Downtown Bentonville development spurs higher residential prices

Downtown Bentonville is the place to be, but garnering such an address doesn’t come cheap even with three new multifamily projects slated to open this year. Brian Bahr, the city’s director of economic development, said there are many construction infill projects in the downtown area and that’s not likely to change to anytime soon.

“In 2013, the city issued 195 remodel permits for residential projects. In 2014, that rose 24% to 241 permits, nearly all of them located in the downtown region,” Bahr said. 

On nearly every street, he said there are residential remodels taking place in addition to the three multifamily projects slated to open later this year. There are two smaller multifamily projects going up near the Tusk & Trotter Restaurant and public parking lots in the 200 block of Southeast A Street, one block from the Courthouse Square. 

AMERICAN FLATS
The American Flats is well under construction and will feature 10 units for a total of 10,800 square feet.

This project is the brainchild of Mayadventures Inc. located at 603 Picadilly St. in Bentonville. The business was incorporated by Maria Obregon in 2006. She is the president, with Fabiola Del Carmen Obregon acting as treasurer, according to the Arkansas Secretary of State records.

Nicki Rogers, of Lindsey and Associates, is the listing agent for five of the units in the American Flats development which will be sold. The other five units are available for lease once the project is completed later this summer.

“We have one two-bedroom unit under contract and many leads from interested buyers and renters. I am selling the top floor which consists of a couple of two-bedroom flats and a one-bedroom flat. I am also selling the one bedroom flat and one two bedroom flat on the middle floor. The owners are going to rent the remaining five flats,” Rogers told The City Wire.

She said the architecture is inspired by an “old world’’ feel and designed by William Kim Fugitt, who has more than 28 years of multifamily design experience with multiple projects completed in Northwest Arkansas and seven other states.

Each of the flats will be named for an American and/or local icon including: 
T.H. Benton, Sam Walton, Bill Clinton, George Washington and Alexander Hamilton. 

The developer cited an urgent need for residential options downtown given that much of the property is single family. The city reports 20% population growth since 2012, and that’s in addition to the 400,000 tourists who visited the city – likely looking for Crystal Bridges Museum of American Art – in 2012. The tourist number is projected to hit 1 million annual visitors before 2020.

Rogers said living near downtown is appealing to business professionals, small families or retired, active people who want to take advantage of the close proximity to popular restaurants and food options near the square. 

“The Midtown Center (just off the square) will also enhance the retail component in the immediate downtown area with the Walmart Neighborhood Market and other retail shops that will lease space in that development,” she said. “The trails that run nearby are also a great source of entertainment for the entire family, not to mention the museums and art connections.”

The American Flat purchase prices start at $167,440 for an unfinished white box one-bedroom unit that is 728 square feet. That equates to $230 per square foot. The finished version is priced at $185,640 or $255 per square foot. The 2-bedroom units, which are about 1,160 square feet, come unfinished for $266,800, and the finished version is $295,800. The monthly POA dues run $60 for the one-bedroom units and the $90 for the 2-bedroom units.

Rogers said because the building owners acquired “downtown edge” zoning it is possible for the unit owners to run a business, live or rent out their space as they so choose within the guidelines of the property covenants.

210 TOWERS
Adjacent to the American Flats at 210 Southeast A Street there are four new multifamily units styled in a classic brownstone building dubbed 210 Towers. The townhomes will range from 1,900 to 2,400 square feet and offer up to four bedrooms. Each townhome will have two-story living rooms with a wall of windows. The units also are said to feature large outdoor living spaces and private balconies.

Because of the “downtown edge” zoning, these units also are eligible as income producing retail/office spaces. The development features a private alley access with a double-car garage and individual courtyards and green space.

The starting price at 210 Towers is $450,000, or $220 per square foot for the smallest of the units. For the larger 2,400 square-foot four bedroom units the price is around $500,000.

SINGLE FAMILY COMPARISON
Rogers said the prices look high to many who may not have kept up with the growth of Bentonville. She said single family homes are going for about $200 per foot after remodel. She sold in May a two bedroom home at 307 W. Henry for $262,500 and it went under contract the first day on the market. The downtown home had been purchased for $58,000 in 2013 and completely renovated by the sellers. Rogers said home sold for $191.89 per square foot and it appraised for slightly more.

Next door at 309 W. Henry, she said a three-bedroom home that was in terrible shape was recently sold “as is” for $200,000. It has since been completely renovated and it’s on the market for $384,500 which is $201 a square foot. 

"While we do not expect to get a full price offer I feel confident someone will be happy to pay more than $350,000 for the home because of its location. While it is hard to say if the market prices will go up or down I do believe that if they go down they will come back up because of all the area is offering…art, culture, fine dining, family activities, unique shopping, first Friday, and farmer's market are all excellent examples," Rogers said.

THRIVE BENTONVILLE 
Baher said the 62-units being finished out this spring at Thrive Bentonville will give more families wanting to locate downtown another option. The Thrive units are rentals managed by Fort Smith-based ERC.

This multifamily living option comes at a lower cost compared to some of the other developments. The rental units are one and two bedroom and range in price from $770 per month to $1,125 per month.

The Thrive concept allows for more population density downtown than single family or small multifamily projects can provide. The development is 44,000-square-foot that fills nearly a complete city lot along Southwest A. Street just a few blocks from the square and Wal-Mart’s home office.

It was the first new multifamily construct in the city’s Art District, which was announced last year. Brick is going on the building exterior wall this week and ERC is pre-leasing units now for move in later this spring.

Bahr said there are two commercial spaces encompassed in this development. Crepes Paulette has claimed one of them to set up a physical location in addition to the food truck that owner Paula Jo Chitty Henry runs.

“Bentonville is rapidly becoming a very special thing: a cosmopolitan small town. That unique mix creates an environment where new ideas are appreciated and word travels quickly. Thanks to that and a lot of hard work, we’ve been able to run with our concept and grow a vocal clientele that consequently also helps us attract the visitors that come to the area for all of its attractions,” Henry noted on the Thrive website.

Bahr said there hasn’t yet been another announcement about the other commercial space within the Thrive project.