Oak Tree Endures

by Jennifer Joyner ([email protected]) 661 views 

Many subdivisions that started just before the 2008 real estate bust are just now bouncing back, while others faced foreclosures or bankruptcy.

The Oak Tree subdivision in Centerton, however, weathered the fiscal crisis well. Tulsa, Oklahoma-based developer Robert David kept promises of amenities, and the development made an early and robust comeback.

David, through Oak Tree Associates LLC, paid $2.6 million for the 200-acre property in 2005, mostly to the Doyle and Margaret Pinner Revocable Trust.

The Pinner family owned the property, which at that time was a cattle ranch, for several decades before. Ray Pinner purchased the land when he and wife Jessie moved from Oklahoma in 1957, Margaret Pinner said.

A second deed for the sale that ended up comprising the Oak Tree subdivision property showed Oak Tree paid $298,000 for about 5 acres in the southwest corner of the development. This property was purchased from The Rainmaker Group LLC of Cave Springs, of which Steve Davis was managing member.

Both Oak Tree transactions were dated May, 27, 2005. 

However, it took a while to get the subdivision started. Realtor Marcus Necessary believes the 201-lot subdivision suffered a bit for bad timing.

“They definitely stepped out on a limb developing that many lots at once,” he said. “It was a great idea, just about 10 years too early.” 

At the time, the property was located in unincorporated Benton County, and the developer wanted to be on sewer service, as David said septic systems require bigger lots and can create unexpected issues down the line. 

The solution? David decided to annex the property into Centerton.

It wasn’t until about three years later that the development was ready.

“We filed the final plat in October 2008, and it was about then that the whole world was turned upside down,” David said, referring to the Great Recession and the real estate bust.

“Oak Tree was finished at a time that was inconvenient,” David said. But he didn’t let that stop him from developing the project.

When the market got bad, some early-stage developments did not keep promises of amenities, disappointing homeowners who already had built within the subdivisions, he said.

“I was going to get it done and continue to do things the right way and not cut corners,” he said. During that time, he invested in the property. The clubhouse and the pool were built. The neighborhood was kept up, with the grass mowed regularly.

“I wanted people to be able to drive through and have it look good and then be able to drive through a few weeks or even months later and have it still look good,” David said.

In 2010, the first four homes were built in the subdivision. In 2011, several lots were sold, and, between 2012 and 2013, 57 lots were sold.

Business slowed down a bit in 2014, though. David said this is, in part, natural, because many of the most desirable lots already had been sold. Also, competition is increasing, as other subdivisions come into play, after some took longer to recover from the economic downturn.

But Oak Tree is not out of the game, by any means.

“We’re selling our houses. We’re selling lots,” David said.

He believes the moves he made during the recession put the development in an advantageous position. “People believed we were going to do the right thing and not give it back to the bank,” he said. “Perseverance was the key to success.”

Necessary agrees.

“Oak Tree led the resurgence out of the recession,” he said. “I really have to credit the developer, Bob David, for keeping the dream of Oak Tree alive as long as he has. A lot of developers would have cut and run, but he did the right thing.”

 

Professional Developer

David has been in real estate more than 30 years. He founded Leadership Properties in 1997, but started Oak Tree Associates in 2005.

“I really like Northwest Arkansas. I like the business climate,” he said.

The homes built in 2010 were under a different builder, and the developers were not pleased with the results.

David then teamed up with Jim Cooper, owner of Bentonville-based Homes of Distinction, in 2011, and homes were built and sold one at a time.

Later that year, David also took up with Bentonville-based custom home builders Payne Construction Inc. and Tall Oaks Construction.

Since then, the developer has had an exclusive arrangement with those three builders for the subdivision, except for in the Estates neighborhood.

Agents of Weichert, Realtors – The Griffin Co. in Bentonville, Heather Campbell and Necessary, sell for Payne Construction and Homes of Distinction, respectively.

Jan Holland of Coldwell Banker Harris McHaney Faucette sells for Tall Oaks Construction.

If an individual purchases a lot in Oak Tree, he or she must use one of those three home builders. Meanwhile, the builders made commitments to buy a certain number of lots each year to build spec homes.

David said exclusivity among the three builders is intended to ensure quality of services and that the development’s standards are met.

It’s not only about providing certain amenities within the homes. It’s also about making sure a lot of extra features that might affect the surrounding home values are not put in.

“This all makes the price per SF, the valuation, more stable,” David said, “which is good for the homeowner.”

Another benefit David sees to the exclusive builder agreement is that it limits the number of homes under construction at any given time.

