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Scholarships for Retail Development (J. Cliff McKinney Commentary)

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Most of us love it when the Razorbacks win. It is thrilling to watch a player like Darren McFadden score the decisive touchdown.

A college football team like the Razorbacks depends on talented athletes, and colleges use scholarships to attract these athletes. Consider McFadden for a moment. He grew up loving the Razorbacks, but does anyone believe he would have been a Razorback without a scholarship? Imagine the coach saying, “We know you could get a great scholarship in Texas or Oklahoma, but we want you to pay your own way.”

This sounds ridiculous, but this is what Arkansas is doing when it comes to recruiting retail development to our state.

Arkansas’ economic development efforts are geared to attract manufacturing. According to the National Retail Federation, though, retail trade employs 252,283 Arkansans, while manufacturing employs 159,792. Retail is the largest employment industry in the state; manufacturing is a distant third. Retail development also improves quality of life.

Other states recognize the valuable economic contribution of retail. These states have incentive programs — retail scholarships — that Arkansas tries to compete against without an effective answer. So what are these scholarships in other states? Here are a few examples.

Tax increment financing is the most common retail incentive in most states. TIF works by capturing a portion of the property tax revenue generated by a new development and funding public infrastructure projects, such as roads and sewers, with the captured revenue. TIF is not a tax break for retailers because the same tax is paid with or without the TIF, but TIF upgrades public infrastructure.

Every surrounding state routinely uses TIF, often as a starting point in an incentive package. Arkansas has a TIF program on the books, but the Arkansas Supreme Court ruled most of it unconstitutional in 2007. Nothing was done to fix it.

In addition to TIF, Texas has a program called Chapter 380 incentives. These can include grants of money, loans, sales or leases of public property, and property tax abatements to incentivize retail development.

For example, Carrollton has a Chapter 380 incentive for retailers granting up to $1 million for rehabbing older buildings. El Paso rebates up to 100 percent of all city property taxes and sales taxes for certain retail projects. Many cities in Texas use Chapter 380 to rebate sales tax to retailers who make public improvements, widen streets or upgrad utilities.

Oklahoma allows individual cities to develop retail incentive programs. Oklahoma City, for instance, offers public infrastructure improvements, expedited permitting and other incentives depending on the size of the retail project. Broken Arrow offers similar incentives, including sales tax rebates for retail projects. Tulsa, Bartlesville and other cities also have retail development incentive programs.

Arkansas, meanwhile, has nothing meaningful to offer.

We must position ourselves to be more competitive, especially considering Arkansas’ average weekly wage is the lowest in the nation and our per capita gross domestic product is lower than all surrounding states except Mississippi.

Retailers look for the best return on investment. Arkansas’ comparatively weak economy already makes us a challenge for many developers, a challenge compounded by the offers of incentives in surrounding states that may have stronger demographics. In retail development, Arkansas is a football team with no scholarships competing against aggressive and well-funded opponents.

Space is too short for me to cover the multitude of programs other states use, or to explore the economic impact that incentives have. Incentives that work in Texas or Oklahoma may not be right for Arkansas, so I am not advocating any particular program. What I am advocating is a commission, sanctioned by state government, to carefully study how our neighbors incentivize retail development. Such a commission might reveal a new path for Arkansas to grow our economy and improve our quality of life through encouraging retail development.


Cliff McKinney is a managing member of Quattlebaum Grooms & Tull PLLC, where he practices real estate law. He is licensed in Arkansas, Mississippi, Missouri, Oklahoma and Texas. He is currently the Arkansas/Oklahoma state director of the International Council of Shopping Centers. Email him at CMcKinney@QGTLaw.com.

Texan Buys Red Lobster In Fayetteville for $3.7M (NWA Real Deals)

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A Texas investor paid nearly $3.7 million for the Red Lobster restaurant on North Shiloh Drive in Fayetteville.

Vera LLC of Plano, led by Venkat Sirimalle, bought the property from VEREIT Inc., of Phoenix. VEREIT, which owns more than 500 Red Lobsters, acquired the property in 2014 for almost $2.7 million.

Vera and Red Lobster Restaurants LLC, based in Orlando, Florida, signed a lease agreement that runs until 2039. The previous lease was listed at more than $220,000 annually before the sale.

The 7,800-SF restaurant is just south of Joyce Boulevard and sits on approximately 1.75 acres.

Adams Dairy Bank of Blue Springs, Missouri, assisted the purchase with a loan of slightly more than $2.7 million.

Highway 112 Land
A local investor paid more than $2.1 million for nearly 39.5 acres of land on Highway 112 in Fayetteville.

One Twelve Village LLC of Fayetteville, led by David Evans, bought the land just north of the Sam’s Club. The property is across the highway from the 112 Drive In theater.

Legacy National Bank of Springdale was the seller. Legacy acquired the property for satisfaction of debt in 2010 from Family Jewels LLC, led by Tracy Hoskins.

At the Pines
A 25-unit Fayetteville apartment complex sold for $865,000.

Garton Holdings LLC of Fayetteville, led by Jason Garton and Travis Garton, bought the At the Pines complex. First Security Bank of Searcy assisted the purchase with a loan of $1.05 million.

The sellers were a group of three trusts. The William Stewart & Nancy Stewart Revocable Trust sold its 50 percent share; the other half was equally held by the George Faucette Jr. Revocable Trust and the Rosemary Faucette Revocable Trust.

The complex sits on 1 acre on West Deane Street.

Sagely Lane Home
A 3,811-SF home in east Fayetteville sold for $499,000.

Rose Property Group LLC, led by David Frye of Rausch Coleman Homes, bought the residence on Sagely Lane from John Ed Chambers III of Danville, the CEO of Chambers Bank. Chambers bought the property as land in 2012.

Chambers Bank assisted the purchase with a loan of $387,500.

Chambers also sold a 1.14-acre plot in Fayetteville to Trends Inc. for $100,000. Trends Inc. has the same mailing address as Rose Property Group on North Plainview Avenue in Fayetteville.

The 1.14 acres is just behind the Whole Foods Market-anchored retail center on North Plainview Avenue.

Lafite Lane Home
A 4,637-SF home in east Fayetteville sold for $759,000.

James Scott and Adele Ruth Coleman bought the residence on Lafite Lane from Serrhel and Patty Adams. The four-bedroom home sits on more than 2 acres.

Arvest Bank of Rogers assisted the purchase with a loan of $607,000. Serrhel Adams acquired the residence for $648,000 in 2009.

Fayetteville Apartments
A six-unit apartment complex in Fayetteville sold for $307,000.

Cajakajo Holdings LLC of Fayetteville, led by Buckley Blew and Kimberly Blew, bought the property at 10 E. Davidson St. The sellers were Charles and Yvonne Bennett of Havana (Yell County).

First National Bank of Fayetteville assisted the purchase with a loan of $260,950.

Farmington Dentist Office
A dental and orthodontist office in Farmington sold for $465,000.

FDO Properties, led by Gavin Trogdon, bought the 3,030-SF building that is home to the Farmington Dental Center at 181 Main St. Trogdon owns the dentist practice there.

J&J Long LLC of Forest Grove, Oregon, led by Jerred Long, was the seller.

Arvest Bank of Rogers assisted the purchase with a loan of $465,000.

Churchill Drive Home
A four-bedroom, 4,070-SF home in Fayetteville sold for $535,000.

Gareth and Cheryl Eck bought the property on East Churchill Drive. They bought the residence from Stephen and Lorene Gordon of Fayetteville.

Pair of Apartments Produce $60.6M Sale (Real Deals)

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Tandem sales of Little Rock apartments added up to $60.6 million.

Chenal Lakes Owner LLC and Brightwaters Owner LLC, affiliates of CLK Properties of Woodbury, New York, bought the 456-unit Chenal Lakes project for $38.1 million and the 256-unit Brightwaters project for $22.5 million.

The sellers were RRE Chenal Brightwaters Holdings LLC, an affiliate of Resource Real Estate of Philadelphia, and related investment groups in California, Washington, New Jersey, Hawaii, Ohio, North Carolina and New York.

The deals are funded with 10-year loans of $30.4 million and $17.3 million from Keybank of Cleveland.

The 36.6-acre Chenal Lakes development at 13500 Chenal Parkway and the 10.6-acre Brightwaters development at 2420 Riverfront Drive previously were tied to a May 2007 mortgage of $40 million held by Wachovia Bank of Charlotte, North Carolina.

The properties were acquired for $50 million nearly 10 years ago from Bailey’s Chenal Lakes LLC ($34 million) and Bailey’s Brightwaters LLC ($16 million), both led by John Bailey.

Specialty Site
The site for a future medical office project in midtown Little Rock weighed in at $2.5 million.

Arkansas Specialty Partners LLC, led by Dr. James Tucker and Dr. Gordon Newbern, purchased the 4.06-acre location at the southwest corner of Interstate 630 and Fair Park Boulevard.

The seller is AA Development At Midtown Inc., led by Scott Richburg.

Construction is backed with a 10-year loan of $18 million from Little Rock’s Bank of the Ozarks. The property was assembled in 17 transactions totaling more than $1.7 million.

