Real Deals: Chancellor Hotel in downtown Fayetteville sells for $31 million

A 15-story hotel in downtown Fayetteville recently sold for $31 million.

Adventurous Journeys (AJ) Capital Partners of Chicago is the new owner of the 206-room Chancellor Hotel at 70 N. East Ave.

Southwind Hospitality Holdings LLC, led by Sam Alley, the chairman and CEO of VCC Construction in Little Rock, and Ike Thrash, founding partner of Thrash Group in Hattiesburg, Miss., was the previous owner.

Southwind paid $3.8 million for the property, formerly known as the Cosmopolitan Hotel, in October 2011. Following a 10-month renovation project with a price tag of close to $16 million, the hotel reopened as the Chancellor Hotel in September 2012.

The hotel will continue to operate as the Chancellor Hotel while renovations take place, which will include updates to all guestrooms, common areas, the lobby-level restaurant and bar and the hotel’s 12,200 square feet of flexible meeting and events space. Once complete in fall 2019, the hotel will be renamed Graduate Fayetteville, part of AJ Capital Partners’ Graduate Hotels brand.

SIGNATURE SALE
The sale of a 45,659-square-foot retail center in Springdale tipped the scales at $3.35 million. The purchase price equals $73.36 per square foot.

Sosa Properties LLC, registered to Saul Sosa, bought the Signature Square development at 1327 E. Robinson Ave. Signature Square Springdale LLC, whose members include An Wei Feng and Tian Quan Zheng, was the seller.

Waco Title Co. of Springdale was the title agent. Jordan Jeter and Matt Hairston with Flake & Kelley Commercial of Springdale were the listing agents. Chris Vega with Southern Tradition Real Estate in Springdale represented the buyer and will be the property’s leasing agent.

Mazzio’s Pizza is the anchor tenant, and there is approximately 13,000 square feet of available space.

IGNITE RENOVATION
Flintco LLC in Springdale recently paid the city of Bentonville for a commercial building permit valued at $3.2 million.

The permit is being used to renovate a 17,513-square-foot building at 1510 N. Walton Blvd. The Bentonville School District bought the single-story building in August for $1.45 million ($82.79 per square foot) and is renovating the property for its Ignite Professional Studies program, which combines technical training with professional development and business education. The renovations are expected to be finished for the 2019 school year.

CONVENIENT CLAIM
The sale and leaseback of a Shell-branded convenience store in Bentonville tipped the scales at $3 million.

Because I Love Horses LLC, managed by Kevin and Traci Fuksa, bought the 11,834-square-foot White Oak Station at 701 S.W. Regional Airport Blvd. The purchase price equals $253.50 per square foot.

Petromark Inc. of Harrison, led by co-owners Stephen Lair and Steve Turner, was the seller. Batesville-chartered The Citizens Bank backed the deal with a seven-year mortgage of $1.6 million.

White Oak Station will remain the tenant with a new 20-year, triple-net lease.

The building was built in 2008 and appraised in 2018 for $2.31 million. Petromark bought the 1.85-acre lot in April 2007 for $995,000.

MAIN STREET DEALS
A pair of residential properties on Main Street just a few blocks south of Bentonville’s downtown square sold recently for a combined $1.34 million.

Osage Hospitality, a South Carolina limited liability company, paid $550,000 for the property at 223 S. Main St. and $792,000 for property at 225 S. Main St.

Juanita Mann sold the 223 address, an 1,892-square-foot residence, and David Tipton sold the 225 address, a 2,503-square-foot building that previously housed Two25 Gallery & Wine Bar.

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Editor’s note: 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.