Tempus fund acquires North Little Rock, Fayetteville buildings for $42 million

Five buildings spanning 336,242 square feet on about 22.5 acres in North Little Rock and Fayetteville recently changed hands for a combined $42.1 million. The purchase price equals $125 per square foot.

Little Rock-based real estate investment firm Tempus Realty Partners said Tuesday (July 14) that its perpetual-life investment vehicle, Tempus Evergreen, acquired the properties, located on Northshore Drive, south of Interstate 430, in North Little Rock and on North Shiloh Drive, west of Interstate 49, in Fayetteville.

The seller of the Fayetteville property was an Arkansas entity managed by Arkansas-based investment firm Natural Capital, and the seller of the North Little Rock property was Tempus MMT LLC.

According to Tempus, the North Little Rock property was purchased at the third-party appraised value. Construction on the property has been completed, and the best place for the property is Evergreen, Tempus’ vehicle for long-term holds. The two-building property at 5110 and 5120 Northshore Drive is the corporate headquarters of Onterris Inc., a publicly traded environmental services provider, and is leased under a triple-net lease through December 2045.

The three-building Fayetteville property at 2075, 2041 and 1936 N. Shiloh Drive is the headquarters of mechanical contractor Kimbel Mechanical Systems and is leased under a triple-net lease through June 2038. Both properties include built-in annual rent increases.

Wade Smith, Alan Cole and Isaac Smith, all of Colliers Arkansas, represented the buyer in the $27.85 million Fayetteville transaction. Marshall Saviers of Cushman & Wakefield / Sage Partners represented the seller. The three Fayetteville buildings were built between 1991 and 1998 and comprise 288,390 square feet on about 15.5 acres.

“Opportunities to purchase a corporate headquarters of this quality, with a tenant of Kimbel’s caliber and frontage on I-49, almost never come to market,” Cole said. “We’re proud to have helped our client secure it.”

Kimbel Mechanical Systems was established in 1984 in Ohio and re-established in Northwest Arkansas in 1993. The company operates projects nationwide from its Fayetteville headquarters.

“These acquisitions are a meaningful step forward for Evergreen and our investors,” said Clay Ramey, partner of capital markets at Tempus. “Together, they grow the portfolio from 17 to 22 properties, increase net operating income to $22.8 million, extend our weighted average lease term to more than 12 years and push total fund value past $330 million.”

Since its inception in July 2022, Tempus Evergreen has delivered an 11.1% annual return and a 1.44 multiple of invested capital. Tempus Realty Partners is an investor-centric real estate investment partnership focused on acquiring and developing commercial real estate mainly in the South and Midwest. Tempus has acquired more than $1.2 billion of property in 26 states since forming in 2016.