(Editor's Note: A correction has been made to this article. See the end of the article for details.)

The Conway Area Chamber of Commerce said Thursday it will raise public and private money for seven "generation defining" projects, including a startup space that Conway Corp. has said it will pay for.

The space, to be located downtown, will be called the Arnold Innovation Center, named for retiring Conway Corp. CEO Richie Arnold, who has led the utility for two decades.

An exact amount has not been pledged by the company yet, Chamber CEO Brad Lacy told Arkansas Business on Friday, because the center's downtown location has not been finalized. 

The other projects that are part of the Conway 125 fundraising campaign are:

• The renovation of the historic Grand Theatre at Oak and Chestnut streets into a new arts venue.
• An expansion of the city's existing trail system and new pedestrian overpasses.
• Splash pads at parks throughout Conway.
• Large-scale public art displays at roundabouts.
• New landscaping at interstate exits.
• Installation of 180 signs to guide visitors to destinations.

So far, the Arnold Innovation Center is the only project with funding.

"Conway Corp. will both host and power this historic initiative," Conway Corp. Board Chair Johnny Adams said. "The center's mission will be to connect entrepreneurs with critical resources to create, launch and grow businesses, creating jobs and wealth in our community. Much planning and dreaming has gone into this center over several years."

The center will feature programming by the Conductor, a public-private partnership at the University of Central Arkansas. Other partners include Cadron Creek Capital, the city, the chamber and Conway Development Corp.

Jeff Standridge, a co-founder of Cadron Creek Capital, said the center, along with the makerspace planned for UCA's Donaghey Building, would provide on- and off-campus help to entrepreneurs. He said it might also rent space at subsidized rates to startups. The center aims to help create companies in Conway and recruit existing firms to the city.

(Correction: A previous version of the story said Conway Corp. pledged a specific amount for the startup space, but a chamber official said that amount has not yet been determined.)

A 232-unit apartment project in west Little Rock tipped the scales at $8.35 million.

PR Barrington Hills LLC of Wellington, Florida, purchased the Barrington Hills Apartments at 1221 Reservoir Road. The seller is Barrington Hills Acquisition LLC, an affiliate of Maxus Realty Trust Inc. of North Kansas City, Missouri.

The deal is financed with a five-year loan of $8.4 million from Providence Bank of Columbia, Missouri.

The 11.71-acre development previously was tied to a November 2010 mortgage of $5.2 million held by Northmarq Cap-ital LLC of Bloomington, Minnesota.

The property was bought for $7 million in November 2001 from Waterton Raintree LLC of Chicago.

Business Center Buy
A 42,662-SF industrial project in west Little Rock weighed in at $5 million.

Colonel Glenn Business Center LLC, led by Russell Hall, acquired its namesake project at 10303 Col. Glenn Road. The seller is 10303 Colonel Glenn LLC, led by Dennis Stearns.

The deal is funded with a five-year loan of $4 million from First Security Bank of Searcy.

The 4.71-acre development previously was linked with a December 2012 mortgage of $3.5 million and an August 2016 mortgage of $170,000 held by Bear State Bank of Little Rock.

The property was purchased for $4.45 million in December 2012 from CG-Shack Properties LLC, led by Kevin Huchingson.

Movie Tavern Site
A $1.68 million land deal on the north side of Little Rock’s Gateway Town Center is setting the stage for construction of an 11-screen, 46,000-SF Movie Tavern.

30 West Pershing LLC, an affiliate of EPR Properties of Kansas City, Missouri, bought the 6.45-acre site west of Bass Pro Drive. The seller is Gateway Creek LLC, led by Isaac Smith.

The property previously was tied to a January 2016 mortgage of $6 million held by First Security Bank.

Gateway Creek acquired an 89.3 percent stake in the property 13 months ago as part of a $4.97 million deal with Town Center LLC, led by Tommy Hodges.

Office-Warehouse I
A 50,328-SF office-warehouse in North Little Rock changed hands in a $1.2 million transaction.

T&O Enterprises LLC of Fort Smith purchased the 2003 W. 38th St. project from Breeden Robinson LLC of Van Buren.

The deal is backed with a five-year loan of $1.05 million from Simmons Bank of Pine Bluff. The 3.71-acre development previously was linked with a September 2013 mortgage of $650,000 held by BancorpSouth Bank of Tupelo, Mississippi.

The property was bought for $550,000 in March 2013 from Custom Food Group Ltd. of Dallas.

Office-Warehouse II
A 47,600-SF office-warehouse in Jacksonville rang up a $440,000 sale.

A-1 Freeman Hill Country Ltd. of Oklahoma City acquired the Apache Moving & Storage project at 1300 Redmond Road from L.E. Thompson.

The 12.7-acre site was purchased for $10,000 in July 1997 from the city of Jacksonville.

Multifamily Purchase
A 22-unit apartment project in North Little Rock drew a $330,000 transaction.

Stone Crest Apartments LLC, led by Ryan and Jeffrey Aclin, bought the 4416 Lynn Lane project from Sharon Smith.

The deal is financed with a three-year loan of $490,000 from First Community Bank of Batesville.

The 0.86-acre location was acquired for $40,000 in April 1984 from Terrell and Carolyn Gipson and Hurbon Gipson.

Scrap Land
More than 7.5 acres near the Arkansas River in downtown North Little Rock sold for $286,000.

NLR Scrap LLC, led by Harold Tenenbaum, purchased the land, mostly along Gribble Street midway between Crockett and Clover streets and connecting with Lincoln Avenue.

The seller is Argenta River Investors LLC, led by Roy Glover.

The Glover family assembled the land as part of 15 transactions totaling $299,000.

