Pinnacle Problems Appear to be in Past

Jed and all his kin may not have loaded up the truck and moved to Rogers. But many residents of Pinnacle Country Club, the most stately subdivision in Northwest Arkansas, might still cause Mr. Drysdale to froth at the mouth at the thought of getting them to kindly stop by his bank.

The on-going development, complete with a championship-style, 18-hole golf course, was Red Bone’s hog farm just a little over a dozen years ago.

Tom Hopper, the real estate developer of PCC, has brought stability to a club that had a couple of unpalatable years after opening in 1990. Those who have invested in lots and homes at PCC have experienced the highs and lows of the real estate market.

Hopper, who bought the remaining undeveloped acreage at PCC in 1993, said things have smoothed out following the early problems.

“The first six years the values were not moving very well,” said one Benton County banker. “But, the last three years or so they’ve done real well. I don’t think it was considered a very good investment the first five or six years. But lately it has been. And the way west Rogers has taken off, [PCC] has a lot to offer.”

Nevertheless, some homeowners at Pinnacle have still taken the proverbial bath when it comes to selling. In some cases, the seller took an outright plunge. There is perhaps no better case in point than the recent acquisition by auto dealer/developer Bill Schwyhart of the home at 11 Clubhouse Drive. The 6,880-SF, six-bedroom, 6.5-bath home just off the 9th hole was listed in 1998 for $1.9 million. The home, once owned by the former Hudson Foods Inc., went to auction in 2000 but was passed up by prospective buyers. Schwyhart recently bought the home for $1.2 million, $700,000 or about 37 percent less than the original asking price.

The normal drop from the original list price to the actual sale price is about 3 to 4 percent, according to a local realtor.

“It just took some time for [PCC] to get back on the right course,” Hopper said.

The Pinnacle of NWA

Pinnacle, located just west of Interstate 540 in west Rogers, is indeed still the prize of Northwest Arkansas living.

Dick Bond, a member of the board of directors for Tyson Foods Inc. and president of the former IBP Inc., recently purchased a home at PCC for about $1.6 million near the No. 14 tee box.

When PCC was founded, elite homes sold for about $75 per SF. Today, those homes are $100 per SF and higher. In Bond’s case, he paid more than $200 per SF. Schwyhart paid about $174 per SF for his magnificent home near the clubhouse. But the original listing price for the estate asked for more than $276 per SF.

Most of the remaining lots at PCC are in the $75,000 range, although some fairway lots reach as high as $295,000.

Hopper said those prices are justified for those who can afford such luxury.

“You can look at a lot of different subdivisions,” he said, “but there is only one Pinnacle. And we plan to stay at the top. We want people to look at Pinnacle first.

“There are a lot of other nice subdivisions in Northwest Arkansas. But we have hopefully set the standard of quality people are modeling other [subdivisions] after.”

PCC offers everything from the extravagant layouts such as the homes of Schwyhart and Bond, to patio homes and even townhouses.

Dark Beginnings

Hopper said misinformation has run amuck since the club’s early financial troubles. And rumors about the club certainly did no favors for the real estate development at PCC. The club was once strapped with an $18.5 million debt thanks to the shady dealings of original developer Fred Burkafelt.

A group of 21 investors, led by James T. “Red” Hudson, chairman and CEO of the former Hudson Foods, wrestled control of the club from Burkafelt in 1992, running Burkafelt out of town in the process.

In late 1993, a federal jury ruled that the club, then known as Champions Golf & Country Club, infringed upon the name of another club — Champions Golf Club Inc. — in Houston, Texas. U.S. District Judge H. Franklin Waters ordered the Rogers club to rename itself.

Golf memberships at PCC have increased from the original $20,000 fee to the current $35,000, but there is little doubt members there are supplied one of the most dynamic golf clubs in the region. Green fees for unaccompanied guests are $120 per round.

The current club’s board of directors include Hudson, George Westmoreland (Merrill Lynch), Jerry Walton (J.B. Hunt Transport Services Inc.), Gary Reinboth (retired from Wal-Mart Stores Inc.) and Neal Pendergraft (lawyer).

“Anytime a subdivision has trouble in the beginning, you have to have a period to get the problems worked out,” said Hopper, who along with his wife bought the real estate under the name of Tallchamps LLC. “We bought it in ’93 and it took five years to get the kinks worked out.”

Hopper said some of those kinks involved lots being given away to repay debts.

“We had to reestablish the value of that real estate,” Hopper said.

The club has also gone through a reestablishing period. But Hopper, who has no interests in the course and clubhouse, said it too is back on solid ground. He believes the two work together “hand in hand.”

The subdivision, which has more than 300 existing homes, sits on 540 acres. Hopper believes, based on an average of about 40 houses being constructed continually, it will be another 6-8 years before the subdivision is complete.

