Springdale apartments sell for $27 million

A two-story, 192-unit apartment complex east of Interstate 49 in Springdale recently sold for $27.25 million. The purchase price equals $141,927 per unit.

Fayetteville-based real estate investment firm Caisson Capital Partners bought The Life at Elmwood Grove on 10.03 acres at 770 S. 40th St., north of West Sunset Avenue (U.S. Highway 412). The apartments will be renamed 412 Crossing. The seller was New York-based multifamily property investment firm Olive Tree Holdings.

Bo Diamond is co-founder and managing partner of Caisson Capital Partners. Asked why the company bought the apartment complex, he said, “It all starts with the market and location. We are a local firm dedicated to workforce and attainable housing in heartland markets regionally, and Northwest Arkansas — of all the markets in which we operate — has the strongest growth. And it’s also our home market.”

Diamond said Caisson Capital Partners previously owned and sold 96-unit The Ridges at Bentonville.

“We haven’t owned anything in Northwest Arkansas in several years, and we’re excited to expand our portfolio to our home market,” he added.

Built in 2001, the 18-building apartment complex in Springdale includes two and three-bedroom units. About 75% of the units have three bedrooms.

“When the school bus stops right across the street, kids pour off,” Diamond said. “It is a very family-friendly property.”

Caisson Capital Partners will invest almost $4 million into the property, he said. This includes replacing about half of the roofs, restoring porches and stairs, updating “all exterior amenities and improving curb appeal.” Washers and dryers will be added to all units.

He said that 82 units, which are in their original 2001 condition, will be renovated. Additionally, a limited-access security gate will be installed on the property, and security patrols will be enhanced.

“Our vision is to turn this into a premier family-friendly, attainable housing property here in Northwest Arkansas,” Diamond said. “We’re going to maintain rents that are considerably below what the newer construction deals are right across (Interstate) 49.”

It will be attainable for those making between 70% and up to the area median income, he said. The property won’t be restricted in its rents, but “we intend to continue maintaining affordability.”

Olive Tree Holdings bought the property for $16.2 million in November 2021. The seller was Santa Cruz, Calif.-based real estate investment firm Canyon View Capital.