The first eight deals were with Roy and Lois Glover, $15,000 in August 1977; Jessie and Florence Davidson, $18,000 in October 1978; Angela Clifton, $12,000 in August 1979; Donald and Dorothy Dutton, $15,000 in November 1981; Charles and Karen McRaven, $45,000 in March 1984; Leonard and Juanita Horton, $15,000 in December 1986; Leonard Horton, $6,000 in September 1987; and Robert and Theresa Hughes, $100,000 in October 1988.

The remaining deals were with Arlan Harris, $10,000 in January 1989; Earl Martin, Henry Robinson, Betty Sipes, Dorothy Ferguson and Becky Glover, $5,000 in June 1990; Pearl McNair, $3,000 in June 1992; Garry Harris, $2,000 in April 1993; Cleveland and Linda Hutchins, $3,000 in January 1995; Christine Crockett Living Trust, $35,000 in September 1997; and Clifton Family LLLP, led by Norman Clifton, $15,000 in June 2013.

Rural Residence
A 2,892-SF home in the County Farm Road neighborhood of west Pulaski County is under new ownership after an $800,000 transaction.

Tod Swiecichowski and Marianne Munro acquired the 8-acre spread on the Arkansas River from Wayne and Linda Woods.

The property previously was tied to an April 2016 mortgage of $484,500 held by Bear State Bank.

The property was purchased as part of a $575,000 deal 11 months ago from the Harry McDermott Jr. estate.

Arbors Abode
A 5,400-SF home in The Arbors neighborhood of west Little Rock’s Chenal Valley neighborhood changed hands in a $655,000 deal.

James and Victoria Holloway bought the house from Benton Brandon III.

The residence previously was linked with April 2010 mortgages of $735,000 held by One Bank & Trust of Little Rock and $160,000 held by Rush and Linda Harding.

Brandon acquired the property for $925,000 nearly seven years ago.

The seller was WVM LLC, led by Rush Harding.

Mirabel House I
A 4,000-SF home in the Mirabel Court neighborhood of west Little Rock’s Chenal Valley Development rang up a $587,543 sale.

Daniel and Glenda Watson purchased the house from Dillon Group Inc., led by Janet Dillon.

The deal is tied to a 15-year loan of $466,000 from Regions Bank of Birmingham, Alabama.

Dillon Group bought the site for $89,000 in November 2015 from Deltic Timber Corp. of El Dorado.

Mirabel House II
A 3,800-SF home in the Mirabel Court neighborhood of west Little Rock’s Chenal Valley Development drew a $537,400 transaction.

Samuel and Dania Edwards acquired the house from Redbridge Development Ltd., led by Robert Schmitt.

The deal is funded with a 25-year loan of $483,660 from Regions Bank. The residence previously was linked with an April 2016 mortgage of $352,261 held by Citizens Bank of Batesville.

The site was purchased for $89,000 in December 2015 from Deltic Timber Corp.

Woodland’s Home
A 4,037-SF home in west Little Rock’s Woodland’s Edge neighborhood sold for $530,000.

Dhaval and Bhavika Patel bought the house from Hess Custom Construction LLC, led by John Hess.

The deal is backed with a 25-year loan of $530,000 from Regions Bank. The residence previously was tied to a September 2015 mortgage of $459,000 from Simmons Bank.

The location was acquired for $80,000 18 months ago from Rocket Properties LLC, led by Ron Tyne and Lisenne Rockefeller.

Seven-Digit Construction

3rd Realm    $1,800,000
Trampoline Park
4711 Talley Road, Little Rock
CR Crawford Construction LLC, Fayetteville

A possible bank stock sale and details of a legal settlement are part of the bankruptcy narrative in the 66-page Chapter 7 filed by Lex and Ellen Golden of Little Rock.

The Feb. 27 petition, which lists total assets of $1.9 million and total liabilities of $7.7 million, alludes to a Jan. 27 stock purchase agreement for Lex Golden’s 39 percent stake in Allcorp Inc.

Golden, chairman of Allcorp, took the bank holding company into Chapter 11 bankruptcy in July. Allcorp owns the $15.2 million-asset Community State Bank of Bradley, the smallest bank in Arkansas.

The would-be buyers of his Allcorp stock are listed as three Dallas trusts associated with Eric Donnelly, chief financial officer of Capital Plus; Chad Vose, president of Harbor Portfolio Advisors; and Farzana Giga, CFO of HPA.

The Allcorp bankruptcy contains no mention of the proposed deal, and the Goldens’ Chapter 7 provides no details.

Allcorp’s Chapter 11 was sandwiched between the April 2014 bankruptcy of another Golden bank holding company, Acme Holding Co., and the regulatory takeover and sale in September of its only significant asset, Allied Bank of Mulberry.

The Goldens’ Chapter 7 filing also contains information on a financial settlement with a former president of Allied Bank, John Hunter.

In October 2015, Hunter sued Golden, chairman and CEO of Acme, along with two trusts established for the benefit of Golden’s grandchildren. At issue were two delinquent $187,454 promissory notes owed by the trusts and guaranteed by Golden.

The notes were linked with Hunter selling his stake in Acme to the trusts in December 2011.

In May, Hunter received a combination of cash and property to settle the dispute: Allcorp shares worth $80,000 that belonged to a Golden grandchildren’s trust held in the name of Amy McCay Children’s Trust, a house on 17.8 acres in Franklin County and $10,000.

Ten Biggest Golden Debts

Chambers Bank, Danville
$2 million secured

Owed on a Yell County Circuit Court judgment against the Goldens in July from their personal guarantees on a 2010 loan to help recapitalize Acme Holding Co., the bankrupt holding company of Allied Bank. The debt is secured by a $5 million Sun Life Financial life insurance policy on Lex Golden with annual premiums of $63,645.