The sellers were Kiddie Kampus Playskool, led by Richard Massery, $250,000 in August 2006; Levi and Richard Lance, $191,000 in November 2007; St. Mark Baptist Church Inc., a June 2009 real estate swap valued at $169,000; Yelenich Family Trust, led by R.J. Yelenich, $160,000 in October 2006; and Carroll and Thelma Smith, $160,000 in September 2007.

Others were Michael Starns, $110,000 in August 2007; George and Kathleen Loss, $105,000 in July 2007; Nau Moreno and Xihuiti Ilhuicamina, $100,000; Edna and John Berry and Theo Mullins, $79,000 in May 2007; Arlene Johnson, $60,000 in December 2006; Clifton and Lamika Killingsworth II, $60,000 in November 2006; and Dorothy Bevills, $60,000 in May 2007.

Rounding out the list are TA Holdings LLC, led by Todd and Wendy Anderson, $59,000 in December 2006; Richard Massery, $50,000 in August 2006; Janice Moseley, $43,000 in April 2006; Lawrence Fee Jr., and his wife, Peggy, $40,000 in February 2007; and Thomas and Ethelee Beverly, $9,000 in June 2007.

Hospitality Land
A hotel project in west Little Rock is in motion after a $2.28 million land deal.

James and Terry Barnes and their Promenade Hospitality LLC bought a 2.91-acre site near the southeast corner of La Grande Drive and St. Vincent Way from Deltic Timber.

Deltic entered the Pulaski County real estate scene in December 1956 by acquiring Sparkman Lumber Co., led by Roy and Christine Sturgis. The Pulaski County portion of that transaction encompassed 16,552 acres.

Church Transactions
Church property in North Little Rock rang up a $797,500 transaction.

Lynchview Baptist Church sold its 7.08-acre development at 800 Page Mill Road to Mt. Pleasant Missionary Baptist Church. The deal is financed with a five-year loan of $470,000 from First Security Bank of Searcy.

The location was purchased for $30,000 in December 1975 from The Matthews Co., led by John P. Matthews.

On the flip side, Mt. Pleasant sold its former 2200 Willow St. location in January for $330,000 to North View Missionary Baptist Church.

In turn, North View sold the property for $345,000 to Clifton Family LLLP, led by Norman Clifton.

Mt. Pleasant bought the 0.68-acre location for $5,760 in October 1964 from the Urban Renewal Agency of the city of North Little Rock.

O’Reilly’s Site
An O’Reilly’s redevelopment in west Little Rock is in the works after a $600,000 transaction.

SimonCRE Carp VIII LLC, an affiliate of Simon Commercial Real Estate of Scottsdale, Arizona, purchased the 0.75-acre commercial development at 8625-8701 W. Markham St.

The sellers are the McPherson Family Trust No. 2 and the Opha McPherson Living Trust, both led by Opha Stobaugh.

The deal is backed with a $1.3 million loan from CrossFirst Bank of Leawood, Kansas.

The property previously was linked with an October 2011 mortgage of $160,051 held by Regions Bank of Birmingham, Alabama.

The land was assembled in two deals totaling $155,000. The sellers were Mrs. John A. Parker, $150,000 in September 1976; and Lewis and Joan Johnson, $5,000 in April 1984.

Superstop Buy
A Superstop convenience store in west Little Rock sold for $550,000.

Chang Lee bought the 1400 John Barrow Road project from the estate of Robert Gladden and his Gladden Investments LLC, led by Beth Gladden Coulson.

The deal is funded with a five-year loan of $435,000 from One Bank & Trust of Little Rock. The 0.53-acre property was purchased for $325,000 in January 2001.

The sellers were the Mary Elizabeth Jackson Trust, James Marshall Oathout Trust, Martha Lynn Thompson Trust and Jerry Ann Florendo Trust, $54,000 each; and the Goin Oliver Harper Revocable Trust, $109,000.

Office Purchase
A 2,127-SF medical office building in midtown Little Rock is under new ownership after a $250,000 transaction.

Professional Resource Development Inc. of Effingham, Illinois, acquired the 5500 W. Markham St. project from Malvi Acquisitions LLC of Concord, Massachusetts.

Malvi bought the 0.15-acre development for $250,000 in October 2016 from T.W.L.R. LLC, led by Tracy Windham.

Seven-Digit Construction

Phase 2    $10,000,000
Bowman Pointe Apartments
3321 S. Bowman Road, Little Rock
Richardson Builders LLC, North Little Rock

First Security Bank Muscles Into Russellville

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Two Arkansas banks have added to their inventory of brick-and-mortar locations during the first quarter and two more have new branches in the works.

First Security Bank of Searcy expanded its Arkansas-only network to Russellville. The full-service branch is No. 74 for the $5.2 billion-asset lender and its first in Pope County.

Piggott State Bank opened its first branch outside of its hometown in an intracounty move. The Rector office, 13 miles away, is the $80.9 million-asset lender’s second full-service branch.

Diamond Bank of Murfreesboro is going to Texas in its latest move. The Texarkana branch would transform the $528.7 million-asset lender into an interstate bank.

Cornerstone Bank of Eureka Springs intends to open a full-service branch in neighboring Boone County. The Harrison location represents the sixth location for the $215.4 million lender.

Majestic Fire Prompts Splash of Hot Springs Development

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The fire that destroyed the historic Majestic Hotel in Hot Springs three years ago helped prompt a wave of development in the downtown district.

After the fire that burned much of the vacant Majestic, which had anchored the north end of Central Avenue, a pile of bricks littered the sidewalk. Getting the site cleaned up was difficult because some asbestos-containing building materials were among the debris.

City officials, civic groups and others gathered and developed a plan to improve downtown. The meetings resulted in several recommendations, including strengthening building codes and creating a downtown development director position.

“The Majestic fire struck an emotional chord with a lot of investors and developers who were either on the fence about downtown or weren’t even considering downtown,” said Cole McCaskill, downtown development director for the Hot Springs Metro Partnership.

Since McCaskill was hired in the summer of 2014, downtown development has seen a flurry of activity, including more than $22.3 million worth of commercial property purchased. The most expensive transaction occurred in October 2015 when GRGCBHS LLC, led by Gary R. Gibbs of Brentwood, Tennessee, bought the Austin Hotel at 305 Malvern from Spa Lodging Inc. for $10.15 million. It was renovated and renamed The Hotel Hot Springs & Spa.

“There’s been a new energy in the city,” said Steve Arrison, CEO of the Hot Springs Convention & Visitors Bureau. “Hot Springs has been a resort community and the No. 1 tourism destination in Arkansas forever. And it just continues to recreate itself. The old is still there, but we’re adding some great new to it.”

The city of Hot Springs also stepped in. It bought the Majestic Hotel in August 2015 for $673,000 from Gary Hassenflu of Park Properties LLC in Kansas City, after he failed to clean up the property. The site has been cleared and is awaiting final environmental approval before the location is redeveloped.

The city will ask for recommendations for what to put at the site, McCaskill said.

Some are pushing for the site to showcase the thermal water at the location. The Majestic had thermal water pumped in from Hot Springs National Park two blocks away, McCaskill said. “That would probably be the best use of that site, … so people could experience it,” he said.

A decision is expected by the end of the year.

Meanwhile, Hot Springs developer Jason Taylor has several projects under development in downtown. He said he was motivated to invest in the area to improve entertainment options. “People come down here, they walk Bathhouse Row, they spend some time here,” he said, “and then they leave.”

He wants to change that. Next month in his seven-story Citizens Building at 723 Central, a restaurant will open on the first floor and a jazz club will be on the second. The remaining floors will be condominiums.

“Downtown is hopping,” Taylor said. “Downtown is starting to really, really come back and be re-energized.”

The following are some of the top projects in downtown Hot Springs:


The Hotel Hot Springs & Spa
305 Malvern Ave.

Price: $10.15 million
Size: 134,230 SF, 14 floors
Date Purchased: October 2015

Shortly after Gary R. Gibbs bought the Austin Hotel at 305 Malvern Ave. for $10.15 million in October 2015, it was closed for renovation. Built in 1986, the 14-story building was “100 percent” renovated at a cost of about $10 million, said Carlos Sibole, the general manager of the hotel, which was renamed The Hotel Hot Springs & Spa.

The 200-room hotel reopened on April 1, 2016. The hotel, which is connected to the Hot Springs Convention Center, is adding a 5,000-SF spa with thermal waters, pool and fitness facilities, Sibole said. It is expected to be completed by the end of the year.

The rooms feature vinyl plank flooring instead of carpets and 49-inch television sets. The architect on the project was Douglas A. Arnold & Associates PLC of Hot Springs, and the construction was handled by CPI Construction LLC, which also is owned by Gibbs.


The Waters
340 Central Ave.

Price: $1.25 million
Size: 60,000 SF, five floors
Date Purchased: June 2014

Built in 1913 and formerly known as the Thompson Building, The Waters has a facade that “creatively blends classic elements with a bold, storefront design echoing the rhythms of the 1920s,” according to a February news release from the hotel that announced its opening.

