Real Deals: $48M loan backs student housing project in Fayetteville

by Paul Gatling ([email protected]) 1,369 views 

A $47.88 million funding package is backing construction of a 142-unit housing project in Fayetteville marketed to University of Arkansas students.

Retreat at Fayetteville LLC, an affiliate of Georgia-based developer Landmark Properties, secured the loan from First Citizens Bank & Trust Co. of North Carolina. The loan matures in December 2027.

The 14.6-acre site is on Razorback Road near Baum-Walker Stadium, about 800 feet south of the intersection with Martin Luther King Jr. Boulevard. Landmark completed a deal in June to buy the property for $5.25 million. That equals $8.22 per square foot. ARKA Inc., led by Franklin L. Haney, was the seller.

The site is largely undeveloped with the exception of a large storage building.

Landmark plans to develop the property with 16 multifamily buildings, a clubhouse/leasing office and four-story parking structure.

CENTERTON APARTMENTS
A 14.09-acre multifamily development in Centerton changed hands recently for $36.3 million.

An affiliate of Dallas real estate firm Lurin bought the 199-unit apartment complex at 1389 W. Centerton Blvd. at the southwest corner of Arkansas Highways 102 and 279. The purchase price equals $182,500 per unit. Tennessee-developer Vita Residential was the seller.

TPG RE Finance Trust Inc. of New York backed the deal with a $31.2 million loan.

Lurin has rebranded the property from Center Pointe West Apartment Homes to The Maddox. It is comprised of one-, two- and three-bedroom apartments and two-bedroom townhomes.

Vita opened the development in 2019. Bacar Constructors of Nashville, Tenn., was the general contractor. Vita paid $1.22 million ($2 per square foot) for the land in December. Centrex LLC, managed by Ramsay Ball and Kent Starr, was the seller.

PINNACLE PLANS
Coin Harvey LLC, managed by Tom Rystrom, recently picked up a five-year funding agreement worth $10.33 million from Simmons Bank in Fayetteville.

The loan is tied to a 1.74-acre lot on Northgate Road in Rogers’ Pinnacle Hills area, near the intersection with Pinnacle Hills Parkway. Coin Harvey bought the lot recently for $1.21 million. The purchase price equals $16 per square foot. The Plaza at Pinnacle Hills LLC, managed by real estate investor John Schmelzle of Rogers, was the seller. City Title & Closing of Fayetteville was the title agent.

Schmelzle paid $3.95 million for the 10.09-acre tract ($8.99 per square foot) in September 2019.

Rystrom is an investment broker with commercial real estate firm Colliers Arkansas in Rogers. The company plans to develop the land to include a 30,000-square-foot, three-story mixed-use building. Colliers officials said the building is “significantly preleased” with retail and office tenants.

Nabholz in Rogers is the general contractor.

INDUSTRIAL SALE
A six-building industrial portfolio in Rogers changed hands recently in a 1031 Exchange deal worth $7.6 million.

Limited liability companies controlled by Greg House bought the 7.74-acre property at 549-555 N. 13th St. Hews Ark LLC, led by Edward Hurley, was the seller.

Danville-based Chambers Bank backed the deal with a six-year, $5.39 million loan. City Title & Closing of Fayetteville was the title agent. Jordan Jeter and Philip Schmidt represented the buyer. Kevin Kestner represented the seller. All of the brokers work for Kelley Commercial Partners in Springdale.

The buildings range in size from 9,800 square feet to 26,600 square feet, include a combined 120,000 square feet and are all leased by multiple tenants.

Hews Ark paid $2.5 million for the buildings in November 2015. The Dean Garman Revocable Trust was the seller.

ROGERS APARTMENTS
A 32-unit multifamily development in Rogers has a new owner after a sale worth $3.1 million. The purchase price equals $93.89 per square foot.

Red Ace Rivendell Apartments LLC, an affiliate of Red Ace Capital Management of Florida, bought the Rivendell Apartments at 2605 W. Olive St. Sosa Properties LLC of Fayetteville, led by Saul Sosa, was the seller.

Pine Bluff-based Simmons Bank backed the deal with a five-year loan worth $2.92 million.

The 2.68-acre development includes four, two-story apartment buildings and one single-story office/clubhouse building. Each apartment building contains 7,924 square feet. The office/clubhouse building contains 1,320 square feet.

Sosa bought the property in May 2014 for $1.19 million. Silva Properties of Farmington, led by Mark Silva, was the seller.

CAR WASH LAND
A Texas-based car wash chain has secured land in Bentonville for $2.5 million.

Glide Xpress bought the 2.98-acre property at 807 S.E. Walton Blvd. Terry and Jo Ann Law were the sellers.

BancorpSouth, a division of Cadence Bank, in Texarkana, Texas, backed the deal with a three-year, $2.02 million loan. Clay Porter with Lindsey & Associates represented the seller. Matt Hutcherson with Lindsey & Associates represented the buyer. City Title & Closing was the title agent.

The property includes a vacant residence (2,550 square feet).

PIZZA PROPERTY
A new restaurant is coming to Siloam Springs following a $400,000 land purchase.

Brick Oven Properties Inc., led by Scott Stevens, bought the 1.01-acre lot on Ravenwood Plaza behind Freddy’s Frozen Custard & Steakburgers. The purchase price equals $9.09 per square foot. Cale Properties LLLP, managed by Douglas Wade Allen, was the seller.

Zac Qualls with Haag Brown Commercial in Jonesboro represented the buyer. Realty Title & Closing Services in Rogers was the title agent.

The site will be developed to include a La Torcia Brick Oven Pizza restaurant. The company opened its first store in 2004 and operates 15 locations in Arkansas, Missouri, Mississippi and Texas.

HTP Contractors of Fayetteville, led by Scott Hill, is building the 3,000-square-foot building. It’s expected to be completed this fall.

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.