Real Deals: Uptown Fayetteville sheds residential units for $55.6 million

The residential units of a mixed-use development in Fayetteville recently sold for $55.6 million. Houston-based Sun Holdings Group, a real estate investment and management company in the apartment, hospitality and commercial retail sectors, bought 308 units in the Uptown Fayetteville Apartments + Shops development at 3959 N. Steele Blvd.

The purchase price equals $180,520 per unit.

The seller was a limited liability company controlled by the developer — Specialized Real Estate Group (SREG) of Fayetteville — and The Carlyle Group, a publicly traded, private equity powerhouse based in Washington, D.C. The LLC paid $3.25 million for the land in November 2015. The occupancy rate was approximately 95% at the time of the sale.

The approximately 17,000 square feet of retail space at Uptown Fayetteville remains under the holdings of a partnership managed by SREG. The first building in the 14-acre development at the southwest corner of Joyce and Steele boulevards, across from Malco Razorback Cinema and Academy Sports + Outdoors, opened in December 2016.

Modus Studio of Fayetteville designed the pedestrian friendly community, which also has a public art program, a green roof outdoor lounge, co-working space, a strength and cardio studio and a community garden with farmer-in-residence. The apartments are LEED and Energy Star Certified, and the development is adjacent to the Razorback Regional Greenway.

The apartments will be managed by SYNC Residential, the multifamily operating arm of Sun Holdings.

Office Renovation
Little Rock-based commercial real estate firm Newmark Moses Tucker Partners is investing $3 million to redevelop a vacant warehouse building in downtown Bentonville into a Class A office building.

A limited liability company led by Jeff Snyder purchased the 12,518-square-foot building at the southeast corner of 10th and Main streets for $1 million. The Bentonville School District was the seller. Arvest Bank of Fayetteville provided financing with an 11-year, $2.7 million loan. City Title & Closing of Fayetteville was the title agent.

Snyder became a managing director at Newmark Moses Tucker last year as a result of the merger between Newmark Grubb Arkansas and Moses Tucker Real Estate. He said about 36% of the building is preleased. Snyder and Paul Esterer, president of Newmark Moses Tucker Partners’ Northwest Arkansas division, are leading the development and leasing.

Red 5 Construction of Bentonville is leading the renovation work. Nielsen Architects of Bentonville is handling the design work. The project is expected to be completed by summer 2019.

Metro Sale
A vacant commercial development along U.S. Highway 71B in Bethel Heights changed hands for $2.5 million. The selling price equals $43.51 per square foot.

KKJ Wholesale LLC of Springfield, Mo., bought the former Metro Appliance & More property at 5700-5760 N. Thompson St. Metro Builders Supply Inc. of Tulsa, Okla., was the seller. Realty Title & Services LLC of Rogers was the title agent. Roger Reithemeyer with NAI Capstone of Rogers represented both buyer and seller. The property had an asking price of $3.4 million.

The 3.34-acre development was built in 2000 and appraised in 2017 for $2.72 million. It includes office space/retail showroom (10,590 square feet) and warehouse (46,859 square feet) space.

The property will be reconfigured to house the new location of Johnstone Supply Distribution Co., currently at 3920 Cawood Lane in Springdale. Johnstone is a member-owned wholesaler and distributor of heating, ventilation, air conditioning and refrigeration equipment serving more than 400 independently owned member stores in the U.S. and Canada.

KKJ is managed by two brothers and their sister in Springfield who own 11 Johnstone locations. Sean McWilliams, who heads up the Springdale store and is regional sales manager for Arkansas and Louisiana, said the Bethel Heights store should be ready for move-in by November.

Commercial Land
Commercial land along Southwest Regional Airport Boulevard in Bentonville tipped the scales at $1.17 million.

BSH Storage Bentonville, a Colorado limited liability company, bought the 5.77-acre lot from Southern Bancorp Bank. The purchase price equals $4.67 per square foot. City Title & Closing of Fayetteville was the title agent.

The property is situated between Southwest F and Southwest Crockett streets, south of the boulevard.

Restaurant Reshuffle
A popular Siloam Springs restaurant has reorganized under new ownership in a deal worth $920,000. 28 Springs at 100 E. University St. is now owned by 28 Springs LLC. It was previously owned by East Chop Properties LLC.

The business and real estate are still owned by members of the Simmons family, who opened the restaurant in 2012.

“The Simmons family periodically conducts a review of their holdings and recently made the decision to operate the restaurant under 28 Springs LLC,” according to owner Todd Simmons, CEO of Siloam Springs-based Simmons Foods. “The business was moved within holdings owned and operated by the family.”

Tontitown Development
A Missouri real estate developer has acquired a vacant convenience store development in Tontitown for $835,000.

The Rhodes Group, a family-owned company in Cape Girardeau, Mo., that specializes in real estate development, bought the former Valero property at 935 E. Henri De Tonti Blvd. The 1.27-acre site is at the southwest corner of the highways 412 and 112 intersection. The property is zoned commercial and includes a 3,150-square-foot building.

The sellers were Mid Corp Investments LLC (50% interest), managed by Mark Middleton; M&B Holdings LLC (25%), directed by Mark McCaslin; and C.D. Limited Partnership (25%), which lists Clyde McCaslin as a general partner. First National Title Co. in Fayetteville was the title agent. The property last sold in December 2017 for $605,500.
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