Capital Assets Inc., a property management company in Tulsa, has added to its portfolio with a significant acquisition in Fayetteville.
CAI, through its RASC Investors LLC, paid $14.41 to acquire nearly 75 percent of the 272 condominiums in the upscale multifamily property The Reserve at Steele Crossing at 4240 N. Fern Creek Place near the Northwest Arkansas Mall.
The corporate warranty deed was filed in the Washington County Circuit Clerk’s office June 1.
Bristol Garden Ventures Inc. of Franklin, Tenn., was the seller.
CAI now manages 6,300 units in 25 multifamily properties, with the majority of those in Tulsa. Others are in Oklahoma City, two are in Bentonville (Harbin Pointe and Flagstone Creek) and one is in Arlington, Texas.
CAI president Greg Wright called The Reserve the best of the bunch. The development was built in 2004 as Bristol Gardens and renamed in 2006 when the owners converted the apartments into condos.
The complex is on 29.5 acres and has 16 buildings, including a clubhouse. Other amenities include a pool, 24-hour fitness center, outdoor grilling areas and car-wash pavilion.
“It’s definitely the crown jewel of our portfolio,” said Wright, one of two principals at CAI along with his father, Royce Wright, who started the company in 1979. “It’s the nicest property that we have, so we’re excited about it.”
CAI now owns 201 fee simple apartment units at The Reserve, which are 98 percent occupied, Wright said.
The remaining 71 units are individually owned condo units, split roughly 50-50 between owner-occupied properties and lease properties.
Jonesboro-based Liberty Bank of Arkansas helped finalize the deal with an $11.9 million financing agreement.
Brian Carlton with the Dallas-based CRE firm Holliday Fenoglio Fowler represented Bristol.
Gary Krisman with Grubb & Ellis-Levy Beffort represented CAI.
Wright said there will be some interior updates done to the 201 apartment units that were purchased.
CAI will also be the property manager for the entire complex.
Wright said the Northwest Arkansas market represents a good opportunity for expansion and the company is actively seeking other acquisitions in the area.
The Reserve is the third upscale multifamily property sold in the last 12 months in Northwest Arkansas.
Dallas-based real estate company Hayman Woods LLC acquired The Ranch at Pinnacle Point. The deal was finalized in December with a $21.1 million financing agreement with M&T Bank.
The 392-unit complex on nearly 30 acres is near Village on the Creeks in Rogers.
In June 2011, Glen Acquisitions LLC of North Kansas City, Mo., purchased The Glen at Polo Park Apartments, a 356-unit development in west Bentonville, for $17 million.
The 18.5-acre property is just west of the Benton County Fairgrounds on Vaughn Road near highways 12 and 279.
That deal as backed by a five-year mortgage of $14.4 million from Metropolitan National Bank of Little Rock.