One of its owners, Bob Kempkes, a founder of the firm Taylor/Kempkes Architects of Hot Springs, said he and the other owners, Anthony Taylor, who is also a founder of the firm, and Robert Zunick, a financial adviser in Hot Springs, had always been interested in the building, which once was home to doctors’ offices. When it became available for sale, the three men were interested. They studied the hotel market in Hot Springs and found more hotels were needed, especially those that had a “higher level of service that you see in a boutique property,” Kempkes said.

He said a complete renovation was done to the building, bringing the total cost of the project to about $7 million. It now has 62 rooms. It also has a Southern artisan-style restaurant on the ground floor, called The Avenue.


Bank of America Building
528 Central Ave.

Price: $1.25 million
Size: 43,000 SF, six floors
Date Purchased: April 2016

Rustic Development LLC, led by Hot Springs developer Jason Taylor, bought the building because it’s one of only a few places downtown that has a patio for customers to sit and eat or drink, Taylor said. The space also can be used for live music “and things of that nature,” he said.

The craft brewery, Bubba Brew’s Brewing Co. of Bonnerdale (Hot Spring County), has signed a lease and is expected to move into the building by the middle of the summer, Taylor said. The restaurant will be done in “an old English, library style,” he said.

The building was built in 1972 and was modeled after the Federal Bureau of Investigation Headquarters in Washington. The Bank of America building “has got big concrete pillars and columns going up all the way to the top,” Taylor said.

Taylor said he doesn’t have plans for what will go on the remaining floors. “But we’re open for discussion,” he said. The architect on the project was Twin Rivers Architecture PA of Arkadelphia. Taylor is the general contractor.


Citizens Building
723 Central Ave.

Price: $1.1 Million
Size: 24,700 SF, seven floors
Date Purchased: July 2015

The building at Central Avenue and Bridge Street has been empty since 1978, said Taylor, who is an owner and developer of the project.

Taylor was attracted to the building, built in 1909, because of its proximity to the Hot Springs Convention Center. “It’s kind of the gateway to downtown as you come around the corner there on Central Avenue,” he said.

On the first floor of the seven-story building will be a restaurant named the Vault, featuring a wood-fired grill. On the second floor will be a jazz club, Lagoria Rhythm & Rock’s Jazz Bistro. Both are expected to open in April, Taylor said.

The remaining floors will be condominiums, ranging in price from $200,000 to $1 million. The sizes of the units are 840 SF to 2,400 SF. In October, a unit on the fourth floor sold for $275,000 to Dal and Chris Strawn.

The architect on the project was Harris Architecture Co. of Hot Springs. Taylor said he was the general contractor for the project.


812 Central Ave.

Price: $575,000
Size: 16,700 SF, two floors
Date Purchased: February 2016

Taylor, whose Rustic Development bought the building, said he plans to put a sports bar type of restaurant on the first floor of the building, which was built in 1903 and features 18-foot ceilings and interior brick. It also has about 4,500 SF of mezzanine space.

Twin Rivers Architecture was the architect. Taylor is the general contractor.

Taylor said he didn’t have a timeline for when that project will be completed. “We want to bring a lot of energy to downtown Hot Springs,” he said.

Gateway Town Center Goes Westward

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Commercial projects topping $21 million are beginning to come out of the ground at Little Rock’s Gateway Town Center.

Construction of the $3 million Creek Plaza is expected to begin in early April. Work on the 14,500-SF retail project will join building activity on two neighboring developments: the $9.8 million Movie Tavern and $9 million Tru by Hilton Hotel.

Creek Plaza will become home to the first Con Quesos outside of northwest Arkansas.The Fayetteville fast-casual fusion taco restaurant, also known for its specialty cheese dips, will occupy 3,000 SF. A T-Mobile store is listed as a “potential tenant” of 3,000 SF.

Creek Plaza, Movie Tavern and the Tru hotel project will occupy a 12-acre piece of the west side of the Gateway Town Center.

“That’s really been the focus,” said Isaac Smith, principal and executive vice president at the Little Rock office of Colliers International.

“We’ve had a ton of people interested.”

The property is envisioned to be part of an entertainment district dubbed The Grove at Gateway Town Center.

Helping expand the entertainment destination draw is an 11-screen, 46,000-SF Movie Tavern, which follows development of the nearby Dave & Buster’s that opened last summer.

“We’re fully mobilized,” said Derek Alley, managing director of Little Rock’s VCC general contracting firm. “This is our first project with Movie Tavern, and their first project in Arkansas.”

An affiliate of EPR Properties, a publicly traded real estate investment trust based in Kansas City, Missouri, bought the 6.45-acre Movie Tavern site for nearly $1.7 million.

The project, which will join EPR’s $1.9 billion in megaplex investments, is expected to open in time for the Thanksgiving-Christmas holidays.

North of the Movie Tavern site, 2 acres are on the drawing board to become green space along a pond.

“The key is making it more than concrete and hardscape,” Smith said of the overall development.

The 82-room Tru hotel project, the first in Arkansas, could be opened by the end of the year or in early 2018.

“We’re in permitting, waiting to tee things up with financing and begin construction,” said Chet Patel, president of Little Rock’s Pinnacle Hotel Group.

The 1.78-acre site was acquired for $755,983. The project will join Pinnacle’s portfolio of 11 properties that are open or under construction: 10 in Arkansas and one in Texas.

“I expect more hotels here pretty quick,” said Tommy Hodges, who led development of the Gateway Town Center. “I had a call from a guy who wanted 5 acres for a 100,000-SF user. But he wouldn’t tell me who it was.

“We’re not going to negotiate if we don’t know who we’re dealing with. We’re picky about who we sell to.”

Town Center LLC, an investment group led by Hodges, sold an 89.3 percent stake in two undeveloped tracts at the project totaling 54.7 acres for more than $10.4 million.

The new majority owners of the land are two Colliers-led investment groups: Gateway Otter LLC and Gateway Creek LLC.

“That was really my doing,” Hodges said. “I’m 74 years old, and I was doing it by myself. I felt like I didn’t need to be working this hard. It needed more bodies and younger people to come in.

“It was good for them and good for me. This thing requires a lot of energy. I couldn’t be more pleased with partners than those guys. They have the wherewithal to get it done.”

Taking Care

The recent projects follow the completion of two pivotal pieces of the Gateway Town Center development: the 2015 opening of The Outlets of Little Rock, a 325,000-SF retail destination launched by a $5.2 million purchase of 30 acres; and the 2013 opening of the 104,359-SF Bass Pro Shops that began with a $3 million buy of 29.3 acres.

The change in ownership composition at Gateway hasn’t altered a mindset that Hodges brought to the project: Avoid a sell-all-you-can-as-fast-as-you-can mentality.

“The thing we have to be careful with is not screwing it up,” Hodges said. “We have an opportunity to get some 24-hour living out there with apartments. We have an opportunity to do some office, and I haven’t focused on that.

“We have to be careful where we do that and how we do that. Every time we make a sale, there’s a ripple effect on the development.

“In the back of mind, I’m saying, ‘What next?’ We don’t want people to come in here and not be successful.”

Zombies Beware: Pine Bluff Is Rising

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Highland Pellets founder Tom Reilley’s first impression of downtown Pine Bluff three years ago was an indelible sight: a tree growing through the roof of a dilapidated grand hotel.

The tree was a pine; the building was the Hotel Pines.

“It made a big impression on me, coming into the area with fresh eyes,” Reilley said in a telephone interview last week.

In a different apocalyptic vision, economic developer Lou Ann Nisbett suggested that some buildings downtown could be scenes for “The Walking Dead,” AMC’s zombie series. She enlisted Christopher Crane, film commissioner of the Arkansas Economic Development Commission, to offer up 19 structurally unsound Pine Bluff buildings as possible locations for filming thrillers. If the script called for an explosion, the filmmakers could blow up the buildings.

“Chris actually visited, took some pictures and did some inventory,” Nisbett said. “I was trying to come up with creative ways to get buildings down without heavy costs to the owners or the city.”

Such is the state of economically battered Pine Bluff, but Nisbett and Reilley are anything but despairing.

Nisbett, the president and CEO of Jefferson County’s Economic Development Alliance, and Reilley, the New Hampshire resident who decided to put a $230 million wood pellet plant in Pine Bluff, have joined a growing army on a mission of revitalization.

Reilley’s zeal goes beyond providing jobs and economic stimulus through his new plant, which will deliver wood pellets to fuel European power plants as a substitute for coal. The facility, in Jefferson Industrial Park, has one production line running and three more are under construction.

Reilley is determined to inspire people to build up residents, property values and the tax base of Pine Bluff, a manufacturing city that once had close to 60,000 residents but had dwindled to about 45,000 by 2015, according to the U.S. Census Bureau.

So he joined the board of a tax-exempt 501(c)(3) nonprofit group to investigate restoring the Hotel Pines as it works to revamp downtown and all of Pine Bluff, which he sees as poised for a rebound.