QF Holdings LLC
$2 million unsecured

QF Holdings LLC, led by Walter Quinn, a leading stockholder in Heartland Bank of Little Rock. Debt guaranteed by Lex Golden on a loan to Acme Holding Co., the insolvent holding company of Allied Bank. The $66.3 million-asset bank was taken over by regulators on Sept. 24 and sold to Today’s Bank of Huntsville with a negative bid of $6.1 million.

C-Holdings LLC, affiliate of Chambers Bank
$1.5 million unsecured

Debt purchased by C-Holdings, a loan from Southern Bank of Batesville to Acme Holding Co. guaranteed by Lex Golden.

U.S. Bank, Cincinnati
$719,933 secured

A first mortgage claim on the Goldens’ 4,600-SF home near the Country Club of Little Rock.

Estate of Gene Lewellen Sr.
$286,272 unsecured

Debt owed on the asset purchase agreement of Terry’s Finer Foods in January 2009.

Riverside Bank, Sparkman
$271,282 secured

Debt from an October 2016 loan of $355,528 guaranteed by the Goldens and secured by his 39 percent stake in Allcorp Inc., parent company of Community State Bank of Bradley. Lex Golden is chairman of Allcorp.

Riverside Bank, Sparkman
$255,775 secured

Debt secured by a 39 percent stake in Allcorp, which is in Chapter 11 bankruptcy. The stock is owned by their son, Alex, president of Allcorp.

Riverside Bank, Sparkman
$208,714 partially secured

Debt from a January 2015 second mortgage on the Goldens’ Little Rock home.

Citi Cards, The Lakes, Nevada
$111,736 unsecured

Debt owed by Lex Golden for the purchase of “business goods/services.”

Everest Business Funding, New York
$109,765 unsecured

Debt owed on a Dec. 27, 2016, loan to Ellen Golden for Terry’s Finer Foods.

The expected 2016 arrival of a big contract at Aircraft Interior Solutions for an innovative passenger seat was delayed by a longer than anticipated regulatory approval process.

But production of the new side-slip seat has regained momentum this year, and that means developing a bigger staff and finding a larger facility to house operations.

“This building is too small,” said Marshal “Jake” Jacobs, president of Aircraft Interior Solutions. “There are too many orders.”

For now, the company remains in its leased North Little Rock location, gearing up to meet a third-quarter goal of producing enough seat covers to equip four aircraft monthly. With a seat count ranging from 132-164 per plane, that’s about 600 seat covers.

“They want 10 aircraft a month,” Jacobs said. “I don’t know if we can ramp up that fast, but we’ll figure it out.”

With a four-hour turnaround time for each seat (bottom and back), that will mean a lot more workers, and more industrial sewing machines are on order, too.

The staff has grown to 22 and will expand to 30 by the end of March. The plan is to develop an expanded core of skilled employees to train more personnel to build a workforce of 80 by November and 120 by next March.

“If you bring in too many people too fast, it isn’t efficient to train them,” Jacobs said.

The company is laying the groundwork to move to larger quarters by the end of June.

A leading candidate for a new home is the former Carrier facility at 1805 Bond St., controlled by the Little Rock Municipal Airport Commission. The building offers triple the space of the company’s current 5,000-SF location.

A change of address will require a month of downtime to get all the needed Federal Aviation Administration paperwork squared away along with an inspection to complete the recertification process.

Conservatively, annual sales are expected to top $2 million for the first time.

“This is a huge year for us,” said Reneé Garris, sales and marketing manager at Aircraft Interior Solutions.

Last year, Aircraft Interior Solutions also had to contend with the aftermath from “an act of God” in addition to a drawn-out review by the FAA that postponed the rollout of the side-slip seat.

The damage was delivered by a lightning strike that hit its building at 5100 W. Bethany Road on Jan. 20, 2016. Someone had stolen the building’s copper grounding wire, and the electrical discharge flowed to the telephone system.

That fried the security system and prevented alarms from triggering when the resulting pyrotechnics caused the plywood mounting for the circuit breaker box to catch fire.

Of the $85,000 in damages, $60,000 was due to smoke-damaged materials. Insurance paid only $10,000.

“It was a mess,” Jacobs said.

The fire effectively put the company out of business for five months and cost it three big contracts and about $200,000 in lost revenue.

Even with this setback, revenue from a partial 2016 matched the $1 million-plus performance for a full 2015.

And clients who had to turn to other vendors came back after operations returned to normal.

“They didn’t come back as fast as they thought, and that sucked,” Jacobs said. “But they are back full bore now.”

The company is finishing up upholstery work for the demonstration models of the side-slip seat in preparation for a big international trade show in Germany April 4-6, Aircraft Interiors Expo Hamburg 2017.

“All these people are going to be talking about our company,” said Jacobs, adding in a whisper: “And it didn’t cost us a dime.”

The staggered side-slip design, which locks in place, also features a slightly larger 20-inch-wide middle seat with two armrests while its neighbors have only one.

A creation of Molon Labe Designs in Breckenridge, Colorado, the novel three-seat configuration allows the aisle seat to slide over the middle seat with the push of a button.

This unusual capability converts a standard 20-inch airline aisle into a 41-inch thoroughfare. That makes full-size wheelchair access possible and dealing with overhead storage easier.

The design was envisioned to speed up the boarding and deplaning of passengers, saving airlines precious minutes per turnaround. That can translate into financial savings in terms of improved fleet utilization and maintaining flight schedules.

Meantime, work at Aircraft Interior Solutions has shifted back to fulfilling a contract for more than 3,000 conventional seats for 23 Boeing 737s for Caribbean Airlines.

After a bumpy 2016, the company is positioning itself for more opportunity in the commercial airlines industry. It’s a business where seat framing is replaced every five to seven years, cushions every two years and seat covers every 12-18 months.

In November we told you that Lori Adcock-McGhee retired from Moses Tucker Real Estate of Little Rock, where she was the head of property management.

That was short lived.

