Real Deals: Private investors pay $6.09 million for Springdale apartments

by Paul Gatling ([email protected]) 1,251 views 

A 129-unit apartment complex in Springdale changed hands recently for $6.09 million. The purchase price equals $47,209 per unit.

Natcap Mill Creek-Springdale LLC, owned by Heartland Affordable Housing LLC, bought the 97,000-square-foot Mill Creek apartments at 120 Rhodes Ave. Heartland Affordable Housing is owned by Natural Capital, an Arkansas-based private investment firm. Brad Henry is the managing partner.

“My partners at Heartland Affordable Housing and Natural Capital are excited to acquire Mill Creek,” Henry said in a statement. “We will continue to seek acquisition and development opportunities in the workforce/affordable housing space. This is a huge need for Northwest Arkansas, and we hope to be part of the overall solution.”

Tee Housing LLC, managed by Tom Embach, was the seller. Sterling Hamilton and Marshall Saviers, both with Cushman & Wakefield Sage Partners, brokered the deal.

Mill Creek has a mixture of one-bedroom (32) and two-bedroom (97) units.

CHANDLER CLAIM
Land for a proposed 370-lot mixed-use neighborhood in Fayetteville sold recently in two separate deals worth a combined $5.1 million.

Chandler Crossing LLC, managed by Brian Moore and Darin Riggins, paid $2.05 million for 22.7 acres east of the Arkansas Highway 265/Zion Road intersection, across from Fayetteville Athletic Club. The purchase price equals $2.07 per square foot. ECT Farmland LLC, managed by Malcolm McNair, was the seller.

Armstrong Bank in Springdale backed the deal with a one-year loan for $1.74 million. Realty Title & Closing Services in Springdale was the title agent.

In a separate deal, Chandler Crossing paid $3.05 million for 62.75 acres nearby. The purchase price equals $1.11 per square foot. Patricia Lynne Severino was the seller. Zack Kifer and Josh Singleterry with Newmark Moses Tucker Partners in Fayetteville represented the buyer.

Chandler Crossing will have various housing types, green space and a commercial area.

RAINBOW REAL ESTATE
A 29,710-square-foot retail development in Bentonville recently sold to tenant-in-common (TIC) investors for $5 million, a purchase price of $168.29 per square foot.

Plateau Properties LLC (70%), led by Aaron and Rebecca Burkes, and Kaiser LLC (30%), led by Jill Bryant, bought the 3.01-acre Rainbow Junction development at 103 S.W. Winsted Lane. Martial Arts Services Inc. of Little Rock, led by Neil Morton, was the seller.

Waco Title Co. of Springdale was the title agent. Relyance Bank of Pine Bluff financed the deal with a seven-year loan worth $4 million.

Philip Schmidt and Matt Strom with Kelley Commercial Partners in Springdale brokered the deal. Kelley Commercial Partners will continue to manage the property for the new owner.

The building has a 90% occupancy rate with multiple tenants including LaVida Massage & Medspa, Burn Boot Camp, Pandiya’s, ATA Martial Arts, Mathnasium and Deep Roots Chiropractic Health Center.

FAYETTEVILLE RESTAURANT
A 6,500-square-foot building in north Fayetteville sold recently for $2.05 million. The purchase price equals $315.38 per square foot.

Atlanta-based Rare Hospitality, doing business as LongHorn Steakhouse, bought the vacant building at 3467 N. Shiloh Drive. Rare Hospitality is a subsidiary of Florida-based Darden Restaurants Inc.

FUG Holdings LLC, managed by David Dallas, was the seller.

City Title & Closing was the title agent.

Grub’s Bar & Grille was the previous tenant but closed in July after 10 years at the location.

FUG Holdings paid $1.66 million for the 1.3-acre property in December 2015.

A Darden spokesman said LongHorn Steakhouse is expected to open at the Shiloh Drive property in the spring of 2022.

GATOR GRAB
Fifty acres just west of the Benton County Fairgrounds changed hands recently for $2 million. The purchase price equals 0.92 cents per square foot.

Highland LLC, led by Cynthia Coughlin, sold the land on Vaughn Road, east of the Arkansas Highway 12 intersection. Gator District LLC, whose members include Himageeta Kalluri and Muni Shekar Raja Jampana, is the new owner.

The First National Bank of Fort Smith financed the deal with a one-year loan worth $1.3 million. City Title & Closing was the title agent. Mike Adams and Ted Viala with Lindsey & Associates brokered the deal.

The new owners plan to develop the property for residential (40 acres) and commercial (10 acres) uses.

CONSTELLATION CLAIM
The sale of 22 single-family lots in the Annika Estates subdivision off of Holloway Road in Centerton totaled $1.37 million. The purchase price equals $62,500 per lot.

Bentonville custom homebuilder Constellation Properties, led by Aaron Wilkerson, bought the lots from Riggins Construction and Development Inc. The lots total 4.55 acres, ranging in size from 0.18 to 0.24 acres.

Wikerson said Constellation will build 22 single-family homes ranging from 1,900 to 2,500 square feet. The builder is still finalizing sales prices.

“We expect delivery of five to 10 homes by the fourth quarter of this year,” Wilkerson said.

Ben Buergler with First National Bank of NWA and Tommy Coughlin with Grand Savings Bank arranged construction financing.

DAYCARE DEAL
Income-producing property in Springdale changed hands recently for $1.23 million.

Desert Crest LLC, whose members include Richard Kirk and David Cates, bought the 11,070-square-foot building at 2920 American St. The purchase price equals $111.78 per square foot. Vito Groups LLC, led by Bhagawan Kannappa, was the seller.

Generations Bank of Rogers provided financing with a loan worth $866,250. Brennan Sharpe and Jason Keeling with Steve Fineberg & Associates in Bentonville brokered the deal. Realty Title & Closing of Rogers was the title agent.

The single-story building is occupied and leased by a daycare through 2026. The property currently generates $8,400 per month with a cap rate of 7% at the time of sale.

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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