“Too few houses is bad for developer, and too many houses are bad for builders and residents,” he said.

David’s business partners and the bank were unsure about the exclusivity arrangement. “They said we don’t want to turn anybody down,” he said.

But David held steadfast to the plan. “I always said we may lose a sale or two but also will have the lots sold yearly as part of the agreement.” 

 

Three Neighborhoods

The gated subdivision has three different neighborhoods. Everwood, the first part of the development when entering from Arkansas Highway 72, features homes in the $400,000-$450,000 range. Enclave, the second part of the development, features homes in the $550,000-$600,000 range, and the homes in the Estates neighborhood generally are more expensive.

David said the three-neighborhood model helps hit multiple markets, increasing the absorption rate within the property.

It seems David’s strategies are working well. Oak Tree’s three neighborhoods have only 33 vacant lots.

As of publication, only two lots remain unsold in the 40-acre Enclave neighborhood of the subdivision. Four homes are under construction, one lot has been purchased but not yet built on, and the rest of the 51 lots have houses on them, save for one or two that were purchased by an adjacent homeowner in order to have a bigger yard, David said.

Everwood has 21 vacant lots out of 110. There are five lots owned but not yet built on and five homes under construction.

Finally, 10 out of 38 lots are still vacant in the Estates neighborhood.

This came as a surprise to David. “We thought we would have those for a couple more years, but people are realizing Oak Tree is a great place to build a 5,000-, 6,000-, 7,000-SF home.”

In the Estates, nine houses currently are under construction and two lots are owned without any building yet.

 

Attractive Amenities

Necessary notes the development’s proximity to Bentonville and the Wal-Mart Stores Inc. Home Office, and also said that surrounding greenspace and large yards are a big draw for the subdivision.

“It’s not all packed in. Most of the houses are not backed up on one another. There are a few that back up on another, but, by and large, you are looking at trees.”

He said the central clubhouse features country-club-quality amenities, from a resort-style pool, to tennis and basketball courts and a playground area, all available to residents only.

Here is a look at the Enclave neighborhood in the Oak Tree subdivision. Enclave was chosen to be featured because of its home prices and the high occupancy of its lots. The profile numbers correspond with the lot numbers.

 

111. Jeffrey Kuhlman

3111 Oak Tree Drive

Kuhlman, in partnership with Payne Construction Inc. of Bentonville, bought the 0.56-acre lot from Oak Tree Associates LLC for $74,000 in March 2014. A house was built on the property in 2014, but will not be appraised until 2016. The land appraised for $59,100 in 2011.

 

112. Noah Johnson

3121 Oak Tree Drive

The 4,264-SF home was built in 2012 and appraised for $374,550 in 2013. Johnson purchased the home for $606,000 from Tall Oaks Construction LLC of Bentonville in December 2012. Tall Oaks Construction purchased the 0.64-acre lot from Oak Tree Associates LLC for $70,000 in November 2011.

 

113. Austin Chapman

3131 Oak Tree Drive

The 3,690-SF home was built in 2013 and appraised in 2014 for $341,550. Chapman purchased the home in July 2014 from Tall Oaks Construction LLC of Bentonville for $563,000. Tall Oaks purchased the 0.52-acre lot from Oak Tree Associates LLC for $70,000 in July 2012.

 

114. Homes of Distinction Inc.

3141 Oak Tree Drive

Homes of Distinction of Bentonville purchased the 0.55-acre lot for $68,000 in July 2013 from Oak Tree Associates LLC. It appraised for $59,100 in 2011.

 

115. Patrick & Krista Dooley

3151 Oak Tree Drive

Dooley purchased the 4,003-SF home for $615,000 in June 2013 from Jeffrey & Debra Kuhlman, partners of Payne Construction Inc. of Bentonville. It was built in 2013 and appraised for $370,000 in 2014. Kuhlman purchased the 0.79-acre lot for $70,000 in July 2012 from Oak Tree Associates LLC.

 

116. Randall Anzalone & Holly Farnsworth-Anzalone

3161 Oak Tree Drive

Anzalone bought the 4,186-SF home, built in 2014, for $615,000 in August 2014 from Payne Construction Inc. of Bentonville. Payne Construction purchased the 0.65-acre lot from Oak Tree Associates LLC in July 2012 for $74,000. The property will be appraised sometime this year. The Benton County Assessor’s Office estimates the appraisal to be $382,719.