She recently went to work for Sage Partners, where she’ll be the director of property management, responsible for overseeing Sage’s expansion in central Arkansas.

Last year, Sage Partners of Fayetteville, the real estate arm of Hunt Ventures LLC, and Capital Properties in Little Rock merged. Sage Partners also has offices in Rogers and Bentonville.

Tuscany Square, a nearly 7-acre shopping center on Pleasant Grove Road in Rogers, sold for approximately $13 million.

Tuscany Square @ Pleasant Grove LLC, led by Charles Palmer of Fort Smith, sold the property to Hillcrest Holdings LLC, led by Gary Nichols of Fayetteville.

Palmer, you’ll recall, sold the Planet Fitness building just off Wedington Drive in Fayetteville in late February for $3.45 million.

Jordan Jeter of Flake & Kelley Northwest Commercial represented Nichols in the transaction. He was one of Palmer’s brokers in the Planet Fitness deal.

Tuscany Square is anchored by Chick-fil-A.

The Shipley’s Donuts in south Little Rock is going to U.S. Bankruptcy Court to buy its building.

Shipley’s, under its legal name, Geyer Springs Investments LLC, wants Bankruptcy Judge Richard D. Taylor to help force the sale from the building’s owner, RWL Investments LLC of Little Rock, which filed for Chapter 11 bankruptcy reorganization a year ago.

Before the bankruptcy, Geyer Springs and RWL signed an agreement in December 2012 that called for RWL to sell the building for $250,000. Geyer Springs put down $100,000 and has since paid a little less than $3,000 a month.

Problems developed, though, when RWL filed for Chapter 11 and listed $8.6 million in debt and $11.1 million in assets. RWL’s bankruptcy filing shows it had 25 pieces of property, and most of those are in Little Rock and available for rent. One of RWL’s more famous properties is the historic Villa Marre in downtown Little Rock.

In a filing earlier this month, Geyer Springs said it wants to finish the payments for the property and obtain the deed, but RWL won’t take the steps in bankruptcy to make that happen.

Geyer Springs has asked Judge Taylor to require RWL to file the paperwork in bankruptcy court to complete the sale. Or if that doesn’t happen, Geyer Springs wants its money back.

RWL hasn’t answered the complaint as of Thursday, and its attorney Kevin Keech didn’t return a call for comment.

Since filing for bankruptcy on March 8 and through the end of January, RWL has lost $137,000.

Rumblings of a new funding agreement for the long dormant K Lofts development in downtown Little Rock have reached our ears.

A new loan from an Alabama lender was supposed to close last week, by March 10 at the latest. Of course, this same loan was supposed to close the week before that.

The current financier is mindful that timelines involving Scott Reed-related projects are often abstract rather than definitive.

Creek Capital Partners LLC, led by Fort Smith’s Steve Creekmore Jr. family, set a March 13 deadline to get the deal done or it would restart the foreclosure process.

You might recall that, in January, Creek Capital stepped to the front of the line of creditors by purchasing the project’s construction loan from IberiaBank of Lafayette, Louisiana.

During the summer, IberiaBank sued to recover more than $1.4 million owed on an original June 2013 loan of $1.3 million to Reed’s K Lofts LLC. That debt is backed with the personal guarantees of Reed, of Portland, Oregon, and Brian Corbell, of Los Angeles.

Nearly completed work on 32 apartments on the upper floors of the once-dilapidated five-story building at 315 Main St. awaits.

Retail space in Cabot, a cabinet plant in Jacksonville, a day care in Conway, a Dollar General in Austin (Lonoke County) and a big home in Little Rock form a five-piece of multimillion-dollar transactions.

• Edprop Development Co. LLC, led by Stephen Edwards, purchased the Knights Shopping Center at 906 S. Pine St. in Cabot for $2.5 million. Seller: Knight Family Ltd., led by Keith and Kent Knight.

• RDH Cabinets LLC, led by Robert and Donna Heard, acquired the 71,578-SF Wright’s Cabinet facility at 2600 Cory Drive for $1.4 million. Seller? Morden Revocable Trust, led by Billy and Linda Morden.

• Acxiom Corp. of Little Rock sold an 18,100-SF day care facility at 1150 S. Harkrider Road in Conway for $1.2 million. Buyer: Child Development Schools Inc. of Columbus, Georgia,

• Edward Tanquary bought the Dollar General Store at 17870 Hwy. 5 in Austin for $1.2 million from PB General Holdings (Austin Hwy 5) LLC, led by Leonard Boen.

• The estate of Jerry Haynie sold a 9,086-SF home in Little Rock’s River Ridge neighborhood for $1.05 million to Mangaraju Chakka and Kanthi Dasani.

For the 24rd consecutive year, Arkansas Business is seeking nominations for its 40 Under 40 program, which recognizes 40 professionals under the age of 40 who excel in their profession and are leaving their mark on the Arkansas business and nonprofit community.

"This program provides Arkansas Business with the opportunity to not only honor our state's up-and-coming professionals, but identify those individuals who are helping shape Arkansas’ business, political and civic landscape," Arkansas Business Publisher Mitch Bettis said.

The 2017 class of 40 Under 40 honorees will be profiled in a future issue of Arkansas Business. Included in this issue will be a listing of their accomplishments within their businesses, organizations and/or community.

The deadline to nominate is Friday. Nominations can be made at ArkansasBusiness.com/40. For more information, contact Alex Howland at (501) 372-1443 ext. 314 or at ahowland@abpg.com.

WASHINGTON — The Federal Reserve has raised its benchmark interest rate for the second time in three months and signaled that any further hikes this year will be gradual. The move reflects a consistently solid U.S. economy and will likely mean higher rates on some consumer and business loans.

The Fed's key short-term rate is rising by a quarter-point to a still-low range of 0.75 percent to 1 percent. The central bank said in a statement that a strengthening job market and rising prices had moved it closer to its targets for employment and inflation.

