Jonesboro Developers Dig Into Former Bruce Burrow Properties

by George Waldon  on Monday, Oct. 21, 2013 12:00 am  

The office project, which will be renamed the 2400 Building, was home to Burrow’s varied real estate enterprises, including MBC Holdings Worldwide.

MBC purchased its rechristened five-story, namesake building for $4.2 million in February 2008. Burrow holds a 50 percent stake in MBC.

Crowned with the Regions name today, the project originally was developed as the headquarters for Wallace Fowler’s First Bank group that operated under the Southwest Bancshares banner.

Under MBC ownership, the 3.3-acre office development bore a $4.8 million foreclosure judgment held by Little Rock’s Metropolitan National Bank and a $491,200 second mortgage claim held by First Community Bank of Batesville.

The property carried a paper value of more than $5.5 million in Burrow’s bankruptcy filing.

Burrow filed his petition for Chapter 11 reorganization on July 30, 2012, and listed total debts of $17.27 million and total assets of $14.1 million.

However, those tallies reflect only a fraction of the debts and assets he shared with Belz.

Absent from Burrow’s roster of Chapter 11 assets is his stake in the 37,500-SF Citizens Bank Building in downtown Jonesboro. Real estate records indicate the property is owned by MBC Holdings Worldwide.

A deal is in the works that could result in a mixed-use redevelopment of the Citizens Bank Building with apartments, retail and office space. Plans include construction of a neighboring parking garage to support the project.

“We do have a qualified buyer on the property,” said Gary Harpole, president and chief operating officer of Jonesboro’s Halsey Real Estate Inc., which is marketing the project.

The unnamed would-be buyer is about six months away from completing due diligence and tying up loose ends, according to Harpole.

Purchasing or restructuring the land leases associated with the property is among those loose ends.

The vacant seven-story project at 100 W. Washington Ave. was purchased for $1.7 million in November 2005 from the estate of renowned Arkansas banker Herbert McAdams.

McAdams retained ownership of the building after selling Citizens Bank to Boatmen’s Bancshares Corp. of St. Louis in a 1995 stock swap valued at $42 million.

 

 

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