 

117. Warren & Aneasha Moore

3171 Oak Tree Drive

Moore purchased the 4,534-SF home, built in 2014, from Jeffrey Kuhlman, partner of Payne Construction Inc. of Bentonville, for $647,000 in July 2014. It appraised for $403,131 in 2015. Kuhlman purchased the 0.71-acre lot from Oak Tree Associates LLC in July 2012.

 

118. Kenneth & Stephanie Biesterveld

3201 Oak Tree Drive

The 4,400-SF home was built in 2014. Biesterveld purchased the 0.8-acre lot from Oak Tree Associates LLC for $74,000 in August 2013. The property will be appraised sometime this year. The Benton County Assessor’s Office estimates the appraisal to be $354,602.

 

119. Patrick & Sarah Tobin

3211 Oak Tree Drive

The 4,535-SF home was built in 2014. Tobin bought the 0.8-acre lot for $74,000 from Oak Tree Associates LLC in August 2013. The property will be appraised sometime this year. The Benton County Assessor’s Office estimates the appraisal to be $401,087. 

 

120. Jeffrey Kuhlman

3221 Oak Tree Drive

The 4,608-SF home was built in 2014. Kuhlman, in partnership with Payne Construction Inc. of Bentonville, bought the 0.8-acre lot for $74,000 in July 2012 from Oak Tree Associates LLC. The property will be appraised sometime this year. The Benton County Assessor’s Office estimates the appraisal to be $395,254.

 

121. National Residential Nominee Services Inc.

3231 Oak Tree Drive

The 4,507-SF house appraised for $394,500 in 2014. National Residential Nominee Services of Plano, Texas, purchased the property from David & Kerrie Adams in September 2014 for $585,000. The home was build in 2013. Adams bought the 0.79-acre lot for $70,000 in March 2013.

 

122. Gregory & Susan Tesoro

3241 Oak Tree Drive

Tesoro purchased the 0.8-acre lot from Oak Tree Associates LLC for $74,000 in March 2014. A home was built on that property in 2014 and will be appraised in 2016.

 

123. Homes of Distinction Inc.

3251 Oak Tree Drive

Homes of Distinction Inc. of Bentonville purchased the 0.79-acre lot for $74,000 in September 2013. The lot appraised for $59,100 in 2011.

 

124. Rebekah Dedman

3261 Oak Tree Drive

Dedman bought the 4,147-SF home, built in 2013, from Matthew & Carol Measel for $600,000 in October 2014. It appraised for $367,300 in 2014. Measel bought the 0.8-acre lot for $74,000 from Oak Tree Associates LLC in May 2013.

 

125. Jason & Lori Morris

3301 Oak Tree Drive

Morris bought the 3,882-SF house, built in 2013, for $544,000 from JSN Properties of Northwest Arkansas LLC in Centerton in June 2013. It appraised for $351,600 in 2014. JSN Properties purchased the 0.8-acre lot from Christopher & Andrea Jones for $70,000 in November 2012. Jones purchased the lot from Oak Tree Association LLC for $70,000 in August 2011. 

 

126. Tall Oaks Construction LLC

3311 Oak Tree Drive

Tall Oaks Construction of Bentonville purchased the 0.8-acre lot for $77,000 in March 2014 from Oak Tree Associates LLC. The land appraised for $59,100 in 2011.

 

127. RSJ Property Management LLC

3321 Oak Tree Drive

RSJ Property Management of Rogers purchased the 0.81-acre lot, along with adjacent lot 128, from Oak Tree Associates LLC for $154,000 in July 2014. It appraised for $59,100 in 2011.

 

128. RSJ Property Management LLC

3331 Oak Tree Drive

RSJ Property Management of Rogers purchased the 0.83-acre lot, along with adjacent lot 127, from Oak Tree Associates LLC for $154,000 in July 2014. It appraised for $59,100 in 2011.

 

129. Randy & Ashley Dickey

3341 Oak Tree Drive

The 4,691-SF house, built in 2013, appraised for $422,550 in 2014. Dickey bought the 0.75-acre lot for $70,000 in July 2012 from Oak Tree Associates LLC.

 

130. John & Kristal Aden

3320 Oak Tree Drive

Aden purchased the 0.94-acre lot from Oak Tree Associates LLC for $74,000 in January 2013. The land appraised for $59,100 in 2014.

 

131. Matthew & Shana Desmit

3310 Oak Tree Drive

Desmit purchased the 3,967-SF home, built in 2012, from Jerrit & Kristin Davis for $615,000 in November 2014. It appraised for $369,950 in 2014. Davis purchased the 0.73-acre lot for 70,000 in September 2011 from Oak Tree Associates LLC.

