Whisenhunt Buys Prime I-540 Property from Bank of America for $19 Million

by George Waldon  on Friday, Mar. 9, 2012 3:25 pm  

Johnny Kincaid, left, and Charles Martin of Little Rock?s Whisenhunt Investment Group. (Photo by Michael Pirnique)

Little Rock real estate developer Joe Whisenhunt has purchased 375 acres along Benton County's Interstate 540 corridor from Bank of America for $19 million, Arkansas Business has learned.

At an average cost of less than $1.25 per SF for improved but vacant commercial land, the all-cash acquisition represents a cost-basis bargain of epic proportions. While Whisenhunt and others involved with the sale declined to confirm or talk about the purchase price of the deal, Arkansas Business has confirmed it with multiple sources.

"It's the most significant land transaction since the bubble burst," said Ramsay Ball, commercial real estate broker with the Bentonville office of Colliers International. "I can't think of anything like it. It's part of the shake-up. There's a lot of land on the market that is still priced too high, and to sell, it's got to be priced right. This is an exceptional deal."

The transaction is actually a series of deals between affiliates of Whisenhunt Investment Group of Little Rock and Bank of America for property from the lender's portfolio of OREO - "other real estate owned." The deal is poised to bring new life to long-dormant commercial sites once controlled by northwest Arkansas developers Bill Schwyhart, Charles Reaves and Gary Brandon, who were overwhelmed by debt.

The land involves pieces of the famed Billion-Dollar Mile along I-540 in Rogers and includes 22 acres in Lowell at a proposed interchange. That potential change to traffic patterns is somewhere out in the future and dependent on, among other things, the potential impact of stormwater drainage on the habitat of the Ozark Cavefish.

From Whisenhunt's perspective, the Benton County real estate market is poised to rebound, and future changes in the development landscape presented by the new interchange only sweeten the possibilities.

"That's why we wanted to get our stakes in the ground and get established up there," he said. "We've already had three or four knowledgeable investors who heard we had the property under contract and wanted to buy it from us."

His vision for the property is to keep most of the land as a legacy holding and strike build-to-suit or ground-lease deals with end users. Marked for sale are 39 residential lots associated with The Grove, an ill-fated project led by Brandon, a Fayetteville developer.

Patience - and No Debt

The lots, on either side of Dixieland Road and the south side of West Laurel Avenue, are at the north end of 119 acres purchased by Wisenhunt. The property extends south to Pleasant Grove Road and the once rural Pleasant Grove Cemetery.

The land is one of three blocks of property Whisenhunt acquired that former ownership groups forfeited or lost through foreclosure to Bank of America. The all-cash component of the deal positions Wisenhunt Investment Group to maintain a debt-free, long-term hold.



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