Troubled Valley Heights Apartments in Little Rock Try New Lease on Life

by Luke Jones  on Monday, Oct. 28, 2013 12:00 am  

His enthusiasm proved to be unjustified.

Between 2011 and 2013, Henry’s properties were slammed with lawsuits.

The city of Little Rock brought a lawsuit seeking to have Valley Heights declared a nuisance. His Plaza Towers Apartments experienced both fire and flooding.

St. John’s Apartments in southwest Little Rock was sued by Regions Bank, a trustee in the loan agreement for the complex, for mismanagement.

The suit said Henry had made an urgent call to some of his partners in August 2012 for $63,000 just to keep some basic services running in the apartments.

In October 2012, Regions filed foreclosure suits on Valley Heights and the Arrington Apartments at 6301 Camp Robinson Road in North Little Rock. In March, Centennial Bank, successor of Twin City Bank, recovered the original portion of Valley Heights in a $2 million foreclosure sale. In August, Regions recovered the 2007 expansion in a $3 million foreclosure sale.

Since then, evidence of what used to be Henry Corp. has all but disappeared.

So what’s happened at Valley Heights in the meantime?

In March, Henry’s brother-in-law John Bailey, head of BSR Trust of Little Rock, paid $4.4 million for Centennial’s portion of the apartments. (Bailey’s sister, Madeline, is now divorced from Henry.)

The expansion is still owned by Regions.

Remmel said this summer, since Bailey’s purchase of the complex, has been “great,” but mainly because the pool is closed and there are fewer tenants.

Bailey is renovating the part of the complex that it owns, Remmel said, and the company has evicted a large number of its tenants, leaving between 30 and 40, and many of the buildings are boarded up for the renovation process.

 

 

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