 

132. John & Dina Wells

3300 Oak Tree Drive

Wells purchased the 4,881-SF home, built in 2013, for $635,000 from Homes of Distinction Inc. of Bentonville in July 2013. It appraised for $408,000 in 2014. Homes of Distinction purchased the 0.65-acre lot for $65,000 from Kenneth & Elisabeth Wagner in December 2012. Wagner purchased the land for $25,000 from Oak Tree Associates LLC in March 2011.

 

133. James & Karen Roesing

3260 Oak Tree Drive

The 2,862-SF home, built in 2013, appraised for $360,550 in 2014. Roesing paid $70,000 for the 0.62-acre lot to Oak Tree Associates LLC in February 2013.

 

134. Homes of Distinction Inc.

3250 Oak Tree Drive

 

135. Homes of Distinction Inc.

3240 Oak Tree Drive

Homes of Distinction of Bentonville in October 2014 paid Oak Tree Associates LLC $62,000 for the 0.73-acre lot. It appraised for $59,100 in 2014.

 

136. Oak Tree Associates LLC/JCK Investments LLC (Jeffrey Kuhlman, in partnership with Payne Construction Inc. of Bentonville) of Centerton

3230 Oak Tree Drive

The 0.62-acre lot appraised for $59,100 in 2011.

 

137. Oak Tree Associates LLC/JCK Investments LLC (Jeffrey Kuhlman, in partnership with Payne Construction Inc. of Bentonville) of Centerton

3220 Oak Tree Drive

The 0.6-acre lot appraised for $59,100 in 2011.

 

138-139. Payne Construction Inc.

3210 Oak Tree Drive

Payne Construction of Bentonville paid $97,000 for the 1.16-acre combined lot, to Oak Tree Associates LLC in March 2014. It appraised for $73,850 in 2014.

 

140. Richard & Keelan Brothers

3150 Oak Tree Drive

Brothers paid $74,000 to Oak Tree Associates LLC for the 0.6-acre lot in April 2014. It appraised for $59,100 in 2011.

 

141. Brian & Wendy Pear

3140 Oak Tree Drive

Pear paid LDM Homes LLC of Tulsa, Oklahoma, $640,000 in March 2013 for the 5,449-SF house, built in 2013. It appraised for $444,000 in 2014. LDM Homes paid $70,000 to Oak Tree Associates LLC for the 0.57-acre lot in June 2012.

 

142. JCK Investments LLC

3130 Oak Tree Drive

JCK Investments (Jeffrey Kuhlman, in partnership with Payne Construction Inc. of Bentonville) of Centeron bought the 0.51-acre lot, along with lot 147, for $156,000 from Oak Tree Associates LLC in March 2014. The lot appraised for $59,100 in 2011.

 

143. Underwood Joint Revocable Trust

3120 Oak Tree Drive

The 4,238-SF home was built in 2014. It appraised for $420,067 in 2015. Thomas & Charlene Underwood paid Oak Tree Associates LLC $74,000 for the 0.52-acre lot in February 2014.

 

144. Thomas & Tracey Wait

3111 Autumn Lane

Wait purchased the 4,642-SF home, built in 2013, for $695,000 to Payne Construction Inc. of Bentonville in September 2013. It appraised for $411,500 in 2014. Payne Construction paid $70,000 to Oak Tree Associates LLC in July 2012 for the 56-acre lot.

 

145. Oak Tree Associates LLC/JCK Investments LLC (Jeffrey Kuhlman, in partnership with Payne Construction Inc. of Bentonville) of Centerton

3121 Autumn Lane

The 0.59-acre lot appraised for $59,100 in 2011. 

 

146. Oak Tree Associates LLC/JCK Investments LLC (Jeffrey Kuhlman, in partnership with Payne Construction Inc. of Bentonville) of Centerton

3131 Autumn Lane

The 0.59-acre lot appraised for $59,100 in 2011.

 

147. JCK Investments LLC

3141 Autumn Lane

JCK Investments (in partnership with Payne Construction Inc. of Bentonville) of Centerton bought the 0.53-acre lot, along with lot 142. The lot appraised for $59,100 in 2011.

 

148. Doug Perrin & Kathleen Pruitt

3200 Autumn Lane

The 3,827-SF home, built in 2013, appraised for $355,900 in 2014. Perrin/Pruitt paid $70,000 for the 0.73-acre lot in October 2011.

