Sitton Group Planning 300,000-SF Development in Pleasant Crossing

A former real estate director for Wal-Mart Stores Inc. has opened his own commercial real estate development company in Northwest Arkansas, and has a notable project already in the pipeline.

Matt Sitton, a senior director with Walmart from 2002 to 2012, started the Sitton Group earlier this year, and recently closed on a $4.3 million land purchase in the Pleasant Crossing retail area of Rogers.

Through his PCPC1 LLC, Sitton purchased four tracts totaling 30.48 acres. The deal was finalized April 20.

Sitton said dirt work has already begun on Phase I of Pleasant Crossing Commons development, a 60,000-SF building next to Ashley Furniture Home Store that will house Burlington Coat Factory. Concurrent with Sitton’s land purchase, Burlington entered into a 15-year lease agreement to be the tenant.

Sitton said First Security Bank of Searcy is financing the construction, C.R. Crawford of Fayetteville is the general contractor and Nielsen Architecture of Bentonville is the designer.

Phase I plans also include an additional 68,500 SF, to be occupied by multiple undisclosed tenants. Phase II of development, south of Ashley Furniture, will bring an additional 170,000 SF of commercial/retail space.

Commercial real estate broker Randy Crossno of Capstone Commercial Advisors in Rogers is marketing the property.

“Tenants who are in growth mode have recognized Northwest Arkansas and the strength of the market here,” Sitton said. “We have three or four tenants who are nearing the [letter of intent] phase.”

Sitton bought the land from ABREHD LLC, a subsidiary of Fayetteville-chartered Arvest Bank that holds foreclosed real estate.

The land had been the subject a declaratory judgement suit filed in March by Arvest against Texas-based arts and crafts retail chain Michaels Stores Inc., which was putting a cloud on the title.

According to the original complaint, the bank executed a $10 million mortgage in July 2005 with a development group planning to construct a 315,000-SF shopping center. Michaels entered into a lease agreement with the developer in February 2006, but the project never got off the ground and Arvest took ownership of the property in December 2010.

Judge Doug Schrantz, however, ordered the complaint be dismissed on April 7 after the two sides resolved their issue, clearing the way for the land deal to be completed.