More: Read the Fed's complete statement.

The message the Fed sent Wednesday is that nearly eight years after the Great Recession ended, the economy no longer needs the support of ultra-low borrowing rates and is healthy enough to withstand steadily tighter credit.

The decision was approved on a 9-1 vote, with Neel Kashkari, the head of the Fed's regional bank in Minneapolis, the dissenting vote. The statement said Kashkari preferred to leave rates unchanged .

The Fed's forecast for future hikes, drawn from the views of 17 officials, still projects that it will raise rates three times this year, unchanged from the last forecast in December. But the number of Fed officials who think three rate hikes will be appropriate rose from six to nine.

The central bank's outlook for the economy changed little, with officials expecting economic growth of 2.1 percent this year and next year before slipping to 1.9 percent in 2019. Those forecasts are far below the 4 percent growth that President Donald Trump has said he can produce with his economic program.

In recent weeks, investors had seemed unfazed by the possibility that the Fed would raise rates several times in the coming months. Instead, Wall Street has been sustaining a stock market rally that began with President Donald Trump's election in November, buoyed by the prospect that tax cuts, an easing of regulations and higher spending for infrastructure will accelerate growth.

A robust February jobs report — 235,000 added jobs, solid pay gains and a dip in the unemployment rate to 4.7 percent — added to the perception that the economy appears fundamentally strong.

That the Fed is no longer unsettling investors with the signal of a forthcoming rate increase marks quite a change from the anxiety that prevailed after 2008, when the central bank cut its key rate to a record low and kept it there for seven years. During those years, any slight shift in sentiment about when the Fed might begin raising rates — a step that would lead eventually to higher loan rates for consumers and businesses — was enough to move global markets.

In 2013, then-Chairman Ben Bernanke sent markets into a panic merely by mentioning that the Fed was contemplating slowing the pace of its bond purchases, which it was using then to keep long-term borrowing rates low.

But now, the economy is widely considered sturdy enough to handle modestly higher loan rates. Inflation, which had stayed undesirably low for years, is edging near the 2 percent annual rate that the Fed views as optimal.

And while the broadest gauge of the economy's health — the gross domestic product — remains well below levels associated with a healthy economy, many analysts say they're optimistic that Trump's proposed tax cuts, infrastructure spending increases and deregulation may accelerate growth. Those proposals have lifted the confidence of business executives and offset concerns that investors might otherwise have had about the effects of Fed rate increases.

Yet for the same reason, some caution that if Trump's program fails to survive Congress intact, concerns will arise that the president's plans won't deliver much economic punch. Investors may start to fret about how steadily higher Fed rates will raise the cost of borrowing and slow spending by consumers and businesses.

The Fed typically raises rates to prevent an economy from overheating and inflation from rising too high. But throughout the Fed's history, its efforts to control inflation have sometimes gone too far — slowing borrowing and spending so much as to trigger a recession. Already, the current expansion, which officially began in 2009, is the third-longest in the post-World War II period.

The Fed's benchmark rate, after modest increases in December 2015 and December 2016 and again on Wednesday, is still quite low by historical standards. But if the Fed ends up raising rates three or four times this year and follows up with three additional hikes in 2018, its benchmark rate would be left at a level that might start to dampen economic activity.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

A 74-bed assisted living center in west Little Rock weighed in at $14.07 million.

MHI Little Rock Ltd., an affiliate of Mainstreet Health Investments of Carmel, Indiana, bought the 43,988-SF Memory Care of Little Rock at Good Shepherd facility at 2501 Aldersgate Road.

The seller is MC-Little Rock AR-1 UT LLC, an affiliate of the Embree Group in Georgetown, Texas.

The 5.7-acre development previously was tied to a November 2014 mortgage of $9.5 million held by Metropolitan National Bank of Nashville, Tennessee.

The location was purchased for $745,000 in November 2014 from ERC Foundation Inc., led by Mark Davis.

CVS Transaction
A 13,536-SF CVS Pharmacy in southwest Little Rock changed hands in a $5.71 million sale.

Centennial Associates No. 1 LLC and Centennial Associates No. 2 LLC, both in Narberth, Pennsylvania, acquired the 8902 Geyer Springs Road project.

The seller is MC Little Rock AR Landlord LLC, an affiliate of SunTrust Equity Funding LLC of Atlanta.

The 2.31-acre development is backed with a $3.4 million loan from First Fidelity Bank of Oklahoma City. The location was assembled in three transactions totaling $2.08 million.

The sellers were the John Perry Trust, $880,000 in April 2015 for the Advantage Auto Parts store at 8902 Geyer Springs Road; APS Investment LLC, led by Avtar Momi and Satpal Kamboj, $800,000 in May 2015 for the Exxon Food Mart project at 6001 Baseline Road; and JV Holding Co., led by John Vice II, $400,000 in May 2015 for a 1.16-acre parcel.

Grill Acquisition
A 7,090-SF eatery in west Little Rock tipped the scales at $2.52 million. DB Triple Dipper Restaurant LLC, an affiliate of Fortress Investment Group of New York, purchased Romano’s Macaroni Grill at 11100 W. Markham St. from Centre Structured Trust 2 of New York.

The 2.64-acre development is helping secure a $70.4 million funding agreement with Wells Fargo Bank of Sioux Falls, South Dakota.

The property previously helped secure a November 1997 mortgage of $10.5 million held by First Union National Bank of Charlotte, North Carolina.

The project was purchased for $2.01 million more than 19 years ago from Modernage Inc., an affiliate of Brinker International in Dallas.

Liquid Assets
A beverage project in Little Rock is under new ownership after a $1.65 million transaction.

Turner Holdings LLC, an affiliate of Hiland Dairy Co. of Springfield, Missouri, bought the 97,378-SF Shooting Star Beverages facility at 6921 Interstate 30 from the receiver for Clear Water Holdings LLC of Tulsa.

