A collection of nine industrial buildings in Bentonville totaling 233,000 square feet are under new ownership after a recent sale worth $25.1 million.
In a deal that closed last week, a partnership formed by Colby Capital Real Estate Development of Overland Park, Kansas, acquired the properties at 1211 S.E. 28th St., 2501-2503 S.E. J St., 2700-2702 S.E. Otis Corley Drive, 2701-2703 S.E. Otis Corley Drive and 2704 S.E. Otis Corley Drive.
Eight of the properties are office buildings. The ninth is an office/warehouse mix. The purchase equals $107.72 per square foot
The Kansas investors were all coming out of a 1031 exchange, said Tyler Oliver, principal of Colby Capital. The buildings were previously owned by entities controlled by Rogers developer Dean Eisma.
“We are hoping this leads to other opportunities in the area,” Oliver said. “Northwest Arkansas is growing like crazy. It’s not far from Kansas City so it’s an easy little trek down there to look at stuff.”
The acquisition was supported by a 10-year, $11.36 million mortgage arranged through Kelly Carlson at Fayetteville-chartered Arvest Bank.
T.J. Lefler represented the buyer and Marshall Saviers represented the seller. Both are with commercial real estate company Sage Partners, which will assume property management and leasing of all nine buildings.
“This is a good deal for Northwest Arkansas,” Lefler said. “These are out-of-state investors who have bought into the growth here and they trust this area. We’re pleased to be a part of these properties going forward.”
Oliver, who founded Colby Capital LLC three years ago, said the combined occupancy rate of the Bentonville buildings is around 95%. They are filled by multiple tenants, primarily from the vendor/supplier community.
“It’s well located real estate that has been exceptionally well maintained,” he said.