Quick Facts

Project Name
TAG Truck Center, LLC
CDE
MBS Urban Initiatives CDE LLC
Stonehenge Community Development LLC
SunTrust Community Capital, LLC
Total Development Cost
$37,000,000
NMTC ALLOCATION
$23,000,000
Location
4451 American Way
Memphis, Tennessee 38118
Square Footage
164,000
Leveraged Lender
Mercedes-Benz Finance
NMTC Investor
SunTrust Bank
Permanent Jobs
577 Direct
166 Indirect/Induced
Construction Jobs
70 Direct
72 Indirect/Induced
Low-Income Community
Median Family Income: 63.07%
Poverty: 28.5%
Delta Regional Authority Distressed Area
Unemployment: 11.4%
Financing Complete
April 2017

TAG Truck Center, LLC


Memphis, Tennessee

Project

TAG Truck Center is a full-service commercial truck dealership that offers a complete line of sales, service and parts distribution for Freightliner, Western Star, Mitsubishi Fuso and Sprinter trucks. The company operates from five locations throughout Greater Memphis, all which are overcrowded due to the company’s rapid growth. TAG has purchased the site of the former Mall of Memphis to consolidate their locations, bringing hope to a once thriving, but now long-neglected area.

The construction of a 164,000 SF multi-faceted corporate headquarters for TAG does far more than ensure the successful growth of the company. It is revitalizing the surrounding community. The scope of the project allows TAG to consolidate all five of its current locations, expand training services, create skilled labor for local businesses, and jobs for local residents.

The Financing

TAG’s new headquarters will be comprised of two buildings. The first, a 132,000 SF showroom for new and used trucks along with a 42-bay service department, a 12-bay body shop, an oasis center for drivers while trucks are repaired, a retail shop, and an employee center with locker rooms, break rooms, bathrooms and showers. The service area will be unique in the industry in that the entire space will be heated and cooled.

A second 32,000 SF building will house the TAG Technical Institute (TTI) and the company’s rapidly growing parts distribution center. The TTI is an in-house program that trains and certifies Daimler diesel engine technicians. With the help of NMTC financing, TAG will establish a program to equip unskilled local residents with the skills to become technicians and provide $100,000 of financial aid to assist Low-Income Persons (LIPs) with purchasing starter tool kits. The high cost of tools is the single largest barrier to entry for LIPs in the industry and TAG’s financial aid program will is designed to eliminate it. In addition, TAG has partnered with the CDEs to leverage community connections with Advance Memphis, RISE Memphis, the Memphis Urban League and the Boys and Girls Club of Memphis. Each of these organizations will connect TAG to program applicants and – with $50,000 of financial support from TAG – will help coordinate training efforts. The expanded TTI will supply 400 trained technicians for TAG and other local logistics companies – double its previous capacity – within the seven-year NMTC compliance period.

“We are indebted to Tax Advantage Group for spearheading the New Markets financing for this multi-faceted project. It ensures a bright future for TAG Truck Center and Southeast Memphis.”

− Gary Dodson, Vice President and CFO, TAG Truck Center

For more information contact:

Tammy C. Propst | 864.271.2737 | tpropst@taxadvantagegroup.com