The 17.67-acre property helped secure mortgages totaling $13 million held by Simmons Bank of Pine Bluff.

Clear Water acquired the former Mountain Pure Water property as part of a $6 million foreclosure sale in October 2014. Simmons held a March 2014 foreclosure judgment of $16.7 million against Mount Pure.

The judgment was connected with a series of loans made by Little Rock’s Metropolitan National Bank and inherited by Simmons, which bought Metropolitan in a bankruptcy auction.

Warehouse Package
Warehouse property in south Little Rock rang up a $750,000 sale.

3200 Myers Street Partners LLC of Colton, California, purchased a 34,688-SF warehouse at 3015 Lewis St., a 30,360-SF warehouse at 3100 Elm St., a 9,500-SF warehouse at 4313 Asher Ave., a 6,500-SF warehouse at 4119 Asher Ave. and a 4,800-SF warehouse at 3013 Lewis St.

The seller is Moon Distributors Inc., led by Stan Hastings. The deal is financed with a three-year loan of $525,000 from Stone Bank of Mountain View.

The Hastings family assembled the properties in seven transactions with:

• The H.L. Remmel estate, $4,000 in September 1945 for the 1.22-acre 3100 Elm St. development, the 1.05-acre 3015 Lewis St. development and the 0.17-acre 3013 Lewis St. development.
• J.R. and Helen Rice, an undisclosed sum in August 1946 for the 0.16-acre development at 4119 Asher Ave.
• Marie Meyers Busch et al, $8,000 in November 1947 for the 0.31-acre development at 4313 Asher Ave. and a 0.57-acre property at the southeast corner of 31st and Cedar streets
• Fidelity Realty Co., led by E.J. Pope, $12,000 in March 1959 for a 1.16-acre property at the southeast corner of 31st and Cedar streets.
• Reva Moravec, Charlie and Beulah Henderson and Grady and Irene Hen-derson, $6,000 for a 0.32-acre parcel on Lewis Street.
• Alva L. Smith estate, $5,000 in August 1975 for a 0.17-acre parcel on Lewis Street.
• Verna Stinson, $4,000 in February 1997 for a 0.16-acre parcel near the southeast corner of Asher Avenue and Lewis Street.

Multifamily Sale I
Seven apartment buildings in North Little Rock drew a $600,000 transaction.

Johan and Juanita Adineh-Kharat acquired 33 units at 4905, 4909, 5001, 5005, 5009, 5101 and 5105 N. Walnut Road from Sharon Smith.

The deal is funded with a one-year loan of $1.3 million from First Arkansas Bank & Trust of Jacksonville.

The combined 1.94-acre property was assembled during July 1966 through July 1970 in seven transactions totaling more than $25,000 with Metropolitan Trust Co., led by Justin Matthews III.

Multifamily Sale II
A 24-unit apartment project and adjoining land in Little Rock sold for $435,000. Town Creek LLC, led by Randy Ferguson, bought the Mabelvale Apartments at 7414 Mabelvale Pike and a neighboring 1.2-acre parcel.

The seller is 133 LLC, led by Keith Jackson.

The combined 1.87-acre property previously was linked with a September 2011 mortgage of $467,500 held by BancorpSouth Bank of Tupelo, Mississippi.

The property was acquired for $550,000 in September 2011 from the Harold E. Tucker Irrevocable Trust.

Country Club Manor
A 5,012-SF home near the Country Club of Little Rock tipped the scales at $1.29 million.

Robert and Eliza Gaines purchased the house from Clark and Katherine Raborn. The deal is backed with a 30-year loan of $800,000 from IberiaBank of Lafayette, Louisiana.

The residence previously was tied to a May 2012 mortgage of $900,000 and May 2014 mortgage of $125,000 held by Quicken Loans Inc. of Detroit.

The property was bought for $360,000 in November 2006 from the Patrick R. Harding Revocable Trust.

Duclair Court
A 4,352-SF home in the Duclair Court neighborhood of west Little Rock’s Chenal Valley development changed hands in a $625,000 sale.

William and Mary Cavin acquired the house from the Suzanne Lindsay Bradshaw Revocable Trust.

The residence previously was linked with a June 2016 mortgage of $600,000 held by IberiaBank.

The property was purchased for $720,000 in May 2007 from Dr. Thomas Horn and Donald Levin.

Lamarche Abode
A 4,424-SF home in the Lamarche Place neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $530,000 transaction.

Steven and Ashley Smith bought the house from Phillip and Lauri Currier. The deal is funded with a 30-year loan of $424,000 from IberiaBank.

The residence previously was tied to a July 2006 mortgage of $370,000 held by Pulaski Mortgage Co. of Little Rock.

The location was acquired for $90,000 in April 2005 from Rangaswamy and Sabitha Govindarajan.

Seven-Digit Construction

Rodney Parham Storage Center    $2,200,000
9305 N. Rodney Parham Road, Little Rock
Rodney Parham Storage Center LLC, Fayetteville

Smitty’s Garage, a burger and beer restaurant, is looking to expand in Arkansas and it looks like Rogers will be the destination.

Smitty’s has 14 locations, primarily in Oklahoma. Smitty’s is a part of the Hal Smith Restaurants of Norman, Oklahoma, and has one Arkansas location in the Shoppes at Steele Crossing on Joyce Avenue in Fayetteville.

Founder Hal Smith recently formed Smitty’s Garage – Rogers AR LLC. Spokeswoman Debra Brantley said the company does indeed plan to expand in northwest Arkansas and would release specific information when the details were finalized.

“We definitely have plans to keep expanding,” Brantley said. “Smitty’s is doing great over there [in Fayetteville]. Smitty’s does great in college towns, or near college towns.”

