Real Deals: Bentonville’s Executive Center changes hands for $6 million

by Paul Gatling ([email protected]) 2,576 views 

A 52,361-square-foot office building in Bentonville has a new owner after a sale worth $6 million. The purchase price equals $114.58 per square foot.

Desert Crest LLC, a California-based real estate holding company, now owns the two-story Executive Center at 1116 S. Walton Blvd. Executive Center II LLC, the property’s original developer and managed by John T. Hampton and Phillip E. Lee, was the seller.

Generations Bank of Rogers financed the deal with a $3.85 million loan. First National Title Co. in Bentonville was the title agent. Grady Mathews with Cushman & Wakefield/Sage Partners in Rogers was the listing agent.

The building was built in 2004 and appraised in 2018 for $4.9 million. Sage Partners will continue as the property’s leasing firm. The building’s occupancy rate was 65% at the time of the sale.

Desert Crest has multifamily and commercial office holdings in Arkansas, Oklahoma and California, including a 40-unit condo development in Rogers, Coventry Meadows.

HEALTHCARE EXPANSION
Jonesboro Prosthetic & Orthotic Laboratory (JP&O), through its Chordline LLC, recently picked up a 10-year, $2.76 million construction mortgage arranged by Little Rock-based Encore Bank.

The loan is backing the construction of a Class A medical/office development east of Interstate 49 in Rogers along South Dixieland Road. JP&O, led by president and CEO Rob Yates, recently bought the 2-acre lot from Whisinvest Realty of Little Rock. The land is at the intersection with South Pleasant Crossing Boulevard south of Everest Rehabilitation Hospital.

Haag Brown Development, led by Greg Haag and Joshua Brown, brokered the deal and are the developers.

JP&O, which has offices eight offices and 20 clinics in northern Arkansas and southern Missouri, will anchor the two-building development (4,023 and 8,051 square feet), joined by a landscaped courtyard. JP&O will occupy approximately half of the larger building. The remaining space is available for lease through Haag Brown.

“We carefully selected this location to be convenient and accessible to our patients and our numerous partners in the region collaborating to manage their care,” Yates said. “The area should become a magnet for the collaborative treatment of those living with amputation, physical disabilities or functional mobility needs.”

Stonebridge Construction of Jonesboro is the general contractor. Construction is scheduled to start in March.

EDUCATION PROJECT
Dave Burris Architecture of Bentonville recently paid the city of Bentonville for a building permit valued at $2.4 million.

The permit is being used to build a 10,000-square-foot educational facility at 3703 S.W. H St.

C.R. Crawford Construction of Fayetteville is the general contractor. Southern Bancorp is providing financing. The Goddard School, a Pennsylvania-based preschool franchise, is the tenant. Travis and Leila Burkert are the franchisees. The Burkerts own the land and will own the building.

The Goddard School in Bentonville will serve about 140 children ages 6 weeks to 6 years old and will have approximately 20 faculty and staff. It is expected to open in the fall.

GREEN CIRCLE ACQUISITION
A recent 2.1-acre commercial sale in Bentonville tipped the scales at $2.1 million.

Lone Projects LLC, managed by Matt O’Reilly, bought the property at the southwest corner of Arkansas Highway 102 and I Street. The Rone Family Trust, led by Don and Monica Rone, was the seller.

Waco Title Co. of Springdale was the title agent. Matt Rateliff with United Country Real Estate/Rateliff Lifestyle Properties in Bentonville was the listing agent. Ramsay Ball with Cignus Real Estate in Bentonville represented the buyer.

O’Reilly is the developer behind Springfield, Mo.-based Green Circle Projects, a development and property management company. Green Circle has developed two Bentonville projects: an agrihood/urban farm along Northwest A Street called Red Barn, and Crystal Flats, a mixed-use residential project between Crystal Bridges Museum of American Art and Memorial Park.

The property includes a 3,600-square-foot building leased to Midwest Equipment, a Massey Ferguson equipment dealer with additional locations in Green Forest and Harrison. Justin and Jennifer Wilson are the owners.

DOWNTOWN RESIDENCE
A 2,993-square-foot residence near downtown Bentonville changed hands recently for $925,000.

NWA Holdings LLC, a Delaware-registered company, bought the two-story home on Northeast Second Street. The purchase price equals $309.05 per square foot. Joe and Carol Featherston were the sellers.

Waco Title Co. was the title agent. Jan Holland with Coldwell Banker Harris McHaney Faucette in Bentonville facilitated the deal.

Featherston paid $30,000 for the 0.5-acre lot in 2013, and the home was built in 2014.

McNELLY ROAD HOME
A 16.3-acre residential property in Pea Ridge came off the market in a $700,000 deal.

David and Jessica Hillman bought the 2,440-square-foot log home on East McNelly Road. Mark and Kim Laster were the sellers.

Cornerstone Home Lending of Texas backed the deal with a 30-year loan of $548,250. Waco Title Co. of Springdale was the title agent.

The home was built in 2005. Laster paid $85,000 for 8.5 acres in October 2003. The additional 7.8-acre tract was acquired in 2011 for $51,000.

LEASE ACTIVITY
Cajun Fort Smith LLC, managed by Caiye Chen, recently signed a five-year lease to occupy an 11,775-square-foot building at 6201 Rogers Ave. in Fort Smith.

Cajun Fort Smith is a franchisee for Hook & Reel, a Cajun seafood restaurant chain based in Queens, N.Y. After an extensive building remodel, Hook & Reel will establish its first Arkansas location. An opening date is expected in the second quarter of 2021.

Jim Nunnelee and Damon Wright of Nunnelee & Wright Commercial Properties in Fort Smith brokered the lease agreement. Widmer Place LLC, managed by Bennie Westphal, is the building owner. Logan’s Roadhouse was the previous tenant.

Hook & Reel, founded in 2015, has multiple locations in more than 20 states.

Real Deals submissions: Submit tips about lease activity, construction, transactions or upcoming projects valued at $300,000 or more to Paul Gatling at [email protected]. Please write ‘Real Deals’ in the subject line.

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