Inn at the Mill, James at the Mill sold for $4.2 million

The Inn at the Mill and its companion restaurant, James at the Mill, have been sold for $4.2 million.

The 4.7-acre property at 3906 Johnson Mill Blvd. in Johnson, which includes the historic Johnson Mill, was acquired by Johnson Mill Ventures LLC, a partnership of Jesse Burkes and John Stewart.

According to Washington County real estate records, First State Bank in Fayetteville funded the purchase with a 23-year mortgage of $4.22 million.

Burkes, who has been associated with the property for nearly 20 years and has been general manager of the hotel since 2010, said the 9,890-square-foot restaurant has been closed. The space will be converted to 16 hotel suites — adding to the existing inventory of the 46-room inn — and meeting space.

The renovation project will begin soon, Burkes said.

“It will take about six months to complete and we hope to have the new suites open just after the first of the year,” Burkes said. “We certainly want to be ready to rock and roll by the time the spring season is here.”

Burkes said the inn will operate “business as usual” during the restaurant renovation. He said the property annually runs at about 77% occupancy, and he hopes to grow that number with the additional units.

The hotel has 16 full-time employees and all of them have been retained, Burkes said.

“Truly, one of the biggest assets we got in the deal is the staff, and that’s really important to me,” Burkes said. “We have a very well-seasoned and long-term staff, and the average tenure from the front desk through the housekeeping staff is pushing 18 years.”

SMOOTH TRANSITION
The property was put on the market in the summer of 2015 by its previous owner, chef Miles James and his wife, Courtney.

At the time, James said he was ready to embrace the entrepreneurial side of the hospitality business, which meant creating a new company — Miles James Hospitality — new partnerships, and opening new eateries.

Two years later, he’s at peace with the decision to close the Inn at the Mill/James at the Mill chapter of his professional career.

“Everything in business is just that — it’s business,” he said. “We’ve been wanting to sell for quite some time and it worked out great. It’s a smooth transition and Jesse and his partners are going to do really well.

“We’d really like to thank the patrons we’ve had the last 23 years, and all of our staff,” he added.

While James was the public face of the mill property, its rebirth as an inn and restaurant is credited to James’ father-in-law, architect James Lambeth.

Washington County real estate records show that Lambeth Inc. purchased the property for $135,000 in 1990, when the mill, reconstructed in 1865, was in disrepair.

Lambeth designed the inn, built in 1991 around the historic structure, and in 1994, in partnership with James, added the restaurant.

In 2012, James opened 28 Springs in downtown Siloam Springs, and in 2003, he was part of a group that launched Ella’s at the Inn at Carnall Hall on the University of Arkansas campus. James is no longer involved with either restaurant.

James, honed his craft at the New England Culinary Institute in Montpellier, Vt., as well as in the gastronomic capitals of Paris, Manhattan, and Florence, Italy, opened MJ Pizzeria in Springdale in July 2015. He’s planning to open another location in Fayetteville next year. Construction on the restaurant, across from the Botanical Garden of the Ozarks on Highway 265, should start before the end of the year. NAPA Construction will lead the project.

“I’m excited about focusing 100% of my time on developing MJ Pizzeria and other projects,” James said. “MJ has done so well now for the last two years, and this will be a great opportunity for us.”

POSITIVE FOR THE COMMUNITY
Ward Davis, a founding principal of High Street Real Estate and Development, is leading development of a $200 million mixed-use project in Johnson called Johnson Square, just a few hundred yards east of the inn along Johnson Mill Boulevard.

He said with the exception of losing the restaurant, the sale of the property is a positive for the community.

“It’s the end of an era for what was, for the longest time, the finest restaurant in Northwest Arkansas,” Davis said. “It was nice having a white-tablecloth restaurant just right down the street.

“But it’s a wonderful thing for Johnson, and I am glad the inn is going to stay open. There will be some continuity in leadership. I know Miles is excited to be freed up to do some other things, and it also allows Jesse the chance to further his career with the business.”