A good bet for Smitty’s Rogers destination is the District Shops II retail center, a part of The District at Pinnacle Hills just south of Pauline Whitaker Parkway. The District is a 55-acre development project of Joe Whisenhunt’s Whisenhunt Investment Group of Little Rock.

Shops I, a 24,000-SF retail center, was recently completed and has active tenants such as Growler USA, Fuzzy’s Taco Shop, Kom Hot Yoga and Adella Nail Bar. Shops II, under construction, is a 16,000-SF center next door to the first shop.

Burke Larkin, who runs Whisenhunt’s Whisinvest Realty LLC in northwest Arkansas, would not comment on whether Smitty’s Garage was coming to Shops II. He did say that Carl Garrett, who owns Table Mesa Bistro in downtown Bentonville, was opening a new restaurant called Mirabella’s Table in a 5,500-SF space at one end of the complex.

Mirabella’s Table is scheduled to open this spring. Larkin did say the other end of the center had a 5,100-SF space for a restaurant, while the remaining space would be leased to retail stores.

The trial date has been moved to Sept. 11 for the Camden real estate agent who was indicted, with her 21-year-old daughter and two other family members, for allegedly creating a fake will for a survivor of the Deepwater Horizon explosion who later died in an auto accident.

Donna Herring, her daughter, Jordan Alexandra “Alex” Peterson, and Herring’s sister and brother-in-law, Marion “Diane” Kinley and John Wayne Kinley Jr., all face counts of conspiracy to commit wire fraud. All four defendants have pleaded not guilty. Their trial had been set for April 3 in U.S. District Judge Susan Hickey’s courtroom in El Dorado.

Peterson asked for the continuance, and Hickey granted the request.

If you recall, Herring was indicted by a federal grand jury in El Dorado on charges of wire fraud, aggravated identity theft and money laundering. The indictment also seeks the forfeiture from the four defendants of several pieces of property and more than $700,000 in cash that the government says belonged to the estate of Matthew Seth Jacobs.

The allegations include that Herring created a fake will after Jacobs died in January 2015. The will left nearly all of Jacobs’ assets to Herring’s daughter.

Only after the assets of Jacobs’ estate were distributed to Herring’s daughter at the end of 2015 did questions surface about the authenticity of the will.

A trio of west Little Rock properties have come together for this week’s multimillion-dollar transactions.

• Dave & Busters of Arkansas Inc. sold its project at 10900 Bass Pro Parkway for $8.1 million.

Buyer: National Retail Properties Ltd. of Orlando, Florida.

• PTCOA Shackleford Clinic LLC, led by Dr. Meraj Siddiqui and Dr. Ronald Tilley, purchased the 31,884-SF Nichols Furniture store at 108 N. Shackleford Road for $3 million.

Seller? Nichols Building LLC, led by John Nichols.

• FRP Cantrell Falls LLC, led by Dominic Flis, sold the 2,800-SF Burger King at 14916 Cantrell Road for $1.3 million.

Buyer? Sattler Investments LLC of Jonesboro.

Last week, we told you about a new funding agreement in the works for the long dormant K Lofts development in downtown Little Rock.

We can tell you the new deal closed. That means Creek Capital Partners LLC, led by Fort Smith’s Steve Creekmore Jr. family, is out of the picture.

But for now, we can’t tell you who is the new financier for the nearly completed 32-apartment project on the upper four floors at 315 Main St.

Creek Capital entered and exited the picture in only two months. We’re led to believe remaining construction work might not take that long.

Dovetailing with the influx of new money, litigation over Scott Reed’s stalled project has been dismissed in Pulaski County Circuit Court.

Contractor AMR Construction LLC of Little Rock pulled off the job after April Fools’ Day 2015 and later filed a lien claim of $196,440 for unpaid work.

That marked the beginning of the money dispute that later brought in the construction lender, IberiaBank, with both AMR and the bank ultimately filing foreclosure actions.

NEA Baptist Clinic, a multi-specialty group practice, and Haag Brown Commercial, both of Jonesboro, announced on Monday the $14 million sale of 10 off-campus urgent care clinics in northeast Arkansas to the real estate development group.

The clinics were acquired by Haag Brown's HB Medical LLC from Northeast Arkansas Clinic Properties, a real estate holding company created by the clinic's founders, according to a news release.

Five of the clinics are in Jonesboro. The others are in Cherokee Village, Newport, Osceola, Paragould and Trumann.

The clinics will continue to operate as they always have following the sale, NEA Baptist and Haag Brown said.

"This acquisition is the culmination of conversations that have been taking place over a period of years …," Haag Brown Commercial Principal Joshua Brown said in a news release. "Many people think of Haag Brown as a retail development company, but we are also extremely active in medical related real estate development." 

He told Arkansas Business the clinics, combined, are 100,000 SF and this project diversivies the group's portfolio. 

"We've had a company goal to become more of a medical development company over the next two to five years, and this charts us down that path," Brown said. 

The group said it has completed more than 30 medical projects worth a total of more than $50 million.

Brown said in an email that these kinds of deals don't happen often in Arkansas. 

"It is likely the largest real estate deal in our trade area since the sale of the Turtle Creek Mall … It is the biggest deal we acquired," he said.

NEA Baptist CEO Brad Parsons said NEA has "significant plans in store for expanded services and conveniences for our patients and this partnership lays the foundation to begin implementation."

Parsons was not available to elaborate on the comment; his office said he was out of town. The clinic's marketing representative was also unavailable.

Brown said he didn't know the details of the clinic's plans but said the real estate group was well equipped to help out with any expansion effort and do so efficiently. 

WASHINGTON — Americans retreated from buying existing homes in February, a pullback after sales in January had surged to the fastest pace in a decade. But over the past 12 months, sales are up solidly.

