Real Deals: Towne Park at Har-Ber in Springdale sells for $31.7 million

by Paul Gatling ([email protected]) 2,237 views 

A 237-unit multifamily asset in Springdale changed hands recently for $31.7 million. The purchase price equals $133,755 per unit.

TB Towne Park LLC, owned by Kansas City, Mo.-based Block Multifamily Services, bought the Towne Park at Har-Ber Apartments west of Interstate 49. The development is east of the U.S. Highway 412/Arkansas Highway 112 intersection.

BSR Real Estate Investment Trust, a publicly traded multifamily management company based in Little Rock, was the seller. BSR paid $28.9 million for the development in October 2018. It includes 28 buildings and is comprised of one-, two- and three-bedroom apartments and townhomes. The average unit size is 1,024 square feet, and the property’s occupancy rate at the time of the sale was 98%.

TB Towne Park assumed $18.8 million of mortgage debt with a 4.5% fixed interest rate, maturing in 10 years, leaving net cash proceeds to BSR of $12.3 million.

CLASS B CLAIMS
Two investor groups purchased two Class B office/retail centers in Benton County for a combined $2.72 million.

Gray Horse LLC paid The Calix Family Trust $1.35 million for the 10,040-square-foot North Walton Shoppes at 400 N. Walton Blvd. in Bentonville. The purchase price equals $134.46 per square foot. The single-story building is 89% occupied.

Warrington LLC paid Betty Reeves $1.37 million for the 15,000-square-foot 2nd Street Shoppes at 2511 N. Second St. in Rogers. The purchase price equals $91.66 per square foot. The single-story property is a redevelopment project.

Steven Lane and Tom Rystrom of commercial real estate development firm Colliers International in Rogers represented investment group buyers in both transactions. Rystrom organized both LLCs. City Title & Closing of Fayetteville was the title agent in both deals.

Both properties will be neighborhood-focused destinations with service, restaurant, fitness and office/medical use tenants. Each property is expected to undergo minor exterior architectural renovations, led by Bentonville architect Dave Burris. Construction is expected to begin soon.

“Colliers saw a unique opportunity for some of our investor clients to participate in the ownership of these two retail centers,” Lane said. “We are now working to reposition them within their respective areas and expect to see an uptick in activity due to the exponential growth happening in each submarket. We’re excited to work with both the clients and the architect on these projects.”

Colliers will lease and manage both properties.

ELM SPRINGS RETAIL
New commercial construction near Interstate 49 in Springdale changed hands recently for $2.56 million.

National Retail Properties of Orlando, Fla., a real estate investment trust (REIT), bought the 4,042-square-foot retail building at 881 Oak Grove Road, at the Elm Springs Road intersection. The purchase price equals $633.42 per square foot. Frisco, Texas-based Guggenheim Real Estate Partners, through its JL Springdale 1357 LLC, was the seller.

Houston-based Jiffy Lube is the freestanding building’s tenant on a 15-year triple-net (NNN) lease. The business opened in July 2020.

JL Springdale paid Keith and Erin Hunter $400,000 for the 0.81-acre residential lot in December 2019. The purchase price equaled $11.34 per square foot.

J STREET LAND
A 10-acre property near Bentonville High School sold recently for $1.8 million.

Bentonville P&R Fund LLC, an affiliated company of the Walton family, bought the property at 1603 S.E. J St., north of the high school near the intersection with Arkansas Highway 102. Charlotte and Curtis Caldwell were the sellers.

Bentonville P&R Fund is registered in Delaware and is using the same Bentonville mailing address — P.O. Box 1860 — as that of Walton Enterprises Inc., the holding company owned by heirs of Walmart Inc. founder Sam Walton.

The property includes a 1,104-square-foot dwelling and 270 feet of J Street frontage.

14TH STREET BUILDINGS
Two buildings totaling 16,173 square feet in Bentonville sold recently for $1.7 million.

1401 SW 14th LLC, managed by Phillip Lee, bought the 2.8-acre property at the same address. The purchase price equals $105.11 per square foot. Midpoint Group LP, managed by Todd Grisoff, was the seller.

Arkansas Federal Credit Union in Jacksonville financed the deal with a seven-year, $1.36 million loan. City Title & Closing was the title agent. Newmark Moses Tucker Partners in Bentonville was the listing agency.

The single-story buildings are both occupied by office and retail tenants.

Midpoint paid $950,000 for the buildings in 2013.

PINNACLE RESIDENCE
A remodeled 6,879-square-foot residence inside the gated Pinnacle Country Club neighborhood sold recently for $1.65 million. The purchase price equals $240 per square foot.

Justin and Juliana Whaley bought the West Pinnacle Drive residence from Nathan Fairchild.

First Western Bank in Rogers financed the deal with a 30-year, $1.4 million loan. City Title & Closing was the title agent. Lauren Boozman Northey with Portfolio Sotheby’s International Realty in Rogers was the listing agent. Rebecca Seba with Weichert, Realtors-The Griffin Co. represented the buyer.

The five-bedroom home was built in 2006. Fairchild bought the 1-acre property in April 2017 for $925,000. Virginia A. Campbell Revocable Trust was the seller. Campbell paid $775,000 for the property in August 2006.

BENTONVILLE RESIDENCE
New residential construction near downtown Bentonville sold recently for $750,000.

Matthew and Kristine Diehl bought the 2,992-square-foot residence on Northeast Third Street. The purchase price equals $250.66 per square foot for the four-bedroom home. Mark and Alyson Brittain were the sellers.

Waco Title Co. of Springdale was the title agent. Michael Hodges with Keller Williams Market Pro Realty in Bentonville was the seller’s agent. Lisa Darling with Keller Williams Market Pro Realty in Fayetteville was the buyer’s agent.

The lot’s previous home (1,682 square feet) built in 1970 was razed. Brittain paid $220,000 for the 0.32-acre property in April 2020. KSBD LLC, led by Kyle Blevins, was the seller.

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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