New York Investment Group Stakes $44 Million Claim in Fayetteville

A pair of high profile shopping centers in Fayetteville’s Uptown retail corridor near the Northwest Arkansas Mall have been sold to a New York-based investment group for a combined $43.9 million.

According to real estate records, DLC Management Corp. of Tarrytown in Westchester County paid $10.4 million for the Kohl’s-anchored Steele Crossing (3533-3595 Shiloh Drive) and $33.5 million for the sprawling Spring Creek Centre (464 E. Joyce Blvd.), which is anchored by Best Buy, T.J. Maxx and Bed Bath & Beyond. It also has a Walmart Supercenter and The Home Depot on-site.

The transaction, announced by the company Dec. 4, is part of an acquisition including 11 retail assets in Arkansas, New York, North Carolina and Tennessee totaling a whopping 2.58 million SF, 1.73 million SF of which is owned property.

The total purchase price of the 11 properties was not disclosed.

The acquisition is the largest in the history of DLC Management. According to its website, the privately held company formed in 1991 and leases a portfolio of 115 open-air shopping centers in 29 states, totaling more than 19.1 million SF of retail space.

The seller of both Fayetteville properties, according to real estate records, was The Blackstone Group, also of New York. Blackstone acquired the two properties in June 2012 for a combined $44 million.

Alan Cole, a principal and executive vice president at commercial real estate brokerage firm Colliers International in Bentonville, said the acquisition by DLC Management indicates a strong bet on Fayetteville.

“Spring Creek Centre and Steele Crossing are trophy retail assets in Fayetteville,” he explained. “This sale shows that the buyers expect these properties to continue this trend and still have room for upside.”

Other notable tenants of the 588,606-SF Spring Creek Centre, which started development two decades ago under the direction of Little Rock developer Steve Clary, include Old Navy, Ulta Beauty, David’s Bridal and Jo-Ann Fabrics. It has just 8,560 SF available for lease, according to DLC Management.

The 261,665-SF Steele Crossing has a PetSmart and Target on-site, with other notable tenants including Lane Bryant, Catherine’s and Massage Envy. It has 6,895 SF available for lease.

“We look forward to bringing additional best-in-class, value-oriented tenants to this exciting portfolio,” DLC Management CEO Adam Ifshin said in a company statement.

The Fayetteville acquisition marks the company’s entry into the Arkansas market.