The nonprofit, Pine Bluff Rising, bought the six-story, 100,000-SF hotel for one dollar on Jan. 17 and has committed $300,000 to shoring it up, drying it out and seeing if it can be saved. The seller, Elvin Moon, who worked at the storied hotel as an elevator operator as a teenager, bought the property in 2003 from another nonprofit group, Citizens to Save the Pines, which had acquired it after it was condemned by the city in 1986.

Moon was among a number of property speculators who snapped up unused Pine Bluff buildings at depressed prices starting in the recessions of the 1980s and ’90s.

“Individuals bought buildings, I guess from a speculation standpoint since they were so cheap, hoping to sell them for a profit someday,” said Caleb McMahon, economic development director for the Jefferson County Alliance and a Pine Bluff Rising board member. “But with no repairs, the buildings became decrepit and started falling. The property speculation only decreased property values downtown.”

The purchase of the Hotel Pines, opened in 1913 and designed by Arkansas State Capitol architect George R. Mann, is part of a larger revitalization plan devised by Go Forward Pine Bluff. Go Forward, a 100-volunteer group financed by one of Pine Bluff’s most successful businesses, Simmons First National Corp., and led by former CEO Tommy May and Simmons First Foundation board member Mary Pringos, has announced an ambitious plan of 27 proposals.

The plan hinges on a public vote for a five-eighths-cent city sales tax that would raise some $32 million before lapsing after seven years. About $20 million more is planned via private fundraising. If the Pine Bluff City Council gives its approval on April 3, the election will be held June 13.

Jefferson County already has a three-eighths-cent tax for economic development, money that has paid dividends in recent years with groundbreakings and expansions at the industrial park, including Highland Pellets and the recruitment of industries from South Korea, Austria and Argentina.

Carla Martin, vice chancellor for finance and administration at the University of Arkansas at Pine Bluff and a Go Forward leader, said the new tax could burden some residents, but she noted that the levy is temporary and that it is expected to have a household impact of $15 a month, or $180 a year.

“I am confident that the citizens of Pine Bluff want a better tomorrow,” she said. “I am confident that we must have some skin in the game.”

Pringos said that if the tax vote succeeds, all of the spending would require City Council approval and would be “pay as you go, with no bond issue.” Pine Bluff Mayor Shirley Washington, she said, has “overwhelmingly endorsed” the program and was one of its 100 volunteers.

Several attempts to reach Washington for this article were unsuccessful.

The Hotel Pines
One of Go Forward’s recommendations, along with a complete overhaul of city codes and enforcement, is to repurpose or demolish the Hotel Pines.

Opened in the golden age of passenger rail just a few blocks from Pine Bluff’s Union Station, it attracted travelers seeking the elegance of one of Arkansas’ premier hotels. When passenger rail service ended in 1968, the death knell sounded for the hotel, which closed in 1970.

The now-crumbling two-story lobby and second-floor balcony were built with a grand curved ceiling of stained glass, a treasure long feared lost. McMahon recently discovered otherwise.

“Mr. Moon told us that he still had all the stained glass; he took us to where he had it warehoused, and we have it now.”

The first step is testing the building and getting a cost assessment.

A $35 million renovation might be workable, through use of state and federal historic tax credits, bank lending and “equity contributions from various sources,” Reilley said. However, if the price tag balloons to more than $35 million, demolition is likely.

Pine Bluff Rising has engaged WER Architects/Planners of Little Rock; East Harding Construction, which is using local contractors; and interior designer Kaki Hockersmith. Hockersmith, of Little Rock, redid the White House for the Clinton administration.

Engineers are making a complete assessment expected in about 60 days. “It’s due diligence, but also an emotional issue,” Reilley said. “If it can be saved, we want to save it.”

Reilley, a Bear Stearns senior managing director in London before his own international projects gave him a glimpse of impoverished areas worldwide, has been brainstorming on the hotel’s future. Many of the ideas are nascent.

“A leading and respected Arkansas hotel operator would love to do a joint venture on Hotel Pines,” he said, adding that UAPB might be “incredibly synergistic” with the project.

UAPB Chancellor Laurence Alexander called talk of any link with the hotel premature. “But if it rises above a whisper, I’ll have some thoughts for sure.”

McMahon said restoring the hotel, which was added to the National Register of Historic Places in 1979, to its former glory wouldn’t mean forgoing new uses. It was conceived as “a 110-room hotel. But we would like retail downstairs, banquet galleries and the like.”

The work includes pumping out the basement, shoring up four columns, boarding up broken windows and fixing the leaky roof. “We have to do all that just to dry it out,” Reilley said. “Soon we’ll know if the hotel can be saved or if it has to go.”

Reversing the Deterioration
Either option beats simply letting it deteriorate, officials said.

That was the case a few blocks away at 620 Main St., where the former Sahara Temple building, owned by Garland Trice, has suffered multiple collapses. In July 2014, risks of falling debris led the city to shut down Main Street between Sixth and Eighth avenues. The stretch is still closed, much to the inconvenience of neighboring businesses like Pine Bluff Title Co. and Davis Auto Parts.

“The proof is in the pudding out there,” parts store owner Bobby Davis told the Pine Bluff Commercial in January. “People can’t come in. They get to the barricade on either end, and they turn around and go somewhere else.”

A free-standing wall of the condemned building toppled that month onto the building next door, an accounting business owned by Lloyd F. Lee.

“It’s distressing,” McMahon said. “Main Street is shut off because we have bricks falling in the street. That being said, we want to save all the buildings we can.”

That’s where Pine Bluff Rising and Go Forward come in.

“When the directors and I started talking about funding Pine Bluff Rising, I said let’s contribute our capital and time in a meaningful way, and work on some of the most intractable problems in the area,” said Reilley, whose fellow nonprofit board members are William Carpenter, McMahon and UAPB professor Ryan Watley.

One problem is the image and reality of downtown.

“On this part of Main Street [near the Hotel Pines], I’d say 90 percent of the buildings are unoccupied,” McMahon said. “That’s why one major goal is to grow downtown.” Reilley and McMahon said a well-known Arkansas business may soon announce plans for a downtown destination, part of a project that is also wooing a Little Rock restaurateur. “We could have an announcement in two or three weeks,” Reilley said.

Reilley has partnered with Win Trafford, a City Council member and real estate broker, to acquire the historic Greystone residence near Jefferson Regional Medical Center with the goal of turning it into a high-end bed-and-breakfast.

“It’s a beautiful building that has fallen into disrepair,” Reilley said. “We hired Kaki Hockersmith to do all the interior design work, and it should be ready to open in six to nine months.”

Go Forward’s main priority is “increasing the tax base for the city of Pine Bluff,” Pringos told Arkansas Business. “Declines in population and businesses have left the city in a difficult position even providing basic services. We have to attack certain issues to reverse that trend.”

‘Starving at the Banquet’
Reilley hopes that Pine Bluff Rising can improve the city’s image through a social media campaign, but he says the area has the essentials to bounce back.

“The town is really starving at the banquet,” Reilley said. “I understand problems like the mechanization of the Delta and job losses associated with that, but Pine Bluff has a good two-year school in SEARK [Southeast Arkansas College], a four-year university in UAPB, a good airport, a great industrial park and an excellent river port. All it’s missing is a transactional plan.

“Mayor Washington has shown great leadership, and courageous work is being done by Tommy May and Go Forward. Community leaders like George Makris at Simmons Bank, Chancellor Alexander at UAPB and Lou Ann Nisbett, to name a few, are leading by example.” But like a team on a losing streak, Pine Bluff “needs some wins” to get people off the bench, he said.

A couple of victories are already in the books. Pine Bluff passed a property tax increase in November to finance a new $14 million library. The 35,000-SF building is expected to rise soon at Main Street and Sixth Avenue.

Funding for a $6.3 million aquatic center was also secured when Stephens Inc. accountants found a way to fully finance the project by restructuring existing city bonds. More than $4 million for the center had been raised through a sales tax levy, but the Stephens tactic overcame a $2 million shortfall. The site is 10th Avenue and Convention Center Drive, opposite the Pine Bluff Civic Center complex.

If voters approve the Go Forward levy, Pine Bluff residents will face a steep 11 percent sales tax on retail purchases other than groceries, but officials say local businesses and workers will benefit when the $52 million fund it contributes to starts flowing. Pine Bluff Rising, for example, is establishing an alliance of Jefferson County subcontractors to compete for millions of dollars in building and demolition work.

Watley is working with East Harding CEO Van Tilbury and Michael Smith, vice president of preconstruction and project management at Con-Real Construction, to urge “minority businesses and contractors who need additional skill, capital, bonding ability or general bidding skills to come together in advance of all the work that Go Forward and Pine Bluff Rising will generate,” Reilley said.

Go Forward’s blueprint calls for creating a downtown square with “city-purposed programs,” the creation of a Delta Festival, Delta sports tournaments and “one or more nice restaurants.”

Restoration efforts would focus on buildings like the Masonic Temple, the Train Depot Museum and the Saenger Theatre, where Harry Houdini and Roy Rogers performed.

