Real Deals: Self-storage startup locks up 4 properties for $17.8M

by Paul Gatling ([email protected]) 1,130 views 

A quartet of self-storage developments in Benton and Washington counties changed hands recently for a combined $17.8 million.

Denver-based SpareBox Storage entered the Arkansas market with acquisitions at these locations:

  • 10620 State Highway 72, Bentonville
  • 805 & 570 S. Collins St., Gentry
  • 13820 State Highway 279, Hiwasse
  • 1192 N. Rupple Road, Fayetteville

Bentonville’s Best LLC, managed by Norm Banwarth and Velena Callis, sold the Bentonville and Gentry properties for $5.56 million. Securecare Self Storage LLC, managed by Tom Underwood, sold the Hiwasse property for $8.6 million and Westside Storage Inc., led by Dennis Caudle, sold the Fayetteville property for $3.64 million.

JP Morgan Chase Bank N.A. financed the acquisitions.

SpareBox launched last year, sponsored by New York investment firm Rizk Ventures. SpareBox did not reply to requests for information regarding the size of the Northwest Arkansas properties. The company footprint now consists of 62 stores in six states with more than 3.6 million square feet of rentable space.

UAMS LAND
The land for a new orthopedic and sports medicine center west of Interstate 49 in Springdale changed hands recently for $13.58 million.

The University of Arkansas bought 31.2 acres at the southeast corner of Watkins Avenue and Gene George Boulevard, south of Arkansas Children’s Northwest. Claypool Farm LLC, managed by Mike Lamberth and Clay Carlton, was the seller. The purchase price equals $9.99 per square foot.

City Title & Closing was the title agent.

In March, the UA System board of trustees approved an $85 million project in Northwest Arkansas proposed by the University of Arkansas for Medical Sciences (UAMS), the state’s only comprehensive academic medical center.

UAMS will build a 185,000-square-foot orthopedic and sports medicine facility at the Springdale site. Marlon Blackwell Architects and DSC Architects will lead the building’s design. Nabholz Construction will be the general contractor. UAMS’ goal is to open the facility by 2023. UAMS Chancellor Dr. Cam Patterson said UAMS plans to issue bonds to cover the cost.

FAYETTEVILLE MULTIFAMILY
A multifamily property 2 miles east of the University of Arkansas in Fayetteville sold recently $6.5 million.

PIMV LLC, managed by Prism Real Estate Services of Kansas, bought the Mountain View Apartments development near Happy Hollow and East Huntsville roads. Raymond Merrill of Sallisaw, Okla., through his 12M Multifamily LLC, was the seller.

Lument Capital of Dallas backed the deal with a 10-year, $4.27 million mortgage.

Merrill paid $4.5 million for the property in October 2015. PVG Investments LLC of Fort Smith, led by Rick Parker, Mark Vogt and Robert Gunn, was the seller. Mountain View includes five buildings and 114 units. It had an occupancy rate of 88% at the time of sale. Jeremy Antes, a Prism Real Estate principal, said the company will significantly invest in the property to upgrade amenities, office space and curb appeal.

The apartment complex once belonged to Northwest Arkansas real estate developers Brandon Barber and Gary Combs, but a group of four Arkansas banks acquired joint ownership interest in the property from 2010 until PVG bought it in 2012 for $3.9 million.

Combs, who died in a California hospital in 2012 from cancer-related complications, bought the property from Barber for $6.2 million in July 2008.

Barber paid $900,000 for the 3.84 acres in July 2005, and purchased building permits totaling $6.3 million in January 2006.

The complex, originally called Fairlane Apartments, was built that same year.

GRAVETTE RETAIL
A new retail development in Gravette changed hands recently for $1.85 million.

Linda and James Dimugno of California bought the 2,274-square-foot building at 604 First Ave. S.E. The purchase price equals $813.54 per square foot. Gravette Taco LLC, managed by Little Rock-based commercial real estate firm Newmark Moses Tucker Partners, was the seller. The property was offered with a list price of $1.89 million and a cap rate of 4.75%.

Beach Abstract & Guaranty Co. of Little Rock was the title agent.

Taco Bell occupies the single-tenant building under a 25-year, triple-net lease through Fort Smith-based K-MAC Enterprises, one of the largest Taco Bell franchisees in the U.S. The company currently has approximately 290 Taco Bell restaurants under operation, which generates roughly $485 million in annual revenue.

The city sold the 0.85-acre property to Gravette Taco earlier this year for $400,000. It previously included buildings housing the police department and city hall. They were razed to make way for the new construction.

The restaurant opened July 22.

PUNKIN HOLLOW PROPERTY
A 19.4-acre residential property in Bentonville has a new owner after a recent sale worth $1.3 million.

Cheyne and Ashley Leichtamer bought the 4,444-square-foot residence on Punkin Hollow Road from Robert and Shawna Price. The property also includes a one-bedroom pool house (630 square feet) and a large workshop (30 feet by 60 feet).

First National Bank of North Arkansas in Berryville backed the deal with a $1.04 million loan. Waco Title Co. was the title agent. Trina Team with Keller Williams Market Pro Realty in Bentonville was the listing agent. Team Nina Clare and Dave with RE/MAX Real Estate Results in Bentonville represented the buyer.

The five-bedroom home was built in 2014. Price bought the land in 2012 for $130,000.

FAYETTEVILLE RETAIL
A retail property directly across from the University of Arkansas in Fayetteville sold recently for $1.19 million.

JKM Equities LLC of Kansas City Mo., managed by Jeffrey T. Rouse, bought the 2,000-square-foot building at 1561 W. Martin Luther King Blvd. The purchase price equals $595 per square foot. Five and Two Holdings LLC, managed by Marilyn Hoffman Taylor, was the seller. Country Club Bank of Kansas City, Mo., financed the deal with a seven-year, $840,000 loan. City Title & Closing was the title agent.

Take 5 Oil Change is the tenant with 10 years remaining on an absolute net ground lease. The single-tenant building was built in 2018.

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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