Landmark Hotel in Downtown Fayetteville Undergoes Massive Makeover as The Chancellor

by George Waldon  on Monday, Nov. 21, 2011 12:00 am  

Ike Thrash, left, and Sam Alley have partnered to restore the faded luster of a landmark high-rise hotel in Fayetteville that has seen a series of financial ups and downs. [Photo by Wesley Hitt]

Oct. 2, 1992: Fayetteville Hotel Ventures Ltd. of Wayzata, Minn., buys the project for $3 million and announces it will spend an additional $2 million to renovate the property. The limited partnership considers converting one floor (20 rooms) into office space.

Sept. 11, 2001: The hotel changes its affiliation to Radisson, marking the expiration of the 20-year Hilton franchise agreement.

Oct. 20, 2006: Cosmopolitan Ventures LLC, led by Richard Alexander and John Nock, buys the property for $9.9 million. The purchase and an extensive renovation of the rechristened Cosmopolitan Hotel are backed with a funding agreement of nearly $18.4 million from ANB Financial of Bentonville.

May 9, 2008: ANB is closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. is named receiver. The hotel renovation is less than half complete, although Alexander and Nock have drawn about $16 million of the ANB loan.

Jan. 12, 2009: The Cosmopolitan funding is part of a package of 1,112 loans totaling more than $1.1 billion sold by the FDIC in a $20.1 million structured sale to ANB Venture LLC, an affiliate of Kingston Management Services LLC of Idaho Falls.

Nov. 1, 2010: ANB Venture takes possession of the hotel at a $6 million foreclosure sale.

Oct. 31, 2011: Southwind Hospitality Holdings LLC, a partnership led by Ike Thrash of Hattiesburg, Miss., and Sam Alley of Little Rock, buys the hotel for $3.8 million and renames it The Chancellor. The purchase and renovation are backed with a $15.8 million loan from First Security Bank of Searcy, augmented by New Markets Tax Credits that are tied to the project's job creation. The hotel will operate with a staff of 110, and upward of 900 construction workers will help with the property's makeover.

 

 

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