Education plans from Go Forward include an Educational Alliance among the city’s three school districts to focus on joint teaching arrangements for science, technology, engineering and mathematics courses, as well as an Innovation Hub in the Arts & Science Center Annex, envisioned as a partnership between SEARK and UAPB.

Go Forward’s efforts are divided into four pillars, each served by committees. They are economic development, chaired by Nick Makris; education, led by Scott Patillo; infrastructure and government, headed by Rosalind Mouser; and quality of life, chaired by Kaleybra Morehead.

“Bringing jobs, addressing blight, bringing in more things to do, all of those issues were seen in our surveys and focus groups,” Pringos said.

Martin boiled down the goals. “Clean up the city, grow the economy, create a more-skilled workforce, offer safer neighborhoods. Make this a place people want to live, work and raise a family. Ultimately we want to make Pine Bluff a city its residents are proud to call home.”

David's Burgers in Maumelle Sells for $1.4 Million

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The sales of an 8,876-SF manor near Roland, 9,364-SF office-eatery project in Maumelle, a 29,800-SF warehouse complex in Little Rock and an 11,125-SF office complex in west Little Rock each topped the million-dollar mark.

• Rodney and Amber McCarver bought the Waterview Estates residence from Gregory and Brittany Wood for $1.7 million.

• Anchor Realty Investments LLC, led by Alan Bubbus, sold the David’s Burgers at 102 Country Club Parkway in Maumelle for $1.4 million.

Buyer: Atkinson Properties LLC, led by Russell and Ric Atkinson.

• An affiliate of the Store Capital real estate investment trust in Scottsdale, Arizona, purchased the Arkansas Wholesale Lumber Co. project at 3801 Mabelvale Pike for $1.3 million.

Seller: Wayne & Robby L. Ridout Family LLLP.

• Malmstrom Family Ltd. Co. LLC, led by Patrick Malmstrom, sold the 11,125-SF office complex at 11617-21 Kanis Road for $1.1 million.

Buyer? Buckstaff Kanis Holdings LLC, led by Doug Malmstrom.


Roles Shift in Golden Bankruptcy

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The early stages of the Chapter 7 bankruptcy of Lex and Ellen Golden have had a revolving door quality.

U.S. Bankruptcy Judge Phyllis Jones stepped down as the presiding judge in the Little Rock couple’s case, which listed debts of $7.7 million and assets of $1.9 million. She was replaced by Ben Barry on March 20.

You might recall Barry oversaw the Chapter-11-turned-Chapter-7 bankruptcy of a Golden enterprise: Acme Holding Co., parent company of the now-defunct Allied Bank of Mulberry.

Tripp Wetzel initially was listed as bankruptcy trustee for the case. However, his Little Rock law firm also is listed among the Goldens’ creditors: $4,872 owed for unpaid legal services.

Wetzel officially left the bankruptcy case on March 8. His would-be successor, James Dowden, declined the appointment the next day when Randy Rice was named trustee.

Wetzel’s firm defended the Goldens in a loan guarantee lawsuit brought by Chambers Bank of Danville that ended in a $2 million judgment in favor of the bank.

In related news:

The Goldens’ bankruptcy attorney, Kevin Keech of Little Rock, accepted a combination of $6,250 and household goods valued at $6,850 as payment for his services.

According to their bankruptcy petition, the Goldens are upside down on their Little Rock residence. The 4,600-SF house near the Country Club of Little Rock is encumbered by two mortgages totaling $928,647 while the property is valued at only $862,500.

U.S. Bank of Cincinnati holds a first mortgage claim of $719,933 on an original $825,000 loan in December 2010. Riverside Bank of Sparkman holds a second mortgage claim of $208,714 from a January 2015 loan of $200,875.

Despite the negative math, the Goldens claim an exemption on the house indicating they intend to stay put.

Highland Pellets Haggling Over New Plant Site

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Hopes for a new wood pellet plant between Stephens and Camden are in the balance as the decision-making scale toggles between Arkansas and Mississippi.

Thomas Reilley, the founder of Highland Pellets LLC, has been struggling to get state incentives from Arkansas, but he expected to close last week on 300 acres in south Arkansas.

He told us last week that a plant similar to Highland’s $230 million plant in Pine Bluff will go to the Arkansas site or to Enterprise, Mississippi.

The Pine Bluff plant, on 150 acres of Jefferson Industrial Park, manufactures low-moisture wood pellets that have become a sought-after replacement fuel for coal in British electric generation facilities. As a renewable resource, they fit in with European environmental goals.

“We would love to build in south Arkansas, and we are seeking tax credits for the jobs the plant would produce,” Reilley said as an aside in a broader discussion of Pine Bluff revitalization (see Pine Bluff Is Rising). “Close to 400 loggers and truckers could be put to work, and there are indirect jobs,” he said.

Reilley wouldn’t say more for now, but indicated he might have “a lot to say in a separate call” in a few weeks.

Retail Space Vacancy Rate Rises in Central Arkansas

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The vacancy rate for retail space in central Arkansas rose in the fourth quarter of 2016 to 5.4 percent, compared with 4.8 percent in third-quarter 2016.

“During the fourth quarter of 2016, Lewis Crossing in Conway continued to be the ‘hot new area,’ ” said Mark A. Bingman of Rector Phillips Morse Inc. “This new construction accounted for most of the year-end net absorption for the central Arkansas market with approximately 300,000 SF."

(Related: Conway Booms, Setting Retail Records.)

“Although the overall vacancy rate remains low, it will be interesting to watch the effect of the increasing influence of internet sales on future brick-and-mortar spaces,” said Bingman.

Northwest Arkansas Brokers Help Businesses Have Say in Designing the Office

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The Clorox Company didn’t find the Vista 21 building by luck or accident.

The consumer product company of Oakland, California, researched and planned for two years before moving its Bentonville branch and its 92 employees into CrossMar Investment’s new building in September.

“We started talking about what we wanted in the new space,” said Mike Schmandt, the company’s director of Sam’s Club business. “We wanted people to feel good about hanging out here. We ask people to work long hours sometimes. We wanted it to be a comfortable environment.”

It’s a challenge faced by many companies in today’s business world: finding the best office metrics for its workforce. Companies find that common workspaces are more economically efficient, but amenities such as kitchens, fast Wi-Fi connectivity and natural light are equally advantageous.

Companies that build (or move into) new offices can have a big say in the design. When a company moves into a preexisting structure, the challenge is adapting the new space to modern design, infrastructure and technology.

Schmandt said that when Clorox began preparing for the move, executives with the corporate real estate division met with employees for “information gathering” to find out what exactly everyone would like in the new building. CrossMar had begun building the outside shell of the Vista 21 building — at 2200 SE 28th St. — and then altered the interior to match Clorox’s design plan.

The new office fit Clorox’s view of fewer offices and a common work area for most of its employees. That fits the company’s efficiency requirement, while a state-of-the-art kitchen, video installations in numerous conference rooms and huddle rooms and an internet-connected back patio were amenities for the employees.

The 32,589-SF, two-story building was given a thoroughly modern look with bays of windows on the front and rear of the building. Each end of the building is almost entirely glass, a complete 180 from Clorox’s previous home, which was a typical old-school office building.

“That building was much more residential,” said Vice President Mark Malo. “We used to call it a sorority house. We were looking for something that was very open. We wanted the modern feel.”

Modern Cubist
The only hard sell for the employees was the reduction in individual offices. Malo and Schmandt kept their offices — “But they’re much smaller now, just room for a desk and a chair,” Schmandt said — but approximately 30 other employees went from offices to a group workspace.

The end result, though, is a place where employees enjoy their work experience and the company gets economic benefits. The state-of-the-art kitchen not only gives employees a wired place to eat or grab a cup of coffee, but it gives Clorox sales people a working kitchen to promote its products to potential customers.

“We spent a lot of time on the kitchen and patio,” Malo said.

A lot of time was spent making it a great place to work, technologically speaking. Malo said each meeting room and workspace has video capabilities, and the video system is uniform throughout so an employee will know how to operate any video device in the building.

“Believe it or not, that’s a big deal,” Malo said. “You had to have a Ph.D. to figure out each one before.”

Clorox’s thoroughness in designing a new office space is not new in the business world. Sage Partners President Marshall Saviers, who helped broker Clorox’s lease with CrossMar, said Clorox’s new office represents the dominant trend in the business world, and developers are hard at work to fulfill the new requirements.

“They’re looking for lots of natural light and tall ceilings,” said Saviers, whose office is in the similarly designed Hunt Tower in Rogers. “A lot of these companies now are going from a private office environment to an open cube environment. When they do that, they want to have all these amenities in the building.”

Saviers, who turned 37 last week, said his generation may be of the corner-office age, but younger employees want bright, cheerful work environments, walking trails and places to chill during breaks. Companies that want and need to hire these young, talented employees have to adjust accordingly.

“When you look at younger people, they don’t care as much about the corner office, but they do care about amenities,” Saviers said. “A lot of people are going to this live-work-play environment. You spend a lot of time at your office and you want to make sure it’s a fun place to work. People understand it’s important to retaining talent but also keeping them happy.”

