibility to reimagine the site.
Future plans for the lot are still being explored. The property sits between Visible Music College and the Commonwealth, another Downtown project tied to Harris.
Efforts are also underway to lease a 3,300-square-foot restaurant space, which includes a 1,800-square-foot patio, at the Commonwealth.
Long-term vision
Harris described the redevelopment as part of a broader, multiyear effort to revitalize the surrounding neighborhood.
“The Sterick is a marquee project,” he said. “It will serve as an anchor because of its history, but we want the entire neighborhood to reflect the community — with a mix of uses and incomes.”
With planning, financing, and surrounding development progressing, the long-vacant Sterick Building is moving closer to a long-anticipated revival.