$30 Million Mixed-Use Project Targets Millennials, Retail Hub

A $30 million mixed-use development at Steele and Joyce boulevards in Fayetteville will bring a little downtown to uptown when it’s completed in spring 2017.

Uptown Fayetteville will include 17,000 SF of commercial space for restaurants and shops and 308 luxury apartments.

Specialized Real Estate Group of Fayetteville is the developer of the 14-acre project. Construction is in parts either on schedule or ahead of schedule, said Corey Runnells, vice president of SREG. Some apartments will open this fall.

“Uptown is creating a sense of place and destination,” Runnells said.

The developer focuses on residential infill — primarily in downtown Fayetteville — such as student-housing projects Sterling Frisco and The Cardinal at West Center, and a 96-unit multifamily development, Eco Modern Flats. Smaller commercial projects include properties at 15 N. Church Ave. and 200 W. Center St.

Uptown will fill a void of good-quality housing in the area, Runnells said.

Infill projects not only breathe new life into dilapidated buildings in downtowns but also into land where infrastructure is in place and the surrounding area is largely developed.

The latter applies to Uptown. Utilities, roads and a trail are already in place in the retail heavy area, which often isn’t the case in new suburban developments.

Uptown will connect to the existing trail at the south end of the project. A private trail will lead pedestrians into the development and to a courtyard with a fountain, tables and chairs.

 

Urban Feel

SREG chose the site because of its proximity to the trail system, said Jeremy Hudson, a principal with the company and its chief executive officer.

It’s also not as expensive to build there as it is in downtown.

The Uptown project will bring a downtown feel with its close proximity of commercial and residential spaces.

“We have absolutely brought more of an urban feel,” Hudson said.

It will be the first true mixed-use apartment community in Northwest Arkansas that integrates restaurants and retail, he said. Its residents can live a “walkable, bikeable lifestyle.”

Because of the closeness to trails, residents who work at Washington Regional Medical Center could ride a bicycle there more quickly than drive, Runnells said.

“Once they’re home, they don’t have to get in a car,” Hudson said.

They can walk to a nearby restaurant for dinner and cross the street for a movie.

While it’s a pedestrian-friendly community, people can still drive there. It will include over 500 parking spaces.

Steele Boulevard will be changed to allow for parallel parking in front of the development, Runnells said. The intersection with the traffic signal that’s west of Razorback Cinema and Academy Sports will be rebuilt as a vehicle entrance.

Traffic will flow through a porte-cochere, or large covered entrance, that leads to parking behind a five-story building.

 

Mixed Use

Commercial space will be on the first floor of the five-story building at the center of the development.

An anchor restaurant, two smaller eateries and retail shops are planned, Runnells said.

“We’ve talked to chef-driven restaurants,” said Alan Cole, principal and executive vice president for Colliers International. A coffee business, fitness center, bicycle shop and an outdoor apparel company have expressed interest.

Cole will lease the commercial space for $27 per square foot.

“We’ve had a lot of interest in the project,” he said. “Nothing like this has been done in Northwest Arkansas to this degree.”

Tenants will be announced in late summer or fall.

Then, they can start to build out the restaurants and shops.

Cole and the developer have not pushed the commercial leasing because they wanted to wait until the project is closer to completion, so tenants would have a better idea of what they will be leasing.

“It’s very early on in the process,” Cole said. He and the developer want to be “very, very thoughtful about the mix. It’s not just your standard, run-of-the-mill strip center.”

Cole became involved in the project more than a year ago when it was still in the conceptual stage. He provided insight into how the space should be designed.

“I love retail real estate,” he said. “I live and breathe it every single day.”

He was excited to team up with SREG and be part of a trend-setting development.

Features, quality of design, aesthetics, thoughtfully-planned parking and its location all make Uptown unique. “They’re in the best area for shopping,” Cole said. “In real estate, it always goes back to location.”

Cole expects its success will drive additional developments.

“I’m confident in the project,” he said. It will offer convenience to its residents as they can live, work and shop in close proximity.

Seth Mims, partner and president of SREG, said the project’s target market is millennials.

“Millennials want mixed use,” Mims said. “They want to be able to go downstairs and get coffee and a bagel — or beer.”

 

Modern Look

Modus Studio of Fayetteville is the architect, and Golden Construction of Birmingham, Alabama, is the general contractor for the 340,000-SF development.

Hudson described SREG’s look or style as combining modern architecture and minimalism and an access to nature.

Uptown will be adjacent to a trail and Mud Creek and offer views of nature from private balconies, patios and roof decks throughout the development.

Apartments will be included on the top four floors of the five-story building and in six three-story buildings surrounding it.

“It is a class-A luxury, high-end apartment building,” Hudson said.

SREG’s projects are known for their energy efficiency and have earned certifications from LEED and Energy Star, and this project will be no exception.

Hudson expects it will receive LEED’s silver certification.

In November 2015, three groups purchased the land on which Uptown is being built for $3.25 million. Construction started in the same month.

The three groups are the developer, investment partner Rob Kimbel, formerly the owner of Kimbel Mechanical Systems Inc. of Springdale, and The Carlyle Group, a publicly traded, private equity powerhouse based in Washington, D.C.

Before partnering with Carlyle, the developer was seeking a capital partner, and the search for the right one led to Carlyle. Its backing was not only big news for the developer but also for Northwest Arkansas.

Hudson said landing Carlyle, “started with a phone call.” Its staff visited the site, and things progressed from there.

Partnering with Kimbel was a logical choice, Hudson said. “We’ve known Rob for many years.” His former company, which he sold to two employees earlier this year, has been a key subcontractor on previous projects.

While the developer’s next commercial project has not been determined, it continues to seek new opportunities, Hudson said. Its focus is on residential projects, but the need for commercial space might present itself. It’s something the company will evaluate when the time comes.