Fayetteville developer sets eyes on downtown Bentonville land

Fayetteville developer Specialized Real Estate Group has identified a site near downtown Bentonville for its first Benton County project.

A company spokeswoman said SREG is in the planning phase of a mixed-use development on Southeast Second Street, just east of the downtown square.

According to real estate records, Spurgeon LLC closed three separate purchases for $1.79 million, assembling four parcels totaling 1.34 acres. Spurgeon is led by Springdale businessman Tom Lundstrum, one of SREG’s capital partners on the project.

First Security Bank of Searcy backed the deal with a one-year loan of $1.30 million.

“This property is right in our wheelhouse,” said Sarah King, marketing and community outreach director for SREG. “And we’re really excited to be working with a like-minded investor like Tom on the project. He cares about Northwest Arkansas, and he cares about downtowns.”

King noted the site’s proximity to the Razorback Regional Greenway, which fits into SREG’s penchant for developing pedestrian-friendly, trailside apartment communities.

The most recent example, albeit on a much larger scale, is Uptown Fayetteville Apartments+Shops, a 14-acre development across from Malco Razorback Cinema in Fayetteville. The first phase of the project has opened, and the entire development will be open by summer. It features around 300 apartments and around 17,000 square feet of commercial space as well as a public art program, a green roof outdoor lounge and a community garden with farmer-in-residence.

“We specialize in walkable, downtown and trailside developments, and this property adjoins parkland and the Razorback Greenway where it crosses Central Avenue — a gem of a location right off the Bentonville square,” King said.

The Bentonville site includes two older residential structures that will be razed to make way for the new development. King said there is no timetable for the project, but SREG is taking inquiries from potential commercial tenants.