$17M development in downtown Springdale promises affordable housing solutions

Developers broke ground Thursday (March 7) in downtown Springdale on a $17 million real estate project to address housing affordability.

Big Emma is a 77-unit mixed-income apartment development near the corner of Emma Avenue and Park Street.

Groundwork, a group that works to provide more and better workforce housing in the region, is leading the 2.6-acre project in partnership with regional nonprofit housing developer Community Development Northwest Arkansas and Buffalo Builders, a Little Rock-based construction company with an office in Springdale. BiLD Architects in Fayetteville is the design firm.

According to a news release, construction is expected to be completed by summer 2025. Big Emma will encompass three buildings, each with three stories, that will include 57 one-bedroom apartments and 20 two-bedroom apartments, a green space picnic area and two commercial spaces for lease.

The developers will permanently reserve 30 Big Emma units for households earning below Northwest Arkansas’ median income. The most recent data shows that the region’s median household income grew nearly 19% to $73,364 from 2020 to 2022.

“Today is an important day for Northwest Arkansas,” said Duke McLarty, Groundwork executive director. “Big Emma is Groundwork’s first attainable housing investment, and I applaud the City of Springdale for its forward-thinking vision and partnership to make this project a reality. The development of Big Emma will serve as a model for municipalities across the region as they explore innovative strategies to promote more development of attainable housing in their cities.”

Big Emma is partially funded by an undisclosed Walton Family Foundation grant facilitated by Groundwork, a platform of the nonprofit Northwest Arkansas Council.

“Accessible housing is instrumental in providing stability for essential members of our community, including educators, health care professionals and other frontline workers,” said Robert Burns, Walton Family Foundation Home Region Program director. “Big Emma’s groundbreaking marks a milestone for our community and is a step toward ensuring that our region remains a thriving and welcoming home for all.”

Other funding sources include an $8 million loan from Arvest Bank, facilitated by vice president and commercial loan officer James Brookhart, and equity from the owner.

Big Emma OZB LLC is the project owner. Members include Community Development Northwest Arkansas and a qualified Opportunity Zone fund raised by Shiloh Capital (Ken Hall, Don Harris and Tom Lundstrum).

Casey Kleinhenz, Community Development Northwest Arkansas’ executive director, explained that the Groundwork funding requires a below-market return, which lets the project operate sustainably with a tier of below-market rents.

“We are excited to break ground on our first project in Washington County and hope it is the first of many,” Kleinhenz said. “The partnerships and funding strategies we have used to deliver Big Emma will be replicable in future Northwest Arkansas affordable housing projects.”