Selling Work
It’s a trend in heavy play in Benton County, home to major retailers such as Wal-Mart Stores Inc., whose vendors and suppliers saturate the business landscape.

But even in Fayetteville, where the office market has more local and regional businesses and generally requires less square footage per company, amenities and work environment can be important factors.

For example, the seven-story E.J. Ball Plaza, which overlooks the downtown square, sold for $3.125 million in September, and the new owners plan to renovate it and put restaurants on the ground floor. It has built-in amenities such as a panoramic view of downtown, proximity to the Farmers Market and the downtown shopping and cultural areas.

David Erstine, a vice president at CBRE in Fayetteville, said amenities are a common thread when companies contact him looking for office space, regardless of which county they want to be in.

“Recruitment and retention oftentimes come up in conversations when they’re talking about their space needs,” Erstine said. “‘How is my team going to accept this space? Is this going to be a space I’m going to use as a recruitment tool and a retention tool?’ Office users often ask for location of amenities, location of the Razorback Greenway, access to I-49. Those are key points for people in Benton County, for sure.”

Saviers said finding suitable spaces for the elaborate and large office footprints such as Hunt Tower or Vista 21 isn’t easier or harder; it’s just different. CrossMar originally was constructing Vista 21 as a multi-tenant space before changing to suit Clorox as a single tenant.

“Downtown Fayetteville, you’re going to reuse the architecture that is already there,” Saviers said. “That’s another trend right now, adaptive reuse. If you go to Pinnacle, you’re going to have more of a suburban feel. You can look more modern, although there are a lot of modern buildings going up in downtown Bentonville. They do try to reuse as much as they can. It’s good. It keeps our culture and character.”

Conway Booms, Setting Retail Records

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Commercial development is thriving in Conway, evidenced by the nearly complete $65 million Lewis Crossing shopping center and plans for a startup space the city hopes will attract new and existing companies.

Both are part of the city’s continuing transformation into a commercial hub distinct from Little Rock, though they share a metropolitan statistical area.

“In spite of a difficult national retail climate, Conway has continued to show growth with record retail sales of $1.45 billion for 2016,” Brad Lacy, CEO of the Conway Area Chamber of Commerce, said in an email to Arkansas Business. “With the opening of Sam’s Club in January, we anticipate that number to grow as we solidify our place as a regional shopping destination.”

Lacy also lauded Conway’s success in retail development. Sam’s Club, at 136,580 SF, is the main anchor of Lewis Crossing.

“This growth will only build the case for other retailers to invest in our market,” Lacy said. “With a great mix of locally owned, specialty stores and restaurants and well-known national brands, we consistently hear that our residents are not traveling out of town to shop and more visitors are choosing Conway.”

The 441,871-SF Lewis Crossing is at the southeast corner of Interstate 40 and Dave Ward Drive; just south of another top development, Lewis Ranch. Shoppes at Central Landing is north of both and on the other side of Interstate 40.

Lewis Ranch LLC moved dirt last week for a new road it is building to connect its 50-acre development to Lewis Crossing and Conway Commons, said Operations Analyst Audie Alumbaugh. Conway Commons is the 600,000-SF shopping center near I-40 off of Exit 127.

“Our goal is to have a defined retail corridor starting around Conway Farm & Home on Amity and going all the way through the Sam’s development, through Lewis Ranch and up through Conway Commons, where the Target, the Home Depot, all that is,” she said.

The property owner, Bill Lewis of Conway, is investing $5 million in the road and other infrastructure features, Alumbaugh said. The new Amity Road will go north of Crain Buick GMC, then through Lewis Ranch to the second roundabout on Dave Ward Drive. Crain Buick GMC and Crain Kia of Conway have already bought property at Lewis Ranch.

Alumbaugh wouldn’t disclose the project’s total cost, saying several pieces will be built to the future tenants’ specifications, altering estimates.

Sage Partners Real Estate Solutions of Fayetteville is the leasing agent for the property. The Tyler Group of Conway is managing the project, and Centennial Bank is financing it.

Alumbaugh said the owner has been working on the development for two years and has letters of intent as well as written offers. She also mentioned talks with three big-box stores but declined to name them.

She expects Lewis Ranch construction to take two years, but the road is set to be finished by the end of this year.

Lewis Crossing
Much further along is its neighbor, Lewis Crossing.

All of its anchor stores are open, said Roger Cole with Elrod Real Estate of Little Rock, the local leasing agent.

Open now are Academy Sports, Bed Bath & Beyond, On the Border, Kay Jewelers, Books-A-Million, Dollar Tree, Michael’s, Petco, Ross Dress for Less, Ulta, Aspen Dental, AT&T and Mattress Firm.

Hideaway Pizza and Red Robin near starting construction of their standalone buildings, while Success Vision, T-Mobile and Rita’s Italian Ice are set for finish-out work. David’s Burgers, another standalone building does not yet have a construction start date, he said.

Developer Ryan Mosser of Collett & Associates of Charlotte, North Carolina, said, “Everybody that we’ve talked to out there that’s open says it’s going really well with sales. A few of the tenants are above projections … It’s a great town and all retailers do really well.”

C.R. Crawford of Fayetteville was the contractor; Garrett Excavating of Hot Springs did the site work, Construction started in August 2015.

Shoppes at Central Landing
Another big retail development in planning is the Shoppes at Central Landing, a 302,708-SF center featuring Dillard’s, retail shops, restaurants, apartments, a hotel and outparcels, according to the website of developer Jim Wilson & Associates of Montgomery, Alabama. The company’s president, Will Wilson, did not return calls from Arkansas Business.

The center is being built at the 151-acre former municipal airport on Corporate Drive. A new overpass is also underway to connect Central Landing with Conway Commons.

Bryan Patrick, director of the city’s Planning & Development Department, said the city is building the overpass and people will be using it by the end of the summer or early fall.

He said all of the city’s infrastructure improvements connected to the Central Landing project, including the overpass, cost about $28 million.

Projects With UCA Ties
The Conway Area Chamber announced earlier this month Conway Corp. will pay for a new space for startups called the Arnold Innovation Center. The utility has not pledged an exact amount yet because the center’s downtown location has not been finalized, CEO Lacy said.

A site may be known by May.

The Conductor, a public-private partnership of the University of Central Arkansas and Startup Junkie Consulting of Fayetteville, will offer programming to Arnold Innovation Center, named for retiring Conway Corp. CEO Richie Arnold.UCA will pay Startup Junkie $1.3 million to run the Conductor through September 2019.

The chamber is also studying the feasibility of renovating the historic chamber-owned Grand Theatre into a new arts venue.

UCA’s other commercial development was the $16.3 million, 67,500-SF Donaghey Hall. Students moved in in August and businesses followed.

The second, third and fourth floors are residential, but the first floor is home to Uncle T’s Deli/Market, Marble Slab Creamery, Great American Cookies, Blue Sail Coffee and Mosaique Bistro & Grill.

Trek Bikes of Conway plans to join them in mid-April, a UCA spokeswoman said.

On five-year leases, tenants pay $1,888 to $4,652 in rent, $15 per square foot. The building will also house a 1,000-SF “maker space” called The Cave that will give entrepreneurs access to advanced tools and technology. The university partnered with the Arkansas Regional Innovation Hub to operate the maker space, which will yield no rent.

Office Buildings
A smaller project, three multi-tenant office buildings at 605, 635 and 655 Dave Ward Drive, have been developed by George Covington Sr. of Covington Cos. in Conway for $3.7 million. The buildings are complete, but tenants are being sought, Covington said.

Covington constructed the building at 635, while the others were remodeled. The three combined offer tenants 46,697 SF.

US Consumer Confidence Hits 16-Year High

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WASHINGTON — U.S. consumer confidence climbed to its highest level in more than 16 years, a strong gain for one of President Donald Trump's preferred economic indicators.

The Conference Board said Tuesday that its consumer confidence index rose to 125.6 in March from 116.1 in February, the best reading since December 2000. The index measures both consumers' assessment of current conditions and their expectations for the future. Both improved this month.

The "renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months," said Lynn Franco, director of economic indicators for the business group.

More Americans, according to the survey, said that they expect hiring and incomes to increase over the next six months, while nearly a third described business conditions as "good" in March.

Economists closely monitor the mood of consumers because their spending accounts for about 70 percent of U.S. economic activity.

The president has cited consumer confidence as evidence that his administration is succeeding. When the index increased in December, the president tweeted out the figures along with the line, "Thanks Donald!"

But consumer sentiment is also reflecting political beliefs as much as economic indications.

The preliminary March results of the University of Michigan's survey of consumers noted a sharp divide between Republicans and Democrats. Republicans expected growth to strengthen, while Democrats showed worries about a "deep recession," according to the survey.

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

US Home Prices Rose in January by Most Since July 2014

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WASHINGTON — U.S. home prices jumped in January from a year earlier at the fastest pace in nearly 2 ½ years, as a tight supply of houses for sale spurred bidding wars in many cities.

The Standard & Poor's CoreLogic Case-Shiller 20-city home price index, released Tuesday, increased 5.7 percent in January, the most since July 2014.

