$18M Mortgage Begins Bentonville Development

The Pointe at Bentonville LLC, an entity controlled by RichSmith Development LLC of Maumelle, recently picked up a construction mortgage from Stearns Bank NA of St. Cloud, Minnesota, for $18.04 million.

The mortgage is tied to a 10.99-acre lot in the Limestone Ranch addition of southwest Bentonville.

The undeveloped property is on Southwest Ranch Road, southeast of the intersection of Arkansas Highways 12 and 112.

RichSmith, led by Keith Richardson and Arby Smith, recently bought the lot for $813,831. Bentonville 12 LP, led by Jim Williams Jr., was the seller.

The site will be developed as Phase I of The Pointe at Bentonville, which will ultimately include 19 two- and three-story apartment buildings containing 452 units. The development will also include a picnic area, dog park and an 11,000-SF, three-story clubhouse.

 

Duplex Deal

Nineteen rental properties in the Residences at City West neighborhood of Centerton recently sold for $3 million, an average of $157,894 per unit.

Davis Premier Rentals LLC of Springfield, Missouri, led by Brian Davis, bought the two-unit duplexes on Meadowlands Drive.

Trinity Development Group LLC of Fort Smith, led by John Baxter and Cliff Cabaness, was the seller.

Arvest Bank of Fayetteville financed the deal with a 20-year mortgage of $3.02 million.

Waco Title Co. of Springdale was the title agent.

Joseph Hayes & Associates with Keller Williams Market Pro Realty in Bentonville had the listing at $3.19 million.

Trinity bought the 19 lots in August 2012 for $152,000. DTS Custom Homes LLC, led by Thomas H. Sims, was the seller.

The duplexes were built in 2013. Features of the 1,250-SF units include three bedrooms, two bathrooms and a one-car garage.

The occupancy at the time of the sale was 97 percent.

 

Quality Ownership

A bank-owned economy hotel in Fayetteville near Interstate 49 recently sold for $1.98 million.

Kalpesh Gandhi of Springdale, president of Jai Jalaram Hospitality Inc., bought the 60-room Quality Inn at 735 S. Shiloh Drive.

First Security Bank of Searcy was the seller.

The purchase was financed by Batesville-chartered Citizens Bank with a five-year mortgage of $1.96 million.

Realty Title & Closing Services LLC of Springdale was the title agent.

First Security Bank took ownership of the 1.75-acre development in May 2013. The property was previously tied to a November 2007 mortgage of $3.14 million held by FSB.

Grewal Properties LLC, led by John Singh, was the previous owner, acquiring the property in November 2007 for $3.7 million.

The two-story building was built in 1995.

 

School Site

Two new schools are in the works after a southwest Bentonville land deal worth $1.3 million.

The Bentonville School District acquired two tracts totaling 47.74 acres from Cynthia Coughlin, trustee of The Coughlin Family Revocable Living Trust.

City Title & Closing LLC of Fayetteville was the title agent.

The district purchased 37.74 acres. Coughlin donated the remaining 10 acres. The location is along Southwest Featherston Road and the planned Southwest 28th Street extension. The district will develop the site to include an elementary school, and later a middle school.

The elementary school is expected to open in the fall of 2017. The middle school timeline has not been announced.

The acquired land is adjacent to 26 acres that was donated by the Coughlin Trust to the city of Bentonville for a city park.

 

Scholarly Sale

A 50-unit multifamily property on Wedington Drive east of Interstate 49 recently sold for $957,000.

WERP LLC of Fayetteville, led by John Cloyed, acquired the Scholars Inn & Village apartments at 2610 W. Wedington Drive.

WEP LLC, led by William Matthew Young, was the seller.

Centennial Bank in Fayetteville provided financing.

The 1.74-acre development includes four single-story buildings and was built in 1968.

Young, through his Rose, Young and Associates LLC, acquired the development in March 2006 for $1 million. Scholar’s Inn LLC, led by Tracy Stephens, was the seller.

 

Office/Warehouse Sale

A bank-owned office building (2,628 SF) and warehouse (15,080 SF) in Rogers recently sold to an out-of-state wire and cabling company for $750,000.

Wiggins Inc. of Montgomery, Alabama, led by Jay Wiggins, bought the 1.95-acre development at 402 W. Hudson Road. The company has a branch office in Rogers and is planning to expand local operations.

Community First Bank of Harrison was the seller.

Waco Title Co. of Springdale was the title agent.

Lee Kissinger with Keller Williams Market Pro Realty in Bentonville had the listing at $895,000.

Jeff Kemp with Commercial Realty LLC in Fayetteville represented the buyer.

Both buildings are vacant and were built in 2006. The property was appraised in 2011 for $1.2 million.

The bank took ownership in July 2010.

Louis and Terry Ann Eagle, owners of General Heating & Air Conditioning Inc., were the previous owners, acquiring the property in May 2007 for $1.1 million. Burnett Office Warehouse LLC, led by Charles W. Burnett was the seller.

Burnett paid $170,000 for the land in April 2002. His company, Burnett Construction of Rogers, built the facility.

 

Berkley Building

A 10,250-SF retail/office center in northwest Bentonville has a new owner after a sale worth $600,000.

Robert C. Norman and Lawrence Duane Rhodes, through their NorRho LLC, bought The Berkley Shoppes development at 3201 N.E. 11th St., near the intersection of Arkansas Highway 72 and Interstate 49.

Perry Management LP, led by Jerry Joe Perry, was the seller.

Citizens Bank of Batesville helped finance the deal with a one-year loan of $155,000.

Amy Mills with Steve Fineberg & Associates Inc. of Bentonville had the listing at $650,000.

Daniel Hawes with Landmark Real Estate & Investment LLC of Fayetteville represented the buyer.

Capital Abstract & Title Co. LLC of Fayetteville was the title agent.

The single-story development on 1.05 acres was built in 2004 and was 28 percent occupied at the time of sale. The remaining space has since been leased to two tenants. It appraised in 2014 for $1.02 million.

 

Southern Hills Activity

Construction is scheduled to begin in June on a new office building in the Southern Hills Business Park at the northwest exit ramp of Interstate 49 and Pleasant Grove Road in Rogers.

An entity controlled by John Craig Construction of Rogers recently paid $206,000 for a 1.12-acre lot at 5300 S. Southern Hills Court, and is proceeding with a multi-tenant office complex for professional services. Leaseholders were not disclosed, but the building will be in the range of 5,000 SF to 8,000 SF.