PCC has strict covenants not unlike other additions in the area. However, the streets are private, which requires annual assessments to maintain them.

PCC is the only such subdivision in Northwest Arkansas with 24-hour security. A guard is on duty at the main entrance. And the entrances at the north gate and Razorback Road are accessible by residents only with private codes. All entrances are equipped with video cameras and monitors.

“Tom’s done an excellent job of maintaining the quality of the development [at PCC],” Westmoreland said.

Westmoreland was chairman of the Northwest Arkansas Regional Airport Authority when it did numerous studies looking into the area’s growth patterns and traffic flows.

PCC spawned the commercial development Village on the Creeks, located on a former fish farm. Pinnacle Point and Pinnacle Hills would soon follow with their upscale commercial buildings within a mile of PCC.

“We knew there was more development happening,” Westmoreland said. “Using all of those factors was what helped us decide where to put the airport. There was some thought that there could be some pretty good synergy in that area.

“We’ve seen billions of dollars of development. Plus, Charles Reaves is putting in his new development just south of [PCC], so I’m pretty sure that area is gonna fulfill its destiny and be the center of Northwest Arkansas.”

The value of the club and subdivision, has benefitted greatly from the nearby commercial developments and the regional airport.

“Pinnacle Hills and Pinnacle Point get a lot of publicity, and they’re a great asset,” Hopper said. “But the country club itself is what started it all.”

The course, rated among the top four annually in Arkansas, was designed by Donald Sechrest.

There also may be a misperception of the subdivision from those who have only been to the golf course and back. The luxurious homes lining the course give a jaded view of the overall subdivision, which has homes priced as low as $119,000 that are about 1,500 SF.

PCC has managed to garner widespread attention in its short existence.

John Daly — the former Arkansas Razorback, PGA and British Open champion — lived on the course. He’s another success story on the real estate side, buying the 2,355-SF home at 12 Razorback Road in August of 1997 for $255,000, then turning around the following April of 1998 and selling it for $270,000.

Also, the course opened in grand fashion in 1990 with The Greg Norman Challenge that featured athletic stars Larry Bird (NBA), Wayne Gretzky (NHL), Ivan Lendl (WTA) and Norman (PGA).

Selected MLS Listings Since 1998 from Pinnacle Country Club

List date — Original Address (bedrooms) — List Price — Sold for — Percent Changet

3-13-98 — 82 Champions Blvd. (4) — $389,000 — $370,000 — -4.9

4-17-98 — 60 Champions Blvd. (4) — $289,000 — $289,000 — #0

4-17-98 — 11 Clubhouse Drive (6) — $1,900,000 — $1,200,000 — -36.8

8-20-98 — 15 Champions Blvd. (3) — $415,000 — $385,000 — -7.2

8-25-98 — 17 Razorback Road (4) — $399,000 — $367,500 — -7.9

9-24-98 — 12 Sechrest Circle (4) — $359,900 — $350,000 — -2.8

12-3-98 — 13 Wimbledon Way (5) — $499,000 — *

1-11-99 — 6117 Pleasant Place (3) — $139,500 — $134,000 — -3.9

5-8-99 — 5100 60th Place (4) — $144,900 — $144,900 — 0

5-18-99 — 6109 Pleasant Place (3) — $119,900 — $115,000 — -4.1

6-11-99 — 6108 Pleasant Place (3) — $119,900 — $118,900 — -0.8

7-7-99 — 91 Champions Blvd. (4) — $380,000 — *

8-12-99 — 13 Champions Blvd. (4) — $365,000 — *

4-19-00 — 1 Mission Hills Circle (3) — $259,900 — *

5-1-00 — 60 Champions Blvd. (4) — $289,000 — $289,000# — 0

10-18-00 — 6104 Pleasant Place (3) — $128,000 — $115,000 — -10.2

11-13-00 — 6005 Pleasant Drive (4) — $137,500 — $124,900 — -9.2

11-14-99 — 6104 Pleasant Drive (4) — $148,000 — $148,000 — 0

11-28-00 — 75 Champions Blvd. (4) — $849,000 — $773,000 — -9.0

12-26-00 — 6125 Pleasant Place (3) — $147,900 — $140,000 — -5.3

5-21-01 — 115 Champions Blvd. (4) — $295,000 — *

5-22-01 — 6100 Pleasant Place (5) — $169,900 — $169,485 — -0.2

5-23-01 — 6124 Pleasant Drive (4) — $154,900 — $154,900 — 0

7-11-01 — 29 LaQuinta (3) — $143,500 — $143,500 — 0

* not sold as of Dec. 4, 2001; # house sold twice since 1998.