Sales of existing homes fell 3.7 percent last month to a seasonally adjusted annual rate of 5.48 million, the National Association of Realtors said Wednesday. The decline may represent just a temporary slump after the sharp sales increase in January.

Stable hiring and a recovering economy have fueled greater demand among homebuyers. Over the past year, purchases have risen 5.4 percent. At the same time, sales growth has been restricted by a shortage of homes on the market.

"The underlying story is still very positive for the housing market," said Jennifer Lee, a senior economist at BMO Capital Markets. "The February drop is just a blip in the overall trend."

The limited inventory and risks of rising mortgage rates may actually cause the spring home-buying season to begin with a sprint this month. Unlike last year when average 30-year mortgage rates held below 4 percent, buyers may this year feel forced to act swiftly before even higher loan rates and prices make home ownership less affordable.

The number of listings for sale has tumbled 6.4 percent over the past year to 1.75 million homes, a figure only slightly higher than in January when listings declined to the lowest level since the Realtors began tracking the data in 1999.

The supply of homes for sale has fallen on an annual basis for the past 21 months. With inventories squeezed, home values have been rising at levels that are putting greater financial pressure on would-be buyers.

The median sales price has risen 7.7 percent from a year ago to $228,400, more than double the pace of average wage gains.

Lower mortgage rates had eased some of that pressure last year. But the average 30-year fixed rate mortgage carried an interest rate of 4.3 percent last week, up from an average of 3.65 percent last year, according to mortgage buyer Freddie Mac.

In February, sales of existing homes slumped in the Northeast, Midwest and West, while the South eked out a slight gain.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

WASHINGTON — Americans responded to higher mortgage rates by snapping up new homes in February at the fastest pace since July.

New-home sales rose 6.1 percent month-over-month to a seasonally adjusted annual rate of 592,000, the Commerce Department said Thursday. That sales pace is nearly 13 percent higher than February of last year, a positive sign for the housing market that demand is robust at the start of the spring home-buying season.

Healthy job growth and a recovering economy have pushed up interest in new homes, while the prospect of rising mortgage rates since the November presidential election may have pulled some sales forward.

Builders have ramped up the construction of new homes, which helps meet strong demand and boosts sales. That could provide a slight lift to the broader economy through construction jobs and the consumer spending linked to home purchases.

But demand for homes is still outpacing the construction gains. There were 266,000 new homes for sale last month, the most since July 2009 — a month after the recession ended — and up nearly 10 percent from a year earlier.

The median sales price in February of a new home was $296,200, a decline that might reflect that much of the sales last month were in the cheaper Southern markets.

Construction firms are bullish that sales will keep improving, even though they remain well below the heights of the housing boom seen more than a decade ago.

The National Association of Home Builders/Wells Fargo builder sentiment index climbed to 71 this month, the highest reading since June 2005.

Some buyers may be looking to lock-in their purchases out of concern that mortgage rates will rise, possibly hurting affordability.

Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate home loans this week was 4.23 percent. That represents a slight decline from the prior week, but it's significantly higher than the 3.65 percent average last year.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

George Covington Jr. is the president of Covington Roofing Co. and a partner in Covington Cos.  He graduated with a bachelor’s degree in economics and business with an emphasis in accounting from Hendrix College in Conway in 1993.

He joined the family enterprise full time, overseeing the roofing business as well as working with its renovation and leasing ventures. Covington started Covington Real Estate Group with his brother, Jason, and sister, Stephanie, to manage nonfamily properties and handle third-party sales in 2015.

Covington Cos. owns and manages commercial property in Conway.

What is your favorite part of doing what you do at Covington Cos.?

I thoroughly enjoy interacting with customers, architects, owners, employees and family. I take pleasure in unique projects, including incorporating recycled materials into the evolving garden roofs we have installed on numerous projects ranging from the University of Arkansas to CARTI. I also enjoy the excitement of revitalizing an old roof or facade on a building to the point where the looks change so drastically that people often think we built a new building.

With roots dating back to 1923, Covington Cos. has a long history as a family business in Conway. What have been the most significant changes in your lifetime?

The roofing company has evolved from the main question being how many layers of hot asphalt to install with a smelly kettle — I’ve always told my kids, “It smells like money” — to a company installing single-ply roofs with concrete pavers and garden roofs on top. My dad often comments, “My grandfather would be rolling over in his grave seeing us put 2 feet of dirt with grass, plants and trees over a perfectly good roof.”

The commercial property rentals aspect started out remodeling a 1,000-SF building compared with now having over 1.4 million SF in rental space.

Is Conway growing too fast? Have city planners been ahead of the curve or running to catch up?

Conway was growing fast a few years ago; the residential growth slowed due to the economic downturn, the passing of impact fees for sidewalks and parks and increasing the installation cost for sewer and water. Conway was fortunate to have the oil and gas boom when the economic downturn occurred. Commercial growth is still doing well.

What are the biggest changes you’ve seen in Conway?

Downtown has changed from a relatively dead area to a vital part of the community. Restaurants and retail shops flank the streets of downtown. People can enjoy walking downtown to eat and shop at various stores, ranging from furniture to prom dresses to antiques. I constantly receive calls from people looking to start or relocate their businesses to Oak or Front Street to be a part of this vibrant downtown.

Who are your mentors, people who made a difference in your life?

I think my family has definitely had the greatest influence on me. They taught me the value of honest hard work and respecting everyone I deal with. They taught me the value of relying on God for everything. When I am looking at a job or a piece of property, I will often pray that if it’s God’s will let it happen. I work daily with my family and look forward to teaching the next generation those same values.

What was your most important mistake that has helped shape your career?

When I was a teenager and working in the business, my dad told me I needed to take more responsibility. So, I walked into our shop and started telling the employees what to do. Big mistake. There was an uprising. I learned the lesson of respecting all people and treating everyone as I would want to be treated.