Americans stepped up home buying in January, even as mortgage rates rose. Many buyers likely sought to close their deals before rates increased further. The Federal Reserve implemented its third rate hike in two years March 15, but economists at S&P Dow Jones Indices say higher rates won't slow sales until later this year.

The biggest price gains were in Seattle, Portland and Denver, which have topped the other cities in the index for months.

Mark Fleming, chief economist at First American, said that still-low mortgage rates and steady hiring will likely support further housing demand.

"Low mortgage rates and economic growth set against a low inventory of homes for sale will drive a strong sellers' market and further rising prices this spring," Fleming said.

David Blitzer, chairman of the S&P Dow Jones Index Committee, said that the Fed's most recent increase won't push up mortgage rates very much and shouldn't affect sales. Average 30-year mortgage rates typically track the yield on the 10-year Treasury note. That yield is usually driven by several factors, including broader economic conditions and investor demand for safe assets such as Treasurys.

Still, should the Fed raise rates three or four more times this year, "rising mortgage rates could become a concern," Blitzer said. Fed officials currently forecast two additional hikes.

Robust price gains could eventually make housing less affordable, Blitzer said. That may already be discouraging some homeowners from "trading up" to a new home, making the supply crunch worse as fewer people put their homes up for sale.

"At some point, this process will force prices to level off and decline — however we don't appear to be there yet," Blitzer said.

There were just 1.75 million homes listed for sale in February, 6.4 percent lower than a year ago, near the lowest level since the National Association of Realtors began tracking the data in 1999.

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


Contracts to Buy US Homes Hit Highest Level Since April

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WASHINGTON — More people signed contracts to buy U.S. homes last month as warm weather and rising confidence appeared to encourage consumers to look for houses.

The National Association of Realtors said Wednesday that its pending home sales index climbed 5.5 percent in February to 112.3, its highest point since April and its second-highest point since 2006.

Lawrence Yun, the Realtors' chief economist, suggested that a rising stock market had helped bolster confidence. "Last month being the warmest February in decades also played a role in kick-starting prospective buyers' house hunt," Yun said.

In addition, rising prices may have nudged some people into making offers for homes now out of fear of having to pay more if they wait.

The NAR's index of pending home sales rose 11.4 percent in the Midwest, 4.3 percent in the South, 3.4 percent in the Northeast and 3.1 percent in the West.

The U.S. housing market is looking strong despite a sharp rise in mortgage rates since the presidential election. The average on a benchmark 30-year fixed rate loan was 4.23 percent last week, up from 3.54 percent the week before the Nov. 8 vote.

Investors bid up rates in part out of expectation that President Donald Trump's plans to cut taxes and increase spending on defense and infrastructure would raise economic growth and inflation.

The Realtors reported last week that sales of existing homes fell in February after having surged in January to the fastest pace in a decade. Sales were still up solidly from a year earlier.

The supply of homes for sale is tight and is helping to drive prices up and affordability down. The number of listings for sale has tumbled 6.4 percent over the past year to 1.75 million homes last month, up only slightly from a record low in January.

The supply of homes for sale has fallen on an annual basis for the past 21 months.

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

Acxiom Moves Toward Creative Corridor Offices

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Acxiom Corp. signed a lease this week for 11,215 SF of office space in downtown Little Rock's Creative Corridor.

Acxiom will occupy the remaining space in the 301 Main St. building: 4,487 SF on the second floor and 6,728 SF on the third floor.

The downsizing move follows Acxiom selling its 12-story 188,460-SF office building and adjoining parking deck at 601 E. Third St. to Simmons Bank of Pine Bluff for $25 million earlier this month.

Acxiom also announced it would relocate its corporate headquarters from Little Rock to Conway.

Other tenants in the 301 Main project include Waymack and Crew Moving Pictures, Tropical Tango and Blue Flame Minerals. The property is owned by Terraforma LLC, led by Doug Meyer.

Todd Rice and Mason Lewis with Colliers International Arkansas facilitated the lease on behalf of Terraforma.

DWS Director Daryl Bassett on Why Land of Opportunity Needs More Workers To Land a Job

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Before being named director of the Department of Workforce Services, Daryl Bassett served as director of Business & Commercial Services at the Arkansas secretary of state’s office. Before that, he was a member of the Arkansas Public Service Commission from 2001-10 and liaison for DWS to former Gov. Mike Huckabee from 1999-2001.

Bassett has a bachelor’s degree in business and public administration from Harding University in Searcy. He was named to lead the Department of Workforce Services by Gov. Asa Hutchinson in December 2014.

Arkansas’ unemployment rate fell in January to the lowest on record, 3.8 percent. (It has subsequently fallen to 3.7 percent in February.) What’s going on here?

I think we are seeing the fruits of a new way of looking at our state’s economy. We are more aggressive in our pursuits of the ideal “talent delivery system,” and industry is responding by taking a second look at hiring job seekers who may not have a strong work history, have been unemployed for a long time or have shown a work ethic but have a skills gap that keeps them underemployed.

However, I think that this willingness of employers to expand the types of candidates they are willing to hire should be coupled with job-driven training programs directed at those categories of job seekers.

While the unemployment rate is going down, the “underemployed” rate continues to rise. What’s behind that?

Someone without a job must be actively seeking employment to be considered unemployed; otherwise, he’s not part of the labor force. So when unemployment and employment both decline, as the state experienced throughout most of 2016, it indicates that some of those individuals are leaving the labor force, as opposed to going from unemployed to employed. The job of DWS is to find those people and bring them back into the labor force, and that will require collaboration across state agencies to be successful.

Where does our state have specific “skills gaps”?

The biggest gaps are in the “soft skills” and “middle skills” areas. Soft skills are valuable because they are “portable” skills that never expire. Technical skills, on the other hand, are those that continue evolving and require updating or periodic retraining. Middle-skill jobs require education beyond high school but less than a four-year degree and make up the largest part of the labor market.

There’s a significant gap between the types of jobs employers need to fill and the number of people who have the education and training to fill those jobs. Today, an estimated 29 million jobs require workers with an occupational certificate or associate degree, with annual wages ranging from $35,000-$75,000, and nearly 40 percent paying more than $50,000 a year. In Arkansas, middle-skill jobs account for 59 percent of the state’s labor market, but only 48 percent of the state’s workers are trained at the middle-skill level. The state needs more workers who have attained skills and earned the types of certificates, associate degrees and linked industry certifications that are available through workforce training and technical programs at Arkansas two-year colleges.

What are some of your agency’s most effective programs?

Jobs-driven training programs developed in conjunction with employers and that include all individuals interested in improving their career path and overall economic situation. Employers are interested in a job candidate pool that is well-trained and motivated to make their business profitable. To that end, the agency has focused significant attention on “discretionary” grants from the Department of Labor.

The state has received over $38 million in these grants over the last six years. Some of our other highlights are Temporary Assistance for Needy Families, which has been at the forefront of implementing innovative workforce development initiatives in Arkansas; Trade Adjustment Assistance; Rapid Response/Governor’s Dislocated Worker Task Force; and Re-employment Services.

Hergets Give Heights Icon New Chance

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The venerable Terry’s Finer Foods in the Heights lives now as the Heights Corner Market, a rebirth greeted with relief by all who relied on Terry’s for great meat, seafood, desserts and its selection of hard-to-find groceries.

Eric Herget, who grew up in the neighborhood, and his wife, Lou Anne, took over the small grocery store, founded in the 1940s, after it was closed in February by Lex and Ellen Golden in the wake of their financial troubles.

“It was important to keep that store going,” said Herget, who’s in the insurance business in Arkansas.

The Heights Corner Market, at 5018 Kavanaugh Blvd., has retained all four Terry’s employees, including Nathan Horn, the meat department manager, and store manager Jim “Bubba” Justice.

“I’m from the Heights, so I know the importance of that location,” Herget said. “My wife said that 18 years ago when we met, we were driving around and I told her that I would have that store someday. And I’ve told people that for years, that if Terry’s ever became available I would like to jump in there. For some reason, it’s just always been something I wanted to do.”

Lou Anne Herget, formerly head of design at Cobblestone & Vine, is similarly excited about the venture. With a career in retail, she is president of the store and is the “day-to-day boss,” Eric Herget said.

The Hergets plan to expand the grocery and to maintain the store’s reputation for high-quality meat and seafood, improving the offerings where possible. They want to offer more organic products, and they’re committed to selling Arkansas products whenever possible, working with Wilson Gardens of Wilson (Mississippi County) and the New South Produce Cooperative of Little Rock.

The former pizzeria at Terry’s — at the south end of the 8,050-SF building — now has places for customers to sit and drink coffee and will transition into a deli-type cafe.

The Hergets also plan to reopen next month the old Restaurant at Terry’s — at the north end, the former Foster Cochran space. It will serve what Eric calls “Southern comfort food,” and the announcement of a chef is likely any day. They plan to serve breakfast, lunch and early evening dinner, but because the Hergets want to be good neighbors, he said, the renamed Heights Corner Restaurant will close at 8 p.m. They’re also discussing a Saturday brunch.