 

  1. 149. Pritchard Family Trust   

3150 Autumn Lane

The 4,145-SF home, built in 2013, appraised for $363,150 in 2014. Terry & Sondra Pritchard paid $70,000 to Oak Tree Associates LLC for the 0.59-acre lot in November 2011.

 

150. William & Margaret Metz

3140 Autumn Lane

Metz purchased the 4,515-SF home, built in 2011, for $586,000 from LDM Homes LLC of Tulsa, Oklahoma, on April 2012. It appraised for $373,750 in 2012. LDM Homes paid $70,000 to Oak Tree Associates LLC for the 0.56-acre lot in March 2011.

 

151. Donald & Jennifer Lavell

3130 Autumn Lane

The 3,680-SF home, built in 2012, appraised for $357,450 in 2013. Lavell paid Oak Tree Associates LLC $70,000 for the 0.58-acre lot in September 2011.

 

152. Jeffrey & Teresa Budd

3120 Autumn Lane

The 4,252-SF home was built in 2014. It appraised for $408,960 in 2015. Budd paid Oak Tree Associates LLC $74,000 for the 0.73-acre lot in July 2013.

 

153. James & Theresa Hufford

631 Tall Oaks Court

Hufford paid Dinero Land LLC of Bentonville $525,000 in August 2012. It appraised for $372,000 in 2012. Dinero Land paid $70,000 for the 0.59-acre lot to Oak Tree Associates LLC in April 2011.

 

154. Matthew Sikes

641 Tall Oaks Court

Sikes paid Tall Oaks Construction LLC of Bentonville $554,000 in April 2014 for the 3,551-SF home, built in 2014. It appraised for $322,801 in 2015. Tall Oaks paid Oak Tree Associates LLC $74,000 in July 2012 for the 0.59-acre lot. 

 

155. Lonnie & Margaret Lamp

651 Tall Oaks Court

Lamp paid Mark Alan Rouse Inc. of Fort Smith $438,000 in November 2011 for the property and Tall Oaks Construction LLC of Bentonville $28,000 in 2013 for an additional 0.03 acres. The property appraised for $318,150 in 2014. Mark Alan Rouse paid Oak Tree Associates LLC $69,667 in March 2011 for the 0.77-acre lot.

 

156. Brian & Sandra Dietrich

661 Tall Oaks Court

Dietrich paid Douglas & Kristen Stewart $620,000 in April 2014 for the 4,285-SF home in 2012. It appraised for $389,650 in 2013. Stewart paid Oak Tree Associates LLC $72,000 in February 2012 for the 0.97-acre lot. Oak Tree Associates paid Coby & Kammie Wooldridge $99,333 for the property in 2011. Woolridge paid $100,000 to Oak Tree Associates in 2009 for the lot.

 

157. Jeremy Neisler

650 Tall Oaks Court

The 3,157-SF home, built in 2012, appraised for $326,200 in 2013. Neisler paid Oak Tree Associates LLC $70,000 in June 2012 for the 0.65-acre lot.

 

158. Russell & Margo Smith

640 Tall Oaks Court

Smith paid Homes of Distinction Inc. of Bentonville $655,000 in August 2014 for the 4,406-SF home, built in 2014. Homes of Distinction paid Oak Tree Associates LLC $74,000 in June 2013 for the 0.49-acre lot.

 

159. Guary & Patricia Morgan

630 Tall Oaks Court

The 4,456-SF home was built in 2014. It appraised for $399,558 in 2015. Morgan paid Oak Tree Associates LLC $70,000 for the 0.58-acre lot in August 2011.

 

160. Heiko & Cynthia Schafer

620 Tall Oaks Court

Schafer paid LDM Homes LLC of Tulsa, Oklahoma, $582,000 in July 2012. It appraised for $376,100 in 2013. LDM Homes paid Oak Tree Associates LLC $70,000 in July 2011 for the 0.61-acre lot.

 

161. George & Michelle Cooper

610 Tall Oaks Court

Cooper paid LDM Homes LLC of Tulsa, Oklahoma, $597,000 in December 2010 for the 4,961-SF home built in 2010. It appraised for $424,650 in 2011. LDM Homes paid $79,000 to Oak Tree Associates LLC for the 0.59-acre lot.

 

162. Michael Inclema

600 Tall Oaks Court

The 4,257-SF home was built in 2014. Inclema paid Homes of Distinction Inc. of Bentonville $601,000 in August 2014. It appraised for $381,262 in 2015. Homes of Distinction paid Oak Tree Associates LLC $74,000 in December 2013 for the 0.61-acre lot.