A $6.5 million land acquisition in Rogers could pave the way for a large-scale multifamily development in the growing Pinnacle Hills area west of Interstate 49.
The Pauline Whitaker family, through its Whitwheel Properties LLC, sold approximately 74 acres west of the intersection of West Pleasant Grove Road and South Pinnacle Hills Parkway.
The all-cash deal closed June 12, according to Benton County real estate records. The purchase equals $2.02 per square foot.
The new owners are Lance Beaty of Fort Smith and Keith Richardson of North Little Rock. The purchase resulted in Richardson owning 65 acres on the south side of West Pleasant Grove Road. Beaty, through his Beaty Family LP, owns nine acres on the north side of the road.
Richardson is a commercial real estate developer. His company, Richardson Properties of North Little Rock, has developed several multifamily properties throughout the state under the “Pointe” brand. That includes The Pointe at Bentonville near the intersection of I Street and Southwest Regional Airport Boulevard. The 170-unit development opened in 2016.
In 2019, Richardson Properties sold River Pointe Apartments in North Little Rock to a Connecticut private equity investment company for $40 million, according to Pulaski County property records.
“We are pleased with the way the transaction worked out,” Beaty said in a statement. “Though still in conceptual development, I believe the development Richardson has planned for the southern tract of the property will be a great enhancement to the Pinnacle Hills area.”
According to data from CoStar Group, which provides commercial real estate information, Northwest Arkansas’ multifamily market grew at the fastest rate in the nation in 2019. The region added nearly 2,000 apartment units last year, growth that represents a roughly 7% increase as a share of the current inventory. No other metro surpassed 5%.
Beaty is president of Beaty Capital Group Inc., a privately held Fort Smith-based investment group primarily focused on real estate investments. He said he is exploring several development concepts for the nine acres north of West Pleasant Grove Road.
“We will be patient and see how things progress along the Pleasant Grove Road corridor [west] toward Highway 112,” he said.
Beaty Family LP, through a separate affiliate, rezoned the entire 74 acres to C-3 in April this year.
Tim Moldenhauer of RE/MAX Associates in Fayetteville represented Whitwheel Properties LLC in the land acquisition. Clinton Bennett of Bennett Commercial Real Estate in Rogers and the Kutak Rock law firm in Fayetteville represented Beaty Family LP.
Paul Esterer of Newmark Moses Tucker Partners in Bentonville and the law firm of Friday, Eldredge & Clark in Rogers represented Richardson.
City Title, Lenders Title Co. and Pulaski County Abstract were all involved in the closing.