The market plans to offer delivery through Chef Shuttle, along with a meal kit delivery service.

Eric and Lou Anne plan to be hands-on at the market, into which they have invested $250,000-plus, having realized that owner presence can contribute powerfully to a business’ success.

Herget is from a well-known Little Rock family. His father is Dick Herget, a retired insurance executive who now lives in Heber Springs, and his son is Ryan Herget, one of the owners of Chef Shuttle. Eric’s cousin is Ted Herget, founder of Gearhead Outfitters in Jonesboro. And Eric’s stepfather was Richard Allin, longtime newspaper columnist for the Arkansas Gazette and later the Arkansas Democrat-Gazette.

Eric and Lou Anne lived in Heber Springs but now plan to make a home in the River Market District.

The reception to the store has been excellent, Herget said. “It’s a constant ‘thank you so much for keeping this going.’ People are very much appreciative of that.”

A Little History
The Goldens bought Terry’s in 2009 from Gene Lewellen, who had bought it from the original “Mr. Terry” — if anyone knows his first name, you’re invited to share — in the late 1960s. Gene Lewellen, who died last year, started in the grocery business as a “sack boy” at the old Black & White Store in the Heights and went to work for Mr. Terry sometime in the early ‘60s, working his way up to manager, according to his son, Jeff Lewellen of Little Rock.

After Lewellen bought Terry’s, his other son, Ed, became manager. Ed Lewellen died in 2006.

Jeff occasionally worked part time in the store, but his father urged him not to follow in his footsteps, saying, “Whatever you do, stay away from perishables.” Whenever a storm knocked out power to the store, Gene Lewellen had to take action to save the perishable goods, his son explained.

Jeff Lewellen is glad Terry’s is seeing new life as the Heights Corner Market. “Absolutely,” he said. “I’m glad for the neighborhood, that there’s a neighborhood market still in the Heights.”

“My dad always said he couldn’t have done it without my mother,” Mae Bell, Jeff said. His father “went from sacking groceries to owning his own store. I don’t know if you can even do that now. They did it.”

Ridge Road Village Draws $7M Transaction (Real Deals)

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An 80-unit apartment project in North Little Rock tipped the scales at $7.05 million.

4748 Ridge Road LLC, an affiliate of New York’s Dwight Capital, acquired Ridge Road Village Apartments from Ridge Road Village Ltd. of Frisco, Texas.

The limited liability company assumed a May 2016 mortgage of $6.3 million held by P/R Mortgage & Investment Corp. of Carmel, Indiana.

Ridge Road Village Ltd. bought the 6.88-acre location at 4748 Ridge Road for $440,418 in September 2004 from the North Little Rock School District.

Multifamily Parcel
Apartment land in west Little Rock weighed in at $3.1 million.

The Estates of Chenal Valley LLC, an affiliate of Heritage Properties Inc. of Madison, Mississippi, purchased a 20.1-acre apartment site near the southeast corner of Rahling and Kirk roads from Deltic Timber Corp. of El Dorado.

Deltic acquired the land as part of two transactions. The company bought Sparkman Lumber Co., led by Roy and Christine Sturgis. The Pulaski County portion of that December 1956 transaction encompassed 16,552 acres.

Deltic purchased 37 acres for $2.4 million in December 2008 from Agar/Shuffield Joint Venture, led by Elvin Shuffield.

Cabinet Purchase
Cabinet facilities in Jacksonville are under new ownership after tandem deals totaling $2 million.

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

RDH also acquired the 24,000-SF Wright’s facility at 2609 Cory Road for $600,000 from BSJ LLC, led by Bobby and Joshua Morden and Stacie Henson.

The deals were financed with a three-year loan of $2 million from First Arkansas Bank & Trust of Jacksonville and a 10-year loan of nearly $1.4 million carried by the Morden Revocable Trust.

The 4.09-acre 2600 Cory Drive property was purchased from the receiver of the Martin/Morden Partnership in Jan-uary 1986 for $135,000.

The 8.88-acre 2609 Cory Road development was bought for $600,000 in July 2006 from Carthage Group II LLC, led by Lloyd Cameron.

Eatery Land
A former restaurant site in west Little Rock changed hands in an $800,000 deal.

SS Rodney Parham LLC of Lavon, Texas, acquired the 1.62-acre location at 102 S. Rodney Parham from King Chow and Jasmine Lin.

The property previously was tied to a May 2011 funding agreement of $1.38 million from First Capital Bank of Germantown, Tennessee.

The former Tex-Mex project was purchased for $690,000 in February 2010 from Mexico Chiquito Properties LLC, led by Jerry Haynie.

Mini Transaction
A mini-storage project in southwest Little Rock rang up a $775,000 sale.

Bison Asset Management LLC of Frisco, Texas, bought the 262-unit AAA Access Mini Storage project at 4600 and 4607 Hoffman Road from the Lawerance E. Doyle Trust and Beverly J. Doyle Trust.

The 6.1-acre development previously was linked with a November 2004 mortgage of $1 million held by Arvest Bank of Fayetteville.

The trusts acquired the project for $1.23 million from Pantanal LLC, led by Arlanders Etheley.

Acreage Sale I
Two tracts totaling 320 acres in south Pulaski County drew a $632,424 transaction.

New Growth LLC, an affiliate of Forest Investment Services of Atlanta, purchased the woodlands, most of which are a half-mile west of Interstate 530, south of Hensley Loop.

The seller is Canopy Timberlands Spout Springs LLC, an affiliate of Highland Capital Management of Dallas.

The land helped secure an August 2008 mortgage of $11 million held by Metropolitan Life Insurance Co. of New York. The property was bought for $580,000 more than eight years ago from RMS Timberlands LLC of Birmingham, Alabama.

Acreage Sale II
More than 145 acres in west Pulaski County sold for $516,078.

The namesake revocable living trusts of Ronnie and Roberta Hudson acquired the land just east of Roland and along the Arkansas River from Bartley Moreland III, his wife, Debra, and their Moreland Family Ltd.

The Morelands purchased the acreage for $136,000 in November 1983 from Robert Woern.

Sherwood Site
A 3.28-acre commercial site in Sherwood changed hands in a $325,000 transaction.

TrickD Holdings LLC, led by Richard Thackeray, bought the land on the west side of 8000 Landers Road from the Shirley Bean Crawford Living Trust.

The deal is backed with a two-year loan of $200,000 from Little Rock’s Bank of the Ozarks.

Louis Bean assembled the property in three deals totaling $725 with O.D. Longstreth: $300 in May 1952, $200 in April 1955 and $225 in December 1955.

River Ridge Manor
A 9,086-SF home in Little Rock’s River Ridge neighborhood tipped the scales at $1.05 million.

Mangaraju Chakka and Kanthi Dasani purchased the house from the estate of Jerry Haynie.

The deal is funded with a 10-year loan of $1.2 million from IberiaBank of Lafayette, Louisiana.

The residence previously was tied to a January 2008 mortgage of $540,000 and a December 2008 mortgage of $1 million held by Merrill Lynch Credit Corp. of Jacksonville, Florida.

The property was bought for $25,000 in December 1970 from Union National Bank of Little Rock.

Orle Residence
A 4,994-SF home in the Orle neighborhood of west Little Rock’s Chenal Valley neighborhood is under new ownership after an $845,117 deal.

Daniel Borja-Cacho and Tiffany Metzger acquired the house from Lamay-O Inc., led by William Martin Jr.

The deal is financed with 30-year loans of $417,000 and $281,000 from Bank of Little Rock Mortgage Corp.

The residence previously was linked with a November 2015 mortgage of $666,000 held by Community Bank of Louisiana in Stonewall.

Lamay-O purchased the property for $220,000 in April 2015 from the namesake trust of Stephen and Rachel Deal.

Riverbend Home
A 3,504-SF home in Little Rock’s Riverbend neighborhood rang up a $764,000 sale.

Gladys Whitney bought the house from the Max Harris Revocable Trust, led by Bolton Harris II.

The property was acquired for $105,000 in January 1987 from Virginia Bailey.

Piedmont Abode
A 3,212-SF home in west Little Rock’s Piedmont neighborhood drew a $679,000 transaction.

The Alexander Revocable Trust, led by Faye Alexander, purchased the house from Rich Cosgrove and Nancy Green.

The residence previously was tied to an October 2006 mortgage of $460,000 held by Bank of America in Charlotte, North Carolina.

The property was bought for $575,000 more than 10 years ago from Don and Alice Holman.

Cliffewood House
A 4,344-SF home in Little Rock’s Cliffewood neighborhood sold for $528,000. Richard Hampton and Mary Thalheimer acquired the house from Walter Nixon III and his wife, Dana.

The deal is backed with a 30-year loan of $475,169 from Mells LLC, led by Elizabeth McCollum Thalheimer.

The residence previously was linked with a March 2012 mortgage of $381,500 held by First Arkansas Mortgage Co. of Jacksonville.

The Nixons purchased the property for $196,000 in